Flux Power Holdings Stock Volatility
| FLUX Stock | USD 1.95 0.32 19.63% |
Flux Power appears to be dangerous, given 3 months investment horizon. Flux Power Holdings secures Sharpe Ratio (or Efficiency) of 0.0718, which denotes the company had a 0.0718 % return per unit of risk over the last 3 months. By reviewing Flux Power's technical indicators, you can evaluate if the expected return of 0.5% is justified by implied risk. Please utilize Flux Power's Mean Deviation of 4.65, coefficient of variation of 1391.86, and Downside Deviation of 5.71 to check if our risk estimates are consistent with your expectations. Key indicators related to Flux Power's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Flux Power 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 Flux daily returns, and it is calculated using variance and standard deviation. We also use Flux's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Flux Power volatility.
Flux |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Flux Power 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 Flux Power at lower prices. For example, an investor can purchase Flux 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 Flux Power'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 Flux Stock
Flux Power Market Sensitivity And Downside Risk
Flux Power's beta coefficient measures the volatility of Flux 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 Flux stock's returns against your selected market. In other words, Flux Power's beta of 1.45 provides an investor with an approximation of how much risk Flux Power stock can potentially add to one of your existing portfolios. Flux Power Holdings 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 Flux Power'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 Flux Power'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 Flux Power Holdings Demand TrendCheck current 90 days Flux Power correlation with market (Dow Jones Industrial)Flux Beta |
Flux 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 | 6.9 |
It is essential to understand the difference between upside risk (as represented by Flux Power's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Flux Power's daily returns or price. Since the actual investment returns on holding a position in flux 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 Flux Power.
Flux Power Holdings Stock Volatility Analysis
Volatility refers to the frequency at which Flux Power stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Flux Power's price changes. Investors will then calculate the volatility of Flux Power'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 Flux Power's volatility:
Historical Volatility
This type of stock volatility measures Flux Power's fluctuations based on previous trends. It's commonly used to predict Flux Power'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 Flux Power'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 Flux Power'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. Flux Power Holdings 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.
Flux Power Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 1.4494 . 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, Flux Power 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 Flux Power or Electrical Equipment 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 Flux Power'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 Flux 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.
Flux Power Holdings has an alpha of 0.5833, implying that it can generate a 0.58 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
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What Drives a Flux Power 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.Flux Power Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Flux Power is 1391.86. The daily returns are distributed with a variance of 47.6 and standard deviation of 6.9. The mean deviation of Flux Power Holdings is currently at 4.65. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.89
α | Alpha over Dow Jones | 0.58 | |
β | Beta against Dow Jones | 1.45 | |
σ | Overall volatility | 6.90 | |
Ir | Information ratio | 0.08 |
Flux Power Stock Return Volatility
Flux Power historical daily return volatility represents how much of Flux Power stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 6.8991% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8377% volatility on return distribution over the 90 days horizon. Performance |
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About Flux Power Volatility
Volatility is a rate at which the price of Flux Power 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 Flux Power may increase or decrease. In other words, similar to Flux's beta indicator, it measures the risk of Flux Power and helps estimate the fluctuations that may happen in a short period of time. So if prices of Flux Power 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.Flux Power Holdings, Inc., through its subsidiary Flux Power, Inc., designs, develops, manufactures, and sells lithium-ion energy storage solutions for lift trucks, airport ground support equipment, and other industrial and commercial applications in the North America. Flux Power Holdings, Inc. is headquartered in Vista, California. Flux Power operates under Electrical Equipment Parts classification in the United States and is traded on NASDAQ Exchange. It employs 121 people.
Flux Power'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 Flux Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Flux Power's price varies over time.
3 ways to utilize Flux Power's volatility to invest better
Higher Flux Power's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Flux Power Holdings 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. Flux Power Holdings 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 Flux Power Holdings investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Flux Power'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 Flux Power's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Flux Power Investment Opportunity
Flux Power Holdings has a volatility of 6.9 and is 8.21 times more volatile than Dow Jones Industrial. 61 percent of all equities and portfolios are less risky than Flux Power. You can use Flux Power Holdings to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Flux Power to be traded at $2.44 in 90 days.Average diversification
The correlation between Flux Power Holdings and DJI is 0.15 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Flux Power Holdings and DJI in the same portfolio, assuming nothing else is changed.
Flux Power Additional Risk Indicators
The analysis of Flux Power'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 Flux Power's investment and either accepting that risk or mitigating it. Along with some common measures of Flux Power 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 | 0.0724 | |||
| Market Risk Adjusted Performance | 0.3451 | |||
| Mean Deviation | 4.65 | |||
| Semi Deviation | 5.28 | |||
| Downside Deviation | 5.71 | |||
| Coefficient Of Variation | 1391.86 | |||
| Standard Deviation | 6.9 |
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.
Flux Power 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 Flux Power 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. Flux Power'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, Flux Power'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 Flux Power Holdings.
Additional Tools for Flux Stock Analysis
When running Flux Power's price analysis, check to measure Flux Power's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Flux Power is operating at the current time. Most of Flux Power's value examination focuses on studying past and present price action to predict the probability of Flux Power's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Flux Power's price. Additionally, you may evaluate how the addition of Flux Power to your portfolios can decrease your overall portfolio volatility.