Paiho Shih (Taiwan) Volatility
| 8404 Stock | TWD 29.75 0.10 0.34% |
Paiho Shih appears to be not too volatile, given 3 months investment horizon. Paiho Shih Holdings maintains Sharpe Ratio (i.e., Efficiency) of 0.23, which implies the firm had a 0.23% return per unit of risk over the last 3 months. By analyzing Paiho Shih's technical indicators, you can evaluate if the expected return of 0.86% is justified by implied risk. Please evaluate Paiho Shih's Semi Deviation of 2.03, risk adjusted performance of 0.1776, and Coefficient Of Variation of 450.37 to confirm if our risk estimates are consistent with your expectations. Key indicators related to Paiho Shih's volatility include:
180 Days Market Risk | Chance Of Distress | 180 Days Economic Sensitivity |
Paiho Shih Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Paiho daily returns, and it is calculated using variance and standard deviation. We also use Paiho's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Paiho Shih volatility.
Paiho |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Paiho Shih can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Paiho Shih at lower prices. For example, an investor can purchase Paiho stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Paiho Shih's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Moving against Paiho Stock
| 0.88 | 9906 | Hsin Ba Ba Split | PairCorr |
| 0.82 | 2705 | Leofoo Development | PairCorr |
| 0.58 | 2633 | Taiwan High Speed | PairCorr |
| 0.31 | 9928 | China Television | PairCorr |
Paiho Shih Market Sensitivity And Downside Risk
Paiho Shih's beta coefficient measures the volatility of Paiho stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Paiho stock's returns against your selected market. In other words, Paiho Shih's beta of 0.33 provides an investor with an approximation of how much risk Paiho Shih stock can potentially add to one of your existing portfolios. Paiho Shih Holdings currently demonstrates below-average downside deviation. It has Information Ratio of 0.18 and Jensen Alpha of 0.75. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Paiho Shih's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Paiho Shih's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Paiho Shih Holdings Demand TrendCheck current 90 days Paiho Shih correlation with market (Dow Jones Industrial)Paiho Beta |
Paiho standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 3.65 |
It is essential to understand the difference between upside risk (as represented by Paiho Shih's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Paiho Shih's daily returns or price. Since the actual investment returns on holding a position in paiho stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Paiho Shih.
Paiho Shih Holdings Stock Volatility Analysis
Volatility refers to the frequency at which Paiho Shih stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Paiho Shih's price changes. Investors will then calculate the volatility of Paiho Shih's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Paiho Shih's volatility:
Historical Volatility
This type of stock volatility measures Paiho Shih's fluctuations based on previous trends. It's commonly used to predict Paiho Shih's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Paiho Shih's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Paiho Shih's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Paiho Shih Holdings Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Paiho Shih Projected Return Density Against Market
Assuming the 90 days trading horizon Paiho Shih has a beta of 0.3258 . This suggests as returns on the market go up, Paiho Shih average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Paiho Shih Holdings will be expected to be much smaller as well.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Paiho Shih or Textiles, Apparel & Luxury Goods sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Paiho Shih's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Paiho stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Paiho Shih Holdings has an alpha of 0.7499, implying that it can generate a 0.75 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Paiho Shih Price Volatility?
Several factors can influence a stock's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Paiho Shih Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Paiho Shih is 426.23. The daily returns are distributed with a variance of 13.33 and standard deviation of 3.65. The mean deviation of Paiho Shih Holdings is currently at 2.77. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.75 | |
β | Beta against Dow Jones | 0.33 | |
σ | Overall volatility | 3.65 | |
Ir | Information ratio | 0.18 |
Paiho Shih Stock Return Volatility
Paiho Shih historical daily return volatility represents how much of Paiho Shih stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The venture accepts 3.6507% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7502% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Paiho Shih Volatility
Volatility is a rate at which the price of Paiho Shih or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Paiho Shih may increase or decrease. In other words, similar to Paiho's beta indicator, it measures the risk of Paiho Shih and helps estimate the fluctuations that may happen in a short period of time. So if prices of Paiho Shih fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.Paiho Shih Holdings Corporation, through its subsidiaries, manufactures and sells touch fastener, webbing, elastic, jacquard engineered mesh, and related peripheral materials in China and internationally. Paiho Shih Holdings Corporation is a subsidiary of Paiho Intl Limited. Paiho Shih is traded on Taiwan Stock Exchange in Taiwan.
Paiho Shih's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Paiho Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Paiho Shih's price varies over time.
3 ways to utilize Paiho Shih's volatility to invest better
Higher Paiho Shih's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Paiho Shih Holdings stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Paiho Shih Holdings stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Paiho Shih Holdings investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Paiho Shih's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Paiho Shih's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Paiho Shih Investment Opportunity
Paiho Shih Holdings has a volatility of 3.65 and is 4.87 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Paiho Shih Holdings is lower than 32 percent of all global equities and portfolios over the last 90 days. You can use Paiho Shih Holdings to enhance the returns of your portfolios. The stock experiences a normal upward fluctuation. Check odds of Paiho Shih to be traded at NT$31.24 in 90 days.Significant diversification
The correlation between Paiho Shih Holdings and DJI is 0.07 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Paiho Shih Holdings and DJI in the same portfolio, assuming nothing else is changed.
Paiho Shih Additional Risk Indicators
The analysis of Paiho Shih's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Paiho Shih's investment and either accepting that risk or mitigating it. Along with some common measures of Paiho Shih stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.1776 | |||
| Market Risk Adjusted Performance | 2.44 | |||
| Mean Deviation | 2.73 | |||
| Semi Deviation | 2.03 | |||
| Downside Deviation | 2.62 | |||
| Coefficient Of Variation | 450.37 | |||
| Standard Deviation | 3.61 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Paiho Shih Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
| Ford vs. Paiho Shih | ||
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| Citigroup vs. Paiho Shih | ||
| Bank of America vs. Paiho Shih | ||
| Visa vs. Paiho Shih | ||
| GM vs. Paiho Shih | ||
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Paiho Shih as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Paiho Shih's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Paiho Shih's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Paiho Shih Holdings.
Additional Tools for Paiho Stock Analysis
When running Paiho Shih's price analysis, check to measure Paiho Shih's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Paiho Shih is operating at the current time. Most of Paiho Shih's value examination focuses on studying past and present price action to predict the probability of Paiho Shih's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Paiho Shih's price. Additionally, you may evaluate how the addition of Paiho Shih to your portfolios can decrease your overall portfolio volatility.