Zapata Computing Holdings Volatility
| ZPTADelisted Stock | 0.01 0 15.38% |
Zapata Computing Holdings shows Sharpe Ratio of -0.27, which attests that the company had a -0.27% return per unit of risk over the last 3 months. Zapata Computing Holdings exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check out Zapata Computing's Standard Deviation of 16.79, mean deviation of 9.18, and Market Risk Adjusted Performance of 3.62 to validate the risk estimate we provide. Key indicators related to Zapata Computing's volatility include:
720 Days Market Risk | Chance Of Distress | 720 Days Economic Sensitivity |
Zapata Computing 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 Zapata daily returns, and it is calculated using variance and standard deviation. We also use Zapata's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Zapata Computing volatility.
Zapata |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Zapata Computing 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 Zapata Computing at lower prices to lower their average cost per share. Similarly, when the prices of Zapata Computing's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with Zapata Pink Sheet
Moving against Zapata Pink Sheet
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Zapata Computing Market Sensitivity And Downside Risk
Zapata Computing's beta coefficient measures the volatility of Zapata 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 Zapata pink sheet's returns against your selected market. In other words, Zapata Computing's beta of -1.01 provides an investor with an approximation of how much risk Zapata Computing pink sheet can potentially add to one of your existing portfolios. Zapata Computing Holdings is displaying above-average volatility over the selected time horizon. Zapata Computing Holdings is a penny stock. Although Zapata Computing 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 Zapata Computing 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 Zapata 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 Zapata Computing Holdings Demand TrendCheck current 90 days Zapata Computing correlation with market (Dow Jones Industrial)Zapata Beta |
Zapata 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 | 19.85 |
It is essential to understand the difference between upside risk (as represented by Zapata Computing's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Zapata Computing's daily returns or price. Since the actual investment returns on holding a position in zapata 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 Zapata Computing.
Zapata Computing Holdings Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Zapata Computing pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Zapata Computing's price changes. Investors will then calculate the volatility of Zapata Computing'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 Zapata Computing's volatility:
Historical Volatility
This type of pink sheet volatility measures Zapata Computing's fluctuations based on previous trends. It's commonly used to predict Zapata Computing'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 Zapata Computing'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 Zapata Computing's to be redeemed at a future date.Transformation |
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Zapata Computing Projected Return Density Against Market
Given the investment horizon of 90 days Zapata Computing Holdings has a beta of -1.0149 . This usually meansMost 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 Zapata Computing or Software 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 Zapata Computing'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 Zapata 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.
Zapata Computing Holdings 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 a Zapata Computing 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.Zapata Computing Pink Sheet Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Zapata Computing is -374.7. The daily returns are distributed with a variance of 394.19 and standard deviation of 19.85. The mean deviation of Zapata Computing Holdings is currently at 11.23. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | -3.55 | |
β | Beta against Dow Jones | -1.01 | |
σ | Overall volatility | 19.85 | |
Ir | Information ratio | -0.23 |
Zapata Computing Pink Sheet Return Volatility
Zapata Computing historical daily return volatility represents how much of Zapata Computing pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 19.8543% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7496% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Zapata Computing Volatility
Volatility is a rate at which the price of Zapata Computing 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 Zapata Computing may increase or decrease. In other words, similar to Zapata's beta indicator, it measures the risk of Zapata Computing and helps estimate the fluctuations that may happen in a short period of time. So if prices of Zapata Computing 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.3 ways to utilize Zapata Computing's volatility to invest better
Higher Zapata Computing's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Zapata Computing 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. Zapata Computing 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 Zapata Computing Holdings investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Zapata Computing'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 Zapata Computing's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Zapata Computing Investment Opportunity
Zapata Computing Holdings has a volatility of 19.85 and is 26.47 times more volatile than Dow Jones Industrial. 96 percent of all equities and portfolios are less risky than Zapata Computing. You can use Zapata Computing Holdings 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 Zapata Computing to be traded at 0.0104 in 90 days.Good diversification
The correlation between Zapata Computing Holdings and DJI is -0.05 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Zapata Computing Holdings and DJI in the same portfolio, assuming nothing else is changed.
Zapata Computing Additional Risk Indicators
The analysis of Zapata Computing'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 Zapata Computing's investment and either accepting that risk or mitigating it. Along with some common measures of Zapata Computing 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 | (0.16) | |||
| Market Risk Adjusted Performance | 3.62 | |||
| Mean Deviation | 9.18 | |||
| Coefficient Of Variation | (459.29) | |||
| Standard Deviation | 16.79 | |||
| Variance | 282.05 | |||
| Information Ratio | (0.23) |
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.
Zapata Computing 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 Zapata Computing 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. Zapata Computing'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, Zapata Computing'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 Zapata Computing Holdings.
Check out Your Current Watchlist 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 estimate. You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Consideration for investing in Zapata Pink Sheet
If you are still planning to invest in Zapata Computing Holdings 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 Zapata Computing's history and understand the potential risks before investing.
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