Potash America Stock Volatility
| PTAM Stock | USD 0.0009 0.00 0.00% |
Potash America appears to be out of control, given 3 months investment horizon. Potash America maintains Sharpe Ratio (i.e., Efficiency) of 0.0845, which implies the firm had a 0.0845% return per unit of risk over the last 3 months. By analyzing Potash America's technical indicators, you can evaluate if the expected return of 0.72% is justified by implied risk. Please evaluate Potash America's Semi Deviation of 4.11, coefficient of variation of 1210.89, and Risk Adjusted Performance of 0.0724 to confirm if our risk estimates are consistent with your expectations. Key indicators related to Potash America's volatility include:
180 Days Market Risk | Chance Of Distress | 180 Days Economic Sensitivity |
Potash America 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 Potash daily returns, and it is calculated using variance and standard deviation. We also use Potash's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Potash America volatility.
Potash |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Potash America 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 Potash America at lower prices. For example, an investor can purchase Potash 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 Potash America'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.
Potash America Market Sensitivity And Downside Risk
Potash America's beta coefficient measures the volatility of Potash 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 Potash pink sheet's returns against your selected market. In other words, Potash America's beta of 0.83 provides an investor with an approximation of how much risk Potash America pink sheet can potentially add to one of your existing portfolios. Potash America is showing large volatility of returns over the selected time horizon. Potash America appears to be a penny stock. Although Potash America 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 Potash America 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 Potash 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 Potash America Demand TrendCheck current 90 days Potash America correlation with market (Dow Jones Industrial)Potash Beta |
Potash 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 | 8.55 |
It is essential to understand the difference between upside risk (as represented by Potash America's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Potash America's daily returns or price. Since the actual investment returns on holding a position in potash 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 Potash America.
Potash America Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Potash America pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Potash America's price changes. Investors will then calculate the volatility of Potash America'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 Potash America's volatility:
Historical Volatility
This type of pink sheet volatility measures Potash America's fluctuations based on previous trends. It's commonly used to predict Potash America'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 Potash America'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 Potash America'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. Potash America 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.
Potash America Projected Return Density Against Market
Given the investment horizon of 90 days Potash America has a beta of 0.8266 indicating as returns on the market go up, Potash America average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Potash America will be expected to be much smaller as well.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 Potash America or Chemicals 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 Potash America'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 Potash 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.
Potash America has an alpha of 0.5842, implying that it can generate a 0.58 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Potash America 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.Potash America Pink Sheet Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Potash America is 1183.29. The daily returns are distributed with a variance of 73.07 and standard deviation of 8.55. The mean deviation of Potash America is currently at 3.71. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 0.58 | |
β | Beta against Dow Jones | 0.83 | |
σ | Overall volatility | 8.55 | |
Ir | Information ratio | 0.07 |
Potash America Pink Sheet Return Volatility
Potash America historical daily return volatility represents how much of Potash America pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 8.5483% 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 Potash America Volatility
Volatility is a rate at which the price of Potash America 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 Potash America may increase or decrease. In other words, similar to Potash's beta indicator, it measures the risk of Potash America and helps estimate the fluctuations that may happen in a short period of time. So if prices of Potash America 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.Potash America, Inc., an exploration stage company, focuses on the development of fertilizer and agri-business assets in Canada. Potash America, Inc. was founded in 2007 and is based in Boca Raton, Florida. Potash America operates under Agricultural Inputs classification in the United States and is traded on OTC Exchange.
Potash America'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 Potash Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Potash America's price varies over time.
3 ways to utilize Potash America's volatility to invest better
Higher Potash America's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Potash America 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. Potash America 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 Potash America investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Potash America'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 Potash America's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Potash America Investment Opportunity
Potash America has a volatility of 8.55 and is 11.55 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Potash America is higher than 76 percent of all global equities and portfolios over the last 90 days. You can use Potash America to protect your portfolios against small market fluctuations. The pink sheet experiences a normal downward fluctuation but is a risky buy. Check odds of Potash America to be traded at $9.0E-4 in 90 days.Significant diversification
The correlation between Potash America and DJI is 0.08 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Potash America and DJI in the same portfolio, assuming nothing else is changed.
Potash America Additional Risk Indicators
The analysis of Potash America'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 Potash America's investment and either accepting that risk or mitigating it. Along with some common measures of Potash America 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 | 0.0724 | |||
| Market Risk Adjusted Performance | 0.8321 | |||
| Mean Deviation | 3.55 | |||
| Semi Deviation | 4.11 | |||
| Downside Deviation | 14.53 | |||
| Coefficient Of Variation | 1210.89 | |||
| Standard Deviation | 8.35 |
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.
Potash America 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.
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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 Potash America 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. Potash America'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, Potash America'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 Potash America.
Other Information on Investing in Potash Pink Sheet
Potash America financial ratios help investors to determine whether Potash Pink Sheet is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Potash with respect to the benefits of owning Potash America security.