Nightfood Holdings Stock Volatility
| NGTF Stock | USD 0.01 0.0005 5.88% |
NightFood Holdings is out of control given 3 months investment horizon. NightFood Holdings has Sharpe Ratio of 0.0812, which conveys that the firm had a 0.0812 % return per unit of risk over the last 3 months. We were able to interpolate and analyze data for thirty different technical indicators, which can help you to evaluate if expected returns of 1.02% are justified by taking the suggested risk. Use NightFood Holdings Downside Deviation of 12.15, risk adjusted performance of 0.0813, and Mean Deviation of 8.62 to evaluate company specific risk that cannot be diversified away. Key indicators related to NightFood Holdings' volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
NightFood Holdings 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 NightFood daily returns, and it is calculated using variance and standard deviation. We also use NightFood's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of NightFood Holdings volatility.
NightFood |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as NightFood Holdings 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 NightFood Holdings at lower prices to lower their average cost per share. Similarly, when the prices of NightFood Holdings' stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving against NightFood OTC Stock
NightFood Holdings Market Sensitivity And Downside Risk
NightFood Holdings' beta coefficient measures the volatility of NightFood 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 NightFood otc stock's returns against your selected market. In other words, NightFood Holdings's beta of -0.77 provides an investor with an approximation of how much risk NightFood Holdings otc stock can potentially add to one of your existing portfolios. NightFood Holdings is showing large volatility of returns over the selected time horizon. NightFood Holdings is a penny stock. Even though NightFood Holdings may be a good instrument to invest, many penny otc stocks are speculative instruments that are subject to artificial stock promotions. Please make sure you fully understand upside and downside scenarios of investing in NightFood Holdings or similar risky assets. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings,sudden promotions and many other similar artificial hype indicators. We also encourage traders to check work history of company executives before investing in high-volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on NightFood 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 NightFood Holdings Demand TrendCheck current 90 days NightFood Holdings correlation with market (Dow Jones Industrial)NightFood Beta |
NightFood 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 | 12.53 |
It is essential to understand the difference between upside risk (as represented by NightFood Holdings's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of NightFood Holdings' daily returns or price. Since the actual investment returns on holding a position in nightfood 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 NightFood Holdings.
NightFood Holdings OTC Stock Volatility Analysis
Volatility refers to the frequency at which NightFood Holdings otc price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with NightFood Holdings' price changes. Investors will then calculate the volatility of NightFood Holdings' 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 NightFood Holdings' volatility:
Historical Volatility
This type of otc volatility measures NightFood Holdings' fluctuations based on previous trends. It's commonly used to predict NightFood Holdings' 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 NightFood Holdings' 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 NightFood Holdings' 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. NightFood 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.
NightFood Holdings Projected Return Density Against Market
Given the investment horizon of 90 days NightFood Holdings has a beta of -0.7726 . This indicates as returns on the benchmark increase, returns on holding NightFood Holdings are expected to decrease at a much lower rate. During a bear market, however, NightFood Holdings is likely to outperform the market.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 NightFood Holdings or Consumer Defensive 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 NightFood Holdings' 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 NightFood 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.
NightFood Holdings has an alpha of 0.9523, implying that it can generate a 0.95 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a NightFood Holdings 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.NightFood Holdings OTC Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of NightFood Holdings is 1231.06. The daily returns are distributed with a variance of 157.11 and standard deviation of 12.53. The mean deviation of NightFood Holdings is currently at 8.62. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.89
α | Alpha over Dow Jones | 0.95 | |
β | Beta against Dow Jones | -0.77 | |
σ | Overall volatility | 12.53 | |
Ir | Information ratio | 0.09 |
NightFood Holdings OTC Stock Return Volatility
NightFood Holdings historical daily return volatility represents how much of NightFood Holdings otc's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 12.5343% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8516% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About NightFood Holdings Volatility
Volatility is a rate at which the price of NightFood Holdings 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 NightFood Holdings may increase or decrease. In other words, similar to NightFood's beta indicator, it measures the risk of NightFood Holdings and helps estimate the fluctuations that may happen in a short period of time. So if prices of NightFood Holdings 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.Nightfood Holdings, Inc., through its subsidiaries, engages in the manufacture, marketing, and distribution of sleep-friendly snack food products in the United States. Nightfood Holdings, Inc. was founded in 2010 and is based in Tarrytown, New York. Nightfood Holdings operates under Packaged Foods classification in the United States and is traded on OTC Exchange.
NightFood Holdings' 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 NightFood OTC Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much NightFood Holdings' price varies over time.
3 ways to utilize NightFood Holdings' volatility to invest better
Higher NightFood Holdings' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of NightFood 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. NightFood 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 NightFood Holdings investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in NightFood Holdings' 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 NightFood Holdings' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
NightFood Holdings Investment Opportunity
NightFood Holdings has a volatility of 12.53 and is 14.74 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of NightFood Holdings is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use NightFood Holdings to protect your portfolios against small market fluctuations. The otc stock experiences a very speculative downward sentiment. The market maybe over-reacting. Check odds of NightFood Holdings to be traded at $0.0076 in 90 days.Good diversification
The correlation between NightFood Holdings and DJI is -0.06 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding NightFood Holdings and DJI in the same portfolio, assuming nothing else is changed.
NightFood Holdings Additional Risk Indicators
The analysis of NightFood Holdings' 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 NightFood Holdings' investment and either accepting that risk or mitigating it. Along with some common measures of NightFood Holdings 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 | 0.0813 | |||
| Market Risk Adjusted Performance | (1.29) | |||
| Mean Deviation | 8.62 | |||
| Semi Deviation | 9.64 | |||
| Downside Deviation | 12.15 | |||
| Coefficient Of Variation | 1231.06 | |||
| Standard Deviation | 12.53 |
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.
NightFood Holdings 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 NightFood Holdings 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. NightFood Holdings' 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, NightFood Holdings' 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 NightFood Holdings.
Complementary Tools for NightFood OTC Stock analysis
When running NightFood Holdings' price analysis, check to measure NightFood Holdings' 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 NightFood Holdings is operating at the current time. Most of NightFood Holdings' value examination focuses on studying past and present price action to predict the probability of NightFood Holdings' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move NightFood Holdings' price. Additionally, you may evaluate how the addition of NightFood Holdings to your portfolios can decrease your overall portfolio volatility.
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