Bitcoin Depot Stock Volatility
| BTM Stock | 1.86 0.04 2.11% |
Bitcoin Depot appears to be dangerous, given 3 months investment horizon. Bitcoin Depot secures Sharpe Ratio (or Efficiency) of 0.0649, which signifies that the company had a 0.0649% return per unit of risk over the last 3 months. By analyzing Bitcoin Depot's technical indicators, you can evaluate if the expected return of 0.52% is justified by implied risk. Please makes use of Bitcoin Depot's Mean Deviation of 3.79, risk adjusted performance of 0.064, and Downside Deviation of 4.48 to double-check if our risk estimates are consistent with your expectations. Key indicators related to Bitcoin Depot's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Bitcoin Depot 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 Bitcoin daily returns, and it is calculated using variance and standard deviation. We also use Bitcoin's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Bitcoin Depot volatility.
Bitcoin |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Bitcoin Depot 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 Bitcoin Depot at lower prices. For example, an investor can purchase Bitcoin 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 Bitcoin Depot's 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 Bitcoin Stock
Moving against Bitcoin Stock
| 0.65 | VCIG | VCI Global Limited | PairCorr |
| 0.6 | MG | Mistras Group | PairCorr |
| 0.58 | FC | Franklin Covey | PairCorr |
| 0.44 | VLTO | Veralto | PairCorr |
| 0.42 | EXPO | Exponent | PairCorr |
Bitcoin Depot Market Sensitivity And Downside Risk
Bitcoin Depot's beta coefficient measures the volatility of Bitcoin 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 Bitcoin stock's returns against your selected market. In other words, Bitcoin Depot's beta of 3.61 provides an investor with an approximation of how much risk Bitcoin Depot stock can potentially add to one of your existing portfolios. Bitcoin Depot is displaying above-average volatility over the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Bitcoin Depot's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Bitcoin Depot's stock 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 Bitcoin Depot Demand TrendCheck current 90 days Bitcoin Depot correlation with market (Dow Jones Industrial)Bitcoin Beta |
Bitcoin 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 | 8.06 |
It is essential to understand the difference between upside risk (as represented by Bitcoin Depot's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Bitcoin Depot's daily returns or price. Since the actual investment returns on holding a position in bitcoin 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 Bitcoin Depot.
Bitcoin Depot Stock Volatility Analysis
Volatility refers to the frequency at which Bitcoin Depot stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Bitcoin Depot's price changes. Investors will then calculate the volatility of Bitcoin Depot's 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 Bitcoin Depot's volatility:
Historical Volatility
This type of stock volatility measures Bitcoin Depot's fluctuations based on previous trends. It's commonly used to predict Bitcoin Depot's 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 Bitcoin Depot's 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 Bitcoin Depot'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. Bitcoin Depot 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.
Bitcoin Depot Projected Return Density Against Market
Considering the 90-day investment horizon the stock has the beta coefficient of 3.6066 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, Bitcoin Depot 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 Bitcoin Depot or Commercial Services & Supplies 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 Bitcoin Depot's 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 Bitcoin 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.
Bitcoin Depot has an alpha of 0.1777, implying that it can generate a 0.18 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Bitcoin Depot 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.Bitcoin Depot Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Bitcoin Depot is 1541.51. The daily returns are distributed with a variance of 64.95 and standard deviation of 8.06. The mean deviation of Bitcoin Depot is currently at 3.85. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.72
α | Alpha over Dow Jones | 0.18 | |
β | Beta against Dow Jones | 3.61 | |
σ | Overall volatility | 8.06 | |
Ir | Information ratio | 0.06 |
Bitcoin Depot Stock Return Volatility
Bitcoin Depot historical daily return volatility represents how much of Bitcoin Depot stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 8.0593% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7357% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Bitcoin Depot Volatility
Volatility is a rate at which the price of Bitcoin Depot 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 Bitcoin Depot may increase or decrease. In other words, similar to Bitcoin's beta indicator, it measures the risk of Bitcoin Depot and helps estimate the fluctuations that may happen in a short period of time. So if prices of Bitcoin Depot 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 | 112.5 M | 98.4 M |
Bitcoin Depot'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 Bitcoin Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Bitcoin Depot's price varies over time.
3 ways to utilize Bitcoin Depot's volatility to invest better
Higher Bitcoin Depot's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Bitcoin Depot 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. Bitcoin Depot 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 Bitcoin Depot investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Bitcoin Depot'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 Bitcoin Depot's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Bitcoin Depot Investment Opportunity
Bitcoin Depot has a volatility of 8.06 and is 10.89 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Bitcoin Depot is higher than 71 percent of all global equities and portfolios over the last 90 days. You can use Bitcoin Depot 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 Bitcoin Depot to be traded at 1.7856 in 90 days.Weak diversification
The correlation between Bitcoin Depot and DJI is 0.33 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Depot and DJI in the same portfolio, assuming nothing else is changed.
Bitcoin Depot Additional Risk Indicators
The analysis of Bitcoin Depot'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 Bitcoin Depot's investment and either accepting that risk or mitigating it. Along with some common measures of Bitcoin Depot 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 | 0.064 | |||
| Market Risk Adjusted Performance | 0.1737 | |||
| Mean Deviation | 3.79 | |||
| Semi Deviation | 4.1 | |||
| Downside Deviation | 4.48 | |||
| Coefficient Of Variation | 1314.96 | |||
| Standard Deviation | 7.89 |
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.
Bitcoin Depot 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 Bitcoin Depot 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. Bitcoin Depot'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, Bitcoin Depot'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 Bitcoin Depot.
When determining whether Bitcoin Depot is a strong investment it is important to analyze Bitcoin Depot's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Bitcoin Depot's future performance. For an informed investment choice regarding Bitcoin Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Bitcoin Depot. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate. To learn how to invest in Bitcoin Stock, please use our How to Invest in Bitcoin Depot guide.You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Is Commercial Services & Supplies 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 Bitcoin Depot. If investors know Bitcoin 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 Bitcoin Depot listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.89) | Revenue Per Share 36.273 | Quarterly Revenue Growth (0.17) | Return On Assets 0.1381 | Return On Equity (0.10) |
The market value of Bitcoin Depot is measured differently than its book value, which is the value of Bitcoin that is recorded on the company's balance sheet. Investors also form their own opinion of Bitcoin Depot's value that differs from its market value or its book value, called intrinsic value, which is Bitcoin Depot's 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 Bitcoin Depot's market value can be influenced by many factors that don't directly affect Bitcoin Depot's 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 Bitcoin Depot's value and its price as these two are different measures arrived at by different means. Investors typically determine if Bitcoin Depot is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bitcoin Depot's 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.