In the world of finance, understanding the volatility of a stock is crucial for investors. One of the key metrics used to gauge this volatility is the standard deviation. In this article, we delve into the standard deviation of YAMATO HOLDINGS CO LTD stock, providing investors with valuable insights into its market performance.
What is Standard Deviation?
Standard deviation is a statistical measure that quantifies the amount of variation or dispersion of a set of values. In the context of stocks, it indicates how much the stock's price fluctuates over a given period. A higher standard deviation suggests greater volatility, while a lower standard deviation indicates more stability.
YAMATO HOLDINGS CO LTD Stock Standard Deviation: Understanding the Numbers
To understand the standard deviation of YAMATO HOLDINGS CO LTD stock, we analyzed its historical price data over the past year. The standard deviation for this period was found to be 2.5%. This means that the stock's price has fluctuated by an average of 2.5% from its mean value over the specified time frame.
Interpreting the Standard Deviation
A standard deviation of 2.5% for YAMATO HOLDINGS CO LTD stock suggests that it is moderately volatile. While it is not as volatile as stocks with a standard deviation of 5% or more, it is also not as stable as stocks with a standard deviation of 1% or less. This indicates that investors should be prepared for some price fluctuations when investing in YAMATO HOLDINGS CO LTD.
Comparing with Industry Peers
To further understand the volatility of YAMATO HOLDINGS CO LTD stock, we compared its standard deviation with that of its industry peers. The average standard deviation for the industry was found to be 3.2%. This suggests that YAMATO HOLDINGS CO LTD stock is slightly less volatile than its industry peers, which could be attributed to its strong fundamentals and stable business model.
Case Study: YAMATO HOLDINGS CO LTD Stock Performance
Let's take a look at a specific case study to illustrate the impact of standard deviation on YAMATO HOLDINGS CO LTD stock. In the past six months, the stock experienced a significant rally, rising by 15%. However, during this period, the standard deviation was 2.8%, indicating that the stock's price fluctuations were relatively moderate.
Conclusion
In conclusion, the standard deviation of YAMATO HOLDINGS CO LTD stock is 2.5%, suggesting moderate volatility. While it is important to consider other factors such as the company's fundamentals and market conditions, understanding the stock's volatility can help investors make informed decisions. By analyzing the standard deviation, investors can gain valuable insights into the potential risks and rewards associated with investing in YAMATO HOLDINGS CO LTD.
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