SUMITOMO RUBBER INDUS LTD Stock Standard Deviation: A Comprehensive Analysis

RUBBER(24)SUMITOMO(54)Stoc(489)LTD(1232)INDUS(86)

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. Today, we delve into the standard deviation of Sumitomo Rubber Industries Ltd (TYO: 5110) stock, exploring its implications and how it can impact investment decisions.

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 measures how much the stock's price fluctuates over a given period. A higher standard deviation indicates greater volatility, while a lower standard deviation suggests more stability.

Sumitomo Rubber Industries Ltd: A Brief Overview

Sumitomo Rubber Industries Ltd is a leading manufacturer of rubber products and synthetic fibers, with operations spanning across various industries, including automotive, industrial, and consumer goods. The company is based in Tokyo, Japan, and has a strong global presence.

Analyzing Sumitomo Rubber Industries Ltd Stock Standard Deviation

To analyze the standard deviation of Sumitomo Rubber Industries Ltd stock, we looked at the past year's price data. The standard deviation for the stock during this period was 10.5%. This indicates that the stock has experienced relatively high volatility.

Implications of High Standard Deviation

A high standard deviation for Sumitomo Rubber Industries Ltd stock suggests that the stock's price is likely to experience significant fluctuations in the future. This can be both a blessing and a curse for investors. On one hand, high volatility can lead to substantial gains if the stock price moves in the right direction. On the other hand, it can also result in substantial losses if the stock price moves in the wrong direction.

Case Study: Sumitomo Rubber Industries Ltd Stock Price Movement in 2022

In 2022, Sumitomo Rubber Industries Ltd stock experienced a volatile year. The stock price reached a high of 5,000 yen in January and a low of 4,000 yen in February. This wide price range is a clear indication of the stock's high standard deviation.

Conclusion

In conclusion, the standard deviation of Sumitomo Rubber Industries Ltd stock is 10.5%, indicating high volatility. While this can be a source of significant gains, it also poses a higher risk of losses. Investors should carefully consider the stock's volatility when making investment decisions.

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