Securetech Innovations Stock Volatility
| SCTH Stock | USD 1.00 0.59 143.90% |
SecureTech Innovations is out of control given 3 months investment horizon. SecureTech Innovations owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0664, which indicates the firm had a 0.0664% return per unit of risk over the last 3 months. We were able to interpolate and analyze data for nineteen different technical indicators, which can help you to evaluate if expected returns of 1.28% are justified by taking the suggested risk. Use SecureTech Innovations Risk Adjusted Performance of 0.0622, variance of 369.75, and Coefficient Of Variation of 1505.16 to evaluate company specific risk that cannot be diversified away. Key indicators related to SecureTech Innovations' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
SecureTech Innovations 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 SecureTech daily returns, and it is calculated using variance and standard deviation. We also use SecureTech's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of SecureTech Innovations volatility.
SecureTech |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of SecureTech Innovations at lower prices. For example, an investor can purchase SecureTech stock that has halved in price over a short period. This will lower their average cost per share, thereby improving the overall portfolio performance when market normalizes.
SecureTech Innovations Market Sensitivity And Downside Risk
SecureTech Innovations' beta coefficient measures the volatility of SecureTech 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 SecureTech pink sheet's returns against your selected market. In other words, SecureTech Innovations's beta of -0.35 provides an investor with an approximation of how much risk SecureTech Innovations pink sheet can potentially add to one of your existing portfolios. SecureTech Innovations is displaying above-average volatility over the selected time horizon. SecureTech Innovations is a potential penny stock. Although SecureTech Innovations may be in fact a good instrument to invest, many penny pink sheets 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 SecureTech Innovations. 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 SecureTech 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 SecureTech Innovations Demand TrendCheck current 90 days SecureTech Innovations correlation with market (Dow Jones Industrial)SecureTech Beta |
SecureTech 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 | 19.23 |
It is essential to understand the difference between upside risk (as represented by SecureTech Innovations's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of SecureTech Innovations' daily returns or price. Since the actual investment returns on holding a position in securetech 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 SecureTech Innovations.
SecureTech Innovations Pink Sheet Volatility Analysis
Volatility refers to the frequency at which SecureTech Innovations pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with SecureTech Innovations' price changes. Investors will then calculate the volatility of SecureTech Innovations' 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 SecureTech Innovations' volatility:
Historical Volatility
This type of pink sheet volatility measures SecureTech Innovations' fluctuations based on previous trends. It's commonly used to predict SecureTech Innovations' 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 SecureTech Innovations' 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 SecureTech Innovations' 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. SecureTech Innovations 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.
SecureTech Innovations Projected Return Density Against Market
Given the investment horizon of 90 days SecureTech Innovations has a beta of -0.3506 . This usually implies as returns on the benchmark increase, returns on holding SecureTech Innovations are expected to decrease at a much lower rate. During a bear market, however, SecureTech Innovations is likely to outperform the market.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 SecureTech Innovations or Consumer Cyclical 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 SecureTech Innovations' 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 SecureTech 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.
SecureTech Innovations has an alpha of 1.2753, implying that it can generate a 1.28 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a SecureTech Innovations 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.SecureTech Innovations Pink Sheet Risk Measures
Given the investment horizon of 90 days the coefficient of variation of SecureTech Innovations is 1505.16. The daily returns are distributed with a variance of 369.75 and standard deviation of 19.23. The mean deviation of SecureTech Innovations is currently at 4.32. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.79
α | Alpha over Dow Jones | 1.28 | |
β | Beta against Dow Jones | -0.35 | |
σ | Overall volatility | 19.23 | |
Ir | Information ratio | 0.06 |
SecureTech Innovations Pink Sheet Return Volatility
SecureTech Innovations historical daily return volatility represents how much of SecureTech Innovations pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 19.2288% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7982% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About SecureTech Innovations Volatility
Volatility is a rate at which the price of SecureTech Innovations 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 SecureTech Innovations may increase or decrease. In other words, similar to SecureTech's beta indicator, it measures the risk of SecureTech Innovations and helps estimate the fluctuations that may happen in a short period of time. So if prices of SecureTech Innovations 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.SecureTech Innovations, Inc. develops and markets personal and automobile security and safety devices and technologies in the United States. SecureTech Innovations, Inc. was incorporated in 2017 and is headquartered in Roseville, Minnesota. Securetech Innovations operates under Auto Parts classification in the United States and is traded on OTC Exchange. It employs 2 people.
SecureTech Innovations' 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 SecureTech Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much SecureTech Innovations' price varies over time.
3 ways to utilize SecureTech Innovations' volatility to invest better
Higher SecureTech Innovations' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of SecureTech Innovations 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. SecureTech Innovations 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 SecureTech Innovations investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in SecureTech Innovations' 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 SecureTech Innovations' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
SecureTech Innovations Investment Opportunity
SecureTech Innovations has a volatility of 19.23 and is 24.04 times more volatile than Dow Jones Industrial. 96 percent of all equities and portfolios are less risky than SecureTech Innovations. You can use SecureTech Innovations 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 SecureTech Innovations to be traded at $1.25 in 90 days.Good diversification
The correlation between SecureTech Innovations and DJI is -0.01 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding SecureTech Innovations and DJI in the same portfolio, assuming nothing else is changed.
SecureTech Innovations Additional Risk Indicators
The analysis of SecureTech Innovations' 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 SecureTech Innovations' investment and either accepting that risk or mitigating it. Along with some common measures of SecureTech Innovations 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 | 0.0622 | |||
| Market Risk Adjusted Performance | (3.61) | |||
| Mean Deviation | 4.32 | |||
| Coefficient Of Variation | 1505.16 | |||
| Standard Deviation | 19.23 | |||
| Variance | 369.75 | |||
| Information Ratio | 0.0648 |
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.
SecureTech Innovations 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 SecureTech Innovations 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. SecureTech Innovations' 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, SecureTech Innovations' 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 SecureTech Innovations.
Complementary Tools for SecureTech Pink Sheet analysis
When running SecureTech Innovations' price analysis, check to measure SecureTech Innovations' 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 SecureTech Innovations is operating at the current time. Most of SecureTech Innovations' value examination focuses on studying past and present price action to predict the probability of SecureTech Innovations' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move SecureTech Innovations' price. Additionally, you may evaluate how the addition of SecureTech Innovations to your portfolios can decrease your overall portfolio volatility.
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