Favo Capital Stock Volatility
| FAVO Stock | USD 4.00 0.15 3.61% |
FAVO Capital appears to be dangerous, given 3 months investment horizon. FAVO Capital secures Sharpe Ratio (or Efficiency) of 0.0297, which denotes the company had a 0.0297 % return per unit of volatility over the last 3 months. We have found twenty-seven technical indicators for FAVO Capital, which you can use to evaluate the volatility of the entity. Please utilize FAVO Capital's Market Risk Adjusted Performance of 0.2485, mean deviation of 6.45, and Downside Deviation of 12.97 to check if our risk estimates are consistent with your expectations.
Sharpe Ratio = 0.0297
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Based on monthly moving average FAVO Capital is performing at about 2% 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 FAVO Capital by adding it to a well-diversified portfolio.
Key indicators related to FAVO Capital's volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
FAVO Capital 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 FAVO daily returns, and it is calculated using variance and standard deviation. We also use FAVO's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of FAVO Capital volatility.
FAVO |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as FAVO Capital 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 FAVO Capital at lower prices. For example, an investor can purchase FAVO 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 FAVO Capital'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 FAVO Capital's market risk premium analysis include:
Beta 1.28 | Alpha 0.19 | Risk 10.58 | Sharpe Ratio 0.0297 | Expected Return 0.31 |
Moving together with FAVO Pink Sheet
| 0.66 | SYF | Synchrony Financial Earnings Call This Week | PairCorr |
Moving against FAVO Pink Sheet
FAVO Capital Market Sensitivity And Downside Risk
FAVO Capital's beta coefficient measures the volatility of FAVO pink sheet 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 FAVO pink sheet's returns against your selected market. In other words, FAVO Capital's beta of 1.28 provides an investor with an approximation of how much risk FAVO Capital pink sheet can potentially add to one of your existing portfolios. FAVO Capital is showing large volatility of returns over the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure FAVO Capital's pink sheet risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact FAVO Capital's pink sheet 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 FAVO Capital Demand TrendCheck current 90 days FAVO Capital correlation with market (Dow Jones Industrial)FAVO Capital Volatility and Downside Risk
FAVO 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.
FAVO Capital Pink Sheet Volatility Analysis
Volatility refers to the frequency at which FAVO Capital pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with FAVO Capital's price changes. Investors will then calculate the volatility of FAVO Capital'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 FAVO Capital's volatility:
Historical Volatility
This type of pink sheet volatility measures FAVO Capital's fluctuations based on previous trends. It's commonly used to predict FAVO Capital'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 FAVO Capital'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 FAVO Capital'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. FAVO Capital 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.
FAVO Capital Projected Return Density Against Market
Given the investment horizon of 90 days the pink sheet has the beta coefficient of 1.2837 . This usually indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, FAVO Capital 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 FAVO Capital or Financial Services 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 FAVO Capital'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 FAVO 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.
FAVO Capital has an alpha of 0.1854, implying that it can generate a 0.19 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
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What Drives a FAVO Capital 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.FAVO Capital Pink Sheet Risk Measures
Given the investment horizon of 90 days the coefficient of variation of FAVO Capital is 3368.33. The daily returns are distributed with a variance of 111.96 and standard deviation of 10.58. The mean deviation of FAVO Capital is currently at 6.55. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.74
α | Alpha over Dow Jones | 0.19 | |
β | Beta against Dow Jones | 1.28 | |
σ | Overall volatility | 10.58 | |
Ir | Information ratio | 0.02 |
FAVO Capital Pink Sheet Return Volatility
FAVO Capital historical daily return volatility represents how much of FAVO Capital pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 10.5812% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7399% 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 FAVO Pink Sheet performing well and FAVO Capital 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 FAVO Capital'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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| SHGKY | 1.42 | 0.14 | 0.00 | 0.26 | 0.00 | 3.39 | 35.04 | |||
| PRLPF | 1.95 | (0.03) | (0.01) | 0.06 | 3.02 | 6.04 | 21.79 | |||
| ALPC | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| IPFPF | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| PHIG | 0.92 | 0.09 | 0.01 | 0.42 | 0.89 | 2.40 | 10.56 | |||
| EFGZF | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| ITJTY | 3.53 | (0.19) | 0.00 | 0.59 | 0.00 | 12.00 | 36.40 | |||
| GRCGF | 0.09 | 0.00 | 0.00 | 0.05 | 0.00 | 0.00 | 1.77 | |||
| FMCB | 0.81 | 0.14 | 0.05 | 1.66 | 0.72 | 2.26 | 6.17 | |||
| WTBFB | 0.70 | 0.21 | 0.18 | 1.38 | 0.24 | 1.37 | 7.87 |
About FAVO Capital Volatility
Volatility is a rate at which the price of FAVO Capital 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 FAVO Capital may increase or decrease. In other words, similar to FAVO's beta indicator, it measures the risk of FAVO Capital and helps estimate the fluctuations that may happen in a short period of time. So if prices of FAVO Capital 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.FAVO Capital, Inc., a direct funding company, provides customized and short-term funding to small and mid-sized businesses in the United States. The company was formerly known as Favo Realty, Inc. and changed its name to FAVO Capital, Inc. in March 2021. Favo Cap operates under Credit Services classification in the United States and is traded on OTC Exchange.
FAVO Capital'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 FAVO Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much FAVO Capital's price varies over time.
3 ways to utilize FAVO Capital's volatility to invest better
Higher FAVO Capital's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of FAVO Capital 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. FAVO Capital 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 FAVO Capital investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in FAVO Capital'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 FAVO Capital's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
FAVO Capital Investment Opportunity
FAVO Capital has a volatility of 10.58 and is 14.3 times more volatile than Dow Jones Industrial. 95 percent of all equities and portfolios are less risky than FAVO Capital. You can use FAVO Capital 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 FAVO Capital to be traded at $3.84 in 90 days.Modest diversification
The correlation between FAVO Capital 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 FAVO Capital and DJI in the same portfolio, assuming nothing else is changed.
FAVO Capital Additional Risk Indicators
The analysis of FAVO Capital'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 FAVO Capital's investment and either accepting that risk or mitigating it. Along with some common measures of FAVO Capital 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 | 0.0315 | |||
| Market Risk Adjusted Performance | 0.2485 | |||
| Mean Deviation | 6.45 | |||
| Semi Deviation | 8.91 | |||
| Downside Deviation | 12.97 | |||
| Coefficient Of Variation | 3318.92 | |||
| Standard Deviation | 10.49 |
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.
FAVO Capital 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 FAVO Capital 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. FAVO Capital'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, FAVO Capital'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 FAVO Capital.
Other Information on Investing in FAVO Pink Sheet
FAVO Capital financial ratios help investors to determine whether FAVO Pink Sheet is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in FAVO with respect to the benefits of owning FAVO Capital security.