Compania Stock Volatility

CCU
 Stock
  

USD 11.21  0.16  1.45%   

Compania Cervecerias secures Sharpe Ratio (or Efficiency) of -0.14, which signifies that the company had -0.14% 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. Compania Cervecerias Unidas exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Compania Cervecerias risk adjusted performance of (0.14), and Mean Deviation of 1.31 to double-check the risk estimate we provide.
  
Compania Cervecerias 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 Compania daily returns, and it is calculated using variance and standard deviation. We also use Compania's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Compania Cervecerias volatility.

60 Days Market Risk

Not too volatile

Chance of Distress

60 Days Economic Sensitivity

Follows the market closely
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Compania Cervecerias 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 Compania Cervecerias at lower prices. For example, an investor can purchase Compania 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 Compania Cervecerias' 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 Compania Cervecerias

0.92FMXFomento EconomicoPairCorr
0.75ACIAlbertsons Companies Downward RallyPairCorr

Moving against Compania Cervecerias

0.84AACGATA Creativity GlobalPairCorr

Compania Cervecerias Market Sensitivity And Downside Risk

Compania Cervecerias' beta coefficient measures the volatility of Compania 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 Compania stock's returns against your selected market. In other words, Compania Cervecerias's beta of 0.63 provides an investor with an approximation of how much risk Compania Cervecerias stock can potentially add to one of your existing portfolios.
Compania Cervecerias Unidas exhibits very low volatility with skewness of -0.83 and kurtosis of 0.85. However, we advise investors to further study Compania Cervecerias Unidas 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 Compania Cervecerias' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Compania Cervecerias' 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.

Compania Cervecerias Implied Volatility

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

Compania Beta

    
  0.63  
Compania 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

    
  1.72  
It is essential to understand the difference between upside risk (as represented by Compania Cervecerias's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Compania Cervecerias stock's daily returns or price. Since the actual investment returns on holding a position in Compania Cervecerias 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 Compania Cervecerias.

Compania Cervecerias Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Compania Cervecerias' fluctuations based on previous trends. It's commonly used to predict Compania Cervecerias' 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 Compania Cervecerias' 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. Compania Cervecerias 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.
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Compania Cervecerias Projected Return Density Against Market

Considering the 90-day investment horizon Compania Cervecerias has a beta of 0.6309 suggesting as returns on the market go up, Compania Cervecerias average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Compania Cervecerias Unidas will be expected to be much smaller as well.
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 Compania Cervecerias or Consumer Defensive 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 Compania Cervecerias 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 Compania 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. Compania Cervecerias is significantly underperforming DOW.
   Predicted Return Density   
       Returns  
Compania Cervecerias' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Compania Cervecerias 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.

Compania Cervecerias 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 Compania Cervecerias or Consumer Defensive 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 Compania Cervecerias 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 Compania 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.
Considering the 90-day investment horizon the coefficient of variation of Compania Cervecerias is -691.85. The daily returns are distributed with a variance of 2.97 and standard deviation of 1.72. The mean deviation of Compania Cervecerias Unidas is currently at 1.33. For similar time horizon, the selected benchmark (DOW) has volatility of 1.25
α
Alpha over DOW
-0.25
β
Beta against DOW0.63
σ
Overall volatility
1.72
Ir
Information ratio -0.16

Compania Cervecerias Stock Return Volatility

Compania Cervecerias historical daily return volatility represents how much Compania Cervecerias stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The firm has volatility of 1.7231% on return distribution over 90 days investment horizon. By contrast, DOW inherits 1.2609% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About Compania Cervecerias Volatility

Volatility is a rate at which the price of Compania Cervecerias 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 Compania Cervecerias may increase or decrease. In other words, similar to Compania's beta indicator, it measures the risk of Compania Cervecerias and helps estimate the fluctuations that may happen in a short period of time. So if prices of Compania Cervecerias 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.
Last ReportedProjected for 2022
Market CapitalizationB3.3 B
Compaa Cerveceras Unidas S.A. operates as a beverage company in Chile, Argentina, Bolivia, Colombia, Paraguay, and Uruguay. Compaa Cerveceras Unidas S.A. is a subsidiary of Inversiones y Rentas S.A. Compania Cervecerias operates under BeveragesBrewers classification in the United States and is traded on New York Stock Exchange. It employs 9317 people.

Compania Cervecerias Investment Opportunity

Compania Cervecerias Unidas has a volatility of 1.72 and is 1.37 times more volatile than DOW. 14  of all equities and portfolios are less risky than Compania Cervecerias. Compared to the overall equity markets, volatility of historical daily returns of Compania Cervecerias Unidas is lower than 14 () of all global equities and portfolios over the last 90 days.
Use Compania Cervecerias Unidas to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a large bullish trend. Check odds of Compania Cervecerias to be traded at $12.33 in 90 days. .

Very weak diversification

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

Compania Cervecerias Additional Risk Indicators

The analysis of Compania Cervecerias' 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 Compania Cervecerias' investment and either accepting that risk or mitigating it. Along with some common measures of Compania Cervecerias 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(0.14)
Market Risk Adjusted Performance(0.32)
Mean Deviation1.31
Coefficient Of Variation(864.85)
Standard Deviation1.7
Variance2.9
Information Ratio(0.16)
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.

Compania Cervecerias 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 Compania Cervecerias 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. Compania Cervecerias' 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, Compania Cervecerias' 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 Compania Cervecerias Unidas.
Continue to Trending Equities. Note that the Compania Cervecerias information on this page should be used as a complementary analysis to other Compania Cervecerias' 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

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When running Compania Cervecerias price analysis, check to measure Compania Cervecerias' 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 Compania Cervecerias is operating at the current time. Most of Compania Cervecerias' value examination focuses on studying past and present price action to predict the probability of Compania Cervecerias' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Compania Cervecerias' price. Additionally, you may evaluate how the addition of Compania Cervecerias to your portfolios can decrease your overall portfolio volatility.
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Is Compania Cervecerias' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Compania Cervecerias. If investors know Compania will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Compania Cervecerias listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
1.85
Market Capitalization
2.1 B
Quarterly Revenue Growth YOY
0.19
Return On Assets
0.0629
Return On Equity
0.13
The market value of Compania Cervecerias is measured differently than its book value, which is the value of Compania that is recorded on the company's balance sheet. Investors also form their own opinion of Compania Cervecerias' value that differs from its market value or its book value, called intrinsic value, which is Compania Cervecerias' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Compania Cervecerias' market value can be influenced by many factors that don't directly affect Compania Cervecerias' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Compania Cervecerias' value and its price as these two are different measures arrived at by different means. Investors typically determine Compania Cervecerias value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Compania Cervecerias' 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.