LEEF BRANDS (Germany) Volatility

Z5X Stock   0.17  0.05  41.67%   
LEEF BRANDS is out of control given 3 months investment horizon. LEEF BRANDS INC has Sharpe Ratio of 0.19, which conveys that the firm had a 0.19% return per unit of risk over the last 3 months. We were able to interpolate twenty-nine different technical indicators, which can help you to evaluate if expected returns of 19.13% are justified by taking the suggested risk. Use LEEF BRANDS INC risk adjusted performance of 0.1475, and Mean Deviation of 39.49 to evaluate company specific risk that cannot be diversified away.
  
LEEF BRANDS 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 LEEF daily returns, and it is calculated using variance and standard deviation. We also use LEEF's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of LEEF BRANDS volatility.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as LEEF BRANDS 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 LEEF BRANDS at lower prices to lower their average cost per share. Similarly, when the prices of LEEF BRANDS's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.

Moving together with LEEF Stock

  0.66APC Apple IncPairCorr
  0.67APC Apple IncPairCorr
  0.67APC Apple IncPairCorr
  0.69APC Apple IncPairCorr
  0.68APC Apple IncPairCorr
  0.68APC Apple IncPairCorr

Moving against LEEF Stock

  0.59DBPD Xtrackers ShortDAXPairCorr

LEEF BRANDS Market Sensitivity And Downside Risk

LEEF BRANDS's beta coefficient measures the volatility of LEEF 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 LEEF stock's returns against your selected market. In other words, LEEF BRANDS's beta of -22.06 provides an investor with an approximation of how much risk LEEF BRANDS stock can potentially add to one of your existing portfolios. LEEF BRANDS INC is showing large volatility of returns over the selected time horizon. LEEF BRANDS INC is a potential penny stock. Although LEEF BRANDS 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 LEEF BRANDS INC. 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 LEEF 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 LEEF BRANDS INC Demand Trend
Check current 90 days LEEF BRANDS correlation with market (Dow Jones Industrial)

LEEF Beta

    
  -22.06  
LEEF 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

    
  99.25  
It is essential to understand the difference between upside risk (as represented by LEEF BRANDS's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of LEEF BRANDS's daily returns or price. Since the actual investment returns on holding a position in leef 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 LEEF BRANDS.

LEEF BRANDS INC Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures LEEF BRANDS's fluctuations based on previous trends. It's commonly used to predict LEEF BRANDS'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 LEEF BRANDS'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 LEEF BRANDS'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. LEEF BRANDS INC 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.

LEEF BRANDS Projected Return Density Against Market

Assuming the 90 days horizon LEEF BRANDS INC has a beta of -22.0643 . This usually means as returns on its benchmark rise, returns on holding LEEF BRANDS INC are expected to decrease by similarly larger amounts. On the other hand, during market turmoils, LEEF BRANDS is expected to outperform its benchmark.
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 LEEF BRANDS or LEEF 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 LEEF BRANDS'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 LEEF 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.
LEEF BRANDS INC has an alpha of 20.5244, implying that it can generate a 20.52 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
LEEF BRANDS's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how leef 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 LEEF BRANDS 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.

LEEF BRANDS Stock Risk Measures

Assuming the 90 days horizon the coefficient of variation of LEEF BRANDS is 518.94. The daily returns are distributed with a variance of 9851.08 and standard deviation of 99.25. The mean deviation of LEEF BRANDS INC is currently at 40.53. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.73
α
Alpha over Dow Jones
20.52
β
Beta against Dow Jones-22.06
σ
Overall volatility
99.25
Ir
Information ratio 0.19

LEEF BRANDS Stock Return Volatility

LEEF BRANDS historical daily return volatility represents how much of LEEF BRANDS stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 99.2526% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7298% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

LEEF BRANDS Investment Opportunity

LEEF BRANDS INC has a volatility of 99.25 and is 135.96 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of LEEF BRANDS INC is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use LEEF BRANDS INC to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of LEEF BRANDS to be traded at 0.2125 in 90 days.

Good diversification

The correlation between LEEF BRANDS INC and DJI is -0.16 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding LEEF BRANDS INC and DJI in the same portfolio, assuming nothing else is changed.

LEEF BRANDS Additional Risk Indicators

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

LEEF BRANDS 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 LEEF BRANDS 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. LEEF BRANDS'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, LEEF BRANDS'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 LEEF BRANDS INC.

Complementary Tools for LEEF Stock analysis

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