Daqo New Stock Volatility

DQ
 Stock
  

USD 53.41  0.33  0.62%   

Daqo New Energy secures Sharpe Ratio (or Efficiency) of -0.0611, which denotes the company had -0.0611% of return per unit of risk over the last 3 months. Macroaxis standpoint towards predicting 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. Daqo New Energy exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Daqo New Energy coefficient of variation of (1,240), and Mean Deviation of 3.15 to check the risk estimate we provide.
  
Daqo New 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 Daqo New daily returns, and it is calculated using variance and standard deviation. We also use Daqo New's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Daqo New volatility.

30 Days Market Risk

Very steady

Chance of Distress

Very Small

30 Days Economic Sensitivity

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

+0.64TOELYTokyo ElectronPairCorr
+0.64TOELFTOKYO ELECTRONPairCorr

Moving against Daqo New

-0.57RUMRumble IncPairCorr

Daqo New Market Sensitivity And Downside Risk

Daqo New's beta coefficient measures the volatility of Daqo New 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 Daqo New stock's returns against your selected market. In other words, Daqo New's beta of 0.67 provides an investor with an approximation of how much risk Daqo New stock can potentially add to one of your existing portfolios.
Daqo New Energy exhibits very low volatility with skewness of 0.75 and kurtosis of 1.37. However, we advise investors to further study Daqo New Energy 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 Daqo New'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 Daqo New'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 Daqo New Energy Demand Trend
Check current 90 days Daqo New correlation with market (DOW)

Daqo New Beta

    
  0.67  
Daqo New 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

    
  4.37  
It is essential to understand the difference between upside risk (as represented by Daqo New's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Daqo New's daily returns or price. Since the actual investment returns on holding a position in daqo new 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 Daqo New.

Using Daqo New Put Option to Manage Risk

Put options written on Daqo New grant holders of the option the right to sell a specified amount of Daqo New at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Daqo New Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Daqo New's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Daqo New will be realized, the loss incurred will be offset by the profits made with the option trade.

Daqo New's PUT expiring on 2022-10-21

   Profit   
Share
       Daqo New Price At Expiration  

Current Daqo New Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2022-10-21 PUT at $35.0-0.01270.00311602022-10-210.05 - 0.20.05View
Put
2022-10-21 PUT at $40.0-0.06020.01122122022-10-210.25 - 0.450.3View
Put
2022-10-21 PUT at $45.0-0.15880.023713642022-10-210.8 - 1.00.93View
Put
2022-10-21 PUT at $50.0-0.31610.03923752022-10-212.0 - 2.42.05View
Put
2022-10-21 PUT at $55.0-0.53760.046114712022-10-214.2 - 4.64.3View
Put
2022-10-21 PUT at $60.0-0.72820.03735872022-10-217.6 - 8.07.9View
Put
2022-10-21 PUT at $65.0-0.87210.02454532022-10-2111.6 - 12.512.55View
Put
2022-10-21 PUT at $70.0-0.9420.01344132022-10-2116.3 - 17.217.18View
Put
2022-10-21 PUT at $75.0-0.91070.0131872022-10-2121.1 - 22.021.5View
Put
2022-10-21 PUT at $80.0-0.90740.0113362022-10-2125.8 - 27.127.2View
View All Daqo New Options

Daqo New Energy Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Daqo New's fluctuations based on previous trends. It's commonly used to predict Daqo New'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 Daqo New'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 Daqo New'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. The Median Price line plots median indexes of Daqo New Energy price series.
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Daqo New Projected Return Density Against Market

Allowing for the 90-day total investment horizon Daqo New has a beta of 0.6714 suggesting as returns on the market go up, Daqo New average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Daqo New Energy 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 Daqo New 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 Daqo New'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 Daqo New 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. Daqo New Energy is significantly underperforming DOW.
   Predicted Return Density   
       Returns  
Daqo New's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how daqo new 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 Daqo New 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.

Daqo New 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 Daqo New 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 Daqo New'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 Daqo New 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. Allowing for the 90-day total investment horizon the coefficient of variation of Daqo New is -1636.1. The daily returns are distributed with a variance of 19.06 and standard deviation of 4.37. The mean deviation of Daqo New Energy is currently at 3.19. For similar time horizon, the selected benchmark (DOW) has volatility of 1.19
α
Alpha over DOW
-0.31
β
Beta against DOW0.67
σ
Overall volatility
4.37
Ir
Information ratio -0.07

Daqo New Stock Return Volatility

Daqo New historical daily return volatility represents how much of Daqo New stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm accepts 4.3653% volatility on return distribution over the 90 days horizon. By contrast, DOW inherits 1.2047% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About Daqo New Volatility

Volatility is a rate at which the price of Daqo New 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 Daqo New may increase or decrease. In other words, similar to Daqo New's beta indicator, it measures the risk of Daqo New and helps estimate the fluctuations that may happen in a short period of time. So if prices of Daqo New 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.
Daqo New Energy Corp., together with its subsidiaries, manufactures and sells polysilicon to photovoltaic product manufactures in the Peoples Republic of China. Daqo New Energy Corp. was founded in 2006 and is based in Shanghai, the Peoples Republic of China. Daqo New operates under Semiconductor Equipment Materials classification in the United States and is traded on New York Stock Exchange. It employs 2399 people.

Daqo New Investment Opportunity

Daqo New Energy has a volatility of 4.37 and is 3.64 times more volatile than DOW. 37  of all equities and portfolios are less risky than Daqo New. Compared to the overall equity markets, volatility of historical daily returns of Daqo New Energy is lower than 37 () of all global equities and portfolios over the last 90 days. Use Daqo New Energy to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a moderate upward volatility. Check odds of Daqo New to be traded at $58.75 in 90 days.

Average diversification

The correlation between Daqo New Energy and DJI is 0.18 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Daqo New Energy and DJI in the same portfolio, assuming nothing else is changed.

Daqo New Additional Risk Indicators

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

Daqo New 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 Daqo New 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. Daqo New'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, Daqo New'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 Daqo New Energy.
Continue to Investing Opportunities. You can also try Piotroski F Score module to get Piotroski F Score based on binary analysis strategy of nine different fundamentals.

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Is Daqo New's 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 Daqo New. If investors know Daqo New 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 Daqo New listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Daqo New Energy is measured differently than its book value, which is the value of Daqo New that is recorded on the company's balance sheet. Investors also form their own opinion of Daqo New's value that differs from its market value or its book value, called intrinsic value, which is Daqo New's 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 Daqo New's market value can be influenced by many factors that don't directly affect Daqo New's 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 Daqo New's value and its price as these two are different measures arrived at by different means. Investors typically determine Daqo New value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Daqo New'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.