Castor Maritime Stock Volatility
| CTRM Stock | USD 2.13 0.01 0.47% |
Castor Maritime appears to be very risky, given 3 months investment horizon. Castor Maritime secures Sharpe Ratio (or Efficiency) of 0.053, which signifies that the company had a 0.053 % return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Castor Maritime, which you can use to evaluate the volatility of the firm. Please makes use of Castor Maritime's Risk Adjusted Performance of 0.046, downside deviation of 3.79, and Mean Deviation of 2.8 to double-check if our risk estimates are consistent with your expectations.
Sharpe Ratio = 0.053
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Based on monthly moving average Castor Maritime is performing at about 4% of its full potential. 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 Castor Maritime by adding it to a well-diversified portfolio.
Key indicators related to Castor Maritime's volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Castor Maritime 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 Castor daily returns, and it is calculated using variance and standard deviation. We also use Castor's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Castor Maritime volatility.
ESG Sustainability
While most ESG disclosures are voluntary, Castor Maritime's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Castor Maritime's managers and investors.Environmental | Governance | Social |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Castor Maritime 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 Castor Maritime at lower prices. For example, an investor can purchase Castor 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 Castor Maritime'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. Main indicators related to Castor Maritime's market risk premium analysis include:
Beta 1.2 | Alpha 0.0823 | Risk 4 | Sharpe Ratio 0.053 | Expected Return 0.21 |
Moving together with Castor Stock
| 0.63 | GLBS | Globus Maritime | PairCorr |
| 0.66 | TORO | Toro Earnings Call This Week | PairCorr |
| 0.64 | CCEC | Capital Clean Energy | PairCorr |
Moving against Castor Stock
Castor Maritime Market Sensitivity And Downside Risk
Castor Maritime's beta coefficient measures the volatility of Castor 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 Castor stock's returns against your selected market. In other words, Castor Maritime's beta of 1.2 provides an investor with an approximation of how much risk Castor Maritime stock can potentially add to one of your existing portfolios. Castor Maritime shows above-average downside volatility for the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Castor Maritime's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Castor Maritime's stock 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 Castor Maritime Demand TrendCheck current 90 days Castor Maritime correlation with market (Dow Jones Industrial)Castor Maritime Volatility and Downside Risk
Castor 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.
Using Castor Put Option to Manage Risk
Put options written on Castor Maritime grant holders of the option the right to sell a specified amount of Castor Maritime at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Castor Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Castor Maritime's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Castor Maritime will be realized, the loss incurred will be offset by the profits made with the option trade.
Castor Maritime's PUT expiring on 2026-04-17
Profit |
| Castor Maritime Price At Expiration |
Current Castor Maritime Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | CTRM260417P00002500 | -0.646273 | 0.578997 | 9 | 2026-04-17 | 0.2 - 0.8 | 0.0 | View |
Castor Maritime Stock Volatility Analysis
Volatility refers to the frequency at which Castor Maritime stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Castor Maritime's price changes. Investors will then calculate the volatility of Castor Maritime'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 Castor Maritime's volatility:
Historical Volatility
This type of stock volatility measures Castor Maritime's fluctuations based on previous trends. It's commonly used to predict Castor Maritime'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 Castor Maritime'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 Castor Maritime'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. Castor Maritime 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.
Castor Maritime Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 1.2024 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, Castor Maritime 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 Castor Maritime or Marine Transportation 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 Castor Maritime'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 Castor 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.
Predicted Return Density |
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What Drives a Castor Maritime 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 investor attention to the company. This positive attention may impact the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Castor Maritime Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Castor Maritime is 1886.79. The daily returns are distributed with a variance of 16.02 and standard deviation of 4.0. The mean deviation of Castor Maritime is currently at 2.78. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.81
α | Alpha over Dow Jones | 0.08 | |
β | Beta against Dow Jones | 1.20 | |
σ | Overall volatility | 4.00 | |
Ir | Information ratio | 0.02 |
Castor Maritime Stock Return Volatility
Castor Maritime historical daily return volatility represents how much of Castor Maritime stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 4.0027% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8125% 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 Castor Stock performing well and Castor Maritime 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 Castor Maritime'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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| EHLD | 0.94 | (0.12) | 0.00 | (21.83) | 0.00 | 2.14 | 9.31 | |||
| JOB | 2.24 | 0.34 | 0.05 | 0.76 | 2.13 | 5.56 | 35.98 | |||
| GLBS | 2.72 | 0.51 | 0.09 | 6.51 | 3.07 | 8.94 | 26.30 | |||
| USEA | 2.55 | 0.12 | 0.03 | 0.17 | 3.94 | 5.29 | 20.78 | |||
| PSHG | 2.47 | (0.07) | (0.02) | (0.01) | 3.38 | 5.19 | 16.86 | |||
| GTEC | 7.24 | 0.06 | 0.00 | 0.16 | 9.29 | 19.23 | 50.83 | |||
| XOS | 3.38 | (0.32) | 0.00 | (0.05) | 0.00 | 5.58 | 38.89 | |||
| ELPW | 94.44 | 45.96 | 2.18 | (1.27) | 14.89 | 11.61 | 3,232 | |||
| MTEN | 9.89 | (6.36) | 0.00 | (32.30) | 0.00 | 13.74 | 104.81 | |||
| DXST | 7.22 | (0.88) | 0.00 | 1.33 | 0.00 | 14.60 | 97.03 |
About Castor Maritime Volatility
Volatility is a rate at which the price of Castor Maritime 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 Castor Maritime may increase or decrease. In other words, similar to Castor's beta indicator, it measures the risk of Castor Maritime and helps estimate the fluctuations that may happen in a short period of time. So if prices of Castor Maritime 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 | 6.5 M | 5.7 M | |
| Market Cap | 23.9 M | 21.8 M |
Castor Maritime'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 Castor Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Castor Maritime's price varies over time.
3 ways to utilize Castor Maritime's volatility to invest better
Higher Castor Maritime's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Castor Maritime 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. Castor Maritime 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 Castor Maritime investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Castor Maritime'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 Castor Maritime's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Castor Maritime Investment Opportunity
Castor Maritime has a volatility of 4.0 and is 4.94 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Castor Maritime is lower than 35 percent of all global equities and portfolios over the last 90 days. You can use Castor Maritime to enhance the returns of your portfolios. The stock experiences a normal upward fluctuation. Check odds of Castor Maritime to be traded at $2.24 in 90 days.Very weak diversification
The correlation between Castor Maritime and DJI is 0.54 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Castor Maritime and DJI in the same portfolio, assuming nothing else is changed.
Castor Maritime Additional Risk Indicators
The analysis of Castor Maritime'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 Castor Maritime's investment and either accepting that risk or mitigating it. Along with some common measures of Castor Maritime 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 | 0.046 | |||
| Market Risk Adjusted Performance | 0.1581 | |||
| Mean Deviation | 2.8 | |||
| Semi Deviation | 3.47 | |||
| Downside Deviation | 3.79 | |||
| Coefficient Of Variation | 2118.11 | |||
| Standard Deviation | 3.98 |
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.
Castor Maritime 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 Castor Maritime 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. Castor Maritime'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, Castor Maritime'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 Castor Maritime.
When determining whether Castor Maritime is a strong investment it is important to analyze Castor Maritime's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Castor Maritime's future performance. For an informed investment choice regarding Castor Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Castor Maritime. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in inflation. To learn how to invest in Castor Stock, please use our How to Invest in Castor Maritime guide.You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Will Marine Transportation sector continue expanding? Could Castor diversify its offerings? Factors like these will boost the valuation of Castor Maritime. Projected growth potential of Castor fundamentally drives upward valuation adjustments. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Castor Maritime data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth 0.627 | Earnings Share (1.98) | Revenue Per Share | Quarterly Revenue Growth 0.563 | Return On Assets |
Understanding Castor Maritime requires distinguishing between market price and book value, where the latter reflects Castor's accounting equity. The concept of intrinsic value - what Castor Maritime's is actually worth based on fundamentals - guides informed investors toward better entry and exit points. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. Market sentiment, economic cycles, and investor behavior can push Castor Maritime's price substantially above or below its fundamental value.
It's important to distinguish between Castor Maritime's intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Castor Maritime should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. In contrast, Castor Maritime's trading price reflects the actual exchange value where willing buyers and sellers reach mutual agreement.