Smg Industries Stock Volatility
| SMGI Stock | USD 0.0002 0.00 0.00% |
SMG Industries owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.12, which indicates the firm had a -0.12% return per unit of volatility over the last 3 months. SMG Industries exposes sixteen different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate SMG Industries' risk adjusted performance of (0.08), and Variance of 122.73 to confirm the risk estimate we provide. Key indicators related to SMG Industries' volatility include:
360 Days Market Risk | Chance Of Distress | 360 Days Economic Sensitivity |
SMG Industries 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 SMG daily returns, and it is calculated using variance and standard deviation. We also use SMG's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of SMG Industries volatility.
SMG |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of SMG Industries at lower prices. For example, an investor can purchase SMG 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.
Moving together with SMG Pink Sheet
Moving against SMG Pink Sheet
| 0.86 | FI | Fiserv, Sell-off Trend | PairCorr |
| 0.72 | TS | Tenaris SA ADR | PairCorr |
| 0.7 | BKR | Baker Hughes Fiscal Year End 28th of January 2025 | PairCorr |
| 0.68 | TNRSF | Tenaris SA | PairCorr |
| 0.63 | FSTF | First State Financial | PairCorr |
| 0.5 | FTI | TechnipFMC PLC | PairCorr |
SMG Industries Market Sensitivity And Downside Risk
SMG Industries' beta coefficient measures the volatility of SMG 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 SMG pink sheet's returns against your selected market. In other words, SMG Industries's beta of -0.72 provides an investor with an approximation of how much risk SMG Industries pink sheet can potentially add to one of your existing portfolios. SMG Industries is displaying above-average volatility over the selected time horizon. SMG Industries appears to be a penny stock. Although SMG Industries may be, in fact, a solid short-term or long term investment, many penny pink sheets are speculative investment instruments that are often subject to artificial stock promotion and campaigns of hype which may lead to misinformation and misrepresentation. Please make sure you fully understand upside potential and downside risks of investing in SMG Industries or similar risky assets. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswing without any event/news,and sudden news releases. We also encourage traders to check biographies and work history of company President, CEO or other officers before investing in high-volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on SMG 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 SMG Industries Demand TrendCheck current 90 days SMG Industries correlation with market (Dow Jones Industrial)SMG Beta |
SMG 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 | 11.16 |
It is essential to understand the difference between upside risk (as represented by SMG Industries's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of SMG Industries' daily returns or price. Since the actual investment returns on holding a position in smg 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 SMG Industries.
SMG Industries Pink Sheet Volatility Analysis
Volatility refers to the frequency at which SMG Industries pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with SMG Industries' price changes. Investors will then calculate the volatility of SMG Industries' 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 SMG Industries' volatility:
Historical Volatility
This type of pink sheet volatility measures SMG Industries' fluctuations based on previous trends. It's commonly used to predict SMG Industries' 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 SMG Industries' 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 SMG Industries' 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. SMG Industries 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.
SMG Industries Projected Return Density Against Market
Given the investment horizon of 90 days SMG Industries has a beta of -0.7229 . This usually implies as returns on the benchmark increase, returns on holding SMG Industries are expected to decrease at a much lower rate. During a bear market, however, SMG Industries 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 SMG Industries or Energy 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 SMG Industries' 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 SMG 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.
SMG Industries 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 SMG Industries 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.SMG Industries Pink Sheet Risk Measures
Given the investment horizon of 90 days the coefficient of variation of SMG Industries is -806.23. The daily returns are distributed with a variance of 124.62 and standard deviation of 11.16. The mean deviation of SMG Industries is currently at 2.73. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.73
α | Alpha over Dow Jones | -1.31 | |
β | Beta against Dow Jones | -0.72 | |
σ | Overall volatility | 11.16 | |
Ir | Information ratio | -0.13 |
SMG Industries Pink Sheet Return Volatility
SMG Industries historical daily return volatility represents how much of SMG Industries pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 11.1631% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7298% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About SMG Industries Volatility
Volatility is a rate at which the price of SMG Industries 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 SMG Industries may increase or decrease. In other words, similar to SMG's beta indicator, it measures the risk of SMG Industries and helps estimate the fluctuations that may happen in a short period of time. So if prices of SMG Industries 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.SMG Industries Inc. operates as a transportation company in the United States. SMG Industries Inc. was incorporated in 2008 and is headquartered in Houston, Texas. Smg Indium operates under Oil Gas Equipment Services classification in the United States and is traded on OTC Exchange. It employs 258 people.
SMG Industries' 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 SMG Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much SMG Industries' price varies over time.
3 ways to utilize SMG Industries' volatility to invest better
Higher SMG Industries' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of SMG Industries 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. SMG Industries 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 SMG Industries investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in SMG Industries' 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 SMG Industries' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
SMG Industries Investment Opportunity
SMG Industries has a volatility of 11.16 and is 15.29 times more volatile than Dow Jones Industrial. 96 percent of all equities and portfolios are less risky than SMG Industries. You can use SMG Industries to protect your portfolios against small market fluctuations. The pink sheet experiences a normal downward fluctuation but is a risky buy. Check odds of SMG Industries to be traded at $2.0E-4 in 90 days.Good diversification
The correlation between SMG Industries and DJI is -0.05 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding SMG Industries and DJI in the same portfolio, assuming nothing else is changed.
SMG Industries Additional Risk Indicators
The analysis of SMG Industries' 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 SMG Industries' investment and either accepting that risk or mitigating it. Along with some common measures of SMG Industries 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 | (0.08) | |||
| Market Risk Adjusted Performance | 1.91 | |||
| Mean Deviation | 2.69 | |||
| Coefficient Of Variation | (812.40) | |||
| Standard Deviation | 11.08 | |||
| Variance | 122.73 | |||
| Information Ratio | (0.13) |
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.
SMG Industries 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 SMG Industries 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. SMG Industries' 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, SMG Industries' 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 SMG Industries.
Complementary Tools for SMG Pink Sheet analysis
When running SMG Industries' price analysis, check to measure SMG Industries' 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 SMG Industries is operating at the current time. Most of SMG Industries' value examination focuses on studying past and present price action to predict the probability of SMG Industries' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move SMG Industries' price. Additionally, you may evaluate how the addition of SMG Industries to your portfolios can decrease your overall portfolio volatility.
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