Goldenwell Biotech Stock Volatility
| GWLL Stock | USD 2.95 0.05 1.67% |
Goldenwell Biotech is out of control given 3 months investment horizon. Goldenwell Biotech holds Efficiency (Sharpe) Ratio of 0.16, which attests that the entity had a 0.16 % return per unit of risk over the last 3 months. We were able to break down and interpolate twenty-two different technical indicators, which can help you to evaluate if expected returns of 13.06% are justified by taking the suggested risk. Use Goldenwell Biotech Standard Deviation of 83.6, market risk adjusted performance of 0.6793, and Risk Adjusted Performance of 0.1195 to evaluate company specific risk that cannot be diversified away. Key indicators related to Goldenwell Biotech's volatility include:
360 Days Market Risk | Chance Of Distress | 360 Days Economic Sensitivity |
Goldenwell Biotech 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 Goldenwell daily returns, and it is calculated using variance and standard deviation. We also use Goldenwell's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Goldenwell Biotech volatility.
Goldenwell |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Goldenwell Biotech at lower prices. For example, an investor can purchase Goldenwell 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 Goldenwell Pink Sheet
Goldenwell Biotech Market Sensitivity And Downside Risk
Goldenwell Biotech's beta coefficient measures the volatility of Goldenwell 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 Goldenwell pink sheet's returns against your selected market. In other words, Goldenwell Biotech's beta of 19.5 provides an investor with an approximation of how much risk Goldenwell Biotech pink sheet can potentially add to one of your existing portfolios. Goldenwell Biotech 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 Goldenwell Biotech'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 Goldenwell Biotech'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 Goldenwell Biotech Demand TrendCheck current 90 days Goldenwell Biotech correlation with market (Dow Jones Industrial)Goldenwell Beta |
Goldenwell 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 | 83.6 |
It is essential to understand the difference between upside risk (as represented by Goldenwell Biotech's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Goldenwell Biotech's daily returns or price. Since the actual investment returns on holding a position in goldenwell 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 Goldenwell Biotech.
Goldenwell Biotech Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Goldenwell Biotech pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Goldenwell Biotech's price changes. Investors will then calculate the volatility of Goldenwell Biotech'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 Goldenwell Biotech's volatility:
Historical Volatility
This type of pink sheet volatility measures Goldenwell Biotech's fluctuations based on previous trends. It's commonly used to predict Goldenwell Biotech'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 Goldenwell Biotech'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 Goldenwell Biotech'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 Goldenwell Biotech price series.
Goldenwell Biotech Projected Return Density Against Market
Given the investment horizon of 90 days the pink sheet has the beta coefficient of 19.5014 . 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, Goldenwell Biotech 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 Goldenwell Biotech or Consumer Defensive 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 Goldenwell Biotech'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 Goldenwell 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.
Goldenwell Biotech has an alpha of 11.5857, implying that it can generate a 11.59 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Goldenwell Biotech 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.Goldenwell Biotech Pink Sheet Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Goldenwell Biotech is 639.96. The daily returns are distributed with a variance of 6988.46 and standard deviation of 83.6. The mean deviation of Goldenwell Biotech is currently at 26.65. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.7
α | Alpha over Dow Jones | 11.59 | |
β | Beta against Dow Jones | 19.50 | |
σ | Overall volatility | 83.60 | |
Ir | Information ratio | 0.16 |
Goldenwell Biotech Pink Sheet Return Volatility
Goldenwell Biotech historical daily return volatility represents how much of Goldenwell Biotech pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 83.597% 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 Goldenwell Biotech Volatility
Volatility is a rate at which the price of Goldenwell Biotech 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 Goldenwell Biotech may increase or decrease. In other words, similar to Goldenwell's beta indicator, it measures the risk of Goldenwell Biotech and helps estimate the fluctuations that may happen in a short period of time. So if prices of Goldenwell Biotech 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.Goldenwell Biotech, Inc., focuses on nutraceutical and dietary supplements business in the United States. The company was incorporated in 2019 and is based in Twinsburg, Ohio. Goldenwell Biotech is traded on OTC Exchange in the United States.
Goldenwell Biotech'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 Goldenwell Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Goldenwell Biotech's price varies over time.
3 ways to utilize Goldenwell Biotech's volatility to invest better
Higher Goldenwell Biotech's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Goldenwell Biotech 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. Goldenwell Biotech 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 Goldenwell Biotech investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Goldenwell Biotech'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 Goldenwell Biotech's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Goldenwell Biotech Investment Opportunity
Goldenwell Biotech has a volatility of 83.6 and is 117.75 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Goldenwell Biotech is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use Goldenwell Biotech to protect your portfolios against small market fluctuations. The pink sheet experiences a bearish sentiment with high volatility. Check odds of Goldenwell Biotech to be traded at $2.86 in 90 days.Average diversification
The correlation between Goldenwell Biotech and DJI is 0.17 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Goldenwell Biotech and DJI in the same portfolio, assuming nothing else is changed.
Goldenwell Biotech Additional Risk Indicators
The analysis of Goldenwell Biotech'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 Goldenwell Biotech's investment and either accepting that risk or mitigating it. Along with some common measures of Goldenwell Biotech 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 | 0.1195 | |||
| Market Risk Adjusted Performance | 0.6793 | |||
| Mean Deviation | 26.65 | |||
| Coefficient Of Variation | 639.96 | |||
| Standard Deviation | 83.6 | |||
| Variance | 6988.46 | |||
| Information Ratio | 0.1552 |
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.
Goldenwell Biotech 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 Goldenwell Biotech 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. Goldenwell Biotech'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, Goldenwell Biotech'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 Goldenwell Biotech.
Other Information on Investing in Goldenwell Pink Sheet
Goldenwell Biotech financial ratios help investors to determine whether Goldenwell 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 Goldenwell with respect to the benefits of owning Goldenwell Biotech security.