Formation Minerals, Stock Volatility
| FOMI Stock | 0.05 0.01 23.29% |
Formation Minerals, secures Sharpe Ratio (or Efficiency) of 0.0887, which denotes the company had a 0.0887% return per unit of risk over the last 3 months. We have collected data for twenty-nine different technical indicators, which can help you to evaluate if expected returns of 1.38% are justified by taking the suggested risk. Use Formation Minerals, Downside Deviation of 13.44, mean deviation of 9.82, and Coefficient Of Variation of 1285.74 to evaluate company specific risk that cannot be diversified away.
Formation |
Formation Minerals, OTC 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 Formation daily returns, and it is calculated using variance and standard deviation. We also use Formation's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Formation Minerals, 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 Formation Minerals, at lower prices. For example, an investor can purchase Formation 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.
Formation Minerals, Market Sensitivity And Downside Risk
Formation Minerals,'s beta coefficient measures the volatility of Formation otc 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 Formation otc stock's returns against your selected market. In other words, Formation Minerals,'s beta of -2.43 provides an investor with an approximation of how much risk Formation Minerals, otc stock can potentially add to one of your existing portfolios. Formation Minerals, is showing large volatility of returns over the selected time horizon. Formation Minerals, is a penny stock. Although Formation Minerals, may be in fact a good investment, many penny otc stocks are subject to artificial price hype. Make sure you completely understand the upside potential and downside risk of investing in Formation Minerals,. 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 Formation instrument if you perfectly time your entry and exit. However, remember that penny otcs 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 Formation Minerals, Demand TrendCheck current 90 days Formation Minerals, correlation with market (Dow Jones Industrial)Formation Beta |
Formation 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 | 15.58 |
It is essential to understand the difference between upside risk (as represented by Formation Minerals,'s standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Formation Minerals,'s daily returns or price. Since the actual investment returns on holding a position in formation otc 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 Formation Minerals,.
Formation Minerals, OTC Stock Volatility Analysis
Volatility refers to the frequency at which Formation Minerals, otc price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Formation Minerals,'s price changes. Investors will then calculate the volatility of Formation Minerals,'s otc stock to predict their future moves. A otc that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A otc stock with relatively stable price changes has low volatility. A highly volatile otc 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 Formation Minerals,'s volatility:
Historical Volatility
This type of otc volatility measures Formation Minerals,'s fluctuations based on previous trends. It's commonly used to predict Formation Minerals,'s future behavior based on its past. However, it cannot conclusively determine the future direction of the otc stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Formation Minerals,'s current market price. This means that the otc will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Formation Minerals,'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. Formation Minerals, 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.
Formation Minerals, Projected Return Density Against Market
Given the investment horizon of 90 days Formation Minerals, has a beta of -2.4277 . This usually indicates as returns on its benchmark rise, returns on holding Formation Minerals, are expected to decrease by similarly larger amounts. On the other hand, during market turmoils, Formation Minerals, is expected to outperform its benchmark.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 Formation Minerals, or Formation 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 Formation Minerals,'s price will be affected by overall otc 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 Formation otc'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.
Formation Minerals, has an alpha of 1.1989, implying that it can generate a 1.2 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Formation Minerals, Price Volatility?
Several factors can influence a otc'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.Formation Minerals, OTC Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Formation Minerals, is 1127.28. The daily returns are distributed with a variance of 242.72 and standard deviation of 15.58. The mean deviation of Formation Minerals, is currently at 10.5. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.8
α | Alpha over Dow Jones | 1.20 | |
β | Beta against Dow Jones | -2.43 | |
σ | Overall volatility | 15.58 | |
Ir | Information ratio | 0.08 |
Formation Minerals, OTC Stock Return Volatility
Formation Minerals, historical daily return volatility represents how much of Formation Minerals, otc's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 15.5796% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8256% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
Formation Minerals, Investment Opportunity
Formation Minerals, has a volatility of 15.58 and is 18.77 times more volatile than Dow Jones Industrial. 96 percent of all equities and portfolios are less risky than Formation Minerals,. You can use Formation Minerals, to enhance the returns of your portfolios. The otc stock experiences a very speculative upward sentiment. The trend is possibly hyped up. Check odds of Formation Minerals, to be traded at 0.0675 in 90 days.Good diversification
The correlation between Formation Minerals, and DJI is -0.13 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Formation Minerals, and DJI in the same portfolio, assuming nothing else is changed.
Formation Minerals, Additional Risk Indicators
The analysis of Formation Minerals,'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 Formation Minerals,'s investment and either accepting that risk or mitigating it. Along with some common measures of Formation Minerals, otc 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 | 0.0714 | |||
| Market Risk Adjusted Performance | (0.47) | |||
| Mean Deviation | 9.82 | |||
| Semi Deviation | 9.83 | |||
| Downside Deviation | 13.44 | |||
| Coefficient Of Variation | 1285.74 | |||
| Standard Deviation | 15.0 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential otc stocks, we recommend comparing similar otcs with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Formation Minerals, 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 Formation Minerals, 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. Formation Minerals,'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, Formation Minerals,'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 Formation Minerals,.
Complementary Tools for Formation OTC Stock analysis
When running Formation Minerals,'s price analysis, check to measure Formation Minerals,'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 Formation Minerals, is operating at the current time. Most of Formation Minerals,'s value examination focuses on studying past and present price action to predict the probability of Formation Minerals,'s future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Formation Minerals,'s price. Additionally, you may evaluate how the addition of Formation Minerals, to your portfolios can decrease your overall portfolio volatility.
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