Creative Global Technology Stock Volatility
| CGTL Stock | 7.83 0.17 2.12% |
Creative Global is out of control given 3 months investment horizon. Creative Global Tech secures Sharpe Ratio (or Efficiency) of 0.25, which signifies that the company had a 0.25% return per unit of standard deviation over the last 3 months. We were able to interpolate and analyze data for twenty-two different technical indicators, which can help you to evaluate if expected returns of 57.04% are justified by taking the suggested risk. Use Creative Global mean deviation of 9.15, and Risk Adjusted Performance of 0.2988 to evaluate company specific risk that cannot be diversified away. Key indicators related to Creative Global's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Creative Global 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 Creative daily returns, and it is calculated using variance and standard deviation. We also use Creative's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Creative Global volatility.
Creative |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Creative Global at lower prices. For example, an investor can purchase Creative 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 against Creative Stock
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| 0.57 | SW | Smurfit WestRock plc | PairCorr |
| 0.56 | DRVN | Driven Brands Holdings | PairCorr |
| 0.54 | EFOI | Energy Focu | PairCorr |
| 0.48 | ZOOZ | ZOOZ Power | PairCorr |
| 0.47 | IP | International Paper | PairCorr |
| 0.42 | VIRC | Virco Manufacturing | PairCorr |
| 0.38 | VSTO | Vista Outdoor | PairCorr |
| 0.36 | WPRT | Westport Fuel Systems | PairCorr |
Creative Global Market Sensitivity And Downside Risk
Creative Global's beta coefficient measures the volatility of Creative 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 Creative stock's returns against your selected market. In other words, Creative Global's beta of 0.0907 provides an investor with an approximation of how much risk Creative Global stock can potentially add to one of your existing portfolios. Creative Global Technology is displaying above-average volatility over the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Creative Global'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 Creative Global'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 Creative Global Tech Demand TrendCheck current 90 days Creative Global correlation with market (Dow Jones Industrial)Creative Beta |
Creative 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 | 228.71 |
It is essential to understand the difference between upside risk (as represented by Creative Global's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Creative Global's daily returns or price. Since the actual investment returns on holding a position in creative 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 Creative Global.
Creative Global Tech Stock Volatility Analysis
Volatility refers to the frequency at which Creative Global stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Creative Global's price changes. Investors will then calculate the volatility of Creative Global'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 Creative Global's volatility:
Historical Volatility
This type of stock volatility measures Creative Global's fluctuations based on previous trends. It's commonly used to predict Creative Global'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 Creative Global'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 Creative Global'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 nineteen. Creative Global Tech 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.
Creative Global Projected Return Density Against Market
Given the investment horizon of 90 days Creative Global has a beta of 0.0907 suggesting as returns on the market go up, Creative Global average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Creative Global Technology 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 Creative Global or Consumer Cyclical 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 Creative Global'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 Creative 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.
Creative Global Technology has an alpha of 4.7581, implying that it can generate a 4.76 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Creative Global 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.Creative Global Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Creative Global is 400.96. The daily returns are distributed with a variance of 52306.15 and standard deviation of 228.71. The mean deviation of Creative Global Technology is currently at 99.26. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.79
α | Alpha over Dow Jones | 4.76 | |
β | Beta against Dow Jones | 0.09 | |
σ | Overall volatility | 228.71 | |
Ir | Information ratio | 0.36 |
Creative Global Stock Return Volatility
Creative Global historical daily return volatility represents how much of Creative Global stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 228.7054% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8045% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Creative Global Volatility
Volatility is a rate at which the price of Creative Global 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 Creative Global may increase or decrease. In other words, similar to Creative's beta indicator, it measures the risk of Creative Global and helps estimate the fluctuations that may happen in a short period of time. So if prices of Creative Global 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.3 ways to utilize Creative Global's volatility to invest better
Higher Creative Global's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Creative Global Tech 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. Creative Global Tech 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 Creative Global Tech investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Creative Global'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 Creative Global's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Creative Global Investment Opportunity
Creative Global Technology has a volatility of 228.71 and is 285.89 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Creative Global Technology is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use Creative Global Technology to protect your portfolios against small market fluctuations. The stock experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of Creative Global to be traded at 7.52 in 90 days.Significant diversification
The correlation between Creative Global Technology and DJI is 0.01 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Creative Global Technology and DJI in the same portfolio, assuming nothing else is changed.
Creative Global Additional Risk Indicators
The analysis of Creative Global'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 Creative Global's investment and either accepting that risk or mitigating it. Along with some common measures of Creative Global 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 | 0.2988 | |||
| Market Risk Adjusted Performance | 52.49 | |||
| Mean Deviation | 9.15 | |||
| Coefficient Of Variation | 274.36 | |||
| Standard Deviation | 13.09 | |||
| Variance | 171.29 | |||
| Information Ratio | 0.3619 |
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.
Creative Global 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 Creative Global 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. Creative Global'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, Creative Global'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 Creative Global Technology.
When determining whether Creative Global Tech is a strong investment it is important to analyze Creative Global'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 Creative Global's future performance. For an informed investment choice regarding Creative Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Creative Global Technology. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate. You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Is Wholesale 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 Creative Global. If investors know Creative 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 Creative Global listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Creative Global Tech is measured differently than its book value, which is the value of Creative that is recorded on the company's balance sheet. Investors also form their own opinion of Creative Global's value that differs from its market value or its book value, called intrinsic value, which is Creative Global'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 Creative Global's market value can be influenced by many factors that don't directly affect Creative Global'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 Creative Global's value and its price as these two are different measures arrived at by different means. Investors typically determine if Creative Global is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Creative Global'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.