CHONG QING (China) Volatility

000625
  

CNY 12.13  0.32  2.71%   

CHONG QING CHANGAN secures Sharpe Ratio (or Efficiency) of -0.19, which signifies that the company had -0.19% of return per unit of risk over the last 3 months. Macroaxis standpoint towards foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. CHONG QING CHANGAN exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm CHONG QING CHANGAN risk adjusted performance of (0.27), and Mean Deviation of 2.18 to double-check the risk estimate we provide.
  
CHONG QING 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 CHONG daily returns, and it is calculated using variance and standard deviation. We also use CHONG's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of CHONG QING volatility.

30 Days Market Risk

Not too volatile

Chance of Distress

Very Small

30 Days Economic Sensitivity

Almost neglects market trends
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as CHONG QING 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 CHONG QING at lower prices. For example, an investor can purchase CHONG 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 CHONG QING'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 CHONG QING

+0.97200625CHONG QING CHANGANPairCorr
+0.84688017LEADER HARMONIOUS DRIVEPairCorr
+0.74002821ASYMCHEM LABORATORPairCorr
+0.8688069WUXI DELINHAI ENVIROPairCorr

Moving against CHONG QING

-0.63300525FUJIAN BOSS SOFTWAPairCorr
-0.52002873GUIYANG XINTIAN PHPairCorr

CHONG QING Market Sensitivity And Downside Risk

CHONG QING's beta coefficient measures the volatility of CHONG 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 CHONG stock's returns against your selected market. In other words, CHONG QING's beta of -0.27 provides an investor with an approximation of how much risk CHONG QING stock can potentially add to one of your existing portfolios.
CHONG QING CHANGAN exhibits very low volatility with skewness of 0.46 and kurtosis of 1.23. However, we advise investors to further study CHONG QING CHANGAN technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure CHONG QING'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 CHONG QING'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.
3 Months Beta |Analyze CHONG QING CHANGAN Demand Trend
Check current 90 days CHONG QING correlation with market (DOW)

CHONG Beta

    
  -0.27  
CHONG 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.

Standard Deviation

    
  2.67  
It is essential to understand the difference between upside risk (as represented by CHONG QING's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of CHONG QING's daily returns or price. Since the actual investment returns on holding a position in chong 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 CHONG QING.

CHONG QING CHANGAN Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures CHONG QING's fluctuations based on previous trends. It's commonly used to predict CHONG QING'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 CHONG QING'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 CHONG QING'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. Developed by Larry Williams, the Weighted Close is the average of CHONG QING CHANGAN high, low and close of a chart with the close values weighted twice. It can be used to smooth an indicator that normally takes only CHONG QING closing price as input.
.

CHONG QING Projected Return Density Against Market

Assuming the 90 days trading horizon CHONG QING CHANGAN has a beta of -0.2659 . This suggests as returns on benchmark increase, returns on holding CHONG QING are expected to decrease at a much lower rate. During the bear market, however, CHONG QING CHANGAN 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 CHONG QING or Consumer Cyclical 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 CHONG QING'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 CHONG 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 a negative alpha, implying that the risk taken by holding this instrument is not justified. CHONG QING CHANGAN is significantly underperforming DOW.
   Predicted Return Density   
       Returns  
CHONG QING's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how chong 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 CHONG QING Price Volatility?

Several factors can influence a Stock'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.

CHONG QING 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 CHONG QING or Consumer Cyclical 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 CHONG QING'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 CHONG 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 CHONG QING is -535.06. The daily returns are distributed with a variance of 7.12 and standard deviation of 2.67. The mean deviation of CHONG QING CHANGAN is currently at 2.04. For similar time horizon, the selected benchmark (DOW) has volatility of 1.41
α
Alpha over DOW
-0.57
β
Beta against DOW-0.27
σ
Overall volatility
2.67
Ir
Information ratio -0.22

CHONG QING Stock Return Volatility

CHONG QING historical daily return volatility represents how much of CHONG QING stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 2.6689% volatility on return distribution over the 90 days horizon. By contrast, DOW inherits 1.374% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About CHONG QING Volatility

Volatility is a rate at which the price of CHONG QING 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 CHONG QING may increase or decrease. In other words, similar to CHONG's beta indicator, it measures the risk of CHONG QING and helps estimate the fluctuations that may happen in a short period of time. So if prices of CHONG QING 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.
Chongqing Changan Automobile Company Limited, together with its subsidiaries, manufactures and sells automobiles, automobile engines, and supporting parts primarily in the Peoples Republic of China. The company was founded in 1862 and is headquartered in Chongqing, the Peoples Republic of China. CHONG QING operates under Auto Manufacturers classification in China and is traded on Shenzhen Stock Exchange. It employs 42444 people.

CHONG QING Investment Opportunity

CHONG QING CHANGAN has a volatility of 2.67 and is 1.95 times more volatile than DOW. 23  of all equities and portfolios are less risky than CHONG QING. Compared to the overall equity markets, volatility of historical daily returns of CHONG QING CHANGAN is lower than 23 () of all global equities and portfolios over the last 90 days. Use CHONG QING CHANGAN to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of CHONG QING to be traded at Y14.56 in 90 days.

Good diversification

The correlation between CHONG QING CHANGAN and DJI is -0.13 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding CHONG QING CHANGAN and DJI in the same portfolio, assuming nothing else is changed.

CHONG QING Additional Risk Indicators

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

CHONG QING 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 CHONG QING 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. CHONG QING'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, CHONG QING'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 CHONG QING CHANGAN.
Please continue to Trending Equities. Note that the CHONG QING CHANGAN information on this page should be used as a complementary analysis to other CHONG QING'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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

Complementary Tools for CHONG Stock analysis

When running CHONG QING CHANGAN price analysis, check to measure CHONG QING'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 CHONG QING is operating at the current time. Most of CHONG QING's value examination focuses on studying past and present price action to predict the probability of CHONG QING's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move CHONG QING's price. Additionally, you may evaluate how the addition of CHONG QING to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between CHONG QING's value and its price as these two are different measures arrived at by different means. Investors typically determine CHONG QING value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CHONG QING's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.