<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Want to participate in a short research study? Help us shape the future of investment tools and get a chance to win a $ 250 gift card!"data-reactid =" 27 ">Do you want to participate in a short research study? Help us shape the future of investment tools and get a chance to win a $ 250 gift card!

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "If you are interested in eprint Group Limited (HKG: 1884), you may want to review its beta (measure of stock price volatility) to understand the impact the stock might have on your portfolio. Modern financial theory views volatility as a measure of risk. There are two main types of price volatility. The first type is company-specific volatility. Investors use uncorrelated equity diversification to reduce this type of price volatility across the entire portfolio. The second type is caused by the natural volatility of the markets as a whole. For example, certain macroeconomic events will affect (virtually) all market shares. "Data-reactid =" 28 "> If eprint Group Limited (HKG: 1884) interests you, you can consider its beta (Modern Financial Theory considers volatility as a measure of risk, and there are two main types of price volatility the first type is company-specific volatility, use the diversification of uncorrelated equities to reduce this type of price volatility in the portfolio, due to the natural volatility of the markets as a whole, for example, certain macroeconomic events will affect (practically) all market shares.

Some stocks are more sensitive to market forces in general than others. Some investors use beta to measure the impact of market risk (volatility) on a given stock. We must keep in mind that Warren Buffett warned that "volatility is far from risk," but the beta remains a useful factor to consider. To make good use of it, you must first know that the beta of the market is one. A stock whose beta is less than one is less volatile than the market, is more volatile but not correlated to the market in general. In comparison, a stock with a beta greater than 1 tends to move in the same direction as the market in the long run, but with larger price changes.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " See our latest analysis for eprint Group "data-reactid =" 30 "> See our latest analysis for the eprint group

What we can learn from the 1884 beta value

Given that its beta is 1.89, we can assume that the eprint Group's stock price has been quite sensitive to market volatility (over the past 5 years). Based on this background, investors should be aware that the eprint group is likely to rise sharply in case of greed, but to be sold in times of fear. Many would argue that beta is useful for sizing positions, but that fundamental measures such as income and profits are more important in general. You can see the sales and results of eprint Group in the image below.

SEHK: Export Profit and Loss Account 1884 14 February 19

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Could the size of 1884 be more volatile?

With a market capitalization of HK $ 264 million, the eprint group is a very small company at the global level. It is very likely that it is unknown to most investors. Relatively few investors can influence the price of a small business compared to a large company. This could explain the high beta value in this case.

What does this mean for you?

Since the eprint group tends to increase when the market is going up and down when it's going down, potential investors may wish to think about the whole market when considering the title. The purpose of this article is to inform investors about beta values, but important business-specific fundamentals such as the financial health and performance performance of the eprint group should also be considered. I strongly recommend that you dive deeper by considering the following points:

  1. Future prospects: What are well-informed industry analysts predicting for the future growth of 1884? Check out our free research report on analyst consensus regarding the outlook for 1884.
  2. antecedents: 1884 has it always been successful despite the ups and downs of the market? Go into more detail in past performance reviews and take a look at the free visual depictions of the 1884 histories for clarity.
  3. Other interesting actionsIt is useful to check how 1884 compares to other companies in terms of evaluation. You can start with this free list of potential options.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "To help readers understand the past volatility of the financial market in the short term, our goal is to provide you with a long-term research analysis based solely on fundamental data. Note that our analysis does not take into account the latest price sensitive business announcements.

The author is an independent contributor and, at the time of publication, was not positioned in the actions mentioned. For errors that deserve correction, please contact the publisher at editorial-team@simplywallst.com.

"data-reactid =" 53 "> To help readers understand the short-term volatility of the financial market, we aim to provide you with a long-term research analysis based solely on fundamental data. account of the latest price sensitive business announcements.

The author is an independent contributor and, at the time of publication, was not positioned in the actions mentioned. For errors that need to be corrected, please contact the publisher at editorial-team@simplywallst.com.