Systemair (Sweden) Volatility
| SYSR Stock | SEK 91.50 0.20 0.22% |
Systemair appears to be very steady, given 3 months investment horizon. Systemair AB owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.12, which indicates the firm had a 0.12% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Systemair AB, which you can use to evaluate the volatility of the company. Please review Systemair's Risk Adjusted Performance of 0.1044, semi deviation of 1.31, and Coefficient Of Variation of 775.64 to confirm if our risk estimates are consistent with your expectations. Key indicators related to Systemair's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Systemair 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 Systemair daily returns, and it is calculated using variance and standard deviation. We also use Systemair's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Systemair volatility.
Systemair |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Systemair 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 Systemair at lower prices. For example, an investor can purchase Systemair 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 Systemair'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 Systemair Stock
Moving against Systemair Stock
Systemair Market Sensitivity And Downside Risk
Systemair's beta coefficient measures the volatility of Systemair 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 Systemair stock's returns against your selected market. In other words, Systemair's beta of -0.25 provides an investor with an approximation of how much risk Systemair stock can potentially add to one of your existing portfolios. Systemair AB has relatively low volatility with skewness of 1.18 and kurtosis of 4.4. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Systemair'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 Systemair'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 Systemair AB Demand TrendCheck current 90 days Systemair correlation with market (Dow Jones Industrial)Systemair Beta |
Systemair 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 | 1.86 |
It is essential to understand the difference between upside risk (as represented by Systemair's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Systemair's daily returns or price. Since the actual investment returns on holding a position in systemair 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 Systemair.
Systemair AB Stock Volatility Analysis
Volatility refers to the frequency at which Systemair stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Systemair's price changes. Investors will then calculate the volatility of Systemair'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 Systemair's volatility:
Historical Volatility
This type of stock volatility measures Systemair's fluctuations based on previous trends. It's commonly used to predict Systemair'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 Systemair'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 Systemair'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. Systemair AB 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.
Systemair Projected Return Density Against Market
Assuming the 90 days trading horizon Systemair AB has a beta of -0.2524 . This usually implies as returns on the benchmark increase, returns on holding Systemair are expected to decrease at a much lower rate. During a bear market, however, Systemair AB 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 Systemair or Building Products 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 Systemair'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 Systemair 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.
Systemair AB has an alpha of 0.2618, implying that it can generate a 0.26 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Systemair 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.Systemair Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Systemair is 821.01. The daily returns are distributed with a variance of 3.45 and standard deviation of 1.86. The mean deviation of Systemair AB is currently at 1.34. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.26 | |
β | Beta against Dow Jones | -0.25 | |
σ | Overall volatility | 1.86 | |
Ir | Information ratio | 0.05 |
Systemair Stock Return Volatility
Systemair historical daily return volatility represents how much of Systemair stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm accepts 1.8565% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7444% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Systemair Volatility
Volatility is a rate at which the price of Systemair 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 Systemair may increase or decrease. In other words, similar to Systemair's beta indicator, it measures the risk of Systemair and helps estimate the fluctuations that may happen in a short period of time. So if prices of Systemair 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.Systemair AB , a ventilation company, designs, develops, manufactures, and markets ventilation products and systems. The company was founded in 1974 and is headquartered in Skinnskatteberg, Sweden. Systemair operates under Building Materials classification in Sweden and is traded on Stockholm Stock Exchange. It employs 6016 people.
Systemair'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 Systemair Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Systemair's price varies over time.
3 ways to utilize Systemair's volatility to invest better
Higher Systemair's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Systemair AB 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. Systemair AB 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 Systemair AB investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Systemair'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 Systemair's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Systemair Investment Opportunity
Systemair AB has a volatility of 1.86 and is 2.51 times more volatile than Dow Jones Industrial. 16 percent of all equities and portfolios are less risky than Systemair. You can use Systemair AB to enhance the returns of your portfolios. The stock experiences a normal upward fluctuation. Check odds of Systemair to be traded at kr96.08 in 90 days.Good diversification
The correlation between Systemair AB and DJI is -0.1 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Systemair AB and DJI in the same portfolio, assuming nothing else is changed.
Systemair Additional Risk Indicators
The analysis of Systemair'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 Systemair's investment and either accepting that risk or mitigating it. Along with some common measures of Systemair 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 | 0.1044 | |||
| Market Risk Adjusted Performance | (0.90) | |||
| Mean Deviation | 1.34 | |||
| Semi Deviation | 1.31 | |||
| Downside Deviation | 1.54 | |||
| Coefficient Of Variation | 775.64 | |||
| Standard Deviation | 1.86 |
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.
Systemair 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.
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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 Systemair 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. Systemair'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, Systemair'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 Systemair AB.
Additional Tools for Systemair Stock Analysis
When running Systemair's price analysis, check to measure Systemair'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 Systemair is operating at the current time. Most of Systemair's value examination focuses on studying past and present price action to predict the probability of Systemair's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Systemair's price. Additionally, you may evaluate how the addition of Systemair to your portfolios can decrease your overall portfolio volatility.