Sihuan Pharmaceutical Holdings Volatility
| SHPHFDelisted Stock | USD 0.1 0.00 0.00% |
Sihuan Pharmaceutical is out of control given 3 months investment horizon. Sihuan Pharmaceutical owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.22, which indicates the firm had a 0.22% return per unit of risk over the last 3 months. We have analyze and collected data for fifteen different technical indicators, which can help you to evaluate if expected returns of 2.2% are justified by taking the suggested risk. Use Sihuan Pharmaceutical Variance of 32.28, coefficient of variation of 812.4, and Risk Adjusted Performance of 0.1028 to evaluate company specific risk that cannot be diversified away. Key indicators related to Sihuan Pharmaceutical's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Sihuan Pharmaceutical 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 Sihuan daily returns, and it is calculated using variance and standard deviation. We also use Sihuan's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Sihuan Pharmaceutical volatility.
Sihuan |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Sihuan Pharmaceutical 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 Sihuan Pharmaceutical at lower prices to lower their average cost per share. Similarly, when the prices of Sihuan Pharmaceutical's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Sihuan Pharmaceutical Market Sensitivity And Downside Risk
Sihuan Pharmaceutical's beta coefficient measures the volatility of Sihuan 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 Sihuan pink sheet's returns against your selected market. In other words, Sihuan Pharmaceutical's beta of 0.35 provides an investor with an approximation of how much risk Sihuan Pharmaceutical pink sheet can potentially add to one of your existing portfolios. Sihuan Pharmaceutical Holdings exhibits very low volatility with skewness of 8.12 and kurtosis of 66.0. Sihuan Pharmaceutical Holdings is a penny stock. Although Sihuan Pharmaceutical may be in fact a good investment, many penny pink sheets are subject to artificial price hype. Make sure you completely understand the upside potential and downside risk of investing in Sihuan Pharmaceutical Holdings. We encourage investors to look for signals such as message board hypes, claims of breakthroughs, email spams, sudden volume upswings, and other similar hype indicators. We also encourage traders to check biographies and work history of company officers before investing in instruments with high volatility. You can indeed make money on Sihuan 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 Sihuan Pharmaceutical Demand TrendCheck current 90 days Sihuan Pharmaceutical correlation with market (Dow Jones Industrial)Sihuan Beta |
Sihuan 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 | 10.07 |
It is essential to understand the difference between upside risk (as represented by Sihuan Pharmaceutical's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Sihuan Pharmaceutical's daily returns or price. Since the actual investment returns on holding a position in sihuan 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 Sihuan Pharmaceutical.
Sihuan Pharmaceutical Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Sihuan Pharmaceutical pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Sihuan Pharmaceutical's price changes. Investors will then calculate the volatility of Sihuan Pharmaceutical'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 Sihuan Pharmaceutical's volatility:
Historical Volatility
This type of pink sheet volatility measures Sihuan Pharmaceutical's fluctuations based on previous trends. It's commonly used to predict Sihuan Pharmaceutical'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 Sihuan Pharmaceutical'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 Sihuan Pharmaceutical's to be redeemed at a future date.Transformation |
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Sihuan Pharmaceutical Projected Return Density Against Market
Assuming the 90 days horizon Sihuan Pharmaceutical has a beta of 0.3452 . This usually implies as returns on the market go up, Sihuan Pharmaceutical average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Sihuan Pharmaceutical Holdings 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 Sihuan Pharmaceutical or Healthcare 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 Sihuan Pharmaceutical'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 Sihuan 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.
Sihuan Pharmaceutical Holdings has an alpha of 0.6453, implying that it can generate a 0.65 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Sihuan Pharmaceutical 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.Sihuan Pharmaceutical Pink Sheet Risk Measures
Assuming the 90 days horizon the coefficient of variation of Sihuan Pharmaceutical is 458.26. The daily returns are distributed with a variance of 101.44 and standard deviation of 10.07. The mean deviation of Sihuan Pharmaceutical Holdings is currently at 4.19. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.65 | |
β | Beta against Dow Jones | 0.35 | |
σ | Overall volatility | 10.07 | |
Ir | Information ratio | 0.1 |
Sihuan Pharmaceutical Pink Sheet Return Volatility
Sihuan Pharmaceutical historical daily return volatility represents how much of Sihuan Pharmaceutical pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 10.0716% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7444% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Sihuan Pharmaceutical Volatility
Volatility is a rate at which the price of Sihuan Pharmaceutical 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 Sihuan Pharmaceutical may increase or decrease. In other words, similar to Sihuan's beta indicator, it measures the risk of Sihuan Pharmaceutical and helps estimate the fluctuations that may happen in a short period of time. So if prices of Sihuan Pharmaceutical 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.Sihuan Pharmaceutical Holdings Group Ltd., an investment holding company, engages in the research and development, manufacture, marketing, and sale of pharmaceutical products in the Peoples Republic of China. The company was founded in 2001 and is based in Wanchai, Hong Kong. Sihuan Pharmaceutical operates under Drug ManufacturersSpecialty Generic classification in the United States and is traded on OTC Exchange. It employs 3896 people.
Sihuan Pharmaceutical'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 Sihuan Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Sihuan Pharmaceutical's price varies over time.
3 ways to utilize Sihuan Pharmaceutical's volatility to invest better
Higher Sihuan Pharmaceutical's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Sihuan Pharmaceutical 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. Sihuan Pharmaceutical 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 Sihuan Pharmaceutical investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Sihuan Pharmaceutical'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 Sihuan Pharmaceutical's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Sihuan Pharmaceutical Investment Opportunity
Sihuan Pharmaceutical Holdings has a volatility of 10.07 and is 13.61 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Sihuan Pharmaceutical Holdings is higher than 89 percent of all global equities and portfolios over the last 90 days. You can use Sihuan Pharmaceutical Holdings to protect your portfolios against small market fluctuations. The pink sheet experiences a normal downward fluctuation but is a risky buy. Check odds of Sihuan Pharmaceutical to be traded at $0.0941 in 90 days.Significant diversification
The correlation between Sihuan Pharmaceutical Holdings and DJI is 0.05 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Sihuan Pharmaceutical Holdings and DJI in the same portfolio, assuming nothing else is changed.
Sihuan Pharmaceutical Additional Risk Indicators
The analysis of Sihuan Pharmaceutical'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 Sihuan Pharmaceutical's investment and either accepting that risk or mitigating it. Along with some common measures of Sihuan Pharmaceutical 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 | 0.1028 | |||
| Market Risk Adjusted Performance | 2.01 | |||
| Mean Deviation | 1.38 | |||
| Coefficient Of Variation | 812.4 | |||
| Standard Deviation | 5.68 | |||
| Variance | 32.28 | |||
| Information Ratio | 0.0989 |
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.
Sihuan Pharmaceutical 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 Sihuan Pharmaceutical 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. Sihuan Pharmaceutical'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, Sihuan Pharmaceutical'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 Sihuan Pharmaceutical Holdings.
Check out World Market Map to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in rate. You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Consideration for investing in Sihuan Pink Sheet
If you are still planning to invest in Sihuan Pharmaceutical check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Sihuan Pharmaceutical's history and understand the potential risks before investing.
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