Spectra7 Microsystems Stock Volatility
| SPVNF Stock | USD 0.09 0.01 17.76% |
Spectra7 Microsystems appears to be out of control, given 3 months investment horizon. Spectra7 Microsystems owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.054, which indicates the firm had a 0.054% return per unit of risk over the last 3 months. By inspecting Spectra7 Microsystems' technical indicators, you can evaluate if the expected return of 0.59% is justified by implied risk. Please review Spectra7 Microsystems' Semi Deviation of 8.42, risk adjusted performance of 0.0547, and Coefficient Of Variation of 1743.73 to confirm if our risk estimates are consistent with your expectations. Key indicators related to Spectra7 Microsystems' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Spectra7 Microsystems 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 Spectra7 daily returns, and it is calculated using variance and standard deviation. We also use Spectra7's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Spectra7 Microsystems volatility.
Spectra7 |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Spectra7 Microsystems 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 Spectra7 Microsystems at lower prices to lower their average cost per share. Similarly, when the prices of Spectra7 Microsystems' stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving against Spectra7 OTC Stock
Spectra7 Microsystems Market Sensitivity And Downside Risk
Spectra7 Microsystems' beta coefficient measures the volatility of Spectra7 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 Spectra7 otc stock's returns against your selected market. In other words, Spectra7 Microsystems's beta of 1.57 provides an investor with an approximation of how much risk Spectra7 Microsystems otc stock can potentially add to one of your existing portfolios. Spectra7 Microsystems is showing large volatility of returns over the selected time horizon. Spectra7 Microsystems is a penny stock. Although Spectra7 Microsystems may be in fact a good investment, many penny otc stocks are subject to artificial price hype. Make sure you completely understand the upside potential and downside risk of investing in Spectra7 Microsystems. 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 Spectra7 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 Spectra7 Microsystems Demand TrendCheck current 90 days Spectra7 Microsystems correlation with market (Dow Jones Industrial)Spectra7 Beta |
Spectra7 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 | 10.99 |
It is essential to understand the difference between upside risk (as represented by Spectra7 Microsystems's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Spectra7 Microsystems' daily returns or price. Since the actual investment returns on holding a position in spectra7 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 Spectra7 Microsystems.
Spectra7 Microsystems OTC Stock Volatility Analysis
Volatility refers to the frequency at which Spectra7 Microsystems otc price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Spectra7 Microsystems' price changes. Investors will then calculate the volatility of Spectra7 Microsystems' 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 Spectra7 Microsystems' volatility:
Historical Volatility
This type of otc volatility measures Spectra7 Microsystems' fluctuations based on previous trends. It's commonly used to predict Spectra7 Microsystems' 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 Spectra7 Microsystems' 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 Spectra7 Microsystems' 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. Spectra7 Microsystems 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.
Spectra7 Microsystems Projected Return Density Against Market
Assuming the 90 days horizon the otc stock has the beta coefficient of 1.5725 . This usually implies as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Spectra7 Microsystems 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 Spectra7 Microsystems or Semiconductors & Semiconductor Equipment 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 Spectra7 Microsystems' 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 Spectra7 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.
Spectra7 Microsystems has an alpha of 0.5789, implying that it can generate a 0.58 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Spectra7 Microsystems 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.Spectra7 Microsystems OTC Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of Spectra7 Microsystems is 1850.28. The daily returns are distributed with a variance of 120.68 and standard deviation of 10.99. The mean deviation of Spectra7 Microsystems is currently at 6.72. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.79
α | Alpha over Dow Jones | 0.58 | |
β | Beta against Dow Jones | 1.57 | |
σ | Overall volatility | 10.99 | |
Ir | Information ratio | 0.05 |
Spectra7 Microsystems OTC Stock Return Volatility
Spectra7 Microsystems historical daily return volatility represents how much of Spectra7 Microsystems otc's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 10.9854% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.8065% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Spectra7 Microsystems Volatility
Volatility is a rate at which the price of Spectra7 Microsystems 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 Spectra7 Microsystems may increase or decrease. In other words, similar to Spectra7's beta indicator, it measures the risk of Spectra7 Microsystems and helps estimate the fluctuations that may happen in a short period of time. So if prices of Spectra7 Microsystems 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.Spectra7 Microsystems Inc. operates as an analog semiconductor company in Canada and China. Spectra7 Microsystems Inc. is headquartered in San Jose, California. Spectra7 Microsystems operates under Semiconductor Equipment Materials classification in the United States and is traded on OTC Exchange.
Spectra7 Microsystems' 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 Spectra7 OTC Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Spectra7 Microsystems' price varies over time.
3 ways to utilize Spectra7 Microsystems' volatility to invest better
Higher Spectra7 Microsystems' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Spectra7 Microsystems 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. Spectra7 Microsystems 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 Spectra7 Microsystems investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Spectra7 Microsystems' 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 Spectra7 Microsystems' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Spectra7 Microsystems Investment Opportunity
Spectra7 Microsystems has a volatility of 10.99 and is 13.57 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Spectra7 Microsystems is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use Spectra7 Microsystems to enhance the returns of your portfolios. The otc stock experiences a very speculative upward sentiment. The trend is possibly hyped up. Check odds of Spectra7 Microsystems to be traded at $0.1169 in 90 days.Average diversification
The correlation between Spectra7 Microsystems and DJI is 0.11 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Spectra7 Microsystems and DJI in the same portfolio, assuming nothing else is changed.
Spectra7 Microsystems Additional Risk Indicators
The analysis of Spectra7 Microsystems' 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 Spectra7 Microsystems' investment and either accepting that risk or mitigating it. Along with some common measures of Spectra7 Microsystems 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 | 0.0547 | |||
| Market Risk Adjusted Performance | 0.4013 | |||
| Mean Deviation | 6.66 | |||
| Semi Deviation | 8.42 | |||
| Downside Deviation | 13.13 | |||
| Coefficient Of Variation | 1743.73 | |||
| Standard Deviation | 10.9 |
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.
Spectra7 Microsystems 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 Spectra7 Microsystems 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. Spectra7 Microsystems' 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, Spectra7 Microsystems' 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 Spectra7 Microsystems.
Complementary Tools for Spectra7 OTC Stock analysis
When running Spectra7 Microsystems' price analysis, check to measure Spectra7 Microsystems' 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 Spectra7 Microsystems is operating at the current time. Most of Spectra7 Microsystems' value examination focuses on studying past and present price action to predict the probability of Spectra7 Microsystems' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Spectra7 Microsystems' price. Additionally, you may evaluate how the addition of Spectra7 Microsystems to your portfolios can decrease your overall portfolio volatility.
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