Kat Exploration Stock Volatility
| KATX Stock | USD 0.0002 0.0001 33.33% |
KAT Exploration appears to be out of control, given 3 months investment horizon. KAT Exploration has Sharpe Ratio of 0.0322, which conveys that the company had a 0.0322% return per unit of volatility over the last 3 months. By evaluating KAT Exploration's technical indicators, you can evaluate if the expected return of 0.68% is justified by implied risk. Please exercise KAT Exploration's Market Risk Adjusted Performance of 0.2942, downside deviation of 26.21, and Mean Deviation of 14.43 to check out if our risk estimates are consistent with your expectations. Key indicators related to KAT Exploration's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
KAT Exploration 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 KAT daily returns, and it is calculated using variance and standard deviation. We also use KAT's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of KAT Exploration volatility.
KAT |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as KAT Exploration 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 KAT Exploration at lower prices. For example, an investor can purchase KAT 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 KAT Exploration'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 KAT Pink Sheet
Moving against KAT Pink Sheet
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KAT Exploration Market Sensitivity And Downside Risk
KAT Exploration's beta coefficient measures the volatility of KAT 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 KAT pink sheet's returns against your selected market. In other words, KAT Exploration's beta of 3.61 provides an investor with an approximation of how much risk KAT Exploration pink sheet can potentially add to one of your existing portfolios. KAT Exploration is showing large volatility of returns over the selected time horizon. KAT Exploration appears to be a penny stock. Although KAT Exploration 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 KAT Exploration 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 KAT 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 KAT Exploration Demand TrendCheck current 90 days KAT Exploration correlation with market (Dow Jones Industrial)KAT Beta |
KAT 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 | 21.0 |
It is essential to understand the difference between upside risk (as represented by KAT Exploration's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of KAT Exploration's daily returns or price. Since the actual investment returns on holding a position in kat 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 KAT Exploration.
KAT Exploration Pink Sheet Volatility Analysis
Volatility refers to the frequency at which KAT Exploration pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with KAT Exploration's price changes. Investors will then calculate the volatility of KAT Exploration'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 KAT Exploration's volatility:
Historical Volatility
This type of pink sheet volatility measures KAT Exploration's fluctuations based on previous trends. It's commonly used to predict KAT Exploration'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 KAT Exploration'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 KAT Exploration'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. KAT Exploration 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.
KAT Exploration Projected Return Density Against Market
Given the investment horizon of 90 days the pink sheet has the beta coefficient of 3.6077 . This 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, KAT Exploration 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 KAT Exploration or Metals & Mining 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 KAT Exploration'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 KAT 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.
KAT Exploration has an alpha of 0.7003, implying that it can generate a 0.7 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a KAT Exploration 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.KAT Exploration Pink Sheet Risk Measures
Given the investment horizon of 90 days the coefficient of variation of KAT Exploration is 3100.85. The daily returns are distributed with a variance of 440.8 and standard deviation of 21.0. The mean deviation of KAT Exploration is currently at 14.29. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.73
α | Alpha over Dow Jones | 0.70 | |
β | Beta against Dow Jones | 3.61 | |
σ | Overall volatility | 21.00 | |
Ir | Information ratio | 0.04 |
KAT Exploration Pink Sheet Return Volatility
KAT Exploration historical daily return volatility represents how much of KAT Exploration pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 20.9953% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7299% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About KAT Exploration Volatility
Volatility is a rate at which the price of KAT Exploration 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 KAT Exploration may increase or decrease. In other words, similar to KAT's beta indicator, it measures the risk of KAT Exploration and helps estimate the fluctuations that may happen in a short period of time. So if prices of KAT Exploration 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.Previously, it was engaged in the exploration and development of mineral properties in Canada. The company was incorporated in 1992 and is based in Denton, Texas. Kat Exploration is traded on OTC Exchange in the United States.
KAT Exploration'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 KAT Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much KAT Exploration's price varies over time.
3 ways to utilize KAT Exploration's volatility to invest better
Higher KAT Exploration's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of KAT Exploration 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. KAT Exploration 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 KAT Exploration investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in KAT Exploration'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 KAT Exploration's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
KAT Exploration Investment Opportunity
KAT Exploration has a volatility of 21.0 and is 28.77 times more volatile than Dow Jones Industrial. 96 percent of all equities and portfolios are less risky than KAT Exploration. You can use KAT Exploration 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 KAT Exploration to be traded at $2.0E-4 in 90 days.Average diversification
The correlation between KAT Exploration and DJI is 0.13 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding KAT Exploration and DJI in the same portfolio, assuming nothing else is changed.
KAT Exploration Additional Risk Indicators
The analysis of KAT Exploration'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 KAT Exploration's investment and either accepting that risk or mitigating it. Along with some common measures of KAT Exploration 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 | 0.0456 | |||
| Market Risk Adjusted Performance | 0.2942 | |||
| Mean Deviation | 14.43 | |||
| Semi Deviation | 14.79 | |||
| Downside Deviation | 26.21 | |||
| Coefficient Of Variation | 2017.27 | |||
| Standard Deviation | 20.89 |
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.
KAT Exploration 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 KAT Exploration 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. KAT Exploration'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, KAT Exploration'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 KAT Exploration.
Additional Tools for KAT Pink Sheet Analysis
When running KAT Exploration's price analysis, check to measure KAT Exploration'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 KAT Exploration is operating at the current time. Most of KAT Exploration's value examination focuses on studying past and present price action to predict the probability of KAT Exploration's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move KAT Exploration's price. Additionally, you may evaluate how the addition of KAT Exploration to your portfolios can decrease your overall portfolio volatility.