The Connecticut Light Stock Volatility
| CNLTL Stock | USD 33.23 0.00 0.00% |
As of now, Connecticut Pink Sheet is very steady. Connecticut Light secures Sharpe Ratio (or Efficiency) of 0.0938, which signifies that the company had a 0.0938% return per unit of standard deviation over the last 3 months. We have found nineteen technical indicators for The Connecticut Light, which you can use to evaluate the volatility of the firm. Please confirm Connecticut Light's Coefficient Of Variation of (162,383), risk adjusted performance of 0.0047, and Mean Deviation of 0.588 to double-check if the risk estimate we provide is consistent with the expected return of 0.11%. Key indicators related to Connecticut Light's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Connecticut Light 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 Connecticut daily returns, and it is calculated using variance and standard deviation. We also use Connecticut's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Connecticut Light volatility.
Connecticut |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Connecticut Light at lower prices. For example, an investor can purchase Connecticut 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 Connecticut Pink Sheet
Moving against Connecticut Pink Sheet
| 0.4 | BA | Boeing Fiscal Year End 29th of January 2025 | PairCorr |
Connecticut Light Market Sensitivity And Downside Risk
Connecticut Light's beta coefficient measures the volatility of Connecticut 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 Connecticut pink sheet's returns against your selected market. In other words, Connecticut Light's beta of 0.014 provides an investor with an approximation of how much risk Connecticut Light pink sheet can potentially add to one of your existing portfolios. The Connecticut Light exhibits very low volatility with skewness of -2.51 and kurtosis of 17.35. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Connecticut Light's pink sheet risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Connecticut Light's pink sheet price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Connecticut Light Demand TrendCheck current 90 days Connecticut Light correlation with market (Dow Jones Industrial)Connecticut Beta |
Connecticut 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 | 1.15 |
It is essential to understand the difference between upside risk (as represented by Connecticut Light's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Connecticut Light's daily returns or price. Since the actual investment returns on holding a position in connecticut 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 Connecticut Light.
Connecticut Light Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Connecticut Light pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Connecticut Light's price changes. Investors will then calculate the volatility of Connecticut Light's 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 Connecticut Light's volatility:
Historical Volatility
This type of pink sheet volatility measures Connecticut Light's fluctuations based on previous trends. It's commonly used to predict Connecticut Light's 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 Connecticut Light's 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 Connecticut Light'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. Connecticut Light 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.
Connecticut Light Projected Return Density Against Market
Assuming the 90 days horizon Connecticut Light has a beta of 0.014 suggesting as returns on the market go up, Connecticut Light average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding The Connecticut Light 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 Connecticut Light or Utilities 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 Connecticut Light's 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 Connecticut 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.
The Connecticut Light 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 Connecticut Light 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.Connecticut Light Pink Sheet Risk Measures
Assuming the 90 days horizon the coefficient of variation of Connecticut Light is 1066.37. The daily returns are distributed with a variance of 1.33 and standard deviation of 1.15. The mean deviation of The Connecticut Light is currently at 0.52. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | -0.01 | |
β | Beta against Dow Jones | 0.01 | |
σ | Overall volatility | 1.15 | |
Ir | Information ratio | -0.09 |
Connecticut Light Pink Sheet Return Volatility
Connecticut Light historical daily return volatility represents how much of Connecticut Light pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 1.1544% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7502% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Connecticut Light Volatility
Volatility is a rate at which the price of Connecticut Light 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 Connecticut Light may increase or decrease. In other words, similar to Connecticut's beta indicator, it measures the risk of Connecticut Light and helps estimate the fluctuations that may happen in a short period of time. So if prices of Connecticut Light 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.The Connecticut Light and Power Company, a regulated electric utility, engages in the purchase, delivery, and sale of electricity to residential, commercial, and industrial customers. The Connecticut Light and Power Company is a subsidiary of Eversource Energy. Connecticut Light is traded on OTC Exchange in the United States.
Connecticut Light'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 Connecticut Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Connecticut Light's price varies over time.
3 ways to utilize Connecticut Light's volatility to invest better
Higher Connecticut Light's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Connecticut Light 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. Connecticut Light 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 Connecticut Light investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Connecticut Light'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 Connecticut Light's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Connecticut Light Investment Opportunity
The Connecticut Light has a volatility of 1.15 and is 1.53 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of The Connecticut Light is lower than 10 percent of all global equities and portfolios over the last 90 days. You can use The Connecticut Light to protect your portfolios against small market fluctuations. The pink sheet experiences a normal downward fluctuation but is a risky buy. Check odds of Connecticut Light to be traded at $32.9 in 90 days.Significant diversification
The correlation between The Connecticut Light and DJI is 0.01 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding The Connecticut Light and DJI in the same portfolio, assuming nothing else is changed.
Connecticut Light Additional Risk Indicators
The analysis of Connecticut Light'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 Connecticut Light's investment and either accepting that risk or mitigating it. Along with some common measures of Connecticut Light 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 | 0.0047 | |||
| Market Risk Adjusted Performance | (0.77) | |||
| Mean Deviation | 0.588 | |||
| Coefficient Of Variation | (162,383) | |||
| Standard Deviation | 1.58 | |||
| Variance | 2.5 | |||
| Information Ratio | (0.09) |
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.
Connecticut Light 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 Connecticut Light 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. Connecticut Light'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, Connecticut Light'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 The Connecticut Light.
Other Information on Investing in Connecticut Pink Sheet
Connecticut Light financial ratios help investors to determine whether Connecticut 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 Connecticut with respect to the benefits of owning Connecticut Light security.