Bowlin Travel Centers Stock Volatility
| BWTL Stock | USD 4.00 0.00 0.00% |
As of now, Bowlin Pink Sheet is slightly risky. Bowlin Travel Centers secures Sharpe Ratio (or Efficiency) of 0.0087, which signifies that the company had a 0.0087% return per unit of risk over the last 3 months. We have found eighteen technical indicators for Bowlin Travel Centers, which you can use to evaluate the volatility of the firm. Please confirm Bowlin Travel's Mean Deviation of 0.4603, standard deviation of 1.77, and Risk Adjusted Performance of 0.0123 to double-check if the risk estimate we provide is consistent with the expected return of 0.0156%. Key indicators related to Bowlin Travel's volatility include:
60 Days Market Risk | Chance Of Distress | 60 Days Economic Sensitivity |
Bowlin Travel 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 Bowlin daily returns, and it is calculated using variance and standard deviation. We also use Bowlin's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Bowlin Travel volatility.
Bowlin |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Bowlin Travel at lower prices. For example, an investor can purchase Bowlin stock that has halved in price over a short period. This will lower their average cost per share, thereby improving the overall portfolio performance when market normalizes.
Moving against Bowlin Pink Sheet
Bowlin Travel Market Sensitivity And Downside Risk
Bowlin Travel's beta coefficient measures the volatility of Bowlin 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 Bowlin pink sheet's returns against your selected market. In other words, Bowlin Travel's beta of 0.28 provides an investor with an approximation of how much risk Bowlin Travel pink sheet can potentially add to one of your existing portfolios. Bowlin Travel Centers exhibits very low volatility with skewness of 1.76 and kurtosis of 25.53. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Bowlin Travel'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 Bowlin Travel'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 Bowlin Travel Centers Demand TrendCheck current 90 days Bowlin Travel correlation with market (Dow Jones Industrial)Bowlin Beta |
Bowlin 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 | 1.79 |
It is essential to understand the difference between upside risk (as represented by Bowlin Travel's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Bowlin Travel's daily returns or price. Since the actual investment returns on holding a position in bowlin 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 Bowlin Travel.
Bowlin Travel Centers Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Bowlin Travel pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Bowlin Travel's price changes. Investors will then calculate the volatility of Bowlin Travel'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 Bowlin Travel's volatility:
Historical Volatility
This type of pink sheet volatility measures Bowlin Travel's fluctuations based on previous trends. It's commonly used to predict Bowlin Travel'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 Bowlin Travel'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 Bowlin Travel'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. Bowlin Travel Centers 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.
Bowlin Travel Projected Return Density Against Market
Given the investment horizon of 90 days Bowlin Travel has a beta of 0.2751 suggesting as returns on the market go up, Bowlin Travel average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Bowlin Travel Centers will be expected to be much smaller as well.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 Bowlin Travel or Specialty Retail 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 Bowlin Travel'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 Bowlin 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.
Bowlin Travel Centers 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 Bowlin Travel 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.Bowlin Travel Pink Sheet Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Bowlin Travel is 11521.4. The daily returns are distributed with a variance of 3.21 and standard deviation of 1.79. The mean deviation of Bowlin Travel Centers is currently at 0.47. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.79
α | Alpha over Dow Jones | -0.001 | |
β | Beta against Dow Jones | 0.28 | |
σ | Overall volatility | 1.79 | |
Ir | Information ratio | -0.0097 |
Bowlin Travel Pink Sheet Return Volatility
Bowlin Travel historical daily return volatility represents how much of Bowlin Travel pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 1.7928% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8045% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Bowlin Travel Volatility
Volatility is a rate at which the price of Bowlin Travel 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 Bowlin Travel may increase or decrease. In other words, similar to Bowlin's beta indicator, it measures the risk of Bowlin Travel and helps estimate the fluctuations that may happen in a short period of time. So if prices of Bowlin Travel 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.Bowlin Travel Centers, Inc. engages in the operation of travel centers and restaurants located along interstate highways in New Mexico and Arizona. The company was founded in 1912 and is headquartered in Albuquerque, New Mexico. Bowlin Travel is traded on OTC Exchange in the United States.
Bowlin Travel'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 Bowlin Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Bowlin Travel's price varies over time.
3 ways to utilize Bowlin Travel's volatility to invest better
Higher Bowlin Travel's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Bowlin Travel Centers 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. Bowlin Travel Centers 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 Bowlin Travel Centers investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Bowlin Travel'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 Bowlin Travel's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Bowlin Travel Investment Opportunity
Bowlin Travel Centers has a volatility of 1.79 and is 2.24 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Bowlin Travel Centers is lower than 15 percent of all global equities and portfolios over the last 90 days. You can use Bowlin Travel Centers to protect your portfolios against small market fluctuations. The pink sheet experiences a normal downward fluctuation but is a risky buy. Check odds of Bowlin Travel to be traded at $3.96 in 90 days.Average diversification
The correlation between Bowlin Travel Centers and DJI is 0.12 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Bowlin Travel Centers and DJI in the same portfolio, assuming nothing else is changed.
Bowlin Travel Additional Risk Indicators
The analysis of Bowlin Travel'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 Bowlin Travel's investment and either accepting that risk or mitigating it. Along with some common measures of Bowlin Travel 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 | 0.0123 | |||
| Market Risk Adjusted Performance | 0.0285 | |||
| Mean Deviation | 0.4603 | |||
| Coefficient Of Variation | 11696.72 | |||
| Standard Deviation | 1.77 | |||
| Variance | 3.12 | |||
| Information Ratio | (0.01) |
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.
Bowlin Travel 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 Bowlin Travel 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. Bowlin Travel'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, Bowlin Travel'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 Bowlin Travel Centers.
Other Information on Investing in Bowlin Pink Sheet
Bowlin Travel financial ratios help investors to determine whether Bowlin Pink Sheet is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Bowlin with respect to the benefits of owning Bowlin Travel security.