Canaan Inc Stock Volatility
| CAN Stock | USD 2.12 0.30 16.48% |
Canaan is dangerous given 3 months investment horizon. Canaan Inc secures Sharpe Ratio (or Efficiency) of 0.19, which signifies that the company had a 0.19% return per unit of risk over the last 3 months. We were able to analyze twenty-nine different technical indicators, which can help you to evaluate if expected returns of 1.67% are justified by taking the suggested risk. Use Canaan Downside Deviation of 6.41, risk adjusted performance of 0.1445, and Mean Deviation of 5.99 to evaluate company specific risk that cannot be diversified away. Key indicators related to Canaan's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Canaan 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 Canaan daily returns, and it is calculated using variance and standard deviation. We also use Canaan's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Canaan volatility.
Canaan |
ESG Sustainability
While most ESG disclosures are voluntary, Canaan's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Canaan's managers and investors.Environmental | Governance | Social |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Canaan 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 Canaan at lower prices. For example, an investor can purchase Canaan 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 Canaan'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.
Moving together with Canaan Stock
| 0.62 | INTC | Intel Fiscal Year End 23rd of January 2025 | PairCorr |
Moving against Canaan Stock
| 0.89 | MPWR | Monolithic Power Systems | PairCorr |
| 0.87 | QRVO | Qorvo Inc | PairCorr |
| 0.81 | MCHP | Microchip Technology | PairCorr |
| 0.81 | SWKS | Skyworks Solutions | PairCorr |
| 0.78 | MX | MagnaChip Semiconductor Tech Boost | PairCorr |
| 0.77 | AMKR | Amkor Technology | PairCorr |
| 0.55 | ADI | Analog Devices | PairCorr |
| 0.44 | SLAB | Silicon Laboratories | PairCorr |
| 0.43 | NXPI | NXP Semiconductors | PairCorr |
Canaan Market Sensitivity And Downside Risk
Canaan's beta coefficient measures the volatility of Canaan 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 Canaan stock's returns against your selected market. In other words, Canaan's beta of 3.79 provides an investor with an approximation of how much risk Canaan stock can potentially add to one of your existing portfolios. Canaan Inc is displaying above-average volatility over the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Canaan's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Canaan's stock 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 Canaan Inc Demand TrendCheck current 90 days Canaan correlation with market (Dow Jones Industrial)Canaan Beta |
Canaan 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 | 8.66 |
It is essential to understand the difference between upside risk (as represented by Canaan's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Canaan's daily returns or price. Since the actual investment returns on holding a position in canaan 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 Canaan.
Canaan Inc Stock Volatility Analysis
Volatility refers to the frequency at which Canaan stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Canaan's price changes. Investors will then calculate the volatility of Canaan's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock 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 Canaan's volatility:
Historical Volatility
This type of stock volatility measures Canaan's fluctuations based on previous trends. It's commonly used to predict Canaan's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Canaan's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Canaan'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. Canaan Inc 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.
Canaan Projected Return Density Against Market
Considering the 90-day investment horizon the stock has the beta coefficient of 3.787 suggesting as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Canaan will likely underperform.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 Canaan or Semiconductors & Semiconductor Equipment 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 Canaan's price will be affected by overall 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 Canaan stock'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.
Canaan Inc has an alpha of 1.0358, implying that it can generate a 1.04 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Canaan Price Volatility?
Several factors can influence a stock'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.Canaan Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Canaan is 518.9. The daily returns are distributed with a variance of 74.97 and standard deviation of 8.66. The mean deviation of Canaan Inc is currently at 5.96. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 1.04 | |
β | Beta against Dow Jones | 3.79 | |
σ | Overall volatility | 8.66 | |
Ir | Information ratio | 0.16 |
Canaan Stock Return Volatility
Canaan historical daily return volatility represents how much of Canaan stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 8.6584% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7444% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Canaan Volatility
Volatility is a rate at which the price of Canaan 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 Canaan may increase or decrease. In other words, similar to Canaan's beta indicator, it measures the risk of Canaan and helps estimate the fluctuations that may happen in a short period of time. So if prices of Canaan 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.| Last Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 8.2 M | 11.3 M | |
| Market Cap | 397.1 M | 377.3 M |
Canaan'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 Canaan Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Canaan's price varies over time.
3 ways to utilize Canaan's volatility to invest better
Higher Canaan's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Canaan Inc 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. Canaan Inc 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 Canaan Inc investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Canaan'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 Canaan's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Canaan Investment Opportunity
Canaan Inc has a volatility of 8.66 and is 11.7 times more volatile than Dow Jones Industrial. 77 percent of all equities and portfolios are less risky than Canaan. You can use Canaan Inc to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Canaan to be traded at $2.65 in 90 days.Weak diversification
The correlation between Canaan Inc and DJI is 0.34 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Canaan Inc and DJI in the same portfolio, assuming nothing else is changed.
Canaan Additional Risk Indicators
The analysis of Canaan'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 Canaan's investment and either accepting that risk or mitigating it. Along with some common measures of Canaan 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 | 0.1445 | |||
| Market Risk Adjusted Performance | 0.4111 | |||
| Mean Deviation | 5.99 | |||
| Semi Deviation | 5.78 | |||
| Downside Deviation | 6.41 | |||
| Coefficient Of Variation | 564.61 | |||
| Standard Deviation | 8.63 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Canaan 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.
| Alphabet vs. Canaan | ||
| Citigroup vs. Canaan | ||
| Ford vs. Canaan | ||
| Visa vs. Canaan | ||
| GM vs. Canaan | ||
| Microsoft vs. Canaan | ||
| Bank of America vs. Canaan | ||
| Dupont De vs. Canaan | ||
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 Canaan 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. Canaan'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, Canaan'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 Canaan Inc.
When determining whether Canaan Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Canaan's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Canaan Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Canaan Inc Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Canaan Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Canaan. If investors know Canaan will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Canaan listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.92) | Earnings Share (1.43) | Revenue Per Share 0.867 | Quarterly Revenue Growth (0.03) | Return On Assets (0.36) |
The market value of Canaan Inc is measured differently than its book value, which is the value of Canaan that is recorded on the company's balance sheet. Investors also form their own opinion of Canaan's value that differs from its market value or its book value, called intrinsic value, which is Canaan's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Canaan's market value can be influenced by many factors that don't directly affect Canaan's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Canaan's value and its price as these two are different measures arrived at by different means. Investors typically determine if Canaan is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Canaan's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.