COSCO SHIPPING (China) Volatility

601919
  

CNY 13.59  0.18  1.31%   

We consider COSCO SHIPPING not too volatile. COSCO SHIPPING HOLDINGS secures Sharpe Ratio (or Efficiency) of 0.0322, which signifies that the company had 0.0322% of return per unit of volatility over the last 3 months. Our approach towards foreseeing 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 COSCO SHIPPING HOLDINGS, which you can use to evaluate the future volatility of the firm. Please confirm COSCO SHIPPING HOLDINGS risk adjusted performance of (0.004884), and Mean Deviation of 1.79 to double-check if the risk estimate we provide is consistent with the expected return of 0.0741%.
  
COSCO SHIPPING 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 COSCO daily returns, and it is calculated using variance and standard deviation. We also use COSCO's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of COSCO SHIPPING volatility.

90 Days Market Risk

Not too volatile

Chance of Distress

High

90 Days Economic Sensitivity

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

COSCO SHIPPING Market Sensitivity And Downside Risk

COSCO SHIPPING's beta coefficient measures the volatility of COSCO 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 COSCO stock's returns against your selected market. In other words, COSCO SHIPPING's beta of -0.41 provides an investor with an approximation of how much risk COSCO SHIPPING stock can potentially add to one of your existing portfolios.
COSCO SHIPPING HOLDINGS exhibits very low volatility with skewness of -0.4 and kurtosis of 1.58. However, we advise investors to further study COSCO SHIPPING HOLDINGS technical indicators to make sure 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 COSCO SHIPPING'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 COSCO SHIPPING'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.

COSCO SHIPPING Implied Volatility

COSCO SHIPPING's implied volatility exposes the market's sentiment of COSCO SHIPPING HOLDINGS stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if COSCO SHIPPING'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 COSCO SHIPPING stock will not fluctuate a lot when COSCO SHIPPING's options are near their expiration.
3 Months Beta |Analyze COSCO SHIPPING HOLDINGS Demand Trend
Check current 90 days COSCO SHIPPING correlation with market (DOW)

COSCO Beta

    
  -0.41  
COSCO 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

    
  2.3  
It is essential to understand the difference between upside risk (as represented by COSCO SHIPPING's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of COSCO SHIPPING stock's daily returns or price. Since the actual investment returns on holding a position in COSCO SHIPPING 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 COSCO SHIPPING.

COSCO SHIPPING HOLDINGS Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures COSCO SHIPPING's fluctuations based on previous trends. It's commonly used to predict COSCO SHIPPING'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 COSCO SHIPPING'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. COSCO SHIPPING HOLDINGS 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.
.

COSCO SHIPPING Projected Return Density Against Market

Assuming the 90 days trading horizon COSCO SHIPPING HOLDINGS has a beta of -0.413 . This suggests as returns on benchmark increase, returns on holding COSCO SHIPPING are expected to decrease at a much lower rate. During the bear market, however, COSCO SHIPPING HOLDINGS 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 COSCO SHIPPING or Industrials 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 COSCO SHIPPING 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 COSCO 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 1.0E-4, implying that it can generate a 1.0E-4 percent excess return over DOW after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
COSCO SHIPPING's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how COSCO SHIPPING 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 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.

COSCO SHIPPING 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 COSCO SHIPPING or Industrials 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 COSCO SHIPPING 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 COSCO 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 COSCO SHIPPING is 3109.12. The daily returns are distributed with a variance of 5.31 and standard deviation of 2.3. The mean deviation of COSCO SHIPPING HOLDINGS is currently at 1.68. For similar time horizon, the selected benchmark (DOW) has volatility of 1.25
α
Alpha over DOW
0.0001
β
Beta against DOW-0.41
σ
Overall volatility
2.30
Ir
Information ratio -0.04

COSCO SHIPPING Stock Return Volatility

COSCO SHIPPING historical daily return volatility represents how much COSCO SHIPPING 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 2.3037% volatility on return distribution over the 90 days horizon. By contrast, DOW inherits 1.2609% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About COSCO SHIPPING Volatility

Volatility is a rate at which the price of COSCO SHIPPING 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 COSCO SHIPPING may increase or decrease. In other words, similar to COSCO's beta indicator, it measures the risk of COSCO SHIPPING and helps estimate the fluctuations that may happen in a short period of time. So if prices of COSCO SHIPPING 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.
COSCO SHIPPING Holdings Co., Ltd., an investment holding company, engages in the container shipping, container terminals, and other terminal related businesses in the United States, Europe, the Asia Pacific, Mainland China, and internationally. COSCO SHIPPING Holdings Co., Ltd. was incorporated in 2005 and is based in Shanghai, the Peoples Republic of China. COSCO SHIPPING operates under Marine Shipping classification in China and is traded on Shanghai Stock Exchange. It employs 30980 people.

COSCO SHIPPING Investment Opportunity

COSCO SHIPPING HOLDINGS has a volatility of 2.3 and is 1.83 times more volatile than DOW. 19  of all equities and portfolios are less risky than COSCO SHIPPING. Compared to the overall equity markets, volatility of historical daily returns of COSCO SHIPPING HOLDINGS is lower than 19 () of all global equities and portfolios over the last 90 days.
Use COSCO SHIPPING HOLDINGS to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of COSCO SHIPPING to be traded at Y13.18 in 90 days. .

Very good diversification

The correlation between COSCO SHIPPING HOLDINGS and DJI is Very good diversification for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding COSCO SHIPPING HOLDINGS and DJI in the same portfolio, assuming nothing else is changed.

COSCO SHIPPING Additional Risk Indicators

The analysis of COSCO SHIPPING'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 COSCO SHIPPING's investment and either accepting that risk or mitigating it. Along with some common measures of COSCO SHIPPING 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(0.004884)
Market Risk Adjusted Performance0.0812
Mean Deviation1.79
Coefficient Of Variation(12,744)
Standard Deviation2.47
Variance6.12
Information Ratio(0.040729)
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.

COSCO SHIPPING 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.
Universal Health vs. COSCO SHIPPING
Semiconductor Bear vs. COSCO SHIPPING
Essential Properties vs. COSCO SHIPPING
Cto Realty vs. COSCO SHIPPING
Nike vs. COSCO SHIPPING
Ark Innovation vs. COSCO SHIPPING
Olema Pharmaceuticals vs. COSCO SHIPPING
Rolls Royce vs. COSCO SHIPPING
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 COSCO SHIPPING 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. COSCO SHIPPING'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, COSCO SHIPPING'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 COSCO SHIPPING HOLDINGS.
Please continue to Trending Equities. Note that the COSCO SHIPPING HOLDINGS information on this page should be used as a complementary analysis to other COSCO SHIPPING'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 Probability Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

Complementary Tools for COSCO Stock analysis

When running COSCO SHIPPING HOLDINGS price analysis, check to measure COSCO SHIPPING'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 COSCO SHIPPING is operating at the current time. Most of COSCO SHIPPING's value examination focuses on studying past and present price action to predict the probability of COSCO SHIPPING's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move COSCO SHIPPING's price. Additionally, you may evaluate how the addition of COSCO SHIPPING to your portfolios can decrease your overall portfolio volatility.
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Shere Portfolio
Track or share privately all of your investments from the convenience of any device
Go
Please note, there is a significant difference between COSCO SHIPPING's value and its price as these two are different measures arrived at by different means. Investors typically determine COSCO SHIPPING value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, COSCO SHIPPING'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.