First Tractor Co Stock Volatility
| FIRRY Stock | USD 12.35 0.00 0.00% |
First Tractor is very risky given 3 months investment horizon. First Tractor secures Sharpe Ratio (or Efficiency) of 0.13, which denotes the company had a 0.13% return per unit of risk over the last 3 months. We were able to interpolate data for seventeen different technical indicators, which can help you to evaluate if expected returns of 3.04% are justified by taking the suggested risk. Use First Tractor Variance of 574.66, standard deviation of 23.97, and Mean Deviation of 5.81 to evaluate company specific risk that cannot be diversified away. Key indicators related to First Tractor's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
First Tractor 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 First daily returns, and it is calculated using variance and standard deviation. We also use First's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of First Tractor volatility.
First |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as First Tractor 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 First Tractor at lower prices. For example, an investor can purchase First 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 First Tractor'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.
Moving together with First Pink Sheet
| 0.66 | CAT | Caterpillar Fiscal Year End 3rd of February 2025 | PairCorr |
| 0.84 | PCAR | PACCAR Inc Fiscal Year End 28th of January 2025 | PairCorr |
| 0.73 | DTRUY | Daimler Truck Holding | PairCorr |
| 0.64 | DTGHF | Daimler Truck Holding | PairCorr |
Moving against First Pink Sheet
| 0.85 | EC | Ecopetrol SA ADR Sell-off Trend | PairCorr |
| 0.75 | TLK | Telkom Indonesia Tbk | PairCorr |
| 0.67 | HYMTF | Hyundai Motor | PairCorr |
| 0.65 | SHG | Shinhan Financial | PairCorr |
| 0.54 | VOLAF | AB Volvo | PairCorr |
| 0.53 | VFSWW | VinFast Auto | PairCorr |
| 0.47 | TCHH | Trustcash Holdings | PairCorr |
| 0.34 | UDR | UDR Inc | PairCorr |
First Tractor Market Sensitivity And Downside Risk
First Tractor's beta coefficient measures the volatility of First 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 First pink sheet's returns against your selected market. In other words, First Tractor's beta of 0.84 provides an investor with an approximation of how much risk First Tractor pink sheet can potentially add to one of your existing portfolios. First Tractor Co is displaying above-average volatility 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 First Tractor'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 First Tractor'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 First Tractor Demand TrendCheck current 90 days First Tractor correlation with market (Dow Jones Industrial)First Beta |
First 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 | 24.34 |
It is essential to understand the difference between upside risk (as represented by First Tractor's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of First Tractor's daily returns or price. Since the actual investment returns on holding a position in first pink sheet 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 First Tractor.
First Tractor Pink Sheet Volatility Analysis
Volatility refers to the frequency at which First Tractor pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with First Tractor's price changes. Investors will then calculate the volatility of First Tractor'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 First Tractor's volatility:
Historical Volatility
This type of pink sheet volatility measures First Tractor's fluctuations based on previous trends. It's commonly used to predict First Tractor'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 First Tractor'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 First Tractor'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. First Tractor 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.
First Tractor Projected Return Density Against Market
Assuming the 90 days horizon First Tractor has a beta of 0.8359 . This usually indicates as returns on the market go up, First Tractor average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding First Tractor Co 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 First Tractor or Industrials 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 First Tractor'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 First 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.
First Tractor Co has an alpha of 2.8341, implying that it can generate a 2.83 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a First Tractor 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.First Tractor Pink Sheet Risk Measures
Assuming the 90 days horizon the coefficient of variation of First Tractor is 800.0. The daily returns are distributed with a variance of 592.61 and standard deviation of 24.34. The mean deviation of First Tractor Co is currently at 5.99. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 2.83 | |
β | Beta against Dow Jones | 0.84 | |
σ | Overall volatility | 24.34 | |
Ir | Information ratio | 0.12 |
First Tractor Pink Sheet Return Volatility
First Tractor historical daily return volatility represents how much of First Tractor pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 24.3437% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7502% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About First Tractor Volatility
Volatility is a rate at which the price of First Tractor 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 First Tractor may increase or decrease. In other words, similar to First's beta indicator, it measures the risk of First Tractor and helps estimate the fluctuations that may happen in a short period of time. So if prices of First Tractor 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.First Tractor Company Limited engages in the research and development, manufacture, and sale of agricultural and power machinery, and related spare parts worldwide. First Tractor Company Limited was founded in 1955 and is based in Luoyang, China. First Tractor operates under Farm Heavy Construction Machinery classification in the United States and is traded on OTC Exchange. It employs 7435 people.
First Tractor'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 First Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much First Tractor's price varies over time.
3 ways to utilize First Tractor's volatility to invest better
Higher First Tractor's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of First Tractor 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. First Tractor 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 First Tractor investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in First Tractor'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 First Tractor's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
First Tractor Investment Opportunity
First Tractor Co has a volatility of 24.34 and is 32.45 times more volatile than Dow Jones Industrial. 96 percent of all equities and portfolios are less risky than First Tractor. You can use First Tractor Co to protect your portfolios against small market fluctuations. The pink sheet experiences a normal downward fluctuation but is a risky buy. Check odds of First Tractor to be traded at $12.23 in 90 days.Significant diversification
The correlation between First Tractor Co and DJI is 0.03 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding First Tractor Co and DJI in the same portfolio, assuming nothing else is changed.
First Tractor Additional Risk Indicators
The analysis of First Tractor'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 First Tractor's investment and either accepting that risk or mitigating it. Along with some common measures of First Tractor 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 | 0.1038 | |||
| Market Risk Adjusted Performance | 3.53 | |||
| Mean Deviation | 5.81 | |||
| Coefficient Of Variation | 812.4 | |||
| Standard Deviation | 23.97 | |||
| Variance | 574.66 | |||
| Information Ratio | 0.1174 |
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.
First Tractor 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 First Tractor 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. First Tractor'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, First Tractor'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 First Tractor Co.
Additional Tools for First Pink Sheet Analysis
When running First Tractor's price analysis, check to measure First Tractor'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 First Tractor is operating at the current time. Most of First Tractor's value examination focuses on studying past and present price action to predict the probability of First Tractor's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move First Tractor's price. Additionally, you may evaluate how the addition of First Tractor to your portfolios can decrease your overall portfolio volatility.