Cbl International Limited Stock Volatility
| BANL Stock | 1.04 0.02 1.89% |
CBL International is out of control given 3 months investment horizon. CBL International secures Sharpe Ratio (or Efficiency) of 0.14, which signifies that the company had a 0.14% return per unit of return volatility over the last 3 months. We were able to interpolate twenty-eight different technical indicators, which can help you to evaluate if expected returns of 1.19% are justified by taking the suggested risk. Use CBL International Mean Deviation of 4.94, downside deviation of 7.56, and Coefficient Of Variation of 701.42 to evaluate company specific risk that cannot be diversified away. Key indicators related to CBL International's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
CBL International 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 CBL daily returns, and it is calculated using variance and standard deviation. We also use CBL's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of CBL International volatility.
CBL |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of CBL International at lower prices. For example, an investor can purchase CBL stock that has halved in price over a short period. This will lower their average cost per share, thereby improving the overall portfolio performance when market normalizes.
Moving together with CBL Stock
Moving against CBL Stock
CBL International Market Sensitivity And Downside Risk
CBL International's beta coefficient measures the volatility of CBL 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 CBL stock's returns against your selected market. In other words, CBL International's beta of -1.43 provides an investor with an approximation of how much risk CBL International stock can potentially add to one of your existing portfolios. CBL International Limited is displaying above-average volatility over the selected time horizon. CBL International Limited is a potential penny stock. Although CBL International 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 CBL International 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 CBL 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 CBL International Demand TrendCheck current 90 days CBL International correlation with market (Dow Jones Industrial)CBL Beta |
CBL 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 | 8.31 |
It is essential to understand the difference between upside risk (as represented by CBL International's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of CBL International's daily returns or price. Since the actual investment returns on holding a position in cbl 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 CBL International.
CBL International Stock Volatility Analysis
Volatility refers to the frequency at which CBL International stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with CBL International's price changes. Investors will then calculate the volatility of CBL International'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 CBL International's volatility:
Historical Volatility
This type of stock volatility measures CBL International's fluctuations based on previous trends. It's commonly used to predict CBL International'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 CBL International'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 CBL International'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. CBL International 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.
CBL International Projected Return Density Against Market
Given the investment horizon of 90 days CBL International Limited has a beta of -1.4288 suggesting as returns on its benchmark rise, returns on holding CBL International Limited are expected to decrease by similarly larger amounts. On the other hand, during market turmoils, CBL International is expected to outperform its benchmark.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 CBL International or Oil, Gas & Consumable Fuels 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 CBL International'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 CBL 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.
CBL International Limited has an alpha of 1.1923, implying that it can generate a 1.19 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a CBL International 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.CBL International Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of CBL International is 696.75. The daily returns are distributed with a variance of 68.97 and standard deviation of 8.31. The mean deviation of CBL International Limited is currently at 4.93. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.8
α | Alpha over Dow Jones | 1.19 | |
β | Beta against Dow Jones | -1.43 | |
σ | Overall volatility | 8.30 | |
Ir | Information ratio | 0.14 |
CBL International Stock Return Volatility
CBL International historical daily return volatility represents how much of CBL International stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 8.305% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8088% volatility on return distribution over the 90 days horizon. Performance |
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About CBL International Volatility
Volatility is a rate at which the price of CBL International 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 CBL International may increase or decrease. In other words, similar to CBL's beta indicator, it measures the risk of CBL International and helps estimate the fluctuations that may happen in a short period of time. So if prices of CBL International 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.| Last Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 1.2 M | 1.1 M | |
| Market Cap | 33.1 M | 29.4 M |
CBL International'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 CBL Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much CBL International's price varies over time.
3 ways to utilize CBL International's volatility to invest better
Higher CBL International's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of CBL International 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. CBL International 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 CBL International investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in CBL International'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 CBL International's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
CBL International Investment Opportunity
CBL International Limited has a volatility of 8.31 and is 10.26 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of CBL International Limited is higher than 73 percent of all global equities and portfolios over the last 90 days. You can use CBL International Limited to protect your portfolios against small market fluctuations. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of CBL International to be traded at 1.0088 in 90 days.Good diversification
The correlation between CBL International Limited and DJI is -0.14 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding CBL International Limited and DJI in the same portfolio, assuming nothing else is changed.
CBL International Additional Risk Indicators
The analysis of CBL International'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 CBL International's investment and either accepting that risk or mitigating it. Along with some common measures of CBL International 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 | 0.1227 | |||
| Market Risk Adjusted Performance | (0.80) | |||
| Mean Deviation | 4.94 | |||
| Semi Deviation | 5.93 | |||
| Downside Deviation | 7.56 | |||
| Coefficient Of Variation | 701.42 | |||
| Standard Deviation | 8.21 |
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.
CBL International 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 CBL International 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. CBL International'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, CBL International'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 CBL International Limited.
When determining whether CBL International is a strong investment it is important to analyze CBL International's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact CBL International's future performance. For an informed investment choice regarding CBL Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in CBL International Limited. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Is Oil & Gas Exploration & Production space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of CBL International. If investors know CBL will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about CBL International listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.10) | Earnings Share (0.06) | Revenue Per Share 20.847 | Quarterly Revenue Growth 0.444 | Return On Assets (0.01) |
The market value of CBL International is measured differently than its book value, which is the value of CBL that is recorded on the company's balance sheet. Investors also form their own opinion of CBL International's value that differs from its market value or its book value, called intrinsic value, which is CBL International's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because CBL International's market value can be influenced by many factors that don't directly affect CBL International's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between CBL International's value and its price as these two are different measures arrived at by different means. Investors typically determine if CBL International is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CBL International's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.