Brookside Energy (Germany) Volatility
| 8F3 Stock | 0.24 0.02 7.69% |
Brookside Energy secures Sharpe Ratio (or Efficiency) of -0.0475, which signifies that the company had a -0.0475% return per unit of risk over the last 3 months. Brookside Energy Limited exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Brookside Energy's Mean Deviation of 2.49, risk adjusted performance of (0.03), and Standard Deviation of 6.39 to double-check the risk estimate we provide.
Brookside |
Brookside Energy 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 Brookside daily returns, and it is calculated using variance and standard deviation. We also use Brookside's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Brookside Energy volatility.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Brookside Energy can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game as hey may decide to buy additional stocks of Brookside Energy at lower prices to lower their average cost per share. Similarly, when the prices of Brookside Energy's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving against Brookside Stock
Brookside Energy Market Sensitivity And Downside Risk
Brookside Energy's beta coefficient measures the volatility of Brookside 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 Brookside stock's returns against your selected market. In other words, Brookside Energy's beta of -0.18 provides an investor with an approximation of how much risk Brookside Energy stock can potentially add to one of your existing portfolios. Brookside Energy Limited is displaying above-average volatility over the selected time horizon. Brookside Energy Limited is a potential penny stock. Although Brookside Energy may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Brookside Energy Limited. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Brookside instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.
3 Months Beta |Analyze Brookside Energy Demand TrendCheck current 90 days Brookside Energy correlation with market (Dow Jones Industrial)Brookside Beta |
Brookside 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 | 6.21 |
It is essential to understand the difference between upside risk (as represented by Brookside Energy's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Brookside Energy's daily returns or price. Since the actual investment returns on holding a position in brookside 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 Brookside Energy.
Brookside Energy Stock Volatility Analysis
Volatility refers to the frequency at which Brookside Energy stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Brookside Energy's price changes. Investors will then calculate the volatility of Brookside Energy'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 Brookside Energy's volatility:
Historical Volatility
This type of stock volatility measures Brookside Energy's fluctuations based on previous trends. It's commonly used to predict Brookside Energy'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 Brookside Energy'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 Brookside Energy'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. Brookside Energy 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.
Brookside Energy Projected Return Density Against Market
Assuming the 90 days trading horizon Brookside Energy Limited has a beta of -0.1775 . This suggests as returns on the benchmark increase, returns on holding Brookside Energy are expected to decrease at a much lower rate. During a bear market, however, Brookside Energy Limited is likely to outperform the market.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 Brookside Energy or Brookside 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 Brookside Energy'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 Brookside 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.
Brookside Energy Limited has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives a Brookside Energy 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.Brookside Energy Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Brookside Energy is -2105.97. The daily returns are distributed with a variance of 38.62 and standard deviation of 6.21. The mean deviation of Brookside Energy Limited is currently at 2.21. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.8
α | Alpha over Dow Jones | -0.35 | |
β | Beta against Dow Jones | -0.18 | |
σ | Overall volatility | 6.21 | |
Ir | Information ratio | -0.06 |
Brookside Energy Stock Return Volatility
Brookside Energy historical daily return volatility represents how much of Brookside Energy stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm assumes 6.2146% volatility of returns over the 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.807% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
Brookside Energy Investment Opportunity
Brookside Energy Limited has a volatility of 6.21 and is 7.67 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Brookside Energy Limited is higher than 55 percent of all global equities and portfolios over the last 90 days. You can use Brookside Energy Limited to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of Brookside Energy to be traded at 0.228 in 90 days.Good diversification
The correlation between Brookside Energy Limited and DJI is -0.02 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Brookside Energy Limited and DJI in the same portfolio, assuming nothing else is changed.
Brookside Energy Additional Risk Indicators
The analysis of Brookside Energy'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 Brookside Energy's investment and either accepting that risk or mitigating it. Along with some common measures of Brookside Energy 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 | (0.03) | |||
| Market Risk Adjusted Performance | 1.99 | |||
| Mean Deviation | 2.49 | |||
| Coefficient Of Variation | (1,869) | |||
| Standard Deviation | 6.39 | |||
| Variance | 40.89 | |||
| Information Ratio | (0.06) |
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.
Brookside Energy 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.
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 Brookside Energy 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. Brookside Energy'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, Brookside Energy'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 Brookside Energy Limited.
Complementary Tools for Brookside Stock analysis
When running Brookside Energy's price analysis, check to measure Brookside Energy'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 Brookside Energy is operating at the current time. Most of Brookside Energy's value examination focuses on studying past and present price action to predict the probability of Brookside Energy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Brookside Energy's price. Additionally, you may evaluate how the addition of Brookside Energy to your portfolios can decrease your overall portfolio volatility.
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