Laredo Oil Stock Volatility
| LRDC Stock | USD 0.44 0.01 2.33% |
At this point, Laredo Oil is out of control. Laredo Oil has Sharpe Ratio of 0.0218, which conveys that the firm had a 0.0218% return per unit of risk over the last 3 months. We have found twenty-seven technical indicators for Laredo Oil, which you can use to evaluate the volatility of the firm. Please verify Laredo Oil's Downside Deviation of 6.8, risk adjusted performance of 0.03, and Mean Deviation of 3.97 to check out if the risk estimate we provide is consistent with the expected return of 0.13%. Key indicators related to Laredo Oil's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Laredo 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 Laredo daily returns, and it is calculated using variance and standard deviation. We also use Laredo's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Laredo Oil volatility.
Laredo |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Laredo Oil can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game as hey may decide to buy additional stocks of Laredo Oil at lower prices to lower their average cost per share. Similarly, when the prices of Laredo Oil's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving against Laredo Pink Sheet
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Laredo Oil Market Sensitivity And Downside Risk
Laredo Oil's beta coefficient measures the volatility of Laredo 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 Laredo pink sheet's returns against your selected market. In other words, Laredo Oil's beta of -1.49 provides an investor with an approximation of how much risk Laredo Oil pink sheet can potentially add to one of your existing portfolios. Laredo Oil exhibits above-average semi-deviation for your current time horizon. Laredo Oil is a potential penny stock. Although Laredo Oil may be in fact a good instrument to invest, many penny pink sheets are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Laredo Oil. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Laredo 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 Laredo Oil Demand TrendCheck current 90 days Laredo Oil correlation with market (Dow Jones Industrial)Laredo Beta |
Laredo 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 | 5.75 |
It is essential to understand the difference between upside risk (as represented by Laredo Oil's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Laredo Oil's daily returns or price. Since the actual investment returns on holding a position in laredo 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 Laredo Oil.
Laredo Oil Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Laredo Oil pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Laredo Oil's price changes. Investors will then calculate the volatility of Laredo 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 Laredo Oil's volatility:
Historical Volatility
This type of pink sheet volatility measures Laredo Oil's fluctuations based on previous trends. It's commonly used to predict Laredo 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 Laredo 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 Laredo 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. Laredo 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.
Laredo Oil Projected Return Density Against Market
Given the investment horizon of 90 days Laredo Oil has a beta of -1.4874 . This indicates as returns on its benchmark rise, returns on holding Laredo Oil are expected to decrease by similarly larger amounts. On the other hand, during market turmoils, Laredo Oil 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 Laredo Oil or Energy Equipment & Services 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 Laredo 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 Laredo 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.
Laredo Oil has an alpha of 0.3405, implying that it can generate a 0.34 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Laredo 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.Laredo Oil Pink Sheet Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Laredo Oil is 4591.56. The daily returns are distributed with a variance of 33.04 and standard deviation of 5.75. The mean deviation of Laredo Oil is currently at 3.9. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.34 | |
β | Beta against Dow Jones | -1.49 | |
σ | Overall volatility | 5.75 | |
Ir | Information ratio | 0 |
Laredo Oil Pink Sheet Return Volatility
Laredo Oil historical daily return volatility represents how much of Laredo Oil pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 5.7477% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7444% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Laredo Oil Volatility
Volatility is a rate at which the price of Laredo 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 Laredo Oil may increase or decrease. In other words, similar to Laredo's beta indicator, it measures the risk of Laredo Oil and helps estimate the fluctuations that may happen in a short period of time. So if prices of Laredo 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.Laredo Oil, Inc., an oil exploration and production company, engages in the acquisition and exploration of mature oil fields. Laredo Oil, Inc. was incorporated in 2008 and is based in Austin, Texas. Laredo Oil operates under Oil Gas EP classification in the United States and is traded on OTC Exchange. It employs 8 people.
Laredo 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 Laredo Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Laredo Oil's price varies over time.
3 ways to utilize Laredo Oil's volatility to invest better
Higher Laredo 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 Laredo 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. Laredo 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 Laredo Oil investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Laredo 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 Laredo Oil's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Laredo Oil Investment Opportunity
Laredo Oil has a volatility of 5.75 and is 7.77 times more volatile than Dow Jones Industrial. 51 percent of all equities and portfolios are less risky than Laredo Oil. You can use Laredo Oil to enhance the returns of your portfolios. The pink sheet experiences an expected bullish sentiment for its category. Check odds of Laredo Oil to be traded at $0.528 in 90 days.Good diversification
The correlation between Laredo Oil and DJI is -0.2 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Laredo Oil and DJI in the same portfolio, assuming nothing else is changed.
Laredo Oil Additional Risk Indicators
The analysis of Laredo 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 Laredo Oil's investment and either accepting that risk or mitigating it. Along with some common measures of Laredo 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 | 0.03 | |||
| Market Risk Adjusted Performance | (0.09) | |||
| Mean Deviation | 3.97 | |||
| Semi Deviation | 4.68 | |||
| Downside Deviation | 6.8 | |||
| Coefficient Of Variation | 3579.85 | |||
| Standard Deviation | 5.75 |
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.
Laredo 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 Laredo 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. Laredo 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, Laredo 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 Laredo Oil.
Complementary Tools for Laredo Pink Sheet analysis
When running Laredo Oil's price analysis, check to measure Laredo Oil'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 Laredo Oil is operating at the current time. Most of Laredo Oil's value examination focuses on studying past and present price action to predict the probability of Laredo Oil's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Laredo Oil's price. Additionally, you may evaluate how the addition of Laredo Oil to your portfolios can decrease your overall portfolio volatility.
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