California Resources Volatility
| CRCQWDelisted Stock | USD 17.12 0.12 0.71% |
California Resources appears to be slightly risky, given 3 months investment horizon. California Resources secures Sharpe Ratio (or Efficiency) of 0.0888, which signifies that the company had a 0.0888% return per unit of risk over the last 3 months. By analyzing California Resources' technical indicators, you can evaluate if the expected return of 0.61% is justified by implied risk. Please makes use of California Resources' Mean Deviation of 6.33, downside deviation of 8.7, and Risk Adjusted Performance of 0.068 to double-check if our risk estimates are consistent with your expectations. Key indicators related to California Resources' volatility include:
180 Days Market Risk | Chance Of Distress | 180 Days Economic Sensitivity |
California 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 California daily returns, and it is calculated using variance and standard deviation. We also use California's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of California Resources volatility.
California |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as California Resources 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 California Resources at lower prices. For example, an investor can purchase California 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 California Resources' 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 California Pink Sheet
| 0.64 | JNJ | Johnson Johnson Sell-off Trend | PairCorr |
| 0.62 | KO | Coca Cola Aggressive Push | PairCorr |
| 0.59 | PFE | Pfizer Inc Aggressive Push | PairCorr |
| 0.44 | PG | Procter Gamble Sell-off Trend | PairCorr |
| 0.42 | BA | Boeing Fiscal Year End 29th of January 2025 | PairCorr |
California Resources Market Sensitivity And Downside Risk
California Resources' beta coefficient measures the volatility of California 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 California pink sheet's returns against your selected market. In other words, California Resources's beta of 1.42 provides an investor with an approximation of how much risk California Resources pink sheet can potentially add to one of your existing portfolios. California Resources is displaying above-average volatility over the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure California Resources' 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 California Resources' 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 California Resources Demand TrendCheck current 90 days California Resources correlation with market (Dow Jones Industrial)California Beta |
California 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 | 6.87 |
It is essential to understand the difference between upside risk (as represented by California Resources's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of California Resources' daily returns or price. Since the actual investment returns on holding a position in california 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 California Resources.
California Resources Pink Sheet Volatility Analysis
Volatility refers to the frequency at which California Resources pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with California Resources' price changes. Investors will then calculate the volatility of California 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 California Resources' volatility:
Historical Volatility
This type of pink sheet volatility measures California Resources' fluctuations based on previous trends. It's commonly used to predict California 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 California 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 California Resources' to be redeemed at a future date.Transformation |
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California Resources Projected Return Density Against Market
Assuming the 90 days horizon the pink sheet has the beta coefficient of 1.4197 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, California Resources 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 California Resources or Energy 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 California 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 California 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.
California Resources has an alpha of 0.5201, implying that it can generate a 0.52 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a California 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.California Resources Pink Sheet Risk Measures
Assuming the 90 days horizon the coefficient of variation of California Resources is 1125.85. The daily returns are distributed with a variance of 47.26 and standard deviation of 6.87. The mean deviation of California Resources is currently at 4.83. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.52 | |
β | Beta against Dow Jones | 1.42 | |
σ | Overall volatility | 6.87 | |
Ir | Information ratio | 0.06 |
California Resources Pink Sheet Return Volatility
California Resources historical daily return volatility represents how much of California Resources pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The venture shows 6.8748% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7444% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About California Resources Volatility
Volatility is a rate at which the price of California 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 California Resources may increase or decrease. In other words, similar to California's beta indicator, it measures the risk of California Resources and helps estimate the fluctuations that may happen in a short period of time. So if prices of California 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.California Resources Corporation operates as an independent oil and natural gas company. The company was incorporated in 2014 and is based in Santa Clarita, California. CALIFORNIA RESOURCES operates under Oil Gas EP classification in the United States and is traded on OTC Exchange. It employs 970 people.
California 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 California Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much California Resources' price varies over time.
3 ways to utilize California Resources' volatility to invest better
Higher California Resources' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of California Resources 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. California Resources 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 California Resources investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in California 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 California Resources' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
California Resources Investment Opportunity
California Resources has a volatility of 6.87 and is 9.28 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of California Resources is higher than 61 percent of all global equities and portfolios over the last 90 days. You can use California Resources to enhance the returns of your portfolios. The pink sheet experiences a moderate upward volatility. Check odds of California Resources to be traded at $18.83 in 90 days.Average diversification
The correlation between California Resources and DJI is 0.12 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding California Resources and DJI in the same portfolio, assuming nothing else is changed.
California Resources Additional Risk Indicators
The analysis of California 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 California Resources' investment and either accepting that risk or mitigating it. Along with some common measures of California 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 | 0.068 | |||
| Market Risk Adjusted Performance | 0.5039 | |||
| Mean Deviation | 6.33 | |||
| Semi Deviation | 7.1 | |||
| Downside Deviation | 8.7 | |||
| Coefficient Of Variation | 1299.32 | |||
| Standard Deviation | 9.24 |
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.
California 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 California 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. California 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, California 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 California Resources.
Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in producer price index. You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Consideration for investing in California Pink Sheet
If you are still planning to invest in California Resources check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the California Resources' history and understand the potential risks before investing.
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