Curtiss Motorcycles Stock Volatility
| CMOT Stock | USD 0.02 0.02 42.50% |
Curtiss Motorcycles is out of control given 3 months investment horizon. Curtiss Motorcycles secures Sharpe Ratio (or Efficiency) of 0.17, which signifies that the company had a 0.17% return per unit of risk over the last 3 months. We were able to break down and interpolate data for twenty-seven different technical indicators, which can help you to evaluate if expected returns of 27.27% are justified by taking the suggested risk. Use Curtiss Motorcycles Risk Adjusted Performance of 0.136, mean deviation of 59.8, and Downside Deviation of 62.72 to evaluate company specific risk that cannot be diversified away. Key indicators related to Curtiss Motorcycles' volatility include:
510 Days Market Risk | Chance Of Distress | 510 Days Economic Sensitivity |
Curtiss Motorcycles 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 Curtiss daily returns, and it is calculated using variance and standard deviation. We also use Curtiss's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Curtiss Motorcycles volatility.
Curtiss |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Curtiss Motorcycles 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 Curtiss Motorcycles at lower prices. For example, an investor can purchase Curtiss 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 Curtiss Motorcycles' 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 against Curtiss Pink Sheet
Curtiss Motorcycles Market Sensitivity And Downside Risk
Curtiss Motorcycles' beta coefficient measures the volatility of Curtiss 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 Curtiss pink sheet's returns against your selected market. In other words, Curtiss Motorcycles's beta of 6.6 provides an investor with an approximation of how much risk Curtiss Motorcycles pink sheet can potentially add to one of your existing portfolios. Curtiss Motorcycles is showing large volatility of returns over the selected time horizon. Curtiss Motorcycles is a penny stock. Although Curtiss Motorcycles 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 Curtiss Motorcycles. 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 Curtiss 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 Curtiss Motorcycles Demand TrendCheck current 90 days Curtiss Motorcycles correlation with market (Dow Jones Industrial)Curtiss Beta |
Curtiss 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 | 160.87 |
It is essential to understand the difference between upside risk (as represented by Curtiss Motorcycles's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Curtiss Motorcycles' daily returns or price. Since the actual investment returns on holding a position in curtiss 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 Curtiss Motorcycles.
Curtiss Motorcycles Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Curtiss Motorcycles pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Curtiss Motorcycles' price changes. Investors will then calculate the volatility of Curtiss Motorcycles' 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 Curtiss Motorcycles' volatility:
Historical Volatility
This type of pink sheet volatility measures Curtiss Motorcycles' fluctuations based on previous trends. It's commonly used to predict Curtiss Motorcycles' 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 Curtiss Motorcycles' 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 Curtiss Motorcycles' 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. Curtiss Motorcycles 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.
Curtiss Motorcycles Projected Return Density Against Market
Given the investment horizon of 90 days the pink sheet has the beta coefficient of 6.5963 suggesting as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Curtiss Motorcycles 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 Curtiss Motorcycles 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 Curtiss Motorcycles' 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 Curtiss 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.
Curtiss Motorcycles has an alpha of 26.7488, implying that it can generate a 26.75 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Curtiss Motorcycles 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.Curtiss Motorcycles Pink Sheet Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Curtiss Motorcycles is 590.03. The daily returns are distributed with a variance of 25880.63 and standard deviation of 160.87. The mean deviation of Curtiss Motorcycles is currently at 59.53. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 26.75 | |
β | Beta against Dow Jones | 6.60 | |
σ | Overall volatility | 160.87 | |
Ir | Information ratio | 0.16 |
Curtiss Motorcycles Pink Sheet Return Volatility
Curtiss Motorcycles historical daily return volatility represents how much of Curtiss Motorcycles pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 160.8746% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7796% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Curtiss Motorcycles Volatility
Volatility is a rate at which the price of Curtiss Motorcycles 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 Curtiss Motorcycles may increase or decrease. In other words, similar to Curtiss's beta indicator, it measures the risk of Curtiss Motorcycles and helps estimate the fluctuations that may happen in a short period of time. So if prices of Curtiss Motorcycles 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.Curtiss Motorcycles Company, Inc. engages in the design, manufacture, assembly, and sale of handcrafted street motorcycles for high net worth customers in the United States. Curtiss Motorcycles Company, Inc. was founded in 1991 and is based in Birmingham, Alabama. Curtiss Motorcycles operates under Recreational Vehicles classification in the United States and is traded on OTC Exchange. It employs 10 people.
Curtiss Motorcycles' 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 Curtiss Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Curtiss Motorcycles' price varies over time.
3 ways to utilize Curtiss Motorcycles' volatility to invest better
Higher Curtiss Motorcycles' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Curtiss Motorcycles 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. Curtiss Motorcycles 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 Curtiss Motorcycles investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Curtiss Motorcycles' 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 Curtiss Motorcycles' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Curtiss Motorcycles Investment Opportunity
Curtiss Motorcycles has a volatility of 160.87 and is 206.24 times more volatile than Dow Jones Industrial. 96 percent of all equities and portfolios are less risky than Curtiss Motorcycles. You can use Curtiss Motorcycles 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 Curtiss Motorcycles to be traded at $0.0218 in 90 days.Significant diversification
The correlation between Curtiss Motorcycles and DJI is 0.03 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Curtiss Motorcycles and DJI in the same portfolio, assuming nothing else is changed.
Curtiss Motorcycles Additional Risk Indicators
The analysis of Curtiss Motorcycles' 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 Curtiss Motorcycles' investment and either accepting that risk or mitigating it. Along with some common measures of Curtiss Motorcycles 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 | 0.136 | |||
| Market Risk Adjusted Performance | 4.18 | |||
| Mean Deviation | 59.8 | |||
| Semi Deviation | 21.55 | |||
| Downside Deviation | 62.72 | |||
| Coefficient Of Variation | 606.13 | |||
| Standard Deviation | 166.93 |
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.
Curtiss Motorcycles 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 Curtiss Motorcycles 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. Curtiss Motorcycles' 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, Curtiss Motorcycles' 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 Curtiss Motorcycles.
Additional Tools for Curtiss Pink Sheet Analysis
When running Curtiss Motorcycles' price analysis, check to measure Curtiss Motorcycles' 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 Curtiss Motorcycles is operating at the current time. Most of Curtiss Motorcycles' value examination focuses on studying past and present price action to predict the probability of Curtiss Motorcycles' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Curtiss Motorcycles' price. Additionally, you may evaluate how the addition of Curtiss Motorcycles to your portfolios can decrease your overall portfolio volatility.