Develia SA (Poland) Volatility

DVL Stock   5.82  0.11  1.85%   
Develia SA appears to be slightly risky, given 3 months investment horizon. Develia SA secures Sharpe Ratio (or Efficiency) of 0.0931, which denotes the company had a 0.0931% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Develia SA, which you can use to evaluate the volatility of the firm. Please utilize Develia SA's Downside Deviation of 2.04, mean deviation of 1.67, and Coefficient Of Variation of 1995.84 to check if our risk estimates are consistent with your expectations. Key indicators related to Develia SA's volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
Develia SA 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 Develia daily returns, and it is calculated using variance and standard deviation. We also use Develia's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Develia SA volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Develia SA 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 Develia SA at lower prices. For example, an investor can purchase Develia 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 Develia SA'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 together with Develia Stock

  0.7DOM Dom Development SAPairCorr

Moving against Develia Stock

  0.46TOW Tower InvestmentsPairCorr
  0.44MIL Bank Millennium SAPairCorr
  0.42BHW Bank Handlowy wPairCorr
  0.4PKN Polski Koncern NaftowyPairCorr
  0.31MBK mBank SAPairCorr

Develia SA Market Sensitivity And Downside Risk

Develia SA's beta coefficient measures the volatility of Develia 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 Develia stock's returns against your selected market. In other words, Develia SA's beta of 0.69 provides an investor with an approximation of how much risk Develia SA stock can potentially add to one of your existing portfolios. Develia SA currently demonstrates below-average downside deviation. It has Information Ratio of -0.01 and Jensen Alpha of 0.02. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Develia SA'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 Develia SA'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 Develia SA Demand Trend
Check current 90 days Develia SA correlation with market (Dow Jones Industrial)

Develia Beta

    
  0.69  
Develia 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

    
  2.51  
It is essential to understand the difference between upside risk (as represented by Develia SA's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Develia SA's daily returns or price. Since the actual investment returns on holding a position in develia 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 Develia SA.

Develia SA Stock Volatility Analysis

Volatility refers to the frequency at which Develia SA stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Develia SA's price changes. Investors will then calculate the volatility of Develia SA'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 Develia SA's volatility:

Historical Volatility

This type of stock volatility measures Develia SA's fluctuations based on previous trends. It's commonly used to predict Develia SA'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 Develia SA'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 Develia SA'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. Develia SA 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.

Develia SA Projected Return Density Against Market

Assuming the 90 days trading horizon Develia SA has a beta of 0.689 suggesting as returns on the market go up, Develia SA average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Develia SA 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 Develia SA or Real Estate-Development 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 Develia SA'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 Develia 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.
Develia SA has an alpha of 0.0233, implying that it can generate a 0.0233 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Develia SA's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how develia stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Develia SA 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.

Develia SA Stock Risk Measures

Assuming the 90 days trading horizon the coefficient of variation of Develia SA is 1074.68. The daily returns are distributed with a variance of 6.28 and standard deviation of 2.51. The mean deviation of Develia SA is currently at 1.59. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.74
α
Alpha over Dow Jones
0.02
β
Beta against Dow Jones0.69
σ
Overall volatility
2.51
Ir
Information ratio -0.0075

Develia SA Stock Return Volatility

Develia SA historical daily return volatility represents how much of Develia SA stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The enterprise accepts 2.5068% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7309% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Develia SA Volatility

Volatility is a rate at which the price of Develia SA 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 Develia SA may increase or decrease. In other words, similar to Develia's beta indicator, it measures the risk of Develia SA and helps estimate the fluctuations that may happen in a short period of time. So if prices of Develia SA 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 Develia SA's volatility to invest better

Higher Develia SA's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Develia SA 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. Develia SA 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 Develia SA investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Develia SA'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 Develia SA's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Develia SA Investment Opportunity

Develia SA has a volatility of 2.51 and is 3.44 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Develia SA is lower than 22 percent of all global equities and portfolios over the last 90 days. You can use Develia SA 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 Develia SA to be traded at 5.65 in 90 days.

Modest diversification

The correlation between Develia SA and DJI is 0.2 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Develia SA and DJI in the same portfolio, assuming nothing else is changed.

Develia SA Additional Risk Indicators

The analysis of Develia SA'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 Develia SA's investment and either accepting that risk or mitigating it. Along with some common measures of Develia SA 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.
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.

Develia SA 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 Develia SA 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. Develia SA'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, Develia SA'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 Develia SA.

Additional Tools for Develia Stock Analysis

When running Develia SA's price analysis, check to measure Develia SA'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 Develia SA is operating at the current time. Most of Develia SA's value examination focuses on studying past and present price action to predict the probability of Develia SA's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Develia SA's price. Additionally, you may evaluate how the addition of Develia SA to your portfolios can decrease your overall portfolio volatility.