Global Hemp Group Stock Volatility
| GBHPF Stock | USD 0.02 0.01 100.00% |
Global Hemp is out of control given 3 months investment horizon. Global Hemp Group holds Efficiency (Sharpe) Ratio of 0.0825, which attests that the entity had a 0.0825% return per unit of risk over the last 3 months. We were able to interpolate data for twenty-nine different technical indicators, which can help you to evaluate if expected returns of 1.45% are justified by taking the suggested risk. Use Global Hemp Group Downside Deviation of 21.95, market risk adjusted performance of 4.61, and Risk Adjusted Performance of 0.0782 to evaluate company specific risk that cannot be diversified away. Key indicators related to Global Hemp's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Global Hemp 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 Global daily returns, and it is calculated using variance and standard deviation. We also use Global's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Global Hemp volatility.
Global |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Global Hemp 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 Global Hemp at lower prices to lower their average cost per share. Similarly, when the prices of Global Hemp's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving against Global Pink Sheet
Global Hemp Market Sensitivity And Downside Risk
Global Hemp's beta coefficient measures the volatility of Global 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 Global pink sheet's returns against your selected market. In other words, Global Hemp's beta of 0.35 provides an investor with an approximation of how much risk Global Hemp pink sheet can potentially add to one of your existing portfolios. Global Hemp Group is showing large volatility of returns over the selected time horizon. Global Hemp Group is a penny stock. Although Global Hemp 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 Global Hemp Group. 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 Global 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 Global Hemp Group Demand TrendCheck current 90 days Global Hemp correlation with market (Dow Jones Industrial)Global Beta |
Global 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 | 17.53 |
It is essential to understand the difference between upside risk (as represented by Global Hemp's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Global Hemp's daily returns or price. Since the actual investment returns on holding a position in global 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 Global Hemp.
Global Hemp Group Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Global Hemp pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Global Hemp's price changes. Investors will then calculate the volatility of Global Hemp'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 Global Hemp's volatility:
Historical Volatility
This type of pink sheet volatility measures Global Hemp's fluctuations based on previous trends. It's commonly used to predict Global Hemp'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 Global Hemp'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 Global Hemp'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. Global Hemp Group 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.
Global Hemp Projected Return Density Against Market
Assuming the 90 days horizon Global Hemp has a beta of 0.3517 . This usually indicates as returns on the market go up, Global Hemp average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Global Hemp Group 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 Global Hemp 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 Global Hemp'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 Global 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.
Global Hemp Group has an alpha of 1.5792, implying that it can generate a 1.58 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Global Hemp 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.Global Hemp Pink Sheet Risk Measures
Assuming the 90 days horizon the coefficient of variation of Global Hemp is 1212.24. The daily returns are distributed with a variance of 307.23 and standard deviation of 17.53. The mean deviation of Global Hemp Group is currently at 7.1. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.72
α | Alpha over Dow Jones | 1.58 | |
β | Beta against Dow Jones | 0.35 | |
σ | Overall volatility | 17.53 | |
Ir | Information ratio | 0.09 |
Global Hemp Pink Sheet Return Volatility
Global Hemp historical daily return volatility represents how much of Global Hemp pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 17.5279% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7328% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Global Hemp Volatility
Volatility is a rate at which the price of Global Hemp 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 Global Hemp may increase or decrease. In other words, similar to Global's beta indicator, it measures the risk of Global Hemp and helps estimate the fluctuations that may happen in a short period of time. So if prices of Global Hemp 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.Global Hemp Group Inc. engages in the production and processing of industrial hemp in the United States. Global Hemp Group Inc. was incorporated in 2009 and is headquartered in North Vancouver, Canada. GLOBAL HEMP is traded on PNK Exchange in the United States.
Global Hemp'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 Global Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Global Hemp's price varies over time.
3 ways to utilize Global Hemp's volatility to invest better
Higher Global Hemp's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Global Hemp Group 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. Global Hemp Group 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 Global Hemp Group investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Global Hemp'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 Global Hemp's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Global Hemp Investment Opportunity
Global Hemp Group has a volatility of 17.53 and is 24.01 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Global Hemp Group is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use Global Hemp Group to enhance the returns of your portfolios. The pink sheet experiences a very speculative upward sentiment. The trend is possibly hyped up. Check odds of Global Hemp to be traded at $0.025 in 90 days.Significant diversification
The correlation between Global Hemp Group and DJI is 0.01 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Global Hemp Group and DJI in the same portfolio, assuming nothing else is changed.
Global Hemp Additional Risk Indicators
The analysis of Global Hemp'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 Global Hemp's investment and either accepting that risk or mitigating it. Along with some common measures of Global Hemp 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 | 0.0782 | |||
| Market Risk Adjusted Performance | 4.61 | |||
| Mean Deviation | 7.14 | |||
| Semi Deviation | 8.2 | |||
| Downside Deviation | 21.95 | |||
| Coefficient Of Variation | 1053.13 | |||
| Standard Deviation | 17.16 |
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.
Global Hemp 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 Global Hemp 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. Global Hemp'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, Global Hemp'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 Global Hemp Group.
Complementary Tools for Global Pink Sheet analysis
When running Global Hemp's price analysis, check to measure Global Hemp's 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 Global Hemp is operating at the current time. Most of Global Hemp's value examination focuses on studying past and present price action to predict the probability of Global Hemp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Global Hemp's price. Additionally, you may evaluate how the addition of Global Hemp to your portfolios can decrease your overall portfolio volatility.
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |