Steel Connect Stock Volatility
| STCN Stock | USD 10.76 0.03 0.28% |
Steel Connect appears to be not too volatile, given 3 months investment horizon. Steel Connect owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0922, which indicates the firm had a 0.0922% return per unit of risk over the last 3 months. We have found twenty-seven technical indicators for Steel Connect, which you can use to evaluate the volatility of the company. Please review Steel Connect's Coefficient Of Variation of 729.0, risk adjusted performance of 0.094, and Semi Deviation of 2.05 to confirm if our risk estimates are consistent with your expectations. Key indicators related to Steel Connect's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Steel Connect 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 Steel daily returns, and it is calculated using variance and standard deviation. We also use Steel's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Steel Connect volatility.
Steel |
ESG Sustainability
While most ESG disclosures are voluntary, Steel Connect's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Steel Connect's managers and investors.Environmental | Governance | Social |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Steel Connect 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 Steel Connect at lower prices. For example, an investor can purchase Steel 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 Steel Connect'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 Steel Stock
| 0.68 | NEXN | Nexxen International Symbol Change | PairCorr |
Moving against Steel Stock
| 0.94 | SLNM | Salon Media Group | PairCorr |
| 0.89 | MOBQ | Mobiquity Technologies | PairCorr |
| 0.77 | TGLO | theglobe | PairCorr |
| 0.71 | ZD | Ziff Davis | PairCorr |
| 0.67 | CMPR | Cimpress NV Fiscal Year End 24th of July 2024 | PairCorr |
| 0.67 | U | Unity Software | PairCorr |
| 0.55 | S | SentinelOne Sell-off Trend | PairCorr |
| 0.48 | AI | C3 Ai Inc Trending | PairCorr |
Steel Connect Market Sensitivity And Downside Risk
Steel Connect's beta coefficient measures the volatility of Steel 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 Steel stock's returns against your selected market. In other words, Steel Connect's beta of -0.0109 provides an investor with an approximation of how much risk Steel Connect stock can potentially add to one of your existing portfolios. Steel Connect currently demonstrates below-average downside deviation. It has Information Ratio of 0.13 and Jensen Alpha of 0.4. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Steel Connect'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 Steel Connect'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 Steel Connect Demand TrendCheck current 90 days Steel Connect correlation with market (NYSE Composite)Steel Beta |
Steel 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 | 3.09 |
It is essential to understand the difference between upside risk (as represented by Steel Connect's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Steel Connect's daily returns or price. Since the actual investment returns on holding a position in steel 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 Steel Connect.
Steel Connect Stock Volatility Analysis
Volatility refers to the frequency at which Steel Connect stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Steel Connect's price changes. Investors will then calculate the volatility of Steel Connect'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 Steel Connect's volatility:
Historical Volatility
This type of stock volatility measures Steel Connect's fluctuations based on previous trends. It's commonly used to predict Steel Connect'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 Steel Connect'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 Steel Connect'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. Steel Connect 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.
Steel Connect Projected Return Density Against Market
Given the investment horizon of 90 days Steel Connect has a beta of -0.0109 . This usually implies as returns on the benchmark increase, returns on holding Steel Connect are expected to decrease at a much lower rate. During a bear market, however, Steel Connect 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 Steel Connect or IT 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 Steel Connect'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 Steel 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.
Steel Connect has an alpha of 0.4018, implying that it can generate a 0.4 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Steel Connect 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.Steel Connect Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Steel Connect is 1084.27. The daily returns are distributed with a variance of 9.53 and standard deviation of 3.09. The mean deviation of Steel Connect is currently at 2.17. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.63
α | Alpha over NYSE Composite | 0.40 | |
β | Beta against NYSE Composite | -0.01 | |
σ | Overall volatility | 3.09 | |
Ir | Information ratio | 0.13 |
Steel Connect Stock Return Volatility
Steel Connect historical daily return volatility represents how much of Steel Connect stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 3.087% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.6297% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Steel Connect Volatility
Volatility is a rate at which the price of Steel Connect 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 Steel Connect may increase or decrease. In other words, similar to Steel's beta indicator, it measures the risk of Steel Connect and helps estimate the fluctuations that may happen in a short period of time. So if prices of Steel Connect 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.| Last Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 445.6 M | 467.9 M | |
| Market Cap | 70.3 M | 66.8 M |
Steel Connect'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 Steel Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Steel Connect's price varies over time.
3 ways to utilize Steel Connect's volatility to invest better
Higher Steel Connect's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Steel Connect 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. Steel Connect 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 Steel Connect investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Steel Connect'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 Steel Connect's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Steel Connect Investment Opportunity
Steel Connect has a volatility of 3.09 and is 4.9 times more volatile than NYSE Composite. 27 percent of all equities and portfolios are less risky than Steel Connect. You can use Steel Connect to enhance the returns of your portfolios. The stock experiences a normal upward fluctuation. Check odds of Steel Connect to be traded at $11.3 in 90 days.Steel Connect Additional Risk Indicators
The analysis of Steel Connect'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 Steel Connect's investment and either accepting that risk or mitigating it. Along with some common measures of Steel Connect 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 | 0.094 | |||
| Market Risk Adjusted Performance | (36.83) | |||
| Mean Deviation | 2.13 | |||
| Semi Deviation | 2.05 | |||
| Downside Deviation | 2.61 | |||
| Coefficient Of Variation | 729.0 | |||
| Standard Deviation | 3.0 |
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.
Steel Connect 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 Steel Connect 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. Steel Connect'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, Steel Connect'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 Steel Connect.
Additional Information and Resources on Investing in Steel Stock
When determining whether Steel Connect offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Steel Connect's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Steel Connect Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Steel Connect Stock:Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Steel Connect. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in main economic indicators. To learn how to invest in Steel Stock, please use our How to Invest in Steel Connect guide.You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Is Data Processing & Outsourced Services space 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 Steel Connect. If investors know Steel 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 Steel Connect 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 (0.75) | Earnings Share 0.94 | Revenue Per Share 27.363 | Quarterly Revenue Growth (0.15) | Return On Assets 0.0121 |
The market value of Steel Connect is measured differently than its book value, which is the value of Steel that is recorded on the company's balance sheet. Investors also form their own opinion of Steel Connect's value that differs from its market value or its book value, called intrinsic value, which is Steel Connect'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 Steel Connect's market value can be influenced by many factors that don't directly affect Steel Connect'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 Steel Connect's value and its price as these two are different measures arrived at by different means. Investors typically determine if Steel Connect is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Steel Connect'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.