SCI Electric (Thailand) Volatility
| SCI Stock | THB 0.89 0.02 2.30% |
SCI Electric Public owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.054, which indicates the company had a -0.054% return per unit of volatility over the last 3 months. SCI Electric Public exposes twenty-eight different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate SCI Electric's Risk Adjusted Performance of 0.0198, downside deviation of 2.4, and Market Risk Adjusted Performance of 0.0638 to confirm the risk estimate we provide. Key indicators related to SCI Electric's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
SCI Electric 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 SCI daily returns, and it is calculated using variance and standard deviation. We also use SCI's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of SCI Electric volatility.
SCI |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of SCI Electric at lower prices. For example, an investor can purchase SCI 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 together with SCI Stock
SCI Electric Market Sensitivity And Downside Risk
SCI Electric's beta coefficient measures the volatility of SCI 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 SCI stock's returns against your selected market. In other words, SCI Electric's beta of 0.51 provides an investor with an approximation of how much risk SCI Electric stock can potentially add to one of your existing portfolios. SCI Electric Public currently demonstrates below-average downside deviation. It has Information Ratio of -0.03 and Jensen Alpha of -0.02. SCI Electric Public is a potential penny stock. Although SCI Electric 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 SCI Electric Public. 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 SCI 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 SCI Electric Public Demand TrendCheck current 90 days SCI Electric correlation with market (Dow Jones Industrial)SCI Beta |
SCI 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 | 1.95 |
It is essential to understand the difference between upside risk (as represented by SCI Electric's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of SCI Electric's daily returns or price. Since the actual investment returns on holding a position in sci 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 SCI Electric.
SCI Electric Public Stock Volatility Analysis
Volatility refers to the frequency at which SCI Electric stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with SCI Electric's price changes. Investors will then calculate the volatility of SCI Electric'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 SCI Electric's volatility:
Historical Volatility
This type of stock volatility measures SCI Electric's fluctuations based on previous trends. It's commonly used to predict SCI Electric'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 SCI Electric'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 SCI Electric'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. SCI Electric Public 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.
SCI Electric Projected Return Density Against Market
Assuming the 90 days trading horizon SCI Electric has a beta of 0.5093 . This usually implies as returns on the market go up, SCI Electric average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding SCI Electric Public 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 SCI Electric or Construction & Engineering 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 SCI Electric'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 SCI 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.
SCI Electric Public 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 |
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What Drives a SCI Electric 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.SCI Electric Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of SCI Electric is -1851.13. The daily returns are distributed with a variance of 3.8 and standard deviation of 1.95. The mean deviation of SCI Electric Public is currently at 1.5. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.73
α | Alpha over Dow Jones | -0.02 | |
β | Beta against Dow Jones | 0.51 | |
σ | Overall volatility | 1.95 | |
Ir | Information ratio | -0.03 |
SCI Electric Stock Return Volatility
SCI Electric historical daily return volatility represents how much of SCI Electric stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company assumes 1.9491% volatility of returns over the 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7298% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About SCI Electric Volatility
Volatility is a rate at which the price of SCI Electric 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 SCI Electric may increase or decrease. In other words, similar to SCI's beta indicator, it measures the risk of SCI Electric and helps estimate the fluctuations that may happen in a short period of time. So if prices of SCI Electric 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.SCI Electric Public Company Limited engages in the manufacture and sale of electrical switch boards and galvanized steel structures to various publicprivate sector projects. SCI Electric Public Company Limited was founded in 1987 and is headquartered in Bang Bo, Thailand. SCI ELECTRIC operates under Metal Fabrication classification in Thailand and is traded on Stock Exchange of Thailand.
SCI Electric'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 SCI Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much SCI Electric's price varies over time.
3 ways to utilize SCI Electric's volatility to invest better
Higher SCI Electric's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of SCI Electric Public 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. SCI Electric Public 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 SCI Electric Public investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in SCI Electric'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 SCI Electric's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
SCI Electric Investment Opportunity
SCI Electric Public has a volatility of 1.95 and is 2.67 times more volatile than Dow Jones Industrial. 17 percent of all equities and portfolios are less risky than SCI Electric. You can use SCI Electric Public to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of SCI Electric to be traded at 1.068 in 90 days.Average diversification
The correlation between SCI Electric Public and DJI is 0.18 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding SCI Electric Public and DJI in the same portfolio, assuming nothing else is changed.
SCI Electric Additional Risk Indicators
The analysis of SCI Electric'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 SCI Electric's investment and either accepting that risk or mitigating it. Along with some common measures of SCI Electric 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 | 0.0198 | |||
| Market Risk Adjusted Performance | 0.0638 | |||
| Mean Deviation | 1.57 | |||
| Semi Deviation | 1.81 | |||
| Downside Deviation | 2.4 | |||
| Coefficient Of Variation | 5422.16 | |||
| Standard Deviation | 2.03 |
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.
SCI Electric 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 SCI Electric 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. SCI Electric'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, SCI Electric'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 SCI Electric Public.
Other Information on Investing in SCI Stock
SCI Electric financial ratios help investors to determine whether SCI Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in SCI with respect to the benefits of owning SCI Electric security.