SUN CREATE (China) Volatility

600990
  

CNY 32.60  0.18  0.55%   

We consider SUN CREATE very steady. SUN CREATE ELECTRONICS owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0774, which indicates the firm had 0.0774% of return per unit of standard deviation over the last 3 months. Our standpoint towards measuring 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-seven technical indicators for SUN CREATE ELECTRONICS, which you can use to evaluate the future volatility of the company. Please validate SUN CREATE risk adjusted performance of 0.0336, and Coefficient Of Variation of 4758.73 to confirm if the risk estimate we provide is consistent with the expected return of 0.18%.
  
SUN CREATE 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 600990 daily returns, and it is calculated using variance and standard deviation. We also use 600990's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of SUN CREATE volatility.

30 Days Market Risk

Very steady

Chance of Distress

Quite High

30 Days Economic Sensitivity

Moves indifferently to market moves
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as SUN CREATE 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 SUN CREATE at lower prices. For example, an investor can purchase 600990 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 SUN CREATE'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 SUN CREATE

+0.66603236QUECTEL WIRELESS SOLPairCorr
+0.65000625CHONG QING CHANGANPairCorr
+0.69200625CHONG QING CHANGANPairCorr
+0.75000039CHINA INTL MARINEPairCorr

Moving against SUN CREATE

-0.6603661ZHEJIANG HENGLIN CHAIRPairCorr

SUN CREATE Market Sensitivity And Downside Risk

SUN CREATE's beta coefficient measures the volatility of 600990 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 600990 stock's returns against your selected market. In other words, SUN CREATE's beta of -0.0793 provides an investor with an approximation of how much risk SUN CREATE stock can potentially add to one of your existing portfolios.
SUN CREATE ELECTRONICS currently demonstrates below-average downside deviation. It has Information Ratio of -0.01 and Jensen Alpha of 0.04. However, we advise investors to further question SUN CREATE ELECTRONICS expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure SUN CREATE'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 SUN CREATE'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 SUN CREATE ELECTRONICS Demand Trend
Check current 90 days SUN CREATE correlation with market (DOW)

600990 Beta

    
  -0.0793  
600990 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

    
  2.38  
It is essential to understand the difference between upside risk (as represented by SUN CREATE's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of SUN CREATE's daily returns or price. Since the actual investment returns on holding a position in 600990 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 SUN CREATE.

SUN CREATE ELECTRONICS Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures SUN CREATE's fluctuations based on previous trends. It's commonly used to predict SUN CREATE'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 SUN CREATE'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 SUN CREATE'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 SUN CREATE ELECTRONICS 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 SUN CREATE closing price as input.
.

SUN CREATE Projected Return Density Against Market

Assuming the 90 days trading horizon SUN CREATE ELECTRONICS has a beta of -0.0793 . This suggests as returns on benchmark increase, returns on holding SUN CREATE are expected to decrease at a much lower rate. During the bear market, however, SUN CREATE ELECTRONICS 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 SUN CREATE 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 SUN CREATE'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 600990 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 0.0435, implying that it can generate a 0.0435 percent excess return over DOW after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
SUN CREATE's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how 600990 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 SUN CREATE 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.

SUN CREATE 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 SUN CREATE 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 SUN CREATE'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 600990 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 SUN CREATE is 1291.42. The daily returns are distributed with a variance of 5.67 and standard deviation of 2.38. The mean deviation of SUN CREATE ELECTRONICS is currently at 1.74. For similar time horizon, the selected benchmark (DOW) has volatility of 1.41
α
Alpha over DOW
0.0435
β
Beta against DOW-0.08
σ
Overall volatility
2.38
Ir
Information ratio -0.01

SUN CREATE Stock Return Volatility

SUN CREATE historical daily return volatility represents how much of SUN CREATE stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 2.3804% 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 SUN CREATE Volatility

Volatility is a rate at which the price of SUN CREATE 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 SUN CREATE may increase or decrease. In other words, similar to 600990's beta indicator, it measures the risk of SUN CREATE and helps estimate the fluctuations that may happen in a short period of time. So if prices of SUN CREATE 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.
Sun Create Electronics Co., Ltd engages in the research and development, design, manufacture, and marketing of radar and security systems. The company was founded in 2000 and is based in Hefei, China. SUN CREATE operates under Communication Equipment classification in China and is traded on Shanghai Stock Exchange. It employs 3127 people.

SUN CREATE Investment Opportunity

SUN CREATE ELECTRONICS has a volatility of 2.38 and is 1.74 times more volatile than DOW. 20  of all equities and portfolios are less risky than SUN CREATE. Compared to the overall equity markets, volatility of historical daily returns of SUN CREATE ELECTRONICS is lower than 20 () of all global equities and portfolios over the last 90 days. Use SUN CREATE ELECTRONICS to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a moderate downward daily trend and can be a good diversifier. Check odds of SUN CREATE to be traded at Y31.95 in 90 days.

Good diversification

The correlation between SUN CREATE ELECTRONICS CO LTD and DJI is -0.05 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding SUN CREATE ELECTRONICS CO LTD and DJI in the same portfolio, assuming nothing else is changed.

SUN CREATE Additional Risk Indicators

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

SUN CREATE 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 SUN CREATE 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. SUN CREATE'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, SUN CREATE'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 SUN CREATE ELECTRONICS.
Please continue to Trending Equities. Note that the SUN CREATE ELECTRONICS information on this page should be used as a complementary analysis to other SUN CREATE'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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

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