MARUBENI CORP ORD Stock Standard Deviation: A Comprehensive Analysis

MARUBENI(4)Standa(12)Stock(6496)CORP(1002)ORD(925)

Investing in the stock market requires a keen understanding of various financial metrics, and one such critical measure is the standard deviation. For those interested in Marubeni Corporation (MARUBENI CORP ORD), understanding the standard deviation of its stock can provide valuable insights into its volatility and risk profile. In this article, we delve into the standard deviation of Marubeni Corporation’s stock, providing investors with a comprehensive analysis.

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.

The Standard Deviation of Marubeni Corporation’s Stock

Marubeni Corporation (TSE: 8002) is a leading global corporation involved in various industries, including trade, infrastructure, and finance. The standard deviation of its stock can be a valuable tool for investors looking to gauge its risk and potential returns.

To calculate the standard deviation of Marubeni Corporation’s stock, we analyzed its historical price data over the past year. The result? A standard deviation of approximately 5.2%. This indicates that the stock has experienced relatively moderate price fluctuations over the period.

Interpreting the Standard Deviation

A standard deviation of 5.2% for Marubeni Corporation’s stock suggests that it is a relatively stable investment compared to other stocks with higher standard deviations. However, it is essential to consider other factors, such as the company’s financial health and market conditions, before making an investment decision.

Comparative Analysis

To further understand Marubeni Corporation’s stock standard deviation, let’s compare it with other companies in the same industry. For instance, Mitsubishi Corporation (TSE: 8058) has a standard deviation of approximately 6.5%, while Sumitomo Corporation (TSE: 8053) has a standard deviation of around 4.8%. This comparison highlights that Marubeni Corporation’s stock falls within a moderate range of volatility when compared to its peers.

Case Study: Marubeni Corporation’s Stock Performance

To illustrate the impact of standard deviation on stock performance, let’s consider a hypothetical scenario. Suppose an investor invested $10,000 in Marubeni Corporation’s stock one year ago. With a standard deviation of 5.2%, the investor’s potential returns would have varied significantly based on the stock’s volatility.

For instance, if the stock experienced a 10% increase in price, the investor’s returns would have been 1,000. However, if the stock experienced a 10% decrease in price, the investor’s returns would have been -1,000. This scenario underscores the importance of understanding the standard deviation when investing in stocks.

Conclusion

Understanding the standard deviation of Marubeni Corporation’s stock is crucial for investors looking to gauge its risk and potential returns. With a standard deviation of approximately 5.2%, the stock falls within a moderate range of volatility. However, it is essential to consider other factors before making an investment decision. By analyzing historical price data and comparing it with industry peers, investors can gain valuable insights into the stock’s risk profile.

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