Golden Textiles (Egypt) Volatility
| GTWL Stock | 27.32 2.28 9.11% |
Golden Textiles appears to be not too volatile, given 3 months investment horizon. Golden Textiles Clothes holds Efficiency (Sharpe) Ratio of 0.085, which attests that the entity had a 0.085% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Golden Textiles Clothes, which you can use to evaluate the volatility of the firm. Please utilize Golden Textiles' Risk Adjusted Performance of 0.0583, downside deviation of 5.05, and Market Risk Adjusted Performance of (0.77) to validate if our risk estimates are consistent with your expectations.
Golden |
Golden Textiles 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 Golden daily returns, and it is calculated using variance and standard deviation. We also use Golden's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Golden Textiles volatility.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Golden Textiles 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 Golden Textiles at lower prices to lower their average cost per share. Similarly, when the prices of Golden Textiles' stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Golden Textiles Market Sensitivity And Downside Risk
Golden Textiles' beta coefficient measures the volatility of Golden 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 Golden stock's returns against your selected market. In other words, Golden Textiles's beta of -0.34 provides an investor with an approximation of how much risk Golden Textiles stock can potentially add to one of your existing portfolios. Golden Textiles Clothes shows above-average downside volatility for the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Golden Textiles' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Golden Textiles' 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 Golden Textiles Clothes Demand TrendCheck current 90 days Golden Textiles correlation with market (Dow Jones Industrial)Golden Beta |
Golden 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 | 3.97 |
It is essential to understand the difference between upside risk (as represented by Golden Textiles's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Golden Textiles' daily returns or price. Since the actual investment returns on holding a position in golden 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 Golden Textiles.
Golden Textiles Clothes Stock Volatility Analysis
Volatility refers to the frequency at which Golden Textiles stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Golden Textiles' price changes. Investors will then calculate the volatility of Golden Textiles' 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 Golden Textiles' volatility:
Historical Volatility
This type of stock volatility measures Golden Textiles' fluctuations based on previous trends. It's commonly used to predict Golden Textiles' 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 Golden Textiles' 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 Golden Textiles' 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. Golden Textiles Clothes 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.
Golden Textiles Projected Return Density Against Market
Assuming the 90 days trading horizon Golden Textiles Clothes has a beta of -0.3351 . This usually indicates as returns on the benchmark increase, returns on holding Golden Textiles are expected to decrease at a much lower rate. During a bear market, however, Golden Textiles Clothes 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 Golden Textiles or Apparel 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 Golden Textiles' 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 Golden 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.
Golden Textiles Clothes has an alpha of 0.2967, implying that it can generate a 0.3 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Golden Textiles 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.Golden Textiles Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Golden Textiles is 1176.7. The daily returns are distributed with a variance of 15.73 and standard deviation of 3.97. The mean deviation of Golden Textiles Clothes is currently at 1.96. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.73
α | Alpha over Dow Jones | 0.30 | |
β | Beta against Dow Jones | -0.34 | |
σ | Overall volatility | 3.97 | |
Ir | Information ratio | 0.04 |
Golden Textiles Stock Return Volatility
Golden Textiles historical daily return volatility represents how much of Golden Textiles stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 3.9666% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7349% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
Golden Textiles Investment Opportunity
Golden Textiles Clothes has a volatility of 3.97 and is 5.44 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Golden Textiles Clothes is lower than 35 percent of all global equities and portfolios over the last 90 days. You can use Golden Textiles Clothes to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Golden Textiles to be traded at 34.15 in 90 days.Good diversification
The correlation between Golden Textiles Clothes and DJI is -0.06 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Golden Textiles Clothes and DJI in the same portfolio, assuming nothing else is changed.
Golden Textiles Additional Risk Indicators
The analysis of Golden Textiles' 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 Golden Textiles' investment and either accepting that risk or mitigating it. Along with some common measures of Golden Textiles 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 | 0.0583 | |||
| Market Risk Adjusted Performance | (0.77) | |||
| Mean Deviation | 1.94 | |||
| Semi Deviation | 2.32 | |||
| Downside Deviation | 5.05 | |||
| Coefficient Of Variation | 1449.67 | |||
| Standard Deviation | 3.95 |
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.
Golden Textiles 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 Golden Textiles 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. Golden Textiles' 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, Golden Textiles' 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 Golden Textiles Clothes.
Complementary Tools for Golden Stock analysis
When running Golden Textiles' price analysis, check to measure Golden Textiles' 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 Golden Textiles is operating at the current time. Most of Golden Textiles' value examination focuses on studying past and present price action to predict the probability of Golden Textiles' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Golden Textiles' price. Additionally, you may evaluate how the addition of Golden Textiles to your portfolios can decrease your overall portfolio volatility.
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