Bionano Genomics Stock Volatility
| BNGO Stock | USD 0.24 0.01 4.00% |
Bionano Genomics secures Sharpe Ratio (or Efficiency) of -0.17, which signifies that the company had a -0.17% return per unit of risk over the last 3 months. Bionano Genomics exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Bionano Genomics' Standard Deviation of 5.21, risk adjusted performance of (0.14), and Mean Deviation of 4.08 to double-check the risk estimate we provide. Key indicators related to Bionano Genomics' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Bionano Genomics Stock 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 Bionano daily returns, and it is calculated using variance and standard deviation. We also use Bionano's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Bionano Genomics volatility.
Bionano |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Bionano Genomics can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Bionano Genomics at lower prices. For example, an investor can purchase Bionano stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Bionano Genomics' stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Moving together with Bionano Stock
Moving against Bionano Stock
| 0.85 | DRUG | Bright Minds Biosciences | PairCorr |
| 0.78 | VCYT | Veracyte | PairCorr |
| 0.72 | VERA | Vera Therapeutics | PairCorr |
| 0.53 | VANI | Vivani Medical | PairCorr |
| 0.48 | VCEL | Vericel Corp Ord | PairCorr |
| 0.37 | DMAC | DiaMedica Therapeutics | PairCorr |
Bionano Genomics Market Sensitivity And Downside Risk
Bionano Genomics' beta coefficient measures the volatility of Bionano stock 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 Bionano stock's returns against your selected market. In other words, Bionano Genomics's beta of 2.74 provides an investor with an approximation of how much risk Bionano Genomics stock can potentially add to one of your existing portfolios. Bionano Genomics exhibits very low volatility with skewness of 0.34 and kurtosis of 0.6. Bionano Genomics is a potential penny stock. Although Bionano Genomics may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Bionano Genomics. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Bionano instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.
3 Months Beta |Analyze Bionano Genomics Demand TrendCheck current 90 days Bionano Genomics correlation with market (Dow Jones Industrial)Bionano Beta |
Bionano 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 | 5.24 |
It is essential to understand the difference between upside risk (as represented by Bionano Genomics's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Bionano Genomics' daily returns or price. Since the actual investment returns on holding a position in bionano stock 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 Bionano Genomics.
Bionano Genomics Stock Volatility Analysis
Volatility refers to the frequency at which Bionano Genomics stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Bionano Genomics' price changes. Investors will then calculate the volatility of Bionano Genomics' stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock 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 Bionano Genomics' volatility:
Historical Volatility
This type of stock volatility measures Bionano Genomics' fluctuations based on previous trends. It's commonly used to predict Bionano Genomics' future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Bionano Genomics' current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Bionano Genomics' 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. Bionano Genomics 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.
Bionano Genomics Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 2.7368 suggesting as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Bionano Genomics will likely underperform.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 Bionano Genomics or Life Sciences Tools & Services 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 Bionano Genomics' price will be affected by overall stock 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 Bionano stock'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.
Bionano Genomics has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives a Bionano Genomics Price Volatility?
Several factors can influence a stock'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.Bionano Genomics Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Bionano Genomics is -587.22. The daily returns are distributed with a variance of 27.44 and standard deviation of 5.24. The mean deviation of Bionano Genomics is currently at 4.07. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | -1.33 | |
β | Beta against Dow Jones | 2.74 | |
σ | Overall volatility | 5.24 | |
Ir | Information ratio | -0.22 |
Bionano Genomics Stock Return Volatility
Bionano Genomics historical daily return volatility represents how much of Bionano Genomics stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 5.2383% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7496% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Bionano Genomics Volatility
Volatility is a rate at which the price of Bionano Genomics 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 Bionano Genomics may increase or decrease. In other words, similar to Bionano's beta indicator, it measures the risk of Bionano Genomics and helps estimate the fluctuations that may happen in a short period of time. So if prices of Bionano Genomics 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.| Last Reported | Projected for Next Year | ||
| Market Cap | 289 M | 303.4 M |
Bionano Genomics' 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 Bionano Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Bionano Genomics' price varies over time.
3 ways to utilize Bionano Genomics' volatility to invest better
Higher Bionano Genomics' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Bionano Genomics 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. Bionano Genomics 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 Bionano Genomics investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Bionano Genomics' 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 Bionano Genomics' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Bionano Genomics Investment Opportunity
Bionano Genomics has a volatility of 5.24 and is 6.99 times more volatile than Dow Jones Industrial. 46 percent of all equities and portfolios are less risky than Bionano Genomics. You can use Bionano Genomics to protect your portfolios against small market fluctuations. The stock experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of Bionano Genomics to be traded at $0.2304 in 90 days.Very weak diversification
The correlation between Bionano Genomics and DJI is 0.4 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Bionano Genomics and DJI in the same portfolio, assuming nothing else is changed.
Bionano Genomics Additional Risk Indicators
The analysis of Bionano Genomics' 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 Bionano Genomics' investment and either accepting that risk or mitigating it. Along with some common measures of Bionano Genomics stock'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 | (0.14) | |||
| Market Risk Adjusted Performance | (0.36) | |||
| Mean Deviation | 4.08 | |||
| Coefficient Of Variation | (519.64) | |||
| Standard Deviation | 5.21 | |||
| Variance | 27.1 | |||
| Information Ratio | (0.22) |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Bionano Genomics 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.
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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 Bionano Genomics 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. Bionano Genomics' 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, Bionano Genomics' 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 Bionano Genomics.
When determining whether Bionano Genomics offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Bionano Genomics' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Bionano Genomics Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Bionano Genomics Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Bionano Genomics. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price. To learn how to invest in Bionano Stock, please use our How to Invest in Bionano Genomics guide.You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Is Life Sciences Tools & Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Bionano Genomics. If investors know Bionano will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Bionano Genomics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (2.30) | Revenue Per Share 0.749 | Quarterly Revenue Growth (0.10) | Return On Assets (0.33) | Return On Equity (1.38) |
The market value of Bionano Genomics is measured differently than its book value, which is the value of Bionano that is recorded on the company's balance sheet. Investors also form their own opinion of Bionano Genomics' value that differs from its market value or its book value, called intrinsic value, which is Bionano Genomics' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Bionano Genomics' market value can be influenced by many factors that don't directly affect Bionano Genomics' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Bionano Genomics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Bionano Genomics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bionano Genomics' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.