Woolworths Holdings Stock Volatility

WLWHY Stock  USD 3.07  0.04  1.29%   
Woolworths Holdings shows Sharpe Ratio of -0.17, which attests that the company had a -0.17% return per unit of risk over the last 3 months. Woolworths Holdings exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check out Woolworths Holdings' Market Risk Adjusted Performance of (0.28), standard deviation of 2.06, and Mean Deviation of 1.56 to validate the risk estimate we provide. Key indicators related to Woolworths Holdings' volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
Woolworths Holdings 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 Woolworths daily returns, and it is calculated using variance and standard deviation. We also use Woolworths's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Woolworths Holdings volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Woolworths Holdings 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 Woolworths Holdings at lower prices. For example, an investor can purchase Woolworths 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 Woolworths Holdings' 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.

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Woolworths Holdings Market Sensitivity And Downside Risk

Woolworths Holdings' beta coefficient measures the volatility of Woolworths 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 Woolworths pink sheet's returns against your selected market. In other words, Woolworths Holdings's beta of 0.81 provides an investor with an approximation of how much risk Woolworths Holdings pink sheet can potentially add to one of your existing portfolios. Woolworths Holdings exhibits very low volatility with skewness of -0.16 and kurtosis of 1.19. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Woolworths Holdings' 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 Woolworths Holdings' 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 Woolworths Holdings Demand Trend
Check current 90 days Woolworths Holdings correlation with market (NYSE Composite)

Woolworths Beta

    
  0.81  
Woolworths 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

    
  2.05  
It is essential to understand the difference between upside risk (as represented by Woolworths Holdings's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Woolworths Holdings' daily returns or price. Since the actual investment returns on holding a position in woolworths 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 Woolworths Holdings.

Woolworths Holdings Pink Sheet Volatility Analysis

Volatility refers to the frequency at which Woolworths Holdings pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Woolworths Holdings' price changes. Investors will then calculate the volatility of Woolworths Holdings' 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 Woolworths Holdings' volatility:

Historical Volatility

This type of pink sheet volatility measures Woolworths Holdings' fluctuations based on previous trends. It's commonly used to predict Woolworths Holdings' 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 Woolworths Holdings' 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 Woolworths Holdings' 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. Woolworths Holdings 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.

Woolworths Holdings Projected Return Density Against Market

Assuming the 90 days horizon Woolworths Holdings has a beta of 0.813 . This entails as returns on the market go up, Woolworths Holdings average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Woolworths Holdings 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 Woolworths Holdings or Consumer Cyclical 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 Woolworths Holdings' 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 Woolworths 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.
Woolworths Holdings has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming NYSE Composite.
   Predicted Return Density   
       Returns  
Woolworths Holdings' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how woolworths pink sheet's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Woolworths Holdings 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.

Woolworths Holdings Pink Sheet Risk Measures

Assuming the 90 days horizon the coefficient of variation of Woolworths Holdings is -596.52. The daily returns are distributed with a variance of 4.2 and standard deviation of 2.05. The mean deviation of Woolworths Holdings is currently at 1.58. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
-0.33
β
Beta against NYSE Composite0.81
σ
Overall volatility
2.05
Ir
Information ratio -0.17

Woolworths Holdings Pink Sheet Return Volatility

Woolworths Holdings historical daily return volatility represents how much of Woolworths Holdings pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 2.0502% volatility of returns over 90 . By contrast, NYSE Composite accepts 0.5689% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Woolworths Holdings Volatility

Volatility is a rate at which the price of Woolworths Holdings 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 Woolworths Holdings may increase or decrease. In other words, similar to Woolworths's beta indicator, it measures the risk of Woolworths Holdings and helps estimate the fluctuations that may happen in a short period of time. So if prices of Woolworths Holdings 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.
Woolworths Holdings Limited, through its subsidiaries, operates a chain of retail stores in sub-Saharan Africa, Australia, and New Zealand. The company was founded in 1931 and is based in Cape Town, South Africa. Woolworths Hdgs operates under Department Stores classification in the United States and is traded on OTC Exchange. It employs 775 people.
Woolworths Holdings' 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 Woolworths Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Woolworths Holdings' price varies over time.

3 ways to utilize Woolworths Holdings' volatility to invest better

Higher Woolworths Holdings' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Woolworths Holdings 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. Woolworths Holdings 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 Woolworths Holdings investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Woolworths Holdings' 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 Woolworths Holdings' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Woolworths Holdings Investment Opportunity

Woolworths Holdings has a volatility of 2.05 and is 3.6 times more volatile than NYSE Composite. 18 percent of all equities and portfolios are less risky than Woolworths Holdings. You can use Woolworths Holdings to protect your portfolios against small market fluctuations. The pink sheet experiences a bearish sentiment with high volatility. Check odds of Woolworths Holdings to be traded at $2.98 in 90 days.

Modest diversification

The correlation between Woolworths Holdings Ltd and NYA is 0.22 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Woolworths Holdings Ltd and NYA in the same portfolio, assuming nothing else is changed.

Woolworths Holdings Additional Risk Indicators

The analysis of Woolworths Holdings' 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 Woolworths Holdings' investment and either accepting that risk or mitigating it. Along with some common measures of Woolworths Holdings 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.
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.

Woolworths Holdings 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 Woolworths Holdings 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. Woolworths Holdings' 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, Woolworths Holdings' 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 Woolworths Holdings.
Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Woolworths Holdings. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in rate.
Note that the Woolworths Holdings information on this page should be used as a complementary analysis to other Woolworths Holdings' 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

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When running Woolworths Holdings' price analysis, check to measure Woolworths Holdings' 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 Woolworths Holdings is operating at the current time. Most of Woolworths Holdings' value examination focuses on studying past and present price action to predict the probability of Woolworths Holdings' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Woolworths Holdings' price. Additionally, you may evaluate how the addition of Woolworths Holdings to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between Woolworths Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if Woolworths Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Woolworths Holdings' 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.