China OTC Stock Volatility

CIHKY
 Stock
  

USD 26.25  0.24  0.92%   

China Merchants Bank secures Sharpe Ratio (or Efficiency) of -0.0576, which signifies that the company had -0.0576% 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. China Merchants Bank exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm China Merchants Bank Mean Deviation of 1.8, downside deviation of 2.14, and Risk Adjusted Performance of 0.0322 to double-check the risk estimate we provide.
  
China Merchants OTC 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 China daily returns, and it is calculated using variance and standard deviation. We also use China's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of China Merchants volatility.

720 Days Market Risk

Not too volatile

Chance of Distress

Close to Average

720 Days Economic Sensitivity

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

0.65CIHHFChina Merchants Bank Earnings Call  This WeekPairCorr

Moving against China Merchants

0.69VRTBVestin Realty MortgagePairCorr
0.68AAPLApple Inc Fiscal Year End 27th of October 2022 PairCorr
0.58IBNIcici BankPairCorr
0.56BBAS3BRASIL ON NMPairCorr

China Merchants Market Sensitivity And Downside Risk

China Merchants' beta coefficient measures the volatility of China otc 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 China otc stock's returns against your selected market. In other words, China Merchants's beta of -0.24 provides an investor with an approximation of how much risk China Merchants otc stock can potentially add to one of your existing portfolios.
China Merchants Bank currently demonstrates below-average downside deviation. It has Information Ratio of -0.02 and Jensen Alpha of 0.07. However, we advise investors to further question China Merchants Bank 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 China Merchants' otc stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact China Merchants' otc 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.

China Merchants Implied Volatility

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

China Beta

    
  -0.24  
China 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

    
  2.32  
It is essential to understand the difference between upside risk (as represented by China Merchants's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of China Merchants' daily returns or price. Since the actual investment returns on holding a position in china otc 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 China Merchants.

China Merchants Bank OTC Stock Volatility Analysis

Volatility refers to the frequency at which China Merchants otc price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with China Merchants' price changes. Investors will then calculate the volatility of China Merchants' otc stock to predict their future moves. A otc that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A otc stock with relatively stable price changes has low volatility. A highly volatile otc 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 China Merchants' volatility:

Historical Volatility

This type of otc volatility measures China Merchants' fluctuations based on previous trends. It's commonly used to predict China Merchants' future behavior based on its past. However, it cannot conclusively determine the future direction of the otc stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for China Merchants' current market price. This means that the otc 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. China Merchants Bank 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.
.

China Merchants Projected Return Density Against Market

Assuming the 90 days horizon China Merchants Bank has a beta of -0.2358 suggesting as returns on benchmark increase, returns on holding China Merchants are expected to decrease at a much lower rate. During the bear market, however, China Merchants Bank 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 China Merchants or Financial Services 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 China Merchants' price will be affected by overall otc 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 China otc'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 0.0659, implying that it can generate a 0.0659 percent excess return over DOW after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
China Merchants' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how china otc 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 China Merchants Price Volatility?

Several factors can influence a OTC'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.

China Merchants OTC 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 China Merchants or Financial Services 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 China Merchants' price will be affected by overall otc 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 China otc'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 horizon the coefficient of variation of China Merchants is -1736.99. The daily returns are distributed with a variance of 5.38 and standard deviation of 2.32. The mean deviation of China Merchants Bank is currently at 1.69. For similar time horizon, the selected benchmark (DOW) has volatility of 1.25
α
Alpha over DOW
0.07
β
Beta against DOW-0.24
σ
Overall volatility
2.32
Ir
Information ratio -0.02

China Merchants OTC Stock Return Volatility

China Merchants historical daily return volatility represents how much of China Merchants otc's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 2.3204% volatility of returns over 90 . By contrast, DOW inherits 1.1736% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About China Merchants Volatility

Volatility is a rate at which the price of China Merchants 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 China Merchants may increase or decrease. In other words, similar to China's beta indicator, it measures the risk of China Merchants and helps estimate the fluctuations that may happen in a short period of time. So if prices of China Merchants 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.
China Merchants Bank Co., Ltd., together with its subsidiaries, provides various banking products and services. It operates through Wholesale Finance Business, Retail Finance Business, and Other Business segments. The company offers current, demand, time, call, savings, notice, and renminbi accounts. Its loan products include personal commercial real estate, consumption, housing, and car loans loans to finance for studying abroad micro-business loans mortgage loans for equipment joint guarantee, special guarantee, and housing mortgage loan bank acceptance, discount, liquid capital, and fixed asset loans and loans for vessels. The company also offers credit cards insurance products open-ended funds discount and guarantees for commercial bills, redemption of commercial bills, and guaranteed discount for commercial acceptance bills and financial consultation, debt financing underwriting, merger and acquisition financing, and equity financing and enterprise listing services. In addition, it provides forfeiting and risk participation, escrow, cross-border RMB clearing, and interbank services and risk and financial management, cross-border RMB and oversea financing, international factoring and settlement, and trade finance services. Further, the company offers financial leasing and guarantee, investment and wealth management, forex option and gold trading, forex express trading, international, offshore and private banking, custody, pension, and electronic banking services. As of December 31, 2021, it operated 143 branches 1,770 sub-branches one branch-level operation center 2,812 self-service centers 6,592 self-service machines one representative office 14,746 visual counters in Mainland China. The company also operates in Hong Kong, New York, London, Singapore, Luxembourg, Sydney, and Taipei. China Merchants Bank Co., Ltd. was founded in 1987 and is headquartered in Shenzhen, China.

China Merchants Investment Opportunity

China Merchants Bank has a volatility of 2.32 and is 1.98 times more volatile than DOW. 20  of all equities and portfolios are less risky than China Merchants. Compared to the overall equity markets, volatility of historical daily returns of China Merchants Bank is lower than 20 () of all global equities and portfolios over the last 90 days.
Use China Merchants Bank to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The otc stock experiences a moderate upward volatility. Check odds of China Merchants to be traded at $28.88 in 90 days. .

Good diversification

The correlation between China Merchants Bank and DJI is Good diversification for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding China Merchants Bank and DJI in the same portfolio, assuming nothing else is changed.

China Merchants Additional Risk Indicators

The analysis of China Merchants' 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 China Merchants' investment and either accepting that risk or mitigating it. Along with some common measures of China Merchants otc 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.
Risk Adjusted Performance0.0322
Market Risk Adjusted Performance(0.18)
Mean Deviation1.8
Semi Deviation2.04
Downside Deviation2.14
Coefficient Of Variation4574.95
Standard Deviation2.46
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential otc stocks, we recommend comparing similar otcs with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

China Merchants 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.
McDonalds Corp vs. China Merchants
Microsoft Corp vs. China Merchants
Abeona Therapeutics vs. China Merchants
Costco Wholesale vs. China Merchants
Abbott Laboratories vs. China Merchants
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 China Merchants 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. China Merchants' 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, China Merchants' 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 China Merchants Bank.
Continue to Trending Equities. Note that the China Merchants Bank information on this page should be used as a complementary analysis to other China Merchants' 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 Focused Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

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Is China Merchants' 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 China Merchants. If investors know China 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 China Merchants 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
0.13
Market Capitalization
130.6 B
Quarterly Revenue Growth YOY
0.098
Return On Assets
0.0138
Return On Equity
0.15
The market value of China Merchants Bank is measured differently than its book value, which is the value of China that is recorded on the company's balance sheet. Investors also form their own opinion of China Merchants' value that differs from its market value or its book value, called intrinsic value, which is China Merchants' 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 China Merchants' market value can be influenced by many factors that don't directly affect China Merchants' 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 China Merchants' value and its price as these two are different measures arrived at by different means. Investors typically determine China Merchants value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, China Merchants' 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.