Amarin Plc Stock Volatility
| AMRN Stock | USD 0.53 0.02 3.64% |
Amarin PLC secures Sharpe Ratio (or Efficiency) of -0.0574, which signifies that the company had a -0.0574% return per unit of standard deviation over the last 3 months. Amarin PLC exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Amarin PLC's mean deviation of 2.33, and Risk Adjusted Performance of (0.05) to double-check the risk estimate we provide. Key indicators related to Amarin PLC's volatility include:
690 Days Market Risk | Chance Of Distress | 690 Days Economic Sensitivity |
Amarin PLC 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 Amarin daily returns, and it is calculated using variance and standard deviation. We also use Amarin's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Amarin PLC volatility.
Amarin |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Amarin PLC 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 Amarin PLC at lower prices. For example, an investor can purchase Amarin 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 Amarin PLC's 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 together with Amarin Stock
| 0.62 | A | Agilent Technologies Sell-off Trend | PairCorr |
| 0.72 | ME | 23Andme Holding | PairCorr |
| 0.77 | VALN | Valneva SE ADR | PairCorr |
| 0.67 | JNJ | Johnson Johnson Sell-off Trend | PairCorr |
| 0.68 | MRK | Merck Company Fiscal Year End 6th of February 2025 | PairCorr |
| 0.72 | PFE | Pfizer Inc Aggressive Push | PairCorr |
Moving against Amarin Stock
Amarin PLC Market Sensitivity And Downside Risk
Amarin PLC's beta coefficient measures the volatility of Amarin 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 Amarin stock's returns against your selected market. In other words, Amarin PLC's beta of 0.74 provides an investor with an approximation of how much risk Amarin PLC stock can potentially add to one of your existing portfolios. Amarin PLC exhibits very low volatility with skewness of 0.24 and kurtosis of 0.84. Amarin PLC is a potential penny stock. Although Amarin PLC may be in fact a good instrument to invest, many penny stocks 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 Amarin PLC. 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 Amarin instrument if you perfectly time your entry and exit. However, remember that penny stocks 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 Amarin PLC Demand TrendCheck current 90 days Amarin PLC correlation with market (Dow Jones Industrial)Amarin Beta |
Amarin 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 | 3.03 |
It is essential to understand the difference between upside risk (as represented by Amarin PLC's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Amarin PLC's daily returns or price. Since the actual investment returns on holding a position in amarin 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 Amarin PLC.
Amarin PLC Stock Volatility Analysis
Volatility refers to the frequency at which Amarin PLC stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Amarin PLC's price changes. Investors will then calculate the volatility of Amarin PLC's 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 Amarin PLC's volatility:
Historical Volatility
This type of stock volatility measures Amarin PLC's fluctuations based on previous trends. It's commonly used to predict Amarin PLC's 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 Amarin PLC's 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 Amarin PLC's 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. Amarin PLC 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.
Amarin PLC Projected Return Density Against Market
Given the investment horizon of 90 days Amarin PLC has a beta of 0.7434 . This suggests as returns on the market go up, Amarin PLC average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Amarin PLC will be expected to be much smaller as well.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 Amarin PLC or Biotechnology 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 Amarin PLC's 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 Amarin 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.
Amarin PLC 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 an Amarin PLC 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.Amarin PLC Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Amarin PLC is -1742.29. The daily returns are distributed with a variance of 9.21 and standard deviation of 3.03. The mean deviation of Amarin PLC is currently at 2.3. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | -0.31 | |
β | Beta against Dow Jones | 0.74 | |
σ | Overall volatility | 3.03 | |
Ir | Information ratio | -0.11 |
Amarin PLC Stock Return Volatility
Amarin PLC historical daily return volatility represents how much of Amarin PLC stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 3.0342% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7736% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Amarin PLC Volatility
Volatility is a rate at which the price of Amarin PLC 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 Amarin PLC may increase or decrease. In other words, similar to Amarin's beta indicator, it measures the risk of Amarin PLC and helps estimate the fluctuations that may happen in a short period of time. So if prices of Amarin PLC 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 Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 111.3 M | 138.8 M | |
| Market Cap | 1.7 B | 1.8 B |
Amarin PLC's 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 Amarin Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Amarin PLC's price varies over time.
3 ways to utilize Amarin PLC's volatility to invest better
Higher Amarin PLC's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Amarin PLC 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. Amarin PLC 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 Amarin PLC investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Amarin PLC's 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 Amarin PLC's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Amarin PLC Investment Opportunity
Amarin PLC has a volatility of 3.03 and is 3.94 times more volatile than Dow Jones Industrial. 27 percent of all equities and portfolios are less risky than Amarin PLC. You can use Amarin PLC to protect your portfolios against small market fluctuations. The stock experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of Amarin PLC to be traded at $0.5088 in 90 days.Average diversification
The correlation between Amarin PLC and DJI is 0.19 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Amarin PLC and DJI in the same portfolio, assuming nothing else is changed.
Amarin PLC Additional Risk Indicators
The analysis of Amarin PLC's 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 Amarin PLC's investment and either accepting that risk or mitigating it. Along with some common measures of Amarin PLC 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 | (0.05) | |||
| Market Risk Adjusted Performance | (0.29) | |||
| Mean Deviation | 2.33 | |||
| Coefficient Of Variation | (1,395) | |||
| Standard Deviation | 3.02 | |||
| Variance | 9.13 | |||
| Information Ratio | (0.11) |
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.
Amarin PLC 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 Amarin PLC 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. Amarin PLC's 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, Amarin PLC's 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 Amarin PLC.
When determining whether Amarin PLC offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Amarin PLC's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Amarin Plc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Amarin Plc Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Amarin PLC. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. To learn how to invest in Amarin Stock, please use our How to Invest in Amarin PLC guide.You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Is Biotechnology space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Amarin PLC. If investors know Amarin will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Amarin PLC listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.94) | Earnings Share (0.10) | Revenue Per Share 0.588 | Quarterly Revenue Growth (0.36) | Return On Assets (0.03) |
The market value of Amarin PLC is measured differently than its book value, which is the value of Amarin that is recorded on the company's balance sheet. Investors also form their own opinion of Amarin PLC's value that differs from its market value or its book value, called intrinsic value, which is Amarin PLC's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Amarin PLC's market value can be influenced by many factors that don't directly affect Amarin PLC's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Amarin PLC's value and its price as these two are different measures arrived at by different means. Investors typically determine if Amarin PLC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Amarin PLC's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.