Doubledown Interactive Co Stock Volatility

DDI Stock  USD 10.50  0.28  2.60%   
Doubledown Interactive secures Sharpe Ratio (or Efficiency) of -0.0953, which denotes the company had a -0.0953% return per unit of risk over the last 3 months. Doubledown Interactive Co exposes twenty-one different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Doubledown Interactive's Variance of 13.94, standard deviation of 3.73, and Mean Deviation of 2.85 to check the risk estimate we provide. Key indicators related to Doubledown Interactive's volatility include:
90 Days Market Risk
Chance Of Distress
90 Days Economic Sensitivity
Doubledown Interactive 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 Doubledown daily returns, and it is calculated using variance and standard deviation. We also use Doubledown's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Doubledown Interactive volatility.
  

ESG Sustainability

While most ESG disclosures are voluntary, Doubledown Interactive's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Doubledown Interactive's managers and investors.
Environmental
Governance
Social
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Doubledown Interactive at lower prices. For example, an investor can purchase Doubledown stock that has halved in price over a short period. This will lower their average cost per share, thereby improving the overall portfolio performance when market normalizes.

Moving together with Doubledown Stock

  0.77GMGI Golden Matrix GroupPairCorr

Moving against Doubledown Stock

  0.7GXAI Gaxosai Symbol ChangePairCorr
  0.64MYPS PlaystudiosPairCorr
  0.54RBLX Roblox CorpPairCorr
  0.45NTES NetEasePairCorr

Doubledown Interactive Market Sensitivity And Downside Risk

Doubledown Interactive's beta coefficient measures the volatility of Doubledown 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 Doubledown stock's returns against your selected market. In other words, Doubledown Interactive's beta of 1.33 provides an investor with an approximation of how much risk Doubledown Interactive stock can potentially add to one of your existing portfolios. Doubledown Interactive Co exhibits very low volatility with skewness of 0.35 and kurtosis of 1.16. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Doubledown Interactive'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 Doubledown Interactive'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 Doubledown Interactive Demand Trend
Check current 90 days Doubledown Interactive correlation with market (Dow Jones Industrial)

Doubledown Beta

    
  1.33  
Doubledown 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

    
  3.8  
It is essential to understand the difference between upside risk (as represented by Doubledown Interactive's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Doubledown Interactive's daily returns or price. Since the actual investment returns on holding a position in doubledown 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 Doubledown Interactive.

Doubledown Interactive Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Doubledown Interactive's fluctuations based on previous trends. It's commonly used to predict Doubledown Interactive'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 Doubledown Interactive'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 Doubledown Interactive'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. Doubledown Interactive 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.

Doubledown Interactive Projected Return Density Against Market

Considering the 90-day investment horizon the stock has the beta coefficient of 1.3257 suggesting as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Doubledown Interactive will likely underperform.
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 Doubledown Interactive 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 Doubledown Interactive'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 Doubledown 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.
Doubledown Interactive Co has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial.
   Predicted Return Density   
       Returns  
Doubledown Interactive's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how doubledown stock'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 Doubledown Interactive 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.

Doubledown Interactive Stock Risk Measures

Considering the 90-day investment horizon the coefficient of variation of Doubledown Interactive is -1049.18. The daily returns are distributed with a variance of 14.43 and standard deviation of 3.8. The mean deviation of Doubledown Interactive Co is currently at 2.92. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.79
α
Alpha over Dow Jones
-0.34
β
Beta against Dow Jones1.33
σ
Overall volatility
3.80
Ir
Information ratio -0.09

Doubledown Interactive Stock Return Volatility

Doubledown Interactive historical daily return volatility represents how much of Doubledown Interactive stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 3.799% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.8056% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Doubledown Interactive Volatility

Volatility is a rate at which the price of Doubledown Interactive 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 Doubledown Interactive may increase or decrease. In other words, similar to Doubledown's beta indicator, it measures the risk of Doubledown Interactive and helps estimate the fluctuations that may happen in a short period of time. So if prices of Doubledown Interactive 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 ReportedProjected for Next Year
Selling And Marketing Expenses49.6 M63.7 M
Market Cap376.9 M335 M
Doubledown Interactive'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 Doubledown Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Doubledown Interactive's price varies over time.

3 ways to utilize Doubledown Interactive's volatility to invest better

Higher Doubledown Interactive's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Doubledown Interactive 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. Doubledown Interactive 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 Doubledown Interactive investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Doubledown Interactive'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 Doubledown Interactive's 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.

Doubledown Interactive Investment Opportunity

Doubledown Interactive Co has a volatility of 3.8 and is 4.69 times more volatile than Dow Jones Industrial. 33 percent of all equities and portfolios are less risky than Doubledown Interactive. You can use Doubledown Interactive Co to protect your portfolios against small market fluctuations. The stock experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of Doubledown Interactive to be traded at $10.08 in 90 days.

Modest diversification

The correlation between Doubledown Interactive Co and DJI is 0.28 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Doubledown Interactive Co and DJI in the same portfolio, assuming nothing else is changed.

Doubledown Interactive Additional Risk Indicators

The analysis of Doubledown Interactive'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 Doubledown Interactive's investment and either accepting that risk or mitigating it. Along with some common measures of Doubledown Interactive 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.
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.

Doubledown Interactive 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 Doubledown Interactive 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. Doubledown Interactive'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, Doubledown Interactive'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 Doubledown Interactive Co.

Complementary Tools for Doubledown Stock analysis

When running Doubledown Interactive's price analysis, check to measure Doubledown Interactive'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 Doubledown Interactive is operating at the current time. Most of Doubledown Interactive's value examination focuses on studying past and present price action to predict the probability of Doubledown Interactive's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Doubledown Interactive's price. Additionally, you may evaluate how the addition of Doubledown Interactive to your portfolios can decrease your overall portfolio volatility.
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