# LINGYI ITECH (China) Volatility

002600 | ## CNY 5.20 0.02 0.38% |

LINGYI ITECH appears to be very risky, given 3 months investment horizon. LINGYI ITECH GUAN has Sharpe Ratio of 0.13, which conveys that the firm had 0.13% of return per unit of volatility over the last 3 months. Our approach towards estimating the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for LINGYI ITECH, which you can use to evaluate the future volatility of the firm. Please exercise LINGYI ITECH's mean deviation of 1.97, and Risk Adjusted Performance of 0.0857 to check out if our risk estimates are consistent with your expectations.

LINGYI |

LINGYI ITECH 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 LINGYI daily returns, and it is calculated using variance and standard deviation. We also use LINGYI's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of LINGYI ITECH volatility.

### 720 Days Market Risk

### Chance of Distress

### 720 Days Economic Sensitivity

Since volatility provides investors with entry points to take advantage of stock prices, companies, such as LINGYI ITECH 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 LINGYI ITECH at lower prices. For example, an investor can purchase LINGYI 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 LINGYI ITECH'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 LINGYI ITECH

0.82 | 603386 | GUANGDONG CHAMPION ASIA | PairCorr | ||||

0.8 | 200625 | CHONG QING CHANGAN | PairCorr | ||||

0.82 | 000625 | CHONG QING CHANGAN | PairCorr | ||||

0.87 | 002386 | YIBIN TIANYUAN GRO | PairCorr |

## LINGYI ITECH Market Sensitivity And Downside Risk

LINGYI ITECH's beta coefficient measures the volatility of LINGYI stock compared to the systematic risk of the entire stock 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 LINGYI stock's returns against your selected market. In other words, LINGYI ITECH's beta of -0.03 provides an investor with an approximation of how much risk LINGYI ITECH stock can potentially add to one of your existing portfolios.

LINGYI ITECH GUAN shows above-average downside volatility for the selected time horizon. We advise investors to inspect LINGYI ITECH GUAN further and ensure that all market timing and asset allocation strategies are consistent with the estimation of LINGYI ITECH future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure LINGYI ITECH's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact LINGYI ITECH'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 stocks as prices fall.

LINGYI standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity 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.

### LINGYI ITECH Implied Volatility

LINGYI ITECH's implied volatility exposes the market's sentiment of LINGYI ITECH GUAN stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if LINGYI ITECH's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that LINGYI ITECH stock will not fluctuate a lot when LINGYI ITECH's options are near their expiration.

3 Months Beta |Analyze LINGYI ITECH GUAN Demand TrendCheck current 90 days LINGYI ITECH correlation with market (DOW)## LINGYI Beta |

## Standard Deviation | 2.59 |

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

## LINGYI ITECH GUAN Stock Volatility Analysis

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

### Historical Volatility

This type of stock volatility measures LINGYI ITECH's fluctuations based on previous trends. It's commonly used to predict LINGYI ITECH'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 LINGYI ITECH's current market price. This means that the stock will return to its initially predicted market price.Transformation |

The output start index for this execution was zero with a total number of output elements of sixty-one. LINGYI ITECH GUAN 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..

## LINGYI ITECH Projected Return Density Against Market

Assuming the 90 days trading horizon LINGYI ITECH GUAN has a beta of -0.03 . This suggests as returns on benchmark increase, returns on holding LINGYI ITECH are expected to decrease at a much lower rate. During the bear market, however, LINGYI ITECH GUAN 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 LINGYI ITECH or Technology 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 LINGYI ITECH stock'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 LINGYI 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.

The company has an alpha of 0.175, implying that it can generate a 0.18 percent excess return over DOW after adjusting for the inherited market risk (beta). Predicted Return Density |

Returns |

## What Drives a Company's Stock Price Volatility?

Several factors can influence a company's stock 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.## LINGYI ITECH Stock Risk Measures

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 LINGYI ITECH or Technology 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 LINGYI ITECH stock'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 LINGYI 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.

Assuming the 90 days trading horizon the coefficient of variation of LINGYI ITECH is 754.75. The daily returns are distributed with a variance of 6.69 and standard deviation of 2.59. The mean deviation of LINGYI ITECH GUAN is currently at 1.79. For similar time horizon, the selected benchmark (DOW) has volatility of 1.25

α | Alpha over DOW | 0.17 | |

β | Beta against DOW | -0.03 | |

σ | Overall volatility | 2.59 | |

Ir | Information ratio | 0.06 |

## LINGYI ITECH Stock Return Volatility

LINGYI ITECH historical daily return volatility represents how much LINGYI ITECH stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The company accepts 2.5868% volatility on return distribution over the 90 days horizon. By contrast, DOW inherits 1.2745% risk (volatility on return distribution) over the 90 days horizon.

Performance (%) |

Timeline |

## About LINGYI ITECH Volatility

Volatility is a rate at which the price of LINGYI ITECH 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 LINGYI ITECH may increase or decrease. In other words, similar to LINGYI's beta indicator, it measures the risk of LINGYI ITECH and helps estimate the fluctuations that may happen in a short period of time. So if prices of LINGYI ITECH 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.Lingyi Itech Company engages in the research, development, production, and marketing of ferrite magnetic materials and new materials. The company was founded in 1975 and is based in Jiangmen, China. LINGYI ITECH operates under Electronic Components classification in China and is traded on Shenzhen Stock Exchange. It employs 79892 people.## LINGYI ITECH Investment Opportunity

LINGYI ITECH GUAN has a volatility of 2.59 and is 2.04 times more volatile than DOW.**22**of all equities and portfolios are less risky than LINGYI ITECH. Compared to the overall equity markets, volatility of historical daily returns of LINGYI ITECH GUAN is lower than

**22 ()**of all global equities and portfolios over the last 90 days.

Use LINGYI ITECH GUAN to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a normal downward trend and little activity. Check odds of LINGYI ITECH to be traded at Y5.15 in 90 days. .

### Good diversification

The correlation between LINGYI ITECH GUAN and DJI is

**Good diversification**for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding LINGYI ITECH GUAN and DJI in the same portfolio, assuming nothing else is changed.## LINGYI ITECH Additional Risk Indicators

The analysis of LINGYI ITECH'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 LINGYI ITECH's investment and either accepting that risk or mitigating it. Along with some common measures of LINGYI ITECH stock 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 | 0.0857 | |||

Market Risk Adjusted Performance | (5.84) | |||

Mean Deviation | 1.97 | |||

Semi Deviation | 2.74 | |||

Downside Deviation | 3.06 | |||

Coefficient Of Variation | 1566.46 | |||

Standard Deviation | 2.9 |

Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stock investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

## LINGYI ITECH 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 LINGYI ITECH 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. LINGYI ITECH'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, LINGYI ITECH'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 LINGYI ITECH GUAN.

Please continue to Trending Equities. Note that the LINGYI ITECH GUAN information on this page should be used as a complementary analysis to other LINGYI ITECH's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.

## Complementary Tools for LINGYI Stock analysis

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

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