Centaurus Energy Stock Volatility
| CTARF Stock | USD 1.30 0.05 3.70% |
Centaurus Energy secures Sharpe Ratio (or Efficiency) of -0.0154, which signifies that the company had a -0.0154 % return per unit of risk over the last 3 months. Centaurus Energy exposes twenty different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Centaurus Energy's Mean Deviation of 1.91, insignificant risk adjusted performance, and Standard Deviation of 5.95 to double-check the risk estimate we provide.
Sharpe Ratio = -0.0154
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Based on monthly moving average Centaurus Energy is not performing at its full potential. However, if added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Centaurus Energy by adding Centaurus Energy to a well-diversified portfolio.
Key indicators related to Centaurus Energy's volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Centaurus Energy 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 Centaurus daily returns, and it is calculated using variance and standard deviation. We also use Centaurus's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Centaurus Energy volatility.
Centaurus |
Centaurus Energy Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Centaurus Energy pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Centaurus Energy's price changes. Investors will then calculate the volatility of Centaurus Energy'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 Centaurus Energy's volatility:
Historical Volatility
This type of pink sheet volatility measures Centaurus Energy's fluctuations based on previous trends. It's commonly used to predict Centaurus Energy'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 Centaurus Energy'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 Centaurus Energy'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. Centaurus Energy 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.
Centaurus Energy Projected Return Density Against Market
Assuming the 90 days horizon Centaurus Energy has a beta of 0.9989 suggesting Centaurus Energy market returns are reactive to returns on the market. As the market goes up or down, Centaurus Energy is expected to follow.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 Centaurus Energy 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 Centaurus Energy'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 Centaurus 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.
Centaurus Energy 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 |
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What Drives a Centaurus Energy 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.Centaurus Energy Pink Sheet Risk Measures
Assuming the 90 days horizon the coefficient of variation of Centaurus Energy is -6502.11. The daily returns are distributed with a variance of 35.43 and standard deviation of 5.95. The mean deviation of Centaurus Energy is currently at 1.91. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.73
α | Alpha over Dow Jones | -0.17 | |
β | Beta against Dow Jones | 1.00 | |
σ | Overall volatility | 5.95 | |
Ir | Information ratio | -0.03 |
Centaurus Energy Pink Sheet Return Volatility
Centaurus Energy historical daily return volatility represents how much of Centaurus Energy pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 5.9527% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7383% volatility on return distribution over the 90 days horizon. Performance |
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Related Correlations Analysis
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
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Risk-Adjusted Indicators
There is a big difference between Centaurus Pink Sheet performing well and Centaurus Energy Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Centaurus Energy's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
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| SHPNF | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| RHCCF | 17.10 | 5.04 | 0.12 | 1.32 | 14.45 | 80.33 | 185.71 | |||
| CRCE | 2.45 | 0.56 | 0.00 | 2.91 | 0.00 | 9.93 | 35.88 | |||
| MDMP | 5.46 | (0.25) | 0.00 | 0.59 | 0.00 | 16.67 | 41.21 | |||
| BYOGF | 2.01 | 1.00 | 0.00 | 3.41 | 0.00 | 0.00 | 60.00 | |||
| CRRDF | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| EFIR | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| WTXR | 11.91 | 0.95 | 0.04 | 0.84 | 15.13 | 33.33 | 151.98 | |||
| PTCO | 6.62 | (0.67) | 0.00 | (0.23) | 0.00 | 11.43 | 64.84 | |||
| WCHEF | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
About Centaurus Energy Volatility
Volatility is a rate at which the price of Centaurus Energy 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 Centaurus Energy may increase or decrease. In other words, similar to Centaurus's beta indicator, it measures the risk of Centaurus Energy and helps estimate the fluctuations that may happen in a short period of time. So if prices of Centaurus Energy 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.Centaurus Energy Inc., together with its subsidiaries, operates as an independent upstream oil and gas company in Argentina. Centaurus Energy Inc. was incorporated in 2001 and is based in Calgary, Alberta. Centaurus Energy operates under Oil Gas EP classification in the United States and is traded on OTC Exchange.
Centaurus Energy'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 Centaurus Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Centaurus Energy's price varies over time.
3 ways to utilize Centaurus Energy's volatility to invest better
Higher Centaurus Energy's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Centaurus Energy 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. Centaurus Energy 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 Centaurus Energy investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Centaurus Energy'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 Centaurus Energy's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Centaurus Energy Investment Opportunity
Centaurus Energy has a volatility of 5.95 and is 8.04 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Centaurus Energy is higher than 53 percent of all global equities and portfolios over the last 90 days. You can use Centaurus Energy to protect your portfolios against small market fluctuations. The pink sheet experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of Centaurus Energy to be traded at $1.248 in 90 days.Modest diversification
The correlation between Centaurus Energy and DJI is 0.28 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Centaurus Energy and DJI in the same portfolio, assuming nothing else is changed.
Centaurus Energy Additional Risk Indicators
The analysis of Centaurus Energy'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 Centaurus Energy's investment and either accepting that risk or mitigating it. Along with some common measures of Centaurus Energy 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) | |||
| Market Risk Adjusted Performance | (0.09) | |||
| Mean Deviation | 1.91 | |||
| Coefficient Of Variation | (6,502) | |||
| Standard Deviation | 5.95 | |||
| Variance | 35.43 | |||
| Information Ratio | (0.03) |
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.
Centaurus Energy 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 Centaurus Energy 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. Centaurus Energy'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, Centaurus Energy'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 Centaurus Energy.
Complementary Tools for Centaurus Pink Sheet analysis
When running Centaurus Energy's price analysis, check to measure Centaurus Energy's 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 Centaurus Energy is operating at the current time. Most of Centaurus Energy's value examination focuses on studying past and present price action to predict the probability of Centaurus Energy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Centaurus Energy's price. Additionally, you may evaluate how the addition of Centaurus Energy to your portfolios can decrease your overall portfolio volatility.
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