Auburn Bancorp Stock Volatility
| ABBB Stock | USD 9.00 0.00 0.00% |
At this point, Auburn Bancorp is somewhat reliable. Auburn Bancorp secures Sharpe Ratio (or Efficiency) of 0.0503, which signifies that the company had a 0.0503 % return per unit of standard deviation over the last 3 months. We have found eighteen technical indicators for Auburn Bancorp, which you can use to evaluate the volatility of the firm. Please confirm Auburn Bancorp's risk adjusted performance of 0.0495, and Mean Deviation of 0.7056 to double-check if the risk estimate we provide is consistent with the expected return of 0.13%. Key indicators related to Auburn Bancorp's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Auburn Bancorp Pink Sheet volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Auburn daily returns, and it is calculated using variance and standard deviation. We also use Auburn's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Auburn Bancorp volatility.
Auburn |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Auburn Bancorp can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game as hey may decide to buy additional stocks of Auburn Bancorp at lower prices to lower their average cost per share. Similarly, when the prices of Auburn Bancorp's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Auburn Bancorp Market Sensitivity And Downside Risk
Auburn Bancorp's beta coefficient measures the volatility of Auburn pink sheet compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Auburn pink sheet's returns against your selected market. In other words, Auburn Bancorp's beta of -0.18 provides an investor with an approximation of how much risk Auburn Bancorp pink sheet can potentially add to one of your existing portfolios. Auburn Bancorp exhibits very low volatility with skewness of 1.0 and kurtosis of 20.99. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Auburn Bancorp's pink sheet risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Auburn Bancorp's pink sheet price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Auburn Bancorp Demand TrendCheck current 90 days Auburn Bancorp correlation with market (Dow Jones Industrial)Auburn Beta |
Auburn standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 2.48 |
It is essential to understand the difference between upside risk (as represented by Auburn Bancorp's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Auburn Bancorp's daily returns or price. Since the actual investment returns on holding a position in auburn pink sheet tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Auburn Bancorp.
Auburn Bancorp Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Auburn Bancorp pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Auburn Bancorp's price changes. Investors will then calculate the volatility of Auburn Bancorp's pink sheet to predict their future moves. A pink sheet that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A pink sheet with relatively stable price changes has low volatility. A highly volatile pink sheet is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Auburn Bancorp's volatility:
Historical Volatility
This type of pink sheet volatility measures Auburn Bancorp's fluctuations based on previous trends. It's commonly used to predict Auburn Bancorp's future behavior based on its past. However, it cannot conclusively determine the future direction of the pink sheet.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Auburn Bancorp's current market price. This means that the pink sheet will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Auburn Bancorp's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Auburn Bancorp 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.
Auburn Bancorp Projected Return Density Against Market
Given the investment horizon of 90 days Auburn Bancorp has a beta of -0.1781 . This suggests as returns on the benchmark increase, returns on holding Auburn Bancorp are expected to decrease at a much lower rate. During a bear market, however, Auburn Bancorp is likely to outperform the market.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Auburn Bancorp or Thrifts & Mortgage Finance sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Auburn Bancorp's price will be affected by overall pink sheet market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Auburn pink sheet's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Auburn Bancorp has an alpha of 0.088, implying that it can generate a 0.088 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Auburn Bancorp Price Volatility?
Several factors can influence a pink sheet's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Auburn Bancorp Pink Sheet Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Auburn Bancorp is 1988.33. The daily returns are distributed with a variance of 6.17 and standard deviation of 2.48. The mean deviation of Auburn Bancorp is currently at 0.78. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.88
α | Alpha over Dow Jones | 0.09 | |
β | Beta against Dow Jones | -0.18 | |
σ | Overall volatility | 2.48 | |
Ir | Information ratio | 0.09 |
Auburn Bancorp Pink Sheet Return Volatility
Auburn Bancorp historical daily return volatility represents how much of Auburn Bancorp pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 2.4844% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.852% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Auburn Bancorp Volatility
Volatility is a rate at which the price of Auburn Bancorp or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Auburn Bancorp may increase or decrease. In other words, similar to Auburn's beta indicator, it measures the risk of Auburn Bancorp and helps estimate the fluctuations that may happen in a short period of time. So if prices of Auburn Bancorp fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.Auburn Bancorp, Inc. operates as the holding company for Auburn Savings Bank, FSB that provides personal and business banking products and services primarily in LewistonAuburn, Maine. Auburn Bancorp, Inc. operates as a subsidiary of Auburn Bancorp, MHC. Auburn Bancorp operates under BanksRegional classification in the United States and is traded on OTC Exchange.
Auburn Bancorp's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Auburn Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Auburn Bancorp's price varies over time.
3 ways to utilize Auburn Bancorp's volatility to invest better
Higher Auburn Bancorp's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Auburn Bancorp stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Auburn Bancorp stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Auburn Bancorp investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Auburn Bancorp's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Auburn Bancorp's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Auburn Bancorp Investment Opportunity
Auburn Bancorp has a volatility of 2.48 and is 2.92 times more volatile than Dow Jones Industrial. 22 percent of all equities and portfolios are less risky than Auburn Bancorp. You can use Auburn Bancorp to protect your portfolios against small market fluctuations. The pink sheet experiences a normal downward fluctuation but is a risky buy. Check odds of Auburn Bancorp to be traded at $8.91 in 90 days.Good diversification
The correlation between Auburn Bancorp and DJI is -0.07 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Auburn Bancorp and DJI in the same portfolio, assuming nothing else is changed.
Auburn Bancorp Additional Risk Indicators
The analysis of Auburn Bancorp's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Auburn Bancorp's investment and either accepting that risk or mitigating it. Along with some common measures of Auburn Bancorp pink sheet's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.0495 | |||
| Market Risk Adjusted Performance | (0.58) | |||
| Mean Deviation | 0.7056 | |||
| Coefficient Of Variation | 2036.26 | |||
| Standard Deviation | 2.35 | |||
| Variance | 5.51 | |||
| Information Ratio | 0.0861 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential pink sheets, we recommend comparing similar pink sheets with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Auburn Bancorp Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
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 Auburn Bancorp 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. Auburn Bancorp'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, Auburn Bancorp'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 Auburn Bancorp.
Complementary Tools for Auburn Pink Sheet analysis
When running Auburn Bancorp's price analysis, check to measure Auburn Bancorp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Auburn Bancorp is operating at the current time. Most of Auburn Bancorp's value examination focuses on studying past and present price action to predict the probability of Auburn Bancorp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Auburn Bancorp's price. Additionally, you may evaluate how the addition of Auburn Bancorp to your portfolios can decrease your overall portfolio volatility.
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