# TuanChe Stock Volatility

TC | - USA Stock | ## USD 2.20 0.19 9.45% |

We consider TuanChe dangerous. TuanChe Limited owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0026, which indicates the firm had 0.0026% of return per unit of risk over the last 3 months. Our standpoint towards measuring 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-eight technical indicators for TuanChe Limited, which you can use to evaluate the future volatility of the company. Please validate TuanChe Coefficient Of Variation of 5426.85, semi deviation of 3.66, and Risk Adjusted Performance of 0.0312 to confirm if the risk estimate we provide is consistent with the expected return of 0.0095%.

TuanChe |

TuanChe 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 TuanChe daily returns, and it is calculated using variance and standard deviation. We also use TuanChe's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of TuanChe volatility.

### 720 Days Market Risk

### Chance of Distress

### 720 Days Economic Sensitivity

Since volatility provides investors with entry points to take advantage of stock prices, companies, such as TuanChe 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 TuanChe at lower prices. For example, an investor can purchase TuanChe 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 TuanChe'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.

## TuanChe Market Sensitivity And Downside Risk

TuanChe's beta coefficient measures the volatility of TuanChe 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 TuanChe stock's returns against your selected market. In other words, TuanChe's beta of -0.15 provides an investor with an approximation of how much risk TuanChe stock can potentially add to one of your existing portfolios.

Let's try to break down what TuanChe's beta means in this case. As returns on the market increase, returns on owning TuanChe are expected to decrease at a much lower rate. During the bear market, TuanChe is likely to outperform the market. 3 Months Beta |Analyze TuanChe Limited Demand TrendCheck current 90 days TuanChe correlation with market (DOW)

TuanChe 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.

## TuanChe Beta |

## Standard Deviation | 3.6 |

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

## TuanChe Limited Stock Volatility Analysis

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

This type of stock volatility measures TuanChe's fluctuations based on previous trends. It's commonly used to predict TuanChe'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 TuanChe'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. Developed by Larry Williams, the Weighted Close is the average of TuanChe Limited high, low and close of a chart with the close values weighted twice. It can be used to smooth an indicator that normally takes only TuanChe closing price as input..

## TuanChe Projected Return Density Against Market

Allowing for the 90-day total investment horizon TuanChe Limited has a beta of -0.1483 . This usually implies as returns on benchmark increase, returns on holding TuanChe are expected to decrease at a much lower rate. During the bear market, however, TuanChe Limited is likely to outperform the market.

TuanChe's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how TuanChe 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. 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 TuanChe or Communication 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 TuanChe 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 TuanChe 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 0.0332, implying that it can generate a 0.0332 percent excess return over DOW after adjusting for the inherited market risk (beta). Predicted Return Density |

Returns |

## 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.## TuanChe 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 TuanChe or Communication 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 TuanChe 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 TuanChe 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 TuanChe is 37955.46. The daily returns are distributed with a variance of 12.95 and standard deviation of 3.6. The mean deviation of TuanChe Limited is currently at 2.48. For similar time horizon, the selected benchmark (DOW) has volatility of 1.35

α | Alpha over DOW | 0.0332 | |

β | Beta against DOW | -0.15 | |

σ | Overall volatility | 3.60 | |

Ir | Information ratio | 0.06 |

## TuanChe Stock Return Volatility

TuanChe historical daily return volatility represents how much TuanChe 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 3.5982% volatility on return distribution over the 90 days horizon. By contrast, DOW inherits 1.3408% risk (volatility on return distribution) over the 90 days horizon.

Performance (%) |

Timeline |

## About TuanChe Volatility

Volatility is a rate at which the price of TuanChe 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 TuanChe may increase or decrease. In other words, similar to TuanChe's beta indicator, it measures the risk of TuanChe and helps estimate the fluctuations that may happen in a short period of time. So if prices of TuanChe 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.TuanChe Limited, through its subsidiaries, operates as an omni-channel automotive marketplace in China. The company was founded in 2010 and is headquartered in Beijing, China. TuanChe is traded on NASDAQ Exchange in the United States.## TuanChe Investment Opportunity

TuanChe Limited has a volatility of 3.6 and is 2.69 times more volatile than DOW.

**31**of all equities and portfolios are less risky than TuanChe. Compared to the overall equity markets, volatility of historical daily returns of TuanChe Limited is lower than**31 ()**of all global equities and portfolios over the last 90 days. Use TuanChe Limited to enhance returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of TuanChe to be traded at $2.75 in 90 days. . Let's try to break down what TuanChe's beta means in this case. As returns on the market increase, returns on owning TuanChe are expected to decrease at a much lower rate. During the bear market, TuanChe is likely to outperform the market.### Good diversification

The correlation between TuanChe Limited and DJI is

**Good diversification**for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding TuanChe Limited and DJI in the same portfolio, assuming nothing else is changed.## TuanChe Additional Risk Indicators

The analysis of TuanChe'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 TuanChe's investment and either accepting that risk or mitigating it. Along with some common measures of TuanChe 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 | 0.0312 | |||

Market Risk Adjusted Performance | (0.38) | |||

Mean Deviation | 2.64 | |||

Semi Deviation | 3.66 | |||

Downside Deviation | 4.28 | |||

Coefficient Of Variation | 5426.85 | |||

Standard Deviation | 3.71 |

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.

## TuanChe 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 TuanChe 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. TuanChe'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, TuanChe'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 TuanChe Limited.

Additionally, take a look at World Market Map. Note that the TuanChe Limited information on this page should be used as a complementary analysis to other TuanChe'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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.

## Complementary Tools for TuanChe Stock analysis

When running TuanChe Limited price analysis, check to measure TuanChe'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 TuanChe is operating at the current time. Most of TuanChe's value examination focuses on studying past and present price action to predict the probability of TuanChe's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move TuanChe's price. Additionally, you may evaluate how the addition of TuanChe to your portfolios can decrease your overall portfolio volatility.

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The market value of TuanChe Limited is measured differently than its book value, which is the value of TuanChe that is recorded on the company's balance sheet. Investors also form their own opinion of TuanChe's value that differs from its market value or its book value, called intrinsic value, which is TuanChe'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 TuanChe's market value can be influenced by many factors that don't directly affect TuanChe'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 TuanChe's value and its price as these two are different measures arrived at by different means. Investors typically determine TuanChe value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, TuanChe'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.