Northwest Biotherapeutics Stock Volatility
| NWBO Stock | USD 0.27 0.01 3.85% |
Northwest Biotherapeutics has Sharpe Ratio of -0.0451, which conveys that the firm had a -0.0451% return per unit of risk over the last 3 months. Northwest Biotherapeutics exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify Northwest Biotherapeutics' Mean Deviation of 2.98, standard deviation of 4.11, and Risk Adjusted Performance of (0.04) to check out the risk estimate we provide. Key indicators related to Northwest Biotherapeutics' volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Northwest Biotherapeutics OTC 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 Northwest daily returns, and it is calculated using variance and standard deviation. We also use Northwest's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Northwest Biotherapeutics volatility.
Northwest |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Northwest Biotherapeutics 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 Northwest Biotherapeutics at lower prices. For example, an investor can purchase Northwest 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 Northwest Biotherapeutics' 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 against Northwest OTC Stock
| 0.48 | EPRX | Eupraxia Pharmaceuticals | PairCorr |
| 0.36 | FRTX | Fresh Tracks Therapeutics | PairCorr |
| 0.36 | GRCE | Grace Therapeutics, Symbol Change | PairCorr |
| 0.34 | FBIOP | Fortress Biotech Pref | PairCorr |
| 0.31 | EVLO | Evelo Biosciences | PairCorr |
Northwest Biotherapeutics Market Sensitivity And Downside Risk
Northwest Biotherapeutics' beta coefficient measures the volatility of Northwest otc 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 Northwest otc stock's returns against your selected market. In other words, Northwest Biotherapeutics's beta of 1.4 provides an investor with an approximation of how much risk Northwest Biotherapeutics otc stock can potentially add to one of your existing portfolios. Northwest Biotherapeutics exhibits very low volatility with skewness of 1.2 and kurtosis of 2.85. Northwest Biotherapeutics is a potential penny stock. Although Northwest Biotherapeutics may be in fact a good instrument to invest, many penny otc stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Northwest Biotherapeutics. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Northwest instrument if you perfectly time your entry and exit. However, remember that penny otcs 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 Northwest Biotherapeutics Demand TrendCheck current 90 days Northwest Biotherapeutics correlation with market (Dow Jones Industrial)Northwest Beta |
Northwest 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 | 4.14 |
It is essential to understand the difference between upside risk (as represented by Northwest Biotherapeutics's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Northwest Biotherapeutics' daily returns or price. Since the actual investment returns on holding a position in northwest otc 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 Northwest Biotherapeutics.
Northwest Biotherapeutics OTC Stock Volatility Analysis
Volatility refers to the frequency at which Northwest Biotherapeutics otc price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Northwest Biotherapeutics' price changes. Investors will then calculate the volatility of Northwest Biotherapeutics' otc stock to predict their future moves. A otc that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A otc stock with relatively stable price changes has low volatility. A highly volatile otc 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 Northwest Biotherapeutics' volatility:
Historical Volatility
This type of otc volatility measures Northwest Biotherapeutics' fluctuations based on previous trends. It's commonly used to predict Northwest Biotherapeutics' future behavior based on its past. However, it cannot conclusively determine the future direction of the otc stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Northwest Biotherapeutics' current market price. This means that the otc will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Northwest Biotherapeutics' 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. Northwest Biotherapeutics 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.
Northwest Biotherapeutics Projected Return Density Against Market
Given the investment horizon of 90 days the otc stock has the beta coefficient of 1.4016 . This indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Northwest Biotherapeutics 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 Northwest Biotherapeutics or Biotechnology 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 Northwest Biotherapeutics' price will be affected by overall otc 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 Northwest otc'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.
Northwest Biotherapeutics 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 Northwest Biotherapeutics Price Volatility?
Several factors can influence a otc'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.Northwest Biotherapeutics OTC Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Northwest Biotherapeutics is -2214.9. The daily returns are distributed with a variance of 17.16 and standard deviation of 4.14. The mean deviation of Northwest Biotherapeutics is currently at 2.92. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.79
α | Alpha over Dow Jones | -0.34 | |
β | Beta against Dow Jones | 1.40 | |
σ | Overall volatility | 4.14 | |
Ir | Information ratio | -0.08 |
Northwest Biotherapeutics OTC Stock Return Volatility
Northwest Biotherapeutics historical daily return volatility represents how much of Northwest Biotherapeutics otc's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 4.1428% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8088% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Northwest Biotherapeutics Volatility
Volatility is a rate at which the price of Northwest Biotherapeutics 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 Northwest Biotherapeutics may increase or decrease. In other words, similar to Northwest's beta indicator, it measures the risk of Northwest Biotherapeutics and helps estimate the fluctuations that may happen in a short period of time. So if prices of Northwest Biotherapeutics 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.Northwest Biotherapeutics, Inc., a biotechnology company, develops personalized immune therapies for cancer in the United States and internationally. The company was founded in 1996 and is headquartered in Bethesda, Maryland. Northwest Bioth operates under Biotechnology classification in the United States and is traded on OTC Exchange. It employs 19 people.
Northwest Biotherapeutics' 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 Northwest OTC Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Northwest Biotherapeutics' price varies over time.
3 ways to utilize Northwest Biotherapeutics' volatility to invest better
Higher Northwest Biotherapeutics' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Northwest Biotherapeutics 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. Northwest Biotherapeutics 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 Northwest Biotherapeutics investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Northwest Biotherapeutics' 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 Northwest Biotherapeutics' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Northwest Biotherapeutics Investment Opportunity
Northwest Biotherapeutics has a volatility of 4.14 and is 5.11 times more volatile than Dow Jones Industrial. 36 percent of all equities and portfolios are less risky than Northwest Biotherapeutics. You can use Northwest Biotherapeutics to enhance the returns of your portfolios. The otc stock experiences an expected bullish sentiment for its category. Check odds of Northwest Biotherapeutics to be traded at $0.324 in 90 days.Modest diversification
The correlation between Northwest Biotherapeutics and DJI is 0.27 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Northwest Biotherapeutics and DJI in the same portfolio, assuming nothing else is changed.
Northwest Biotherapeutics Additional Risk Indicators
The analysis of Northwest Biotherapeutics' 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 Northwest Biotherapeutics' investment and either accepting that risk or mitigating it. Along with some common measures of Northwest Biotherapeutics otc 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 | (0.04) | |||
| Market Risk Adjusted Performance | (0.19) | |||
| Mean Deviation | 2.98 | |||
| Coefficient Of Variation | (1,536) | |||
| Standard Deviation | 4.11 | |||
| Variance | 16.9 | |||
| Information Ratio | (0.08) |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential otc stocks, we recommend comparing similar otcs with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Northwest Biotherapeutics 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 Northwest Biotherapeutics 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. Northwest Biotherapeutics' 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, Northwest Biotherapeutics' 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 Northwest Biotherapeutics.
Other Information on Investing in Northwest OTC Stock
Northwest Biotherapeutics financial ratios help investors to determine whether Northwest OTC Stock 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 Northwest with respect to the benefits of owning Northwest Biotherapeutics security.