Syntec Optics Holdings Stock Volatility

OPTX Stock   3.50  1.56  80.41%   
Syntec Optics is abnormally volatile given 3 months investment horizon. Syntec Optics Holdings owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.16, which indicates the firm had a 0.16% return per unit of risk over the last 3 months. We were able to interpolate and analyze data for twenty-nine different technical indicators, which can help you to evaluate if expected returns of 3.32% are justified by taking the suggested risk. Use Syntec Optics Holdings Coefficient Of Variation of 639.73, risk adjusted performance of 0.1335, and Semi Deviation of 8.06 to evaluate company specific risk that cannot be diversified away. Key indicators related to Syntec Optics' volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
Syntec Optics 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 Syntec daily returns, and it is calculated using variance and standard deviation. We also use Syntec's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Syntec Optics volatility.
  

ESG Sustainability

While most ESG disclosures are voluntary, Syntec Optics' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Syntec Optics' managers and investors.
Environmental
Governance
Social
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Syntec Optics 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 Syntec Optics at lower prices. For example, an investor can purchase Syntec 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 Syntec Optics' 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 Syntec Stock

  0.54DSWL Deswell IndustriesPairCorr
  0.34DM Desktop MetalPairCorr

Syntec Optics Market Sensitivity And Downside Risk

Syntec Optics' beta coefficient measures the volatility of Syntec 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 Syntec stock's returns against your selected market. In other words, Syntec Optics's beta of 3.68 provides an investor with an approximation of how much risk Syntec Optics stock can potentially add to one of your existing portfolios. Syntec Optics Holdings is showing large volatility of returns 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 Syntec Optics' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Syntec Optics' 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 Syntec Optics Holdings Demand Trend
Check current 90 days Syntec Optics correlation with market (Dow Jones Industrial)

Syntec Beta

    
  3.68  
Syntec 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

    
  21.12  
It is essential to understand the difference between upside risk (as represented by Syntec Optics's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Syntec Optics' daily returns or price. Since the actual investment returns on holding a position in syntec 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 Syntec Optics.

Syntec Optics Holdings Stock Volatility Analysis

Volatility refers to the frequency at which Syntec Optics stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Syntec Optics' price changes. Investors will then calculate the volatility of Syntec Optics' 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 Syntec Optics' volatility:

Historical Volatility

This type of stock volatility measures Syntec Optics' fluctuations based on previous trends. It's commonly used to predict Syntec Optics' 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 Syntec Optics' 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 Syntec Optics' 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. Syntec Optics Holdings 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.

Syntec Optics Projected Return Density Against Market

Given the investment horizon of 90 days the stock has the beta coefficient of 3.6846 . 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, Syntec Optics 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 Syntec Optics or Electronic Equipment, Instruments & Components 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 Syntec Optics' 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 Syntec 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.
Syntec Optics Holdings has an alpha of 3.1707, implying that it can generate a 3.17 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Syntec Optics' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how syntec stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Syntec Optics 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.

Syntec Optics Stock Risk Measures

Given the investment horizon of 90 days the coefficient of variation of Syntec Optics is 635.7. The daily returns are distributed with a variance of 445.91 and standard deviation of 21.12. The mean deviation of Syntec Optics Holdings is currently at 10.39. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.79
α
Alpha over Dow Jones
3.17
β
Beta against Dow Jones3.68
σ
Overall volatility
21.12
Ir
Information ratio 0.15

Syntec Optics Stock Return Volatility

Syntec Optics historical daily return volatility represents how much of Syntec Optics stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 21.1165% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8043% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Syntec Optics Volatility

Volatility is a rate at which the price of Syntec Optics 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 Syntec Optics may increase or decrease. In other words, similar to Syntec's beta indicator, it measures the risk of Syntec Optics and helps estimate the fluctuations that may happen in a short period of time. So if prices of Syntec Optics 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 ReportedProjected for Next Year
Market Cap170.5 M185.3 M
Syntec Optics' 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 Syntec Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Syntec Optics' price varies over time.

3 ways to utilize Syntec Optics' volatility to invest better

Higher Syntec Optics' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Syntec Optics 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. Syntec Optics 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 Syntec Optics Holdings investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Syntec Optics' 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 Syntec Optics' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Syntec Optics Investment Opportunity

Syntec Optics Holdings has a volatility of 21.12 and is 26.4 times more volatile than Dow Jones Industrial. 96 percent of all equities and portfolios are less risky than Syntec Optics. You can use Syntec Optics Holdings to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Syntec Optics to be traded at 4.38 in 90 days.

Average diversification

The correlation between Syntec Optics Holdings and DJI is 0.14 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Syntec Optics Holdings and DJI in the same portfolio, assuming nothing else is changed.

Syntec Optics Additional Risk Indicators

The analysis of Syntec Optics' 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 Syntec Optics' investment and either accepting that risk or mitigating it. Along with some common measures of Syntec Optics 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.
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.

Syntec Optics 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 Syntec Optics 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. Syntec Optics' 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, Syntec Optics' 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 Syntec Optics Holdings.

Additional Tools for Syntec Stock Analysis

When running Syntec Optics' price analysis, check to measure Syntec Optics' 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 Syntec Optics is operating at the current time. Most of Syntec Optics' value examination focuses on studying past and present price action to predict the probability of Syntec Optics' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Syntec Optics' price. Additionally, you may evaluate how the addition of Syntec Optics to your portfolios can decrease your overall portfolio volatility.