Fletcher Building Ltd Stock Volatility
| FCREY Stock | USD 3.25 0.04 1.22% |
Fletcher Building secures Sharpe Ratio (or Efficiency) of -0.0374, which denotes the company had a -0.0374% return per unit of risk over the last 3 months. Fletcher Building Ltd exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Fletcher Building's Mean Deviation of 2.07, standard deviation of 5.48, and Variance of 30.01 to check the risk estimate we provide. Key indicators related to Fletcher Building's volatility include:
390 Days Market Risk | Chance Of Distress | 390 Days Economic Sensitivity |
Fletcher Building Pink Sheet 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 Fletcher daily returns, and it is calculated using variance and standard deviation. We also use Fletcher's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Fletcher Building volatility.
Fletcher |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Fletcher Building 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 Fletcher Building at lower prices. For example, an investor can purchase Fletcher 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 Fletcher Building'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 Fletcher Pink Sheet
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| 0.47 | ITCL | Banco Ita Chile | PairCorr |
| 0.46 | AVAL | Grupo Aval | PairCorr |
| 0.45 | CRHCF | CRH Plc | PairCorr |
| 0.41 | HCMLF | Holcim | PairCorr |
| 0.41 | FNMFO | Federal National Mortgage | PairCorr |
Fletcher Building Market Sensitivity And Downside Risk
Fletcher Building's beta coefficient measures the volatility of Fletcher pink sheet 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 Fletcher pink sheet's returns against your selected market. In other words, Fletcher Building's beta of 0.44 provides an investor with an approximation of how much risk Fletcher Building pink sheet can potentially add to one of your existing portfolios. Fletcher Building Ltd exhibits very low volatility with skewness of 0.72 and kurtosis of 14.63. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Fletcher Building's pink sheet risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Fletcher Building's pink sheet 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 Fletcher Building Demand TrendCheck current 90 days Fletcher Building correlation with market (Dow Jones Industrial)Fletcher Beta |
Fletcher 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 | 5.61 |
It is essential to understand the difference between upside risk (as represented by Fletcher Building's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Fletcher Building's daily returns or price. Since the actual investment returns on holding a position in fletcher pink sheet 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 Fletcher Building.
Fletcher Building Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Fletcher Building pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Fletcher Building's price changes. Investors will then calculate the volatility of Fletcher Building's pink sheet to predict their future moves. A pink sheet that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A pink sheet with relatively stable price changes has low volatility. A highly volatile pink sheet 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 Fletcher Building's volatility:
Historical Volatility
This type of pink sheet volatility measures Fletcher Building's fluctuations based on previous trends. It's commonly used to predict Fletcher Building's future behavior based on its past. However, it cannot conclusively determine the future direction of the pink sheet.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Fletcher Building's current market price. This means that the pink sheet will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Fletcher Building'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. Fletcher Building 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.
Fletcher Building Projected Return Density Against Market
Assuming the 90 days horizon Fletcher Building has a beta of 0.4372 . This usually indicates as returns on the market go up, Fletcher Building average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Fletcher Building Ltd 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 Fletcher Building or Basic Materials 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 Fletcher Building's price will be affected by overall pink sheet 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 Fletcher pink sheet'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.
Fletcher Building Ltd 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 Fletcher Building Price Volatility?
Several factors can influence a pink sheet'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.Fletcher Building Pink Sheet Risk Measures
Assuming the 90 days horizon the coefficient of variation of Fletcher Building is -2676.09. The daily returns are distributed with a variance of 31.46 and standard deviation of 5.61. The mean deviation of Fletcher Building Ltd is currently at 2.17. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.73
α | Alpha over Dow Jones | -0.25 | |
β | Beta against Dow Jones | 0.44 | |
σ | Overall volatility | 5.61 | |
Ir | Information ratio | -0.06 |
Fletcher Building Pink Sheet Return Volatility
Fletcher Building historical daily return volatility represents how much of Fletcher Building pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 5.6093% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7299% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Fletcher Building Volatility
Volatility is a rate at which the price of Fletcher Building 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 Fletcher Building may increase or decrease. In other words, similar to Fletcher's beta indicator, it measures the risk of Fletcher Building and helps estimate the fluctuations that may happen in a short period of time. So if prices of Fletcher Building 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.Fletcher Building Limited, together with its subsidiaries, manufactures and distributes building products in New Zealand, Australia, and internationally. The company was founded in 1909 and is headquartered in Auckland, New Zealand. Fletcher Building operates under Building Materials classification in the United States and is traded on OTC Exchange. It employs 14700 people.
Fletcher Building'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 Fletcher Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Fletcher Building's price varies over time.
3 ways to utilize Fletcher Building's volatility to invest better
Higher Fletcher Building's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Fletcher Building 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. Fletcher Building 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 Fletcher Building investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Fletcher Building'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 Fletcher Building's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Fletcher Building Investment Opportunity
Fletcher Building Ltd has a volatility of 5.61 and is 7.68 times more volatile than Dow Jones Industrial. 49 percent of all equities and portfolios are less risky than Fletcher Building. You can use Fletcher Building Ltd to protect your portfolios against small market fluctuations. The pink sheet experiences a bearish sentiment with high volatility. Check odds of Fletcher Building to be traded at $3.15 in 90 days.Significant diversification
The correlation between Fletcher Building Ltd and DJI is 0.06 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Fletcher Building Ltd and DJI in the same portfolio, assuming nothing else is changed.
Fletcher Building Additional Risk Indicators
The analysis of Fletcher Building'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 Fletcher Building's investment and either accepting that risk or mitigating it. Along with some common measures of Fletcher Building pink sheet'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 | (0.02) | |||
| Market Risk Adjusted Performance | (0.47) | |||
| Mean Deviation | 2.07 | |||
| Coefficient Of Variation | (2,738) | |||
| Standard Deviation | 5.48 | |||
| Variance | 30.01 | |||
| 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 pink sheets, we recommend comparing similar pink sheets with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Fletcher Building 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 Fletcher Building 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. Fletcher Building'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, Fletcher Building'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 Fletcher Building Ltd.
Additional Tools for Fletcher Pink Sheet Analysis
When running Fletcher Building's price analysis, check to measure Fletcher Building'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 Fletcher Building is operating at the current time. Most of Fletcher Building's value examination focuses on studying past and present price action to predict the probability of Fletcher Building's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Fletcher Building's price. Additionally, you may evaluate how the addition of Fletcher Building to your portfolios can decrease your overall portfolio volatility.