SLC Agrcola (Brazil) Volatility

SLCE3
  

BRL 44.19  0.31  0.70%   

SLC Agrcola SA retains Efficiency (Sharpe Ratio) of -0.0657, which indicates the firm had -0.0657% of return per unit of volatility over the last 3 months. Macroaxis approach towards measuring 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. SLC Agrcola exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to validate SLC Agrcola SA risk adjusted performance of (0.07) to confirm the risk estimate we provide.
  
SLC Agrcola 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 SLCE3 daily returns, and it is calculated using variance and standard deviation. We also use SLCE3's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of SLC Agrcola volatility.

720 Days Market Risk

Very steady

Chance of Distress

High

720 Days Economic Sensitivity

Almost neglects market trends
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as SLC Agrcola 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 SLC Agrcola at lower prices. For example, an investor can purchase SLCE3 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 SLC Agrcola'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.

SLC Agrcola Market Sensitivity And Downside Risk

SLC Agrcola's beta coefficient measures the volatility of SLCE3 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 SLCE3 stock's returns against your selected market. In other words, SLC Agrcola's beta of -0.36 provides an investor with an approximation of how much risk SLC Agrcola stock can potentially add to one of your existing portfolios.
SLC Agrcola SA exhibits very low volatility with skewness of 0.11 and kurtosis of 1.77. However, we advise investors to further study SLC Agrcola SA 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 SLC Agrcola'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 SLC Agrcola'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 SLC Agrcola SA Demand Trend
Check current 90 days SLC Agrcola correlation with market (NYSE Composite)

SLCE3 Beta

    
  -0.36  
SLCE3 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

    
  2.14  
It is essential to understand the difference between upside risk (as represented by SLC Agrcola's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of SLC Agrcola's daily returns or price. Since the actual investment returns on holding a position in slce3 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 SLC Agrcola.

SLC Agrcola SA Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures SLC Agrcola's fluctuations based on previous trends. It's commonly used to predict SLC Agrcola'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 SLC Agrcola'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 SLC Agrcola'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 SLC Agrcola SA price series.
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SLC Agrcola Projected Return Density Against Market

Assuming the 90 days trading horizon SLC Agrcola SA has a beta of -0.3563 . This usually implies as returns on benchmark increase, returns on holding SLC Agrcola are expected to decrease at a much lower rate. During the bear market, however, SLC Agrcola SA 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 SLC Agrcola 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 SLC Agrcola'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 SLCE3 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. SLC Agrcola SA is significantly underperforming NYSE Composite.
   Predicted Return Density   
       Returns  
SLC Agrcola's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how slce3 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 SLC Agrcola 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.

SLC Agrcola 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 SLC Agrcola 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 SLC Agrcola'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 SLCE3 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 SLC Agrcola is -1522.37. The daily returns are distributed with a variance of 4.58 and standard deviation of 2.14. The mean deviation of SLC Agrcola SA is currently at 1.51. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 1.48
α
Alpha over NYSE Composite
-0.08
β
Beta against NYSE Composite-0.36
σ
Overall volatility
2.14
Ir
Information ratio -0.1

SLC Agrcola Stock Return Volatility

SLC Agrcola historical daily return volatility represents how much of SLC Agrcola stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The enterprise accepts 2.1402% volatility on return distribution over the 90 days horizon. By contrast, NYSE Composite accepts 12.5075% volatility on return distribution over the 90 days horizon.
 Performance (%) 
       Timeline  

About SLC Agrcola Volatility

Volatility is a rate at which the price of SLC Agrcola 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 SLC Agrcola may increase or decrease. In other words, similar to SLCE3's beta indicator, it measures the risk of SLC Agrcola and helps estimate the fluctuations that may happen in a short period of time. So if prices of SLC Agrcola 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.
SLC Agrcola S.A. produces and sells agricultural products in Brazil and internationally. The company was founded in 1977 and is headquartered in Porto Alegre, Brazil. SLC AGRICOLAON operates under Farm Products classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 2917 people.

SLC Agrcola Investment Opportunity

NYSE Composite has a standard deviation of returns of 12.51 and is 5.85 times more volatile than SLC Agrcola SA. 18  of all equities and portfolios are less risky than SLC Agrcola. Compared to the overall equity markets, volatility of historical daily returns of SLC Agrcola SA is lower than 18 () of all global equities and portfolios over the last 90 days. Use SLC Agrcola SA 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 SLC Agrcola to be traded at R$43.31 in 90 days.

Very good diversification

The correlation between SLC Agrcola SA and NYA is -0.25 (i.e., Very good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding SLC Agrcola SA and NYA in the same portfolio, assuming nothing else is changed.

SLC Agrcola Additional Risk Indicators

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

SLC Agrcola 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 SLC Agrcola 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. SLC Agrcola'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, SLC Agrcola'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 SLC Agrcola SA.
Additionally, take a look at World Market Map. Note that the SLC Agrcola SA information on this page should be used as a complementary analysis to other SLC Agrcola'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 SLCE3 Stock analysis

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