ENCE Energa (Spain) Volatility
| ENC Stock | EUR 3.39 0.01 0.30% |
ENCE Energa appears to be slightly risky, given 3 months investment horizon. ENCE Energa y retains Efficiency (Sharpe Ratio) of 0.17, which denotes the company had a 0.17% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for ENCE Energa, which you can use to evaluate the volatility of the firm. Please utilize ENCE Energa's Coefficient Of Variation of 726.9, downside deviation of 1.4, and Market Risk Adjusted Performance of 6.72 to check if our risk estimates are consistent with your expectations. Key indicators related to ENCE Energa's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
ENCE Energa 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 ENCE daily returns, and it is calculated using variance and standard deviation. We also use ENCE's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of ENCE Energa volatility.
ENCE |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as ENCE Energa 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 ENCE Energa at lower prices. For example, an investor can purchase ENCE 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 ENCE Energa'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 ENCE Stock
| 0.69 | ITX | Industria de Diseno | PairCorr |
| 0.85 | IBE | Iberdrola SA | PairCorr |
| 0.91 | SAN | Banco Santander | PairCorr |
| 0.76 | BBVA | Banco Bilbao Vizcaya | PairCorr |
| 0.87 | CABK | Caixabank SA | PairCorr |
Moving against ENCE Stock
ENCE Energa Market Sensitivity And Downside Risk
ENCE Energa's beta coefficient measures the volatility of ENCE stock compared to the systematic risk of the entire 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 ENCE stock's returns against your selected market. In other words, ENCE Energa's beta of 0.0345 provides an investor with an approximation of how much risk ENCE Energa stock can potentially add to one of your existing portfolios. ENCE Energa y has relatively low volatility with skewness of 0.93 and kurtosis of 1.24. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure ENCE Energa'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 ENCE Energa'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 financial instruments as prices fall.
3 Months Beta |Analyze ENCE Energa y Demand TrendCheck current 90 days ENCE Energa correlation with market (NYSE Composite)ENCE Beta |
ENCE standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity 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 | 1.79 |
It is essential to understand the difference between upside risk (as represented by ENCE Energa's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of ENCE Energa's daily returns or price. Since the actual investment returns on holding a position in ence 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 ENCE Energa.
ENCE Energa y Stock Volatility Analysis
Volatility refers to the frequency at which ENCE Energa stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with ENCE Energa's price changes. Investors will then calculate the volatility of ENCE Energa'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 ENCE Energa's volatility:
Historical Volatility
This type of stock volatility measures ENCE Energa's fluctuations based on previous trends. It's commonly used to predict ENCE Energa'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 ENCE Energa'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 ENCE Energa'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. ENCE Energa y 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.
ENCE Energa Projected Return Density Against Market
Assuming the 90 days trading horizon ENCE Energa has a beta of 0.0345 suggesting as returns on the market go up, ENCE Energa average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding ENCE Energa y 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 ENCE Energa or Paper & Forest Products 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 ENCE Energa'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 ENCE 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.
ENCE Energa y has an alpha of 0.229, implying that it can generate a 0.23 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an ENCE Energa Price Volatility?
Several factors can influence a stock's market 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.ENCE Energa Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of ENCE Energa is 604.25. The daily returns are distributed with a variance of 3.19 and standard deviation of 1.79. The mean deviation of ENCE Energa y is currently at 1.32. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.63
α | Alpha over NYSE Composite | 0.23 | |
β | Beta against NYSE Composite | 0.03 | |
σ | Overall volatility | 1.79 | |
Ir | Information ratio | 0.09 |
ENCE Energa Stock Return Volatility
ENCE Energa historical daily return volatility represents how much of ENCE Energa stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm assumes 1.7872% volatility of returns over the 90 days investment horizon. By contrast, NYSE Composite accepts 0.6197% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About ENCE Energa Volatility
Volatility is a rate at which the price of ENCE Energa 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 ENCE Energa may increase or decrease. In other words, similar to ENCE's beta indicator, it measures the risk of ENCE Energa and helps estimate the fluctuations that may happen in a short period of time. So if prices of ENCE Energa 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.ENCE Energa y Celulosa, S.A., together with its subsidiaries, produces and sells eucalyptus pulp and renewable energy in Germany, Iberia, Poland, Italy, France, other Western and Eastern Europe, and internationally. ENCE Energa y Celulosa, S.A. was founded in 1957 and is headquartered in Madrid, Spain. ENCE ENERGIA operates under Paper Paper Products classification in Spain and is traded on Madrid SE C.A.T.S.. It employs 1150 people.
ENCE Energa's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on ENCE Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much ENCE Energa's price varies over time.
3 ways to utilize ENCE Energa's volatility to invest better
Higher ENCE Energa's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of ENCE Energa y stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. ENCE Energa y stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of ENCE Energa y investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in ENCE Energa's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of ENCE Energa's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
ENCE Energa Investment Opportunity
ENCE Energa y has a volatility of 1.79 and is 2.89 times more volatile than NYSE Composite. 15 percent of all equities and portfolios are less risky than ENCE Energa. You can use ENCE Energa y to enhance the returns of your portfolios. The stock experiences a normal upward fluctuation. Check odds of ENCE Energa to be traded at €3.56 in 90 days.Significant diversification
The correlation between ENCE Energa y and NYA is 0.01 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding ENCE Energa y and NYA in the same portfolio, assuming nothing else is changed.
ENCE Energa Additional Risk Indicators
The analysis of ENCE Energa'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 ENCE Energa's investment and either accepting that risk or mitigating it. Along with some common measures of ENCE Energa 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 Performance | 0.0933 | |||
| Market Risk Adjusted Performance | 6.72 | |||
| Mean Deviation | 1.29 | |||
| Semi Deviation | 1.13 | |||
| Downside Deviation | 1.4 | |||
| Coefficient Of Variation | 726.9 | |||
| Standard Deviation | 1.75 |
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.
ENCE Energa 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 ENCE Energa 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. ENCE Energa'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, ENCE Energa'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 ENCE Energa y.
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in ENCE Energa y. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors. Note that the ENCE Energa y information on this page should be used as a complementary analysis to other ENCE Energa'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 the Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Complementary Tools for ENCE Stock analysis
When running ENCE Energa's price analysis, check to measure ENCE Energa'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 ENCE Energa is operating at the current time. Most of ENCE Energa's value examination focuses on studying past and present price action to predict the probability of ENCE Energa's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move ENCE Energa's price. Additionally, you may evaluate how the addition of ENCE Energa to your portfolios can decrease your overall portfolio volatility.
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |