Food Culture Stock Volatility
| FCUL Stock | 0.04 0.12 73.50% |
Food Culture is out of control given 3 months investment horizon. Food Culture secures Sharpe Ratio (or Efficiency) of 0.11, which denotes the company had a 0.11 % return per unit of risk over the last 3 months. We are able to break down and analyze data for twenty-seven different technical indicators, which can help you to evaluate if expected returns of 4.63% are justified by taking the suggested risk. Use Food Culture Downside Deviation of 42.86, mean deviation of 13.36, and Coefficient Of Variation of 1415.94 to evaluate company specific risk that cannot be diversified away.
Food |
Food Culture 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 Food daily returns, and it is calculated using variance and standard deviation. We also use Food's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Food Culture volatility.
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Food Culture at lower prices. For example, an investor can purchase Food 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 Food Pink Sheet
Food Culture Market Sensitivity And Downside Risk
Food Culture's beta coefficient measures the volatility of Food 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 Food pink sheet's returns against your selected market. In other words, Food Culture's beta of 3.95 provides an investor with an approximation of how much risk Food Culture pink sheet can potentially add to one of your existing portfolios. Food Culture is showing large volatility of returns over the selected time horizon. Food Culture is a penny stock. Although Food Culture may be in fact a good investment, many penny pink sheets are subject to artificial price hype. Make sure you completely understand the upside potential and downside risk of investing in Food Culture. We encourage investors to look for signals such as message board hypes, claims of breakthroughs, email spams, sudden volume upswings, and other similar hype indicators. We also encourage traders to check biographies and work history of company officers before investing in instruments with high volatility. You can indeed make money on Food 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 Food Culture Demand TrendCheck current 90 days Food Culture correlation with market (Dow Jones Industrial)Food Beta |
Food 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 | 40.52 |
It is essential to understand the difference between upside risk (as represented by Food Culture's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Food Culture's daily returns or price. Since the actual investment returns on holding a position in food 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 Food Culture.
Food Culture Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Food Culture pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Food Culture's price changes. Investors will then calculate the volatility of Food Culture'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 Food Culture's volatility:
Historical Volatility
This type of pink sheet volatility measures Food Culture's fluctuations based on previous trends. It's commonly used to predict Food Culture'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 Food Culture'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 Food Culture'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. Food Culture 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.
Food Culture Projected Return Density Against Market
Given the investment horizon of 90 days the pink sheet has the beta coefficient of 3.9518 . This usually indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Food Culture 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 Food Culture or Food 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 Food Culture'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 Food 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.
Food Culture has an alpha of 3.3733, implying that it can generate a 3.37 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Food Culture 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.Food Culture Pink Sheet Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Food Culture is 875.35. The daily returns are distributed with a variance of 1642.07 and standard deviation of 40.52. The mean deviation of Food Culture is currently at 14.0. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.83
α | Alpha over Dow Jones | 3.37 | |
β | Beta against Dow Jones | 3.95 | |
σ | Overall volatility | 40.52 | |
Ir | Information ratio | 0.07 |
Food Culture Pink Sheet Return Volatility
Food Culture historical daily return volatility represents how much of Food Culture pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 40.5224% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.882% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
Food Culture Investment Opportunity
Food Culture has a volatility of 40.52 and is 46.05 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Food Culture is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use Food Culture to protect your portfolios against small market fluctuations. The pink sheet experiences a very speculative downward sentiment. The market maybe over-reacting. Check odds of Food Culture to be traded at 0.0403 in 90 days.Significant diversification
The correlation between Food Culture and DJI is 0.08 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Food Culture and DJI in the same portfolio, assuming nothing else is changed.
Food Culture Additional Risk Indicators
The analysis of Food Culture'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 Food Culture's investment and either accepting that risk or mitigating it. Along with some common measures of Food Culture 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 | 0.0685 | |||
| Market Risk Adjusted Performance | 0.7369 | |||
| Mean Deviation | 13.36 | |||
| Semi Deviation | 15.43 | |||
| Downside Deviation | 42.86 | |||
| Coefficient Of Variation | 1415.94 | |||
| Standard Deviation | 40.81 |
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.
Food Culture 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 Food Culture 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. Food Culture'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, Food Culture'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 Food Culture.