Edgetech International Stock Volatility
| EGIL Stock | USD 0.0001 0.00 0.00% |
EdgeTech International is out of control given 3 months investment horizon. EdgeTech International secures Sharpe Ratio (or Efficiency) of 0.12, which denotes the company had a 0.12 % return per unit of risk over the last 3 months. We were able to collect and analyze data for five different technical indicators, which can help you to evaluate if expected returns of 15.38% are justified by taking the suggested risk. Use EdgeTech International Day Typical Price of 1.0E-4, day median price of 1.0E-4, and Price Action Indicator of 1.0E-4 to evaluate company specific risk that cannot be diversified away. Key indicators related to EdgeTech International's volatility include:
360 Days Market Risk | Chance Of Distress | 360 Days Economic Sensitivity |
EdgeTech International 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 EdgeTech daily returns, and it is calculated using variance and standard deviation. We also use EdgeTech's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of EdgeTech International volatility.
EdgeTech International Stock Volatility Analysis
Volatility refers to the frequency at which EdgeTech International stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with EdgeTech International's price changes. Investors will then calculate the volatility of EdgeTech International'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 EdgeTech International's volatility:
Historical Volatility
This type of stock volatility measures EdgeTech International's fluctuations based on previous trends. It's commonly used to predict EdgeTech International'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 EdgeTech International'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 EdgeTech International'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. The Median Price line plots median indexes of EdgeTech International price series.
EdgeTech International Projected Return Density Against Market
Given the investment horizon of 90 days EdgeTech International has a beta that is very close to zero suggesting the returns on DOW JONES INDUSTRIAL and EdgeTech International do not appear to be very sensitive.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 EdgeTech International or Technology 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 EdgeTech International'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 EdgeTech 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.
It does not look like EdgeTech International's alpha can have any bearing on the current valuation. Predicted Return Density |
| Returns |
What Drives an EdgeTech International 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 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.EdgeTech International Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of EdgeTech International is 806.23. The daily returns are distributed with a variance of 15384.62 and standard deviation of 124.03. The mean deviation of EdgeTech International is currently at 30.3. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.7
α | Alpha over Dow Jones | 0.00 | |
β | Beta against Dow Jones | 0.00 | |
σ | Overall volatility | 124.03 | |
Ir | Information ratio | 0.00 |
EdgeTech International Stock Return Volatility
EdgeTech International historical daily return volatility represents how much of EdgeTech International stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 124.0347% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7066% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About EdgeTech International Volatility
Volatility is a rate at which the price of EdgeTech International 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 EdgeTech International may increase or decrease. In other words, similar to EdgeTech's beta indicator, it measures the risk of EdgeTech International and helps estimate the fluctuations that may happen in a short period of time. So if prices of EdgeTech International 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.EdgeTech International, Inc. markets handheld wireless Internet access devices. EdgeTech International, Inc. was founded in 2004 and is based in Boca Raton, Florida. Edgetech Intl is traded on OTC Exchange in the United States.
EdgeTech International'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 EdgeTech Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much EdgeTech International's price varies over time.
3 ways to utilize EdgeTech International's volatility to invest better
Higher EdgeTech International's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of EdgeTech International 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. EdgeTech International 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 EdgeTech International investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in EdgeTech International'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 EdgeTech International's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
EdgeTech International Investment Opportunity
EdgeTech International has a volatility of 124.03 and is 174.69 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of EdgeTech International is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use EdgeTech International to protect your portfolios against small market fluctuations. The stock experiences a normal downward trend, but the immediate impact on correlations cannot be determined at the moment . Check odds of EdgeTech International to be traded at $1.0E-4 in 90 days.Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
| DD | Dupont De Nemours | |
| CRDO | Credo Technology Group | |
| GOOG | Alphabet Inc Class C | |
| BAC | Bank of America | |
| CRM | Salesforce | |
| GM | General Motors |
EdgeTech International 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 EdgeTech International 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. EdgeTech International'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, EdgeTech International'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 EdgeTech International.
When determining whether EdgeTech International is a strong investment it is important to analyze EdgeTech International'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 EdgeTech International's future performance. For an informed investment choice regarding EdgeTech Stock, refer to the following important reports: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in EdgeTech International. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product. For more information on how to buy EdgeTech Stock please use our How to buy in EdgeTech Stock guide.You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Is Communication Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of EdgeTech International. If investors know EdgeTech will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about EdgeTech International listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of EdgeTech International is measured differently than its book value, which is the value of EdgeTech that is recorded on the company's balance sheet. Investors also form their own opinion of EdgeTech International's value that differs from its market value or its book value, called intrinsic value, which is EdgeTech International's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because EdgeTech International's market value can be influenced by many factors that don't directly affect EdgeTech International's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between EdgeTech International's value and its price as these two are different measures arrived at by different means. Investors typically determine if EdgeTech International is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, EdgeTech International's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.