Wave Entertainment (Thailand) Volatility
| WAVE Stock | THB 0.14 0.00 0.00% |
Wave Entertainment Public shows Sharpe Ratio of -0.0706, which attests that the company had a -0.0706% return per unit of risk over the last 3 months. Wave Entertainment Public exposes eighteen different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check out Wave Entertainment's Mean Deviation of 2.34, standard deviation of 3.71, and Market Risk Adjusted Performance of (7.11) to validate the risk estimate we provide. Key indicators related to Wave Entertainment's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Wave Entertainment 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 Wave daily returns, and it is calculated using variance and standard deviation. We also use Wave's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Wave Entertainment volatility.
Wave |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Wave Entertainment 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 Wave Entertainment at lower prices. For example, an investor can purchase Wave 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 Wave Entertainment'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 against Wave Stock
Wave Entertainment Market Sensitivity And Downside Risk
Wave Entertainment's beta coefficient measures the volatility of Wave 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 Wave stock's returns against your selected market. In other words, Wave Entertainment's beta of 0.0566 provides an investor with an approximation of how much risk Wave Entertainment stock can potentially add to one of your existing portfolios. Wave Entertainment Public exhibits very low volatility with skewness of -0.19 and kurtosis of 0.69. Wave Entertainment Public is a potential penny stock. Although Wave Entertainment may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Wave Entertainment Public. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Wave instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.
3 Months Beta |Analyze Wave Entertainment Public Demand TrendCheck current 90 days Wave Entertainment correlation with market (NYSE Composite)Wave Beta |
Wave 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 | 3.64 |
It is essential to understand the difference between upside risk (as represented by Wave Entertainment's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Wave Entertainment's daily returns or price. Since the actual investment returns on holding a position in wave 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 Wave Entertainment.
Wave Entertainment Public Stock Volatility Analysis
Volatility refers to the frequency at which Wave Entertainment stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Wave Entertainment's price changes. Investors will then calculate the volatility of Wave Entertainment'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 Wave Entertainment's volatility:
Historical Volatility
This type of stock volatility measures Wave Entertainment's fluctuations based on previous trends. It's commonly used to predict Wave Entertainment'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 Wave Entertainment'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 Wave Entertainment'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. Wave Entertainment Public 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.
Wave Entertainment Projected Return Density Against Market
Assuming the 90 days trading horizon Wave Entertainment has a beta of 0.0566 . This entails as returns on the market go up, Wave Entertainment average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Wave Entertainment Public 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 Wave Entertainment or Entertainment 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 Wave Entertainment'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 Wave 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.
Wave Entertainment Public has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the NYSE Composite. Predicted Return Density |
| Returns |
What Drives a Wave Entertainment 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.Wave Entertainment Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Wave Entertainment is -1416.85. The daily returns are distributed with a variance of 13.27 and standard deviation of 3.64. The mean deviation of Wave Entertainment Public is currently at 2.12. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.61
α | Alpha over NYSE Composite | -0.41 | |
β | Beta against NYSE Composite | 0.06 | |
σ | Overall volatility | 3.64 | |
Ir | Information ratio | -0.13 |
Wave Entertainment Stock Return Volatility
Wave Entertainment historical daily return volatility represents how much of Wave Entertainment stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 3.6425% volatility on return distribution over the 90 days horizon. By contrast, NYSE Composite accepts 0.6179% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Wave Entertainment Volatility
Volatility is a rate at which the price of Wave Entertainment 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 Wave Entertainment may increase or decrease. In other words, similar to Wave's beta indicator, it measures the risk of Wave Entertainment and helps estimate the fluctuations that may happen in a short period of time. So if prices of Wave Entertainment 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.Wave Entertainment Public Company Limited, together with its subsidiaries, engages in the production and distribution of television programs in Thailand. Wave Entertainment Public Company Limited was incorporated in 1988 and is headquartered in Bangkok, Thailand. WAVE ENTERTAINMENT operates under Education Training Services classification in Thailand and is traded on Stock Exchange of Thailand.
Wave Entertainment'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 Wave Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Wave Entertainment's price varies over time.
3 ways to utilize Wave Entertainment's volatility to invest better
Higher Wave Entertainment's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Wave Entertainment Public 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. Wave Entertainment Public 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 Wave Entertainment Public investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Wave Entertainment'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 Wave Entertainment's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Wave Entertainment Investment Opportunity
Wave Entertainment Public has a volatility of 3.64 and is 5.87 times more volatile than NYSE Composite. 32 percent of all equities and portfolios are less risky than Wave Entertainment. You can use Wave Entertainment Public to protect your portfolios against small market fluctuations. The stock experiences a normal downward trend, but the immediate impact on correlations cannot be determined at the moment . Check odds of Wave Entertainment to be traded at 0.1386 in 90 days.Significant diversification
The correlation between Wave Entertainment Public 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 Wave Entertainment Public and NYA in the same portfolio, assuming nothing else is changed.
Wave Entertainment Additional Risk Indicators
The analysis of Wave Entertainment'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 Wave Entertainment's investment and either accepting that risk or mitigating it. Along with some common measures of Wave Entertainment 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 | (0.06) | |||
| Market Risk Adjusted Performance | (7.11) | |||
| Mean Deviation | 2.34 | |||
| Coefficient Of Variation | (943.02) | |||
| Standard Deviation | 3.71 | |||
| Variance | 13.75 | |||
| Information Ratio | (0.13) |
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.
Wave Entertainment 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 Wave Entertainment 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. Wave Entertainment'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, Wave Entertainment'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 Wave Entertainment Public.
Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Wave Entertainment Public. 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. You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Complementary Tools for Wave Stock analysis
When running Wave Entertainment's price analysis, check to measure Wave Entertainment'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 Wave Entertainment is operating at the current time. Most of Wave Entertainment's value examination focuses on studying past and present price action to predict the probability of Wave Entertainment's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Wave Entertainment's price. Additionally, you may evaluate how the addition of Wave Entertainment to your portfolios can decrease your overall portfolio volatility.
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