Fuel Tech Stock Volatility
| FTEK Stock | USD 1.15 0.10 9.52% |
Fuel Tech appears to be unstable, given 3 months investment horizon. Fuel Tech secures Sharpe Ratio (or Efficiency) of 0.0963, which denotes the company had a 0.0963% return per unit of risk over the last 3 months. We have found thirty technical indicators for Fuel Tech, which you can use to evaluate the volatility of the firm. Please utilize Fuel Tech's Downside Deviation of 1.9, mean deviation of 1.33, and Coefficient Of Variation of 2445.29 to check if our risk estimates are consistent with your expectations. Key indicators related to Fuel Tech's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Fuel Tech 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 Fuel daily returns, and it is calculated using variance and standard deviation. We also use Fuel's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Fuel Tech volatility.
Fuel |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Fuel Tech at lower prices. For example, an investor can purchase Fuel 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 Fuel Stock
| 0.38 | BA | Boeing Fiscal Year End 29th of January 2025 | PairCorr |
| 0.31 | LNZAW | LanzaTech Global | PairCorr |
| 0.31 | CMPR | Cimpress NV | PairCorr |
Fuel Tech Market Sensitivity And Downside Risk
Fuel Tech's beta coefficient measures the volatility of Fuel 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 Fuel stock's returns against your selected market. In other words, Fuel Tech's beta of 0.17 provides an investor with an approximation of how much risk Fuel Tech stock can potentially add to one of your existing portfolios. Fuel Tech has relatively low volatility with skewness of 0.64 and kurtosis of 1.32. Fuel Tech is a potential penny stock. Although Fuel Tech 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 Fuel Tech. 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 Fuel 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 Fuel Tech Demand TrendCheck current 90 days Fuel Tech correlation with market (Dow Jones Industrial)Fuel Beta |
Fuel 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 | 2.19 |
It is essential to understand the difference between upside risk (as represented by Fuel Tech's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Fuel Tech's daily returns or price. Since the actual investment returns on holding a position in fuel 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 Fuel Tech.
Fuel Tech Stock Volatility Analysis
Volatility refers to the frequency at which Fuel Tech stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Fuel Tech's price changes. Investors will then calculate the volatility of Fuel Tech'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 Fuel Tech's volatility:
Historical Volatility
This type of stock volatility measures Fuel Tech's fluctuations based on previous trends. It's commonly used to predict Fuel Tech'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 Fuel Tech'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 Fuel Tech'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. Fuel Tech 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.
Fuel Tech Projected Return Density Against Market
Given the investment horizon of 90 days Fuel Tech has a beta of 0.1721 . This usually indicates as returns on the market go up, Fuel Tech average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Fuel Tech 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 Fuel Tech or Commercial Services & Supplies 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 Fuel Tech'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 Fuel 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.
Fuel Tech has an alpha of 0.0508, implying that it can generate a 0.0508 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Fuel Tech 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.Fuel Tech Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Fuel Tech is 1037.91. The daily returns are distributed with a variance of 4.78 and standard deviation of 2.19. The mean deviation of Fuel Tech is currently at 1.49. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.75
α | Alpha over Dow Jones | 0.05 | |
β | Beta against Dow Jones | 0.17 | |
σ | Overall volatility | 2.19 | |
Ir | Information ratio | -0.01 |
Fuel Tech Stock Return Volatility
Fuel Tech historical daily return volatility represents how much of Fuel Tech stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 2.186% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7608% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Fuel Tech Volatility
Volatility is a rate at which the price of Fuel Tech 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 Fuel Tech may increase or decrease. In other words, similar to Fuel's beta indicator, it measures the risk of Fuel Tech and helps estimate the fluctuations that may happen in a short period of time. So if prices of Fuel Tech 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 | 18.8 M | 24.8 M | |
| Market Cap | 30.1 M | 28.6 M |
Fuel Tech'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 Fuel Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Fuel Tech's price varies over time.
3 ways to utilize Fuel Tech's volatility to invest better
Higher Fuel Tech's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Fuel Tech 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. Fuel Tech 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 Fuel Tech investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Fuel Tech'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 Fuel Tech's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Fuel Tech Investment Opportunity
Fuel Tech has a volatility of 2.19 and is 2.88 times more volatile than Dow Jones Industrial. 19 percent of all equities and portfolios are less risky than Fuel Tech. You can use Fuel Tech to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Fuel Tech to be traded at $1.4375 in 90 days.Significant diversification
The correlation between Fuel Tech and DJI is 0.07 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Fuel Tech and DJI in the same portfolio, assuming nothing else is changed.
Fuel Tech Additional Risk Indicators
The analysis of Fuel Tech'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 Fuel Tech's investment and either accepting that risk or mitigating it. Along with some common measures of Fuel Tech 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 | 0.0367 | |||
| Market Risk Adjusted Performance | 0.3908 | |||
| Mean Deviation | 1.33 | |||
| Semi Deviation | 1.39 | |||
| Downside Deviation | 1.9 | |||
| Coefficient Of Variation | 2445.29 | |||
| Standard Deviation | 1.85 |
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.
Fuel Tech 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.
| Visa vs. Fuel Tech | ||
| Procter Gamble vs. Fuel Tech | ||
| Ford vs. Fuel Tech | ||
| Lockheed Martin vs. Fuel Tech | ||
| Citigroup vs. Fuel Tech | ||
| NVIDIA vs. Fuel Tech | ||
| GM vs. Fuel Tech | ||
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 Fuel Tech 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. Fuel Tech'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, Fuel Tech'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 Fuel Tech.
When determining whether Fuel Tech is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Fuel Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Fuel Tech Stock. Highlighted below are key reports to facilitate an investment decision about Fuel Tech Stock: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Fuel Tech. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income. For more information on how to buy Fuel Stock please use our How to buy in Fuel Stock guide.You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Is Environmental & Facilities Services 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 Fuel Tech. If investors know Fuel 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 Fuel Tech listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.74) | Earnings Share (0.02) | Revenue Per Share 0.859 | Quarterly Revenue Growth (0.02) | Return On Assets (0.04) |
The market value of Fuel Tech is measured differently than its book value, which is the value of Fuel that is recorded on the company's balance sheet. Investors also form their own opinion of Fuel Tech's value that differs from its market value or its book value, called intrinsic value, which is Fuel Tech'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 Fuel Tech's market value can be influenced by many factors that don't directly affect Fuel Tech'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 Fuel Tech's value and its price as these two are different measures arrived at by different means. Investors typically determine if Fuel Tech is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Fuel Tech'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.