# Furukawa OTC Stock Volatility

FUWAY | - USA Stock | ## USD 10.65 0.19 1.75% |

We consider Furukawa Elec not too volatile. Furukawa Elec secures Sharpe Ratio (or Efficiency) of 0.0563, which denotes the company had 0.0563% of return per unit of risk over the last 3 months. Our standpoint towards predicting the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-six technical indicators for Furukawa Elec, which you can use to evaluate the future volatility of the firm. Please confirm Furukawa Elec Mean Deviation of 0.6585, downside deviation of 3.05, and Coefficient Of Variation of 1217.99 to check if the risk estimate we provide is consistent with the expected return of 0.0926%.

## Furukawa Volatility | Furukawa |

Furukawa Elec OTC 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 Furukawa daily returns, and it is calculated using variance and standard deviation. We also use Furukawa's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Furukawa Elec volatility.

### 240 Days Market Risk

### Chance of Distress

### 240 Days Economic Sensitivity

Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Furukawa Elec 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 Furukawa Elec at lower prices. For example, an investor can purchase Furukawa 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 Furukawa Elec'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.

## Furukawa Elec Market Sensitivity And Downside Risk

Furukawa Elec's beta coefficient measures the volatility of Furukawa otc stock compared to the systematic risk of the entire stock 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 Furukawa otc stock's returns against your selected market. In other words, Furukawa Elec's beta of 0.12 provides an investor with an approximation of how much risk Furukawa Elec otc stock can potentially add to one of your existing portfolios.

Let's try to break down what Furukawa's beta means in this case. As returns on the market increase, Furukawa Elec returns are expected to increase less than the market. However, during the bear market, the loss on holding Furukawa Elec will be expected to be smaller as well. 3 Months Beta |Analyze Furukawa Elec Demand TrendCheck current 90 days Furukawa Elec correlation with market (DOW)

Furukawa standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity 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.

## Furukawa Beta |

## Standard Deviation | 1.65 |

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

## Furukawa Elec OTC Stock Volatility Analysis

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

This type of stock volatility measures Furukawa Elec's fluctuations based on previous trends. It's commonly used to predict Furukawa Elec'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 Furukawa Elec's current market price. This means that the stock will return to its initially predicted market price.Transformation |

The output start index for this execution was zero with a total number of output elements of sixty-one. Developed by Larry Williams, the Weighted Close is the average of Furukawa Elec high, low and close of a chart with the close values weighted twice. It can be used to smooth an indicator that normally takes only Furukawa Elec closing price as input. View also all equity analysis or get more info about weighted close price price transform indicator.

## Furukawa Elec Projected Return Density Against Market

Assuming the 90 days horizon Furukawa Elec has a beta of 0.1212 . This usually indicates as returns on the market go up, Furukawa Elec average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Furukawa Elec will be expected to be much smaller as well.

Furukawa Elec's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Furukawa Elec 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. 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 Furukawa Elec 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 Furukawa Elec stock'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 Furukawa 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.

The company has an alpha of 0.1289, implying that it can generate a 0.13 percent excess return over DOW after adjusting for the inherited market risk (beta). Predicted Return Density |

Returns |

## What Drives a Company's Stock Price Volatility?

Several factors can influence a company's stock 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.## Furukawa Elec OTC Stock Risk Measures

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 Furukawa Elec 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 Furukawa Elec stock'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 Furukawa 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.

Assuming the 90 days horizon the coefficient of variation of Furukawa Elec is 1776.01. The daily returns are distributed with a variance of 2.71 and standard deviation of 1.65. The mean deviation of Furukawa Elec is currently at 0.61. For similar time horizon, the selected benchmark (DOW) has volatility of 0.75

α | Alpha over DOW | 0.13 | |

β | Beta against DOW | 0.12 | |

σ | Overall volatility | 1.65 | |

Ir | Information ratio | 0.09 |

## Furukawa Elec OTC Stock Return Volatility

Furukawa Elec historical daily return volatility represents how much Furukawa Elec stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The company shows 1.6455% volatility of returns over 90 . By contrast, DOW inherits 0.8268% risk (volatility on return distribution) over the 90 days horizon.

Performance (%) |

Timeline |

## About Furukawa Elec Volatility

Volatility is a rate at which the price of Furukawa Elec 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 Furukawa Elec may increase or decrease. In other words, similar to Furukawa's beta indicator, it measures the risk of Furukawa Elec and helps estimate the fluctuations that may happen in a short period of time. So if prices of Furukawa Elec 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.Furukawa Electric Co., Ltd. manufactures and sells telecommunications, energy, automobile, electronic parts, and construction products worldwide. Furukawa Electric Co., Ltd. was founded in 1884 and is headquartered in Tokyo, Japan. Furukawa Elec operates under Electrical Equipment Parts classification in the United States and is traded on OTC Exchange. It employs 48449 people.## Furukawa Elec Investment Opportunity

Furukawa Elec has a volatility of 1.65 and is 1.99 times more volatile than DOW.

**14**of all equities and portfolios are less risky than Furukawa Elec. Compared to the overall equity markets, volatility of historical daily returns of Furukawa Elec is lower than**14 ()**of all global equities and portfolios over the last 90 days. Use Furukawa Elec to protect your portfolios against small market fluctuations. The otc stock experiences a bearish sentiment with high volatility. Check odds of Furukawa Elec to be traded at $10.33 in 90 days. . Let's try to break down what Furukawa's beta means in this case. As returns on the market increase, Furukawa Elec returns are expected to increase less than the market. However, during the bear market, the loss on holding Furukawa Elec will be expected to be smaller as well.### Significant diversification

The correlation between Furukawa Elec Ltd and DJI is

**Significant diversification**for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Furukawa Elec Ltd and DJI in the same portfolio assuming nothing else is changed.## Furukawa Elec Additional Risk Indicators

The analysis of Furukawa Elec'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 Furukawa Elec's investment and either accepting that risk or mitigating it. Along with some common measures of Furukawa Elec stock 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 | 0.0667 | |||

Market Risk Adjusted Performance | 1.04 | |||

Mean Deviation | 0.6585 | |||

Semi Deviation | 0.9166 | |||

Downside Deviation | 3.05 | |||

Coefficient Of Variation | 1217.99 | |||

Standard Deviation | 1.65 |

Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stock investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

## Furukawa Elec 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 Furukawa Elec 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. Furukawa Elec'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, Furukawa Elec'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 Furukawa Elec.

Please check Investing Opportunities. Note that the Furukawa Elec information on this page should be used as a complementary analysis to other Furukawa Elec's 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 Global Correlations module to find global opportunities by holding instruments from different markets.

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

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The market value of Furukawa Elec is measured differently than its book value, which is the value of Furukawa that is recorded on the company's balance sheet. Investors also form their own opinion of Furukawa Elec's value that differs from its market value or its book value, called intrinsic value, which is Furukawa Elec's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Furukawa Elec's market value can be influenced by many factors that don't directly affect Furukawa Elec's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.

Please note, there is a significant difference between Furukawa Elec's value and its price as these two are different measures arrived at by different means. Investors typically determine Furukawa Elec value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Furukawa Elec's 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.