Unilever Plc Stock Volatility
| UNLYF Stock | USD 47.85 0.25 0.53% |
We consider Unilever PLC very steady. Unilever PLC owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0233, which indicates the firm had a 0.0233% return per unit of risk over the last 3 months. We have found twenty-seven technical indicators for Unilever PLC, which you can use to evaluate the volatility of the company. Please validate Unilever PLC's Coefficient Of Variation of 5012.02, risk adjusted performance of 0.0181, and Semi Deviation of 1.51 to confirm if the risk estimate we provide is consistent with the expected return of 0.0348%. Key indicators related to Unilever PLC's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Unilever PLC 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 Unilever daily returns, and it is calculated using variance and standard deviation. We also use Unilever's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Unilever PLC volatility.
Unilever |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Unilever PLC 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 Unilever PLC at lower prices. For example, an investor can purchase Unilever 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 Unilever PLC'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 Unilever Pink Sheet
| 0.83 | UL | Unilever PLC ADR Earnings Call This Week | PairCorr |
| 0.61 | EL | Estee Lauder Companies Earnings Call Next Week | PairCorr |
Unilever PLC Market Sensitivity And Downside Risk
Unilever PLC's beta coefficient measures the volatility of Unilever 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 Unilever pink sheet's returns against your selected market. In other words, Unilever PLC's beta of 0.13 provides an investor with an approximation of how much risk Unilever PLC pink sheet can potentially add to one of your existing portfolios. Unilever PLC has relatively low volatility with skewness of -0.87 and kurtosis of 2.77. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Unilever PLC'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 Unilever PLC'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 Unilever PLC Demand TrendCheck current 90 days Unilever PLC correlation with market (NYSE Composite)Unilever Beta |
Unilever 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 | 1.5 |
It is essential to understand the difference between upside risk (as represented by Unilever PLC's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Unilever PLC's daily returns or price. Since the actual investment returns on holding a position in unilever 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 Unilever PLC.
Unilever PLC Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Unilever PLC pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Unilever PLC's price changes. Investors will then calculate the volatility of Unilever PLC'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 Unilever PLC's volatility:
Historical Volatility
This type of pink sheet volatility measures Unilever PLC's fluctuations based on previous trends. It's commonly used to predict Unilever PLC'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 Unilever PLC'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 Unilever PLC'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. Unilever 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.
Unilever PLC Projected Return Density Against Market
Assuming the 90 days horizon Unilever PLC has a beta of 0.1264 . This usually implies as returns on the market go up, Unilever PLC average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Unilever PLC 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 Unilever PLC 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 Unilever PLC'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 Unilever 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.
Unilever PLC has an alpha of 0.0092, implying that it can generate a 0.0092 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Unilever PLC 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.Unilever PLC Pink Sheet Risk Measures
Assuming the 90 days horizon the coefficient of variation of Unilever PLC is 4293.11. The daily returns are distributed with a variance of 2.24 and standard deviation of 1.5. The mean deviation of Unilever PLC is currently at 1.03. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 0.01 | |
β | Beta against NYSE Composite | 0.13 | |
σ | Overall volatility | 1.50 | |
Ir | Information ratio | -0.04 |
Unilever PLC Pink Sheet Return Volatility
Unilever PLC historical daily return volatility represents how much of Unilever PLC pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 1.4957% volatility of returns over 90 . By contrast, NYSE Composite accepts 0.637% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Unilever PLC Volatility
Volatility is a rate at which the price of Unilever PLC 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 Unilever PLC may increase or decrease. In other words, similar to Unilever's beta indicator, it measures the risk of Unilever PLC and helps estimate the fluctuations that may happen in a short period of time. So if prices of Unilever PLC 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.Unilever PLC operates as a fast-moving consumer goods company. Unilever PLC was incorporated in 1894 and is headquartered in London, the United Kingdom. Unilever Plc operates under Household Personal Products classification in the United States and is traded on OTC Exchange. It employs 148012 people.
Unilever PLC'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 Unilever Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Unilever PLC's price varies over time.
3 ways to utilize Unilever PLC's volatility to invest better
Higher Unilever PLC's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Unilever 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. Unilever 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 Unilever PLC investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Unilever PLC'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 Unilever PLC's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Unilever PLC Investment Opportunity
Unilever PLC has a volatility of 1.5 and is 2.34 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Unilever PLC is lower than 13 percent of all global equities and portfolios over the last 90 days. You can use Unilever PLC to enhance the returns of your portfolios. The pink sheet experiences a moderate upward volatility. Check odds of Unilever PLC to be traded at $52.64 in 90 days.Significant diversification
The correlation between Unilever PLC and NYA is 0.05 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Unilever PLC and NYA in the same portfolio, assuming nothing else is changed.
Unilever PLC Additional Risk Indicators
The analysis of Unilever PLC'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 Unilever PLC's investment and either accepting that risk or mitigating it. Along with some common measures of Unilever PLC 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 | 0.0181 | |||
| Market Risk Adjusted Performance | 0.1623 | |||
| Mean Deviation | 1.0 | |||
| Semi Deviation | 1.51 | |||
| Downside Deviation | 1.87 | |||
| Coefficient Of Variation | 5012.02 | |||
| Standard Deviation | 1.47 |
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.
Unilever PLC 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.
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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 Unilever PLC 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. Unilever PLC'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, Unilever PLC'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 Unilever PLC.
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Unilever 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 manufacturing. 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 Unilever Pink Sheet analysis
When running Unilever PLC's price analysis, check to measure Unilever PLC'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 Unilever PLC is operating at the current time. Most of Unilever PLC's value examination focuses on studying past and present price action to predict the probability of Unilever PLC's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Unilever PLC's price. Additionally, you may evaluate how the addition of Unilever PLC to your portfolios can decrease your overall portfolio volatility.
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