Dimeco Inc Stock Volatility
| DIMC Stock | USD 40.00 1.00 2.56% |
At this point, Dimeco is very steady. Dimeco Inc secures Sharpe Ratio (or Efficiency) of 0.0404, which denotes the company had a 0.0404% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Dimeco Inc, which you can use to evaluate the volatility of the firm. Please confirm Dimeco's Coefficient Of Variation of 3031.21, mean deviation of 0.771, and Downside Deviation of 2.63 to check if the risk estimate we provide is consistent with the expected return of 0.0609%. Key indicators related to Dimeco's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Dimeco OTC 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 Dimeco daily returns, and it is calculated using variance and standard deviation. We also use Dimeco's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Dimeco volatility.
Dimeco |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Dimeco can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game as hey may decide to buy additional stocks of Dimeco at lower prices to lower their average cost per share. Similarly, when the prices of Dimeco's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving against Dimeco OTC Stock
| 0.79 | KO | Coca Cola Aggressive Push | PairCorr |
| 0.74 | TLK | Telkom Indonesia Tbk | PairCorr |
| 0.7 | PPERY | Bank Mandiri Persero | PairCorr |
| 0.68 | PBCRY | Bank Central Asia | PairCorr |
| 0.68 | MRK | Merck Company Fiscal Year End 6th of February 2025 | PairCorr |
| 0.67 | JNJ | Johnson Johnson Sell-off Trend | PairCorr |
| 0.65 | BKRKY | Bank Rakyat | PairCorr |
| 0.57 | PPERF | Bank Mandiri Persero | PairCorr |
| 0.56 | VZ | Verizon Communications Sell-off Trend | PairCorr |
Dimeco Market Sensitivity And Downside Risk
Dimeco's beta coefficient measures the volatility of Dimeco otc 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 Dimeco otc stock's returns against your selected market. In other words, Dimeco's beta of -0.56 provides an investor with an approximation of how much risk Dimeco otc stock can potentially add to one of your existing portfolios. Dimeco Inc currently demonstrates below-average downside deviation. It has Information Ratio of -0.06 and Jensen Alpha of 0.11. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Dimeco's otc stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Dimeco's otc 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 Dimeco Inc Demand TrendCheck current 90 days Dimeco correlation with market (Dow Jones Industrial)Dimeco Beta |
Dimeco 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 | 1.51 |
It is essential to understand the difference between upside risk (as represented by Dimeco's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Dimeco's daily returns or price. Since the actual investment returns on holding a position in dimeco otc stock 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 Dimeco.
Dimeco Inc OTC Stock Volatility Analysis
Volatility refers to the frequency at which Dimeco otc price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Dimeco's price changes. Investors will then calculate the volatility of Dimeco's otc stock to predict their future moves. A otc that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A otc stock with relatively stable price changes has low volatility. A highly volatile otc 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 Dimeco's volatility:
Historical Volatility
This type of otc volatility measures Dimeco's fluctuations based on previous trends. It's commonly used to predict Dimeco's future behavior based on its past. However, it cannot conclusively determine the future direction of the otc stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Dimeco's current market price. This means that the otc will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Dimeco'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. Dimeco Inc 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.
Dimeco Projected Return Density Against Market
Given the investment horizon of 90 days Dimeco Inc has a beta of -0.5626 suggesting as returns on the benchmark increase, returns on holding Dimeco are expected to decrease at a much lower rate. During a bear market, however, Dimeco Inc is likely to outperform the market.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 Dimeco or Banks 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 Dimeco's price will be affected by overall otc 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 Dimeco otc'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.
Dimeco Inc has an alpha of 0.1114, implying that it can generate a 0.11 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Dimeco Price Volatility?
Several factors can influence a otc'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.Dimeco OTC Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Dimeco is 2472.69. The daily returns are distributed with a variance of 2.27 and standard deviation of 1.51. The mean deviation of Dimeco Inc is currently at 0.76. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.11 | |
β | Beta against Dow Jones | -0.56 | |
σ | Overall volatility | 1.51 | |
Ir | Information ratio | -0.06 |
Dimeco OTC Stock Return Volatility
Dimeco historical daily return volatility represents how much of Dimeco otc's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 1.5064% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7444% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Dimeco Volatility
Volatility is a rate at which the price of Dimeco 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 Dimeco may increase or decrease. In other words, similar to Dimeco's beta indicator, it measures the risk of Dimeco and helps estimate the fluctuations that may happen in a short period of time. So if prices of Dimeco 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.Dimeco, Inc. operates as the bank holding company for The Dime Bank that provides banking products and services to individuals and businesses in the United States. Dimeco, Inc. was founded in 1905 and is headquartered in Honesdale, Pennsylvania. DIMECO INC operates under BanksRegional classification in the United States and is traded on OTC Exchange.
Dimeco'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 Dimeco OTC Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Dimeco's price varies over time.
3 ways to utilize Dimeco's volatility to invest better
Higher Dimeco's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Dimeco Inc 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. Dimeco Inc 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 Dimeco Inc investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Dimeco'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 Dimeco's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Dimeco Investment Opportunity
Dimeco Inc has a volatility of 1.51 and is 2.04 times more volatile than Dow Jones Industrial. 13 percent of all equities and portfolios are less risky than Dimeco. You can use Dimeco Inc to enhance the returns of your portfolios. The otc stock experiences an expected bullish sentiment for its category. Check odds of Dimeco to be traded at $48.0 in 90 days.Very good diversification
The correlation between Dimeco Inc and DJI is -0.29 (i.e., Very good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Dimeco Inc and DJI in the same portfolio, assuming nothing else is changed.
Dimeco Additional Risk Indicators
The analysis of Dimeco'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 Dimeco's investment and either accepting that risk or mitigating it. Along with some common measures of Dimeco otc 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 | 0.0301 | |||
| Market Risk Adjusted Performance | (0.06) | |||
| Mean Deviation | 0.771 | |||
| Semi Deviation | 1.28 | |||
| Downside Deviation | 2.63 | |||
| Coefficient Of Variation | 3031.21 | |||
| Standard Deviation | 1.5 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential otc stocks, we recommend comparing similar otcs with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Dimeco 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.
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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 Dimeco 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. Dimeco'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, Dimeco'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 Dimeco Inc.
Complementary Tools for Dimeco OTC Stock analysis
When running Dimeco's price analysis, check to measure Dimeco'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 Dimeco is operating at the current time. Most of Dimeco's value examination focuses on studying past and present price action to predict the probability of Dimeco's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Dimeco's price. Additionally, you may evaluate how the addition of Dimeco to your portfolios can decrease your overall portfolio volatility.
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