Orient Overseas Limited Stock Volatility
| OROVF Stock | USD 12.97 0.99 7.09% |
Orient Overseas maintains Sharpe Ratio (i.e., Efficiency) of -0.0256, which implies the firm had a -0.0256% return per unit of risk over the last 3 months. Orient Overseas exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check Orient Overseas' Risk Adjusted Performance of (0.08), variance of 6.03, and Coefficient Of Variation of (861.08) to confirm the risk estimate we provide. Key indicators related to Orient Overseas' volatility include:
180 Days Market Risk | Chance Of Distress | 180 Days Economic Sensitivity |
Orient Overseas 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 Orient daily returns, and it is calculated using variance and standard deviation. We also use Orient's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Orient Overseas volatility.
Orient |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Orient Overseas 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 Orient Overseas at lower prices to lower their average cost per share. Similarly, when the prices of Orient Overseas' stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving against Orient Pink Sheet
| 0.38 | AMZN | Amazon Inc Aggressive Push | PairCorr |
Orient Overseas Market Sensitivity And Downside Risk
Orient Overseas' beta coefficient measures the volatility of Orient 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 Orient pink sheet's returns against your selected market. In other words, Orient Overseas's beta of -0.0182 provides an investor with an approximation of how much risk Orient Overseas pink sheet can potentially add to one of your existing portfolios. Orient Overseas Limited exhibits very low volatility with skewness of -4.73 and kurtosis of 30.69. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Orient Overseas' pink sheet risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Orient Overseas' pink sheet 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 Orient Overseas Demand TrendCheck current 90 days Orient Overseas correlation with market (Dow Jones Industrial)Orient Beta |
Orient 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 | 1.4 |
It is essential to understand the difference between upside risk (as represented by Orient Overseas's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Orient Overseas' daily returns or price. Since the actual investment returns on holding a position in orient 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 Orient Overseas.
Orient Overseas Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Orient Overseas pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Orient Overseas' price changes. Investors will then calculate the volatility of Orient Overseas' 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 Orient Overseas' volatility:
Historical Volatility
This type of pink sheet volatility measures Orient Overseas' fluctuations based on previous trends. It's commonly used to predict Orient Overseas' 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 Orient Overseas' 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 Orient Overseas' 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. Orient Overseas 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.
Orient Overseas Projected Return Density Against Market
Assuming the 90 days horizon Orient Overseas Limited has a beta of -0.0182 . This indicates as returns on the benchmark increase, returns on holding Orient Overseas are expected to decrease at a much lower rate. During a bear market, however, Orient Overseas Limited 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 Orient Overseas or Orient 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 Orient Overseas' 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 Orient 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.
Orient Overseas Limited has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives an Orient Overseas 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.Orient Overseas Pink Sheet Risk Measures
Assuming the 90 days horizon the coefficient of variation of Orient Overseas is -3907.49. The daily returns are distributed with a variance of 1.96 and standard deviation of 1.4. The mean deviation of Orient Overseas Limited is currently at 0.42. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | -0.29 | |
β | Beta against Dow Jones | -0.02 | |
σ | Overall volatility | 1.40 | |
Ir | Information ratio | -0.17 |
Orient Overseas Pink Sheet Return Volatility
Orient Overseas historical daily return volatility represents how much of Orient Overseas pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 1.3986% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7462% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Orient Overseas Volatility
Volatility is a rate at which the price of Orient Overseas 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 Orient Overseas may increase or decrease. In other words, similar to Orient's beta indicator, it measures the risk of Orient Overseas and helps estimate the fluctuations that may happen in a short period of time. So if prices of Orient Overseas 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.Orient Overseas Limited, an investment holding company, provides container transport and logistics services in Asia, Europe, Australia, North America, and internationally. Orient Overseas Limited is a subsidiary of Faulkner Global Holdings Limited. Orient Overseas operates under Marine Shipping classification in the United States and is traded on OTC Exchange. It employs 10935 people.
Orient Overseas' 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 Orient Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Orient Overseas' price varies over time.
3 ways to utilize Orient Overseas' volatility to invest better
Higher Orient Overseas' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Orient Overseas 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. Orient Overseas 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 Orient Overseas investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Orient Overseas' 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 Orient Overseas' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Orient Overseas Investment Opportunity
Orient Overseas Limited has a volatility of 1.4 and is 1.87 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Orient Overseas Limited is lower than 12 percent of all global equities and portfolios over the last 90 days. You can use Orient Overseas Limited 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 Orient Overseas to be traded at $12.32 in 90 days.Good diversification
The correlation between Orient Overseas Limited and DJI is -0.01 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Orient Overseas Limited and DJI in the same portfolio, assuming nothing else is changed.
Orient Overseas Additional Risk Indicators
The analysis of Orient Overseas' 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 Orient Overseas' investment and either accepting that risk or mitigating it. Along with some common measures of Orient Overseas 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 | (0.08) | |||
| Market Risk Adjusted Performance | 16.23 | |||
| Mean Deviation | 0.8817 | |||
| Coefficient Of Variation | (861.08) | |||
| Standard Deviation | 2.46 | |||
| Variance | 6.03 | |||
| Information Ratio | (0.17) |
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.
Orient Overseas 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 Orient Overseas 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. Orient Overseas' 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, Orient Overseas' 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 Orient Overseas Limited.
Complementary Tools for Orient Pink Sheet analysis
When running Orient Overseas' price analysis, check to measure Orient Overseas' 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 Orient Overseas is operating at the current time. Most of Orient Overseas' value examination focuses on studying past and present price action to predict the probability of Orient Overseas' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Orient Overseas' price. Additionally, you may evaluate how the addition of Orient Overseas to your portfolios can decrease your overall portfolio volatility.
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