Premium Catering Limited Stock Volatility

PC Stock   0.83  0.01  1.19%   
Premium Catering maintains Sharpe Ratio (i.e., Efficiency) of -0.11, which implies the firm had a -0.11% return per unit of risk over the last 3 months. Premium Catering exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check Premium Catering's Coefficient Of Variation of (905.61), variance of 199.8, and Risk Adjusted Performance of (0.07) to confirm the risk estimate we provide. Key indicators related to Premium Catering's volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
Premium Catering 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 Premium daily returns, and it is calculated using variance and standard deviation. We also use Premium's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Premium Catering volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Premium Catering 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 Premium Catering at lower prices to lower their average cost per share. Similarly, when the prices of Premium Catering's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.

Moving together with Premium Stock

  0.73NISN Nisun InternationalPairCorr

Moving against Premium Stock

  0.72GPN Global PaymentsPairCorr
  0.57TH Target Hospitality CorpPairCorr
  0.44AZ A2Z Smart TechnologiesPairCorr
  0.41AL Air LeasePairCorr
  0.36G Genpact LimitedPairCorr

Premium Catering Market Sensitivity And Downside Risk

Premium Catering's beta coefficient measures the volatility of Premium 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 Premium stock's returns against your selected market. In other words, Premium Catering's beta of 2.3 provides an investor with an approximation of how much risk Premium Catering stock can potentially add to one of your existing portfolios. Premium Catering Limited is displaying above-average volatility over the selected time horizon. Premium Catering Limited is a potential penny stock. Although Premium Catering 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 Premium Catering 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 Premium 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 Premium Catering Demand Trend
Check current 90 days Premium Catering correlation with market (Dow Jones Industrial)

Premium Beta

    
  2.3  
Premium 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

    
  13.99  
It is essential to understand the difference between upside risk (as represented by Premium Catering's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Premium Catering's daily returns or price. Since the actual investment returns on holding a position in premium 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 Premium Catering.

Premium Catering Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Premium Catering's fluctuations based on previous trends. It's commonly used to predict Premium Catering'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 Premium Catering'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 Premium Catering'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 fifty-one. Premium Catering 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.

Premium Catering Projected Return Density Against Market

Allowing for the 90-day total investment horizon the stock has the beta coefficient of 2.2964 indicating as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Premium Catering will likely underperform.
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 Premium Catering or Industrials 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 Premium Catering'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 Premium 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.
Premium Catering Limited 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  
Premium Catering's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how premium 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 Premium Catering 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.

Premium Catering Stock Risk Measures

Allowing for the 90-day total investment horizon the coefficient of variation of Premium Catering is -914.56. The daily returns are distributed with a variance of 195.86 and standard deviation of 13.99. The mean deviation of Premium Catering Limited is currently at 8.04. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.74
α
Alpha over Dow Jones
-1.88
β
Beta against Dow Jones2.30
σ
Overall volatility
13.99
Ir
Information ratio -0.12

Premium Catering Stock Return Volatility

Premium Catering historical daily return volatility represents how much of Premium Catering stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm accepts 13.9948% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7364% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Premium Catering Volatility

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

Higher Premium Catering's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Premium Catering 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. Premium Catering 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 Premium Catering investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Premium Catering'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 Premium Catering'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.

Premium Catering Investment Opportunity

Premium Catering Limited has a volatility of 13.99 and is 18.91 times more volatile than Dow Jones Industrial. 96 percent of all equities and portfolios are less risky than Premium Catering. You can use Premium Catering 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 Premium Catering to be traded at 0.8051 in 90 days.

Average diversification

The correlation between Premium Catering Limited and DJI is 0.14 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Premium Catering Limited and DJI in the same portfolio, assuming nothing else is changed.

Premium Catering Additional Risk Indicators

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

Premium Catering 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 Premium Catering 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. Premium Catering'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, Premium Catering'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 Premium Catering Limited.

Complementary Tools for Premium Stock analysis

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