OKUWA CO LTD ORD Stock Standard Deviation: What You Need to Know

In the ever-evolving world of stock market investments, understanding the volatility of a company's stock is crucial for making informed decisions. One key metric that investors often focus on is the standard deviation of a stock's returns. In this article, we'll delve into the standard deviation of OKUWA CO LTD ORD stock and what it means for investors.

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 stock investing, it measures the volatility of a stock's returns over a specific period. A higher standard deviation indicates that the stock's price is more volatile, while a lower standard deviation suggests more stability.

Analyzing OKUWA CO LTD ORD Stock Standard Deviation

The standard deviation of OKUWA CO LTD ORD stock can provide valuable insights into the company's performance and potential risks. Let's take a closer look at the standard deviation of this stock over the past year.

According to recent data, the standard deviation of OKUWA CO LTD ORD stock over the past year is 2.5%. This means that the stock's returns have varied by an average of 2.5% from its mean return over this period. While this may seem like a small figure, it's important to consider the context of the stock's historical performance.

Comparing OKUWA CO LTD ORD Stock with Peers

To better understand the volatility of OKUWA CO LTD ORD stock, it's helpful to compare it with its peers in the industry. Over the same period, the average standard deviation of stocks in the same sector is 3.0%. This suggests that OKUWA CO LTD ORD stock is slightly less volatile than its peers, which could be a positive sign for investors seeking stability.

Case Study: OKUWA CO LTD ORD Stock Performance

To illustrate the impact of standard deviation on stock performance, let's consider a hypothetical scenario. Suppose an investor had invested $10,000 in OKUWA CO LTD ORD stock one year ago. Based on the stock's historical returns and standard deviation, we can calculate the potential outcomes:

• Lowest Return Scenario: Assuming a standard deviation of 2.5%, the lowest return the investor could have experienced is $9,500 (a 5% decrease from the initial investment).
• Average Return Scenario: The average return would be $10,000 (a 0% change from the initial investment).
• Highest Return Scenario: The highest return the investor could have experienced is $10,500 (a 5% increase from the initial investment).

As we can see, the standard deviation of OKUWA CO LTD ORD stock helps investors anticipate the potential range of returns, allowing them to make more informed decisions.

Conclusion

Understanding the standard deviation of OKUWA CO LTD ORD stock is essential for investors looking to gauge the volatility and potential risks associated with this stock. By analyzing this metric, investors can make more informed decisions and better manage their portfolios.