Affiliated Resources Corp Stock Volatility
| AFFL Stock | USD 0.08 0.01 12.95% |
As of now, Affiliated Pink Sheet is out of control. Affiliated Resources Corp secures Sharpe Ratio (or Efficiency) of 0.0139, which signifies that the company had a 0.0139% return per unit of standard deviation over the last 3 months. We have found thirty technical indicators for Affiliated Resources Corp, which you can use to evaluate the volatility of the firm. Please confirm Affiliated Resources' mean deviation of 5.2, and Risk Adjusted Performance of 0.0197 to double-check if the risk estimate we provide is consistent with the expected return of 0.12%. Key indicators related to Affiliated Resources' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Affiliated Resources 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 Affiliated daily returns, and it is calculated using variance and standard deviation. We also use Affiliated's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Affiliated Resources volatility.
Affiliated |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Affiliated Resources at lower prices. For example, an investor can purchase Affiliated 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 against Affiliated Pink Sheet
Affiliated Resources Market Sensitivity And Downside Risk
Affiliated Resources' beta coefficient measures the volatility of Affiliated 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 Affiliated pink sheet's returns against your selected market. In other words, Affiliated Resources's beta of -1.04 provides an investor with an approximation of how much risk Affiliated Resources pink sheet can potentially add to one of your existing portfolios. Affiliated Resources Corp is showing large volatility of returns over the selected time horizon. Affiliated Resources Corp is a penny stock. Although Affiliated Resources may be in fact a good investment, many penny pink sheets are subject to artificial price hype. Make sure you completely understand the upside potential and downside risk of investing in Affiliated Resources Corp. 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 Affiliated 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 Affiliated Resources Corp Demand TrendCheck current 90 days Affiliated Resources correlation with market (Dow Jones Industrial)Affiliated Beta |
Affiliated 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 | 8.34 |
It is essential to understand the difference between upside risk (as represented by Affiliated Resources's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Affiliated Resources' daily returns or price. Since the actual investment returns on holding a position in affiliated 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 Affiliated Resources.
Affiliated Resources Corp Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Affiliated Resources pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Affiliated Resources' price changes. Investors will then calculate the volatility of Affiliated Resources' 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 Affiliated Resources' volatility:
Historical Volatility
This type of pink sheet volatility measures Affiliated Resources' fluctuations based on previous trends. It's commonly used to predict Affiliated Resources' 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 Affiliated Resources' 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 Affiliated Resources' 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. Affiliated Resources Corp 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.
Affiliated Resources Projected Return Density Against Market
Given the investment horizon of 90 days Affiliated Resources Corp has a beta of -1.0415 . This suggestsMost 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 Affiliated Resources 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 Affiliated Resources' 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 Affiliated 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.
Affiliated Resources Corp has an alpha of 0.2308, implying that it can generate a 0.23 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Affiliated Resources 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.Affiliated Resources Pink Sheet Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Affiliated Resources is 7204.6. The daily returns are distributed with a variance of 69.6 and standard deviation of 8.34. The mean deviation of Affiliated Resources Corp is currently at 5.19. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 0.23 | |
β | Beta against Dow Jones | -1.04 | |
σ | Overall volatility | 8.34 | |
Ir | Information ratio | -0.0019 |
Affiliated Resources Pink Sheet Return Volatility
Affiliated Resources historical daily return volatility represents how much of Affiliated Resources pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 8.3424% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7685% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Affiliated Resources Volatility
Volatility is a rate at which the price of Affiliated Resources 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 Affiliated Resources may increase or decrease. In other words, similar to Affiliated's beta indicator, it measures the risk of Affiliated Resources and helps estimate the fluctuations that may happen in a short period of time. So if prices of Affiliated Resources 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.Affiliated Resources Corporation, through ChemWay Systems, Inc., produces aftermarket automotive fluids, including automotive care and performance products, refrigerants, lubricants and solvents. The company was incorporated in 1986 and is based in Brecksville, Ohio. AFFILIATED RESOURCES operates under Auto Parts classification in the United States and is traded on OTC Exchange. It employs 18 people.
Affiliated Resources' 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 Affiliated Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Affiliated Resources' price varies over time.
3 ways to utilize Affiliated Resources' volatility to invest better
Higher Affiliated Resources' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Affiliated Resources Corp 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. Affiliated Resources Corp 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 Affiliated Resources Corp investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Affiliated Resources' 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 Affiliated Resources' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Affiliated Resources Investment Opportunity
Affiliated Resources Corp has a volatility of 8.34 and is 10.83 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Affiliated Resources Corp is higher than 74 percent of all global equities and portfolios over the last 90 days. You can use Affiliated Resources Corp to protect your portfolios against small market fluctuations. The pink sheet experiences a very speculative downward sentiment. The market maybe over-reacting. Check odds of Affiliated Resources to be traded at $0.0779 in 90 days.Good diversification
The correlation between Affiliated Resources Corp and DJI is -0.1 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Affiliated Resources Corp and DJI in the same portfolio, assuming nothing else is changed.
Affiliated Resources Additional Risk Indicators
The analysis of Affiliated Resources' 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 Affiliated Resources' investment and either accepting that risk or mitigating it. Along with some common measures of Affiliated Resources 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 | 0.0197 | |||
| Market Risk Adjusted Performance | (0.09) | |||
| Mean Deviation | 5.2 | |||
| Semi Deviation | 6.75 | |||
| Downside Deviation | 11.97 | |||
| Coefficient Of Variation | 7186.34 | |||
| Standard Deviation | 8.27 |
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.
Affiliated Resources 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 Affiliated Resources 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. Affiliated Resources' 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, Affiliated Resources' 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 Affiliated Resources Corp.
Other Information on Investing in Affiliated Pink Sheet
Affiliated Resources financial ratios help investors to determine whether Affiliated Pink Sheet 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 Affiliated with respect to the benefits of owning Affiliated Resources security.