Daybreak Oil And Stock Volatility
| DBRM Stock | USD 0.0002 0.00 0.00% |
Daybreak Oil is out of control given 3 months investment horizon. Daybreak Oil secures Sharpe Ratio (or Efficiency) of 0.13, which denotes the company had a 0.13 % return per unit of risk over the last 3 months. We were able to interpolate data for sixteen different technical indicators, which can help you to evaluate if expected returns of 1.56% are justified by taking the suggested risk. Use Daybreak Oil Standard Deviation of 12.31, variance of 151.52, and Mean Deviation of 2.98 to evaluate company specific risk that cannot be diversified away. Key indicators related to Daybreak Oil's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Daybreak Oil 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 Daybreak daily returns, and it is calculated using variance and standard deviation. We also use Daybreak's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Daybreak Oil volatility.
Daybreak |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Daybreak Oil 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 Daybreak Oil at lower prices. For example, an investor can purchase Daybreak 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 Daybreak Oil'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 against Daybreak Pink Sheet
| 0.77 | SHG | Shinhan Financial | PairCorr |
| 0.73 | KB | KB Financial Group | PairCorr |
| 0.7 | VFSWW | VinFast Auto | PairCorr |
| 0.7 | VFS | VinFast Auto | PairCorr |
| 0.34 | MVST | Microvast Holdings | PairCorr |
Daybreak Oil Market Sensitivity And Downside Risk
Daybreak Oil's beta coefficient measures the volatility of Daybreak 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 Daybreak pink sheet's returns against your selected market. In other words, Daybreak Oil's beta of 3.02 provides an investor with an approximation of how much risk Daybreak Oil pink sheet can potentially add to one of your existing portfolios. Daybreak Oil and is displaying above-average volatility over the selected time horizon. Daybreak Oil and appears to be a penny stock. Although Daybreak Oil and may be, in fact, a solid short-term or long term investment, many penny pink sheets are speculative investment instruments that are often subject to artificial stock promotion and campaigns of hype which may lead to misinformation and misrepresentation. Please make sure you fully understand upside potential and downside risks of investing in Daybreak Oil and or similar risky assets. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswing without any event/news,and sudden news releases. We also encourage traders to check biographies and work history of company President, CEO or other officers before investing in high-volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Daybreak instrument if you perfectly time your entry and exit. However, remember that penny pink sheets 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 Daybreak Oil Demand TrendCheck current 90 days Daybreak Oil correlation with market (Dow Jones Industrial)Daybreak Beta |
Daybreak 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 | 12.5 |
It is essential to understand the difference between upside risk (as represented by Daybreak Oil's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Daybreak Oil's daily returns or price. Since the actual investment returns on holding a position in daybreak 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 Daybreak Oil.
Daybreak Oil Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Daybreak Oil pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Daybreak Oil's price changes. Investors will then calculate the volatility of Daybreak Oil'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 Daybreak Oil's volatility:
Historical Volatility
This type of pink sheet volatility measures Daybreak Oil's fluctuations based on previous trends. It's commonly used to predict Daybreak Oil'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 Daybreak Oil'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 Daybreak Oil'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. Daybreak Oil 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.
Daybreak Oil Projected Return Density Against Market
Given the investment horizon of 90 days the pink sheet has the beta coefficient of 3.024 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, Daybreak Oil 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 Daybreak Oil or Oil, Gas & Consumable Fuels 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 Daybreak Oil'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 Daybreak 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.
Daybreak Oil and has an alpha of 1.8349, implying that it can generate a 1.83 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Daybreak Oil 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.Daybreak Oil Pink Sheet Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Daybreak Oil is 800.0. The daily returns are distributed with a variance of 156.25 and standard deviation of 12.5. The mean deviation of Daybreak Oil and is currently at 3.08. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.87
α | Alpha over Dow Jones | 1.83 | |
β | Beta against Dow Jones | 3.02 | |
σ | Overall volatility | 12.50 | |
Ir | Information ratio | 0.13 |
Daybreak Oil Pink Sheet Return Volatility
Daybreak Oil historical daily return volatility represents how much of Daybreak Oil pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 12.5% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.9084% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Daybreak Oil Volatility
Volatility is a rate at which the price of Daybreak Oil 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 Daybreak Oil may increase or decrease. In other words, similar to Daybreak's beta indicator, it measures the risk of Daybreak Oil and helps estimate the fluctuations that may happen in a short period of time. So if prices of Daybreak Oil 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.Daybreak Oil and Gas, Inc. engages in the exploration, development, and production of crude oil and natural gas in the United States. Daybreak Oil and Gas, Inc. was incorporated in 1955 and is headquartered in Spokane Valley, Washington. Daybreak Oil operates under Oil Gas EP classification in the United States and is traded on OTC Exchange. It employs 4 people.
Daybreak Oil'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 Daybreak Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Daybreak Oil's price varies over time.
3 ways to utilize Daybreak Oil's volatility to invest better
Higher Daybreak Oil's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Daybreak Oil 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. Daybreak Oil 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 Daybreak Oil investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Daybreak Oil'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 Daybreak Oil's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Daybreak Oil Investment Opportunity
Daybreak Oil and has a volatility of 12.5 and is 13.74 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Daybreak Oil and is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use Daybreak Oil and to protect your portfolios against small market fluctuations. The pink sheet experiences a normal downward fluctuation but is a risky buy. Check odds of Daybreak Oil to be traded at $2.0E-4 in 90 days.Modest diversification
The correlation between Daybreak Oil and and DJI is 0.21 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Daybreak Oil and and DJI in the same portfolio, assuming nothing else is changed.
Daybreak Oil Additional Risk Indicators
The analysis of Daybreak Oil'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 Daybreak Oil's investment and either accepting that risk or mitigating it. Along with some common measures of Daybreak Oil 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 | 0.1165 | |||
| Market Risk Adjusted Performance | 0.5077 | |||
| Mean Deviation | 2.98 | |||
| Coefficient Of Variation | 812.4 | |||
| Standard Deviation | 12.31 | |||
| Variance | 151.52 | |||
| Information Ratio | 0.1311 |
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.
Daybreak Oil 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 Daybreak Oil 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. Daybreak Oil'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, Daybreak Oil'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 Daybreak Oil and.
Other Information on Investing in Daybreak Pink Sheet
Daybreak Oil financial ratios help investors to determine whether Daybreak 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 Daybreak with respect to the benefits of owning Daybreak Oil security.