Rentokil Initial Plc Stock Volatility
| RKLIF Stock | USD 5.62 0.13 2.26% |
Rentokil Initial appears to be slightly risky, given 3 months investment horizon. Rentokil Initial plc maintains Sharpe Ratio (i.e., Efficiency) of 0.14, which implies the firm had a 0.14% return per unit of risk over the last 3 months. We have found twenty-one technical indicators for Rentokil Initial plc, which you can use to evaluate the volatility of the company. Please evaluate Rentokil Initial's Risk Adjusted Performance of 0.0949, coefficient of variation of 717.03, and Variance of 8.25 to confirm if our risk estimates are consistent with your expectations. Key indicators related to Rentokil Initial's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Rentokil Initial Pink Sheet 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 Rentokil daily returns, and it is calculated using variance and standard deviation. We also use Rentokil's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Rentokil Initial volatility.
Rentokil |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Rentokil Initial 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 Rentokil Initial at lower prices. For example, an investor can purchase Rentokil 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 Rentokil Initial'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 Rentokil Pink Sheet
Moving against Rentokil Pink Sheet
| 0.65 | GPN | Global Payments Earnings Call This Week | PairCorr |
| 0.56 | TLPFF | Teleperformance SE | PairCorr |
| 0.49 | TLPFY | Teleperformance PK Earnings Call This Week | PairCorr |
| 0.47 | PPERY | Bank Mandiri Persero | PairCorr |
| 0.46 | WTKWY | Wolters Kluwer NV Earnings Call This Week | PairCorr |
| 0.43 | BKRKY | Bank Rakyat | PairCorr |
Rentokil Initial Market Sensitivity And Downside Risk
Rentokil Initial's beta coefficient measures the volatility of Rentokil pink sheet 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 Rentokil pink sheet's returns against your selected market. In other words, Rentokil Initial's beta of -0.45 provides an investor with an approximation of how much risk Rentokil Initial pink sheet can potentially add to one of your existing portfolios. Rentokil Initial plc exhibits very low volatility with skewness of 3.84 and kurtosis of 20.03. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Rentokil Initial's pink sheet risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Rentokil Initial's pink sheet 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 Rentokil Initial plc Demand TrendCheck current 90 days Rentokil Initial correlation with market (NYSE Composite)Rentokil Beta |
Rentokil 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 | 2.87 |
It is essential to understand the difference between upside risk (as represented by Rentokil Initial's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Rentokil Initial's daily returns or price. Since the actual investment returns on holding a position in rentokil pink sheet 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 Rentokil Initial.
Rentokil Initial plc Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Rentokil Initial pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Rentokil Initial's price changes. Investors will then calculate the volatility of Rentokil Initial's pink sheet to predict their future moves. A pink sheet that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A pink sheet with relatively stable price changes has low volatility. A highly volatile pink sheet 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 Rentokil Initial's volatility:
Historical Volatility
This type of pink sheet volatility measures Rentokil Initial's fluctuations based on previous trends. It's commonly used to predict Rentokil Initial's future behavior based on its past. However, it cannot conclusively determine the future direction of the pink sheet.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Rentokil Initial's current market price. This means that the pink sheet will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Rentokil Initial'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. Rentokil Initial plc 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.
Rentokil Initial Projected Return Density Against Market
Assuming the 90 days horizon Rentokil Initial plc has a beta of -0.4538 indicating as returns on the benchmark increase, returns on holding Rentokil Initial are expected to decrease at a much lower rate. During a bear market, however, Rentokil Initial plc 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 Rentokil Initial or Industrials 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 Rentokil Initial's price will be affected by overall pink sheet 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 Rentokil pink sheet'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.
Rentokil Initial plc has an alpha of 0.4259, implying that it can generate a 0.43 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Rentokil Initial Price Volatility?
Several factors can influence a pink sheet'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.Rentokil Initial Pink Sheet Risk Measures
Assuming the 90 days horizon the coefficient of variation of Rentokil Initial is 717.03. The daily returns are distributed with a variance of 8.25 and standard deviation of 2.87. The mean deviation of Rentokil Initial plc is currently at 1.1. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 0.43 | |
β | Beta against NYSE Composite | -0.45 | |
σ | Overall volatility | 2.87 | |
Ir | Information ratio | 0.11 |
Rentokil Initial Pink Sheet Return Volatility
Rentokil Initial historical daily return volatility represents how much of Rentokil Initial pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 2.8723% volatility of returns over 90 . By contrast, NYSE Composite accepts 0.6372% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Rentokil Initial Volatility
Volatility is a rate at which the price of Rentokil Initial 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 Rentokil Initial may increase or decrease. In other words, similar to Rentokil's beta indicator, it measures the risk of Rentokil Initial and helps estimate the fluctuations that may happen in a short period of time. So if prices of Rentokil Initial 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.Rentokil Initial plc, together with its subsidiaries, provides route-based services in North America, the United Kingdom, rest of Europe, Asia, the Pacific, and internationally. Rentokil Initial plc was founded in 1903 and is headquartered in Crawley, the United Kingdom. Rentokil Initial operates under Specialty Business Services classification in the United States and is traded on OTC Exchange. It employs 46000 people.
Rentokil Initial'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 Rentokil Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Rentokil Initial's price varies over time.
3 ways to utilize Rentokil Initial's volatility to invest better
Higher Rentokil Initial's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Rentokil Initial plc 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. Rentokil Initial plc 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 Rentokil Initial plc investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Rentokil Initial'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 Rentokil Initial's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Rentokil Initial Investment Opportunity
Rentokil Initial plc has a volatility of 2.87 and is 4.48 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Rentokil Initial plc is lower than 25 percent of all global equities and portfolios over the last 90 days. You can use Rentokil Initial plc to protect your portfolios against small market fluctuations. The pink sheet experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of Rentokil Initial to be traded at $5.4 in 90 days.Good diversification
The correlation between Rentokil Initial plc and NYA is -0.1 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Rentokil Initial plc and NYA in the same portfolio, assuming nothing else is changed.
Rentokil Initial Additional Risk Indicators
The analysis of Rentokil Initial'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 Rentokil Initial's investment and either accepting that risk or mitigating it. Along with some common measures of Rentokil Initial pink sheet'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 | 0.0949 | |||
| Market Risk Adjusted Performance | (0.85) | |||
| Mean Deviation | 1.1 | |||
| Coefficient Of Variation | 717.03 | |||
| Standard Deviation | 2.87 | |||
| Variance | 8.25 | |||
| Information Ratio | 0.1089 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential pink sheets, we recommend comparing similar pink sheets with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Rentokil Initial 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 Rentokil Initial 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. Rentokil Initial'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, Rentokil Initial'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 Rentokil Initial plc.
When determining whether Rentokil Initial plc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Rentokil Initial'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 Rentokil Initial Plc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Rentokil Initial Plc Stock: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Rentokil Initial plc. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in gross domestic product. You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Complementary Tools for Rentokil Pink Sheet analysis
When running Rentokil Initial's price analysis, check to measure Rentokil Initial'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 Rentokil Initial is operating at the current time. Most of Rentokil Initial's value examination focuses on studying past and present price action to predict the probability of Rentokil Initial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Rentokil Initial's price. Additionally, you may evaluate how the addition of Rentokil Initial to your portfolios can decrease your overall portfolio volatility.
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