Farmmi Inc Stock Volatility
| FAMI Stock | USD 0.28 0.01 3.45% |
Farmmi appears to be out of control, given 3 months investment horizon. Farmmi Inc secures Sharpe Ratio (or Efficiency) of 0.0525, which denotes the company had a 0.0525% return per unit of risk over the last 3 months. We have found twenty-four technical indicators for Farmmi Inc, which you can use to evaluate the volatility of the firm. Please utilize Farmmi's Mean Deviation of 6.54, variance of 114.56, and Standard Deviation of 10.7 to check if our risk estimates are consistent with your expectations. Key indicators related to Farmmi's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Farmmi 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 Farmmi daily returns, and it is calculated using variance and standard deviation. We also use Farmmi's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Farmmi volatility.
Farmmi |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Farmmi at lower prices. For example, an investor can purchase Farmmi stock that has halved in price over a short period. This will lower their average cost per share, thereby improving the overall portfolio performance when market normalizes.
Moving against Farmmi Stock
| 0.49 | NOMD | Nomad Foods | PairCorr |
| 0.47 | BG | Bunge Limited | PairCorr |
| 0.43 | CAG | ConAgra Foods | PairCorr |
| 0.43 | CL | Colgate Palmolive Fiscal Year End 24th of January 2025 | PairCorr |
| 0.4 | FLO | Flowers Foods | PairCorr |
| 0.39 | GIS | General Mills | PairCorr |
| 0.37 | CPB | Campbell Soup | PairCorr |
| 0.35 | POST | Post Holdings | PairCorr |
| 0.34 | RGF | Real Good Food | PairCorr |
Farmmi Market Sensitivity And Downside Risk
Farmmi's beta coefficient measures the volatility of Farmmi 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 Farmmi stock's returns against your selected market. In other words, Farmmi's beta of 0.63 provides an investor with an approximation of how much risk Farmmi stock can potentially add to one of your existing portfolios. Farmmi Inc is displaying above-average volatility over the selected time horizon. Farmmi Inc is a potential penny stock. Although Farmmi may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Farmmi Inc. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Farmmi instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.
3 Months Beta |Analyze Farmmi Inc Demand TrendCheck current 90 days Farmmi correlation with market (Dow Jones Industrial)Farmmi Beta |
Farmmi 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 | 7.93 |
It is essential to understand the difference between upside risk (as represented by Farmmi's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Farmmi's daily returns or price. Since the actual investment returns on holding a position in farmmi 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 Farmmi.
Farmmi Inc Stock Volatility Analysis
Volatility refers to the frequency at which Farmmi stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Farmmi's price changes. Investors will then calculate the volatility of Farmmi'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 Farmmi's volatility:
Historical Volatility
This type of stock volatility measures Farmmi's fluctuations based on previous trends. It's commonly used to predict Farmmi'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 Farmmi'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 Farmmi'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. Farmmi 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.
Farmmi Projected Return Density Against Market
Given the investment horizon of 90 days Farmmi has a beta of 0.6277 . This usually indicates as returns on the market go up, Farmmi average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Farmmi Inc will be expected to be much smaller as well.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 Farmmi or Food Products 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 Farmmi'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 Farmmi 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.
Farmmi Inc 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 |
| Returns |
What Drives a Farmmi 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.Farmmi Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Farmmi is 1904.05. The daily returns are distributed with a variance of 62.84 and standard deviation of 7.93. The mean deviation of Farmmi Inc is currently at 5.67. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | -0.43 | |
β | Beta against Dow Jones | 0.63 | |
σ | Overall volatility | 7.93 | |
Ir | Information ratio | -0.04 |
Farmmi Stock Return Volatility
Farmmi historical daily return volatility represents how much of Farmmi stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 7.927% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7626% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Farmmi Volatility
Volatility is a rate at which the price of Farmmi 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 Farmmi may increase or decrease. In other words, similar to Farmmi's beta indicator, it measures the risk of Farmmi and helps estimate the fluctuations that may happen in a short period of time. So if prices of Farmmi 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 | 167.1 K | 307 K | |
| Market Cap | 6.7 M | 6.3 M |
Farmmi'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 Farmmi Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Farmmi's price varies over time.
3 ways to utilize Farmmi's volatility to invest better
Higher Farmmi's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Farmmi 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. Farmmi 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 Farmmi Inc investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Farmmi'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 Farmmi's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Farmmi Investment Opportunity
Farmmi Inc has a volatility of 7.93 and is 10.43 times more volatile than Dow Jones Industrial. 70 percent of all equities and portfolios are less risky than Farmmi. You can use Farmmi Inc to protect your portfolios against small market fluctuations. The stock experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of Farmmi to be traded at $0.2688 in 90 days.Significant diversification
The correlation between Farmmi Inc and DJI is 0.04 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Farmmi Inc and DJI in the same portfolio, assuming nothing else is changed.
Farmmi Additional Risk Indicators
The analysis of Farmmi'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 Farmmi's investment and either accepting that risk or mitigating it. Along with some common measures of Farmmi 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 | (0.02) | |||
| Market Risk Adjusted Performance | (0.55) | |||
| Mean Deviation | 6.54 | |||
| Coefficient Of Variation | (3,140) | |||
| Standard Deviation | 10.7 | |||
| Variance | 114.56 | |||
| Information Ratio | (0.04) |
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.
Farmmi 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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| Ford vs. Farmmi |
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 Farmmi 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. Farmmi'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, Farmmi'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 Farmmi Inc.
Complementary Tools for Farmmi Stock analysis
When running Farmmi's price analysis, check to measure Farmmi'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 Farmmi is operating at the current time. Most of Farmmi's value examination focuses on studying past and present price action to predict the probability of Farmmi's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Farmmi's price. Additionally, you may evaluate how the addition of Farmmi to your portfolios can decrease your overall portfolio volatility.
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