Localiza Rent (Brazil) Volatility
| RENT3 Stock | BRL 47.59 1.15 2.48% |
Its Sharpe ratio is 0.0511, reflecting healthy reward-to-volatility behavior over the last 3 months. The current setup includes 28 technical indicators relevant to risk behavior. Across the last 3 months, Localiza Rent a continues to post moderate price volatility.
Sharpe Ratio = 0.0511
| High Returns | Best Equity | |||
| Good Returns | ||||
| Average Returns | ||||
| Small Returns | ||||
| Cash | Small Risk | RENT3 | High Risk | Huge Risk |
| Negative Returns |
Estimated Market Risk
| 2.51 actual daily | 22 78% of assets are more volatile |
Expected Return
| 0.13 actual daily | 2 98% of assets have higher returns |
Risk-Adjusted Return
| 0.05 actual daily | 4 96% of assets perform better |
Latest disclosures for Localiza Rent a show a Market Risk Adjusted Performance of 0.1%, a Risk of 2.51, and a Risk Adjusted Performance of 0.05%. Moving average data indicates Localiza Rent is positioned near 4% of its recent return envelope. Inclusion in a well-diversified allocation would influence portfolio dispersion metrics.
Key indicators related to Localiza Rent's volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Volatility analysis for Localiza Rent draws on both historical price data and forward-looking implied volatility. Periods of elevated Localiza Rent volatility are typically followed by calmer conditions, and vice versa.
Localiza |
Volatility Strategy
Volatility in Localiza Rent a contributes to allocation risk depending on correlation. Current statistical measures show total volatility near 2.51% with a beta coefficient of 1.27, indicating sensitivity relative to the broader market benchmark. Risk-adjusted efficiency, represented by a Sharpe ratio of 0.0511, evaluates return per unit of total risk. An alpha value of 0.18 reflects performance relative to systematic market exposure. Expected return estimates near 0.13% are derived from historical distribution modeling and help frame forward-looking return assumptions within a portfolio context. Competitive positioning may influence variability.
Main indicators related to Localiza Rent's market risk premium analysis include:
Beta 1.27 | Alpha 0.18 | Risk 2.51 | Sharpe Ratio 0.0511 | Expected Return 0.13 |
Moving against Localiza Stock
Sensitivity To Market
Localiza Rent a relative market sensitivity is quantified by its beta value of 1.27. This regression-derived coefficient reflects systematic risk. Total return variability is about 2.51%.This summary describes how Localiza Rent a has moved rather than why it moved. Standard deviation is near 2.48% and downside deviation is near 2.41%. Stock volatility often clusters, meaning high-volatility periods can come in waves.
3 Months Beta |Analyze Localiza Rent a Demand TrendCheck current 90 days Localiza Rent correlation with market (Dow Jones Industrial)Downside Risk
Standard deviation for Localiza expresses the daily price volatility as a spread around the mean. A large standard deviation indicates a volatile instrument; a small one indicates relative price stability.
Standard Deviation | 2.51 |
For Localiza Rent investors, the distinction between upside and downside risk matters. Downside risk, the risk of loss specifically, is better measured by semi-deviation or downside deviation of Localiza Rent's returns. Latest disclosures for Localiza Rent a show a Downside Deviation of 2.41, a Downside Variance of 5.82, and a Maximum Drawdown of 11.51.
Stock Volatility Analysis
Volatility describes the degree to which Localiza Rent stock price fluctuates in either direction. It captures how much Localiza Rent's price fluctuates, helping investors set appropriate position sizes.
Transformation |
This analysis covers sixty-one data points across the selected time horizon. Localiza Rent a Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Projected Return Density Against Market
Assuming the 90-day trading horizon Localiza Rent has a beta of 1.2674 indicating as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Localiza Rent will likely underperform.Localiza Rent remains sensitive to broader stock market conditions in addition to company or sector-specific developments. Portfolio diversification mitigates only part of this exposure. Latest disclosures for Localiza Rent a show a Downside Deviation of 2.41, a Mean Deviation of 1.81, and a Semi Deviation of 2.28.
Predicted Return Distribution |
| Density |
What Drives Localiza Rent's Price Volatility?
Industry Dynamics
Regulatory updates, demand shifts, and competitive changes in the Road & Rail sector can move Localiza Rent's volatility even when broad indices are stable.Political and Economic Environment
Rates, inflation expectations, and policy headlines can shift discount rates and risk appetite for Localiza Rent.Localiza Rent's Company-Specific Factors
Earnings surprises, guidance changes, management decisions, and litigation risk are common catalysts for sharp re-pricing in Localiza Rent's shares.Stock Risk Measures
Assuming the 90-day trading horizon the coefficient of variation of Localiza Rent is 1958.49. The daily returns are distributed with a variance of 6.32 and standard deviation of 2.51. The mean deviation of Localiza Rent a is currently at 1.83. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.82
α | Alpha over Dow Jones | 0.18 | |
β | Beta against Dow Jones | 1.27 | |
σ | Overall volatility | 2.51 | |
Ir | Information ratio | 0.07 |
Stock Return Volatility
Localiza Rent historical daily return volatility represents how much of Localiza Rent stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm reported 2.5134% volatility on return distribution over a 90-day investment horizon. By contrast, Dow Jones Industrial has volatility of 0.8467% on return distribution over a 90-day investment horizon. Performance |
| Timeline |
Related Correlations Analysis
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
| High negative correlations
|
Risk-Adjusted Indicators
Strong recent returns in Localiza Stock do not always mean Localiza Rent Company is outperforming peers on business quality. Peer-relative risk metrics add context on drawdown behavior, consistency, and return quality. These indicators are quantitative in nature and help investors evaluate volatility and risk-adjusted expected returns across different positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| MOTV3 | 1.49 | 0.13 | 0.06 | 0.06 | 1.83 | 3.59 | 9.61 | |||
| MOVI3 | 3.33 | 0.65 | 0.13 | 0.23 | 4.08 | 8.82 | 21.33 | |||
| ARML3 | 2.71 | 0.59 | 0.14 | 0.20 | 3.41 | 6.19 | 18.35 | |||
| RAIL3 | 1.48 | 0.22 | 0.14 | 0.33 | 1.66 | 4.15 | 10.59 | |||
| IGTI11 | 1.33 | 0.23 | 0.12 | 0.16 | 1.61 | 3.18 | 8.64 | |||
| VAMO3 | 3.11 | 0.37 | 0.09 | 0.12 | 3.29 | 7.49 | 17.27 | |||
| LOGN3 | 0.56 | -0.08 | 0.00 | -0.56 | 0.00 | 1.20 | 6.22 | |||
| MRSA3B | 3.59 | 0.91 | 0.06 | 0.92 | 4.20 | 9.89 | 81.76 |
Risk Metrics, Assumptions & Methodology
Volatility regime analysis for Localiza Rent identifies whether current dispersion is elevated, compressed, or transitioning between states. Regime stability supports tighter position sizing and more reliable risk budgeting. Localiza Rent has a market cap of 54.64 B, P/E of 43.38, ROE of 13.24%.
Reported values for Localiza Rent a are derived from periodic company reporting and market reference feeds and then standardized for analysis. Refresh timing depends on source availability. Volatility and downside metrics are estimated from historical return dispersion.
This content is curated and reviewed by:
Raphi Shpitalnik - Junior Member of Macroaxis Editorial BoardLocaliza Rent Investment Opportunity
Localiza Rent a currently shows materially higher return volatility than Dow Jones Industrial, with a relative multiple of about 2.95. Across the current 90-day horizon, that places the security below 22% of the broader equity and portfolio universe on a pure volatility basis.You can use Localiza Rent a to enhance the returns of the portfolio. This move summary looks at how the current session may translate into a basic near-term setup. It works best as a directional cue rather than as a standalone forecast. an unexpected upward trend. Watch out for market signals. Check odds of Localiza Rent to be traded at R$57.11 in 90 days.Moderate diversification
Across the chosen horizon, Localiza Rent and Dow Jones show a correlation of 0.33 and fall into the Moderate diversification bucket. The overlap area shows the portion of risk that can be diversified away by holding both instruments together.
Localiza Rent Additional Risk Indicators
A broader risk-indicator set for Localiza Rent a can improve buy, hold, hedge, and sell decisions by adding context beyond the most common measures. The practical goal is to identify how much risk is being accepted and whether that risk still fits the thesis.
| Risk Adjusted Performance | 0.0475 | |||
| Market Risk Adjusted Performance | 0.0993 | |||
| Mean Deviation | 1.81 | |||
| Semi Deviation | 2.28 | |||
| Downside Deviation | 2.41 | |||
| Coefficient Of Variation | 2014.77 | |||
| Standard Deviation | 2.48 |
Localiza Rent Suggested Diversification Pairs
Pair analysis around Localiza Rent a matters because it can turn one security idea into a more market-neutral structure. A disciplined pair strategy still requires monitoring because correlation can weaken when market regimes change.
| GM vs. Localiza Rent | ||
| Walker Dunlop vs. Localiza Rent | ||
| Bank of America vs. Localiza Rent | ||
| Citigroup vs. Localiza Rent | ||
| Alphabet vs. Localiza Rent | ||
| Dupont De vs. Localiza Rent | ||
| Salesforce vs. Localiza Rent | ||
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Localiza Rent as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Localiza Rent's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Localiza Rent's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Localiza Rent a.
Additional Tools for Localiza Stock Analysis
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |