Check Cap Stock Volatility
| MBAI Stock | 1.68 0.21 11.11% |
Check Cap is abnormally volatile given 3 months investment horizon. Check Cap secures Sharpe Ratio (or Efficiency) of 0.0789, which signifies that the company had a 0.0789 % return per unit of standard deviation over the last 3 months. We were able to analyze thirty different technical indicators, which can help you to evaluate if expected returns of 1.32% are justified by taking the suggested risk. Use Check Cap risk adjusted performance of 0.0534, and Mean Deviation of 7.34 to evaluate company specific risk that cannot be diversified away.
Sharpe Ratio = 0.0789
| High Returns | Best Equity | |||
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| Average Returns | MBAI | |||
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| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
| Negative Returns |
Based on monthly moving average Check Cap is performing at about 6% 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 Check Cap by adding it to a well-diversified portfolio.
Key indicators related to Check Cap's volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Check Cap 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 Check daily returns, and it is calculated using variance and standard deviation. We also use Check's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Check Cap volatility.
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Check Cap at lower prices. For example, an investor can purchase Check 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. Main indicators related to Check Cap's market risk premium analysis include:
Beta 5.06 | Alpha 0.8 | Risk 16.68 | Sharpe Ratio 0.0789 | Expected Return 1.32 |
Moving against Check Stock
Check Cap Market Sensitivity And Downside Risk
Check Cap's beta coefficient measures the volatility of Check 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 Check stock's returns against your selected market. In other words, Check Cap's beta of 5.06 provides an investor with an approximation of how much risk Check Cap stock can potentially add to one of your existing portfolios. Check Cap 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 Check Cap's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Check Cap's stock 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 Check Cap Demand TrendCheck current 90 days Check Cap correlation with market (Dow Jones Industrial)Check Cap Volatility and Downside Risk
Check 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.
Check Cap Stock Volatility Analysis
Volatility refers to the frequency at which Check Cap stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Check Cap's price changes. Investors will then calculate the volatility of Check Cap'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 Check Cap's volatility:
Historical Volatility
This type of stock volatility measures Check Cap's fluctuations based on previous trends. It's commonly used to predict Check Cap'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 Check Cap'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 Check Cap'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. Check Cap 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.
Check Cap Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 5.0635 . This 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, Check Cap 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 Check Cap or Health Care Equipment & 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 Check Cap'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 Check 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.
Check Cap has an alpha of 0.7962, implying that it can generate a 0.8 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Check Cap 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.Check Cap Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Check Cap is 1267.2. The daily returns are distributed with a variance of 278.12 and standard deviation of 16.68. The mean deviation of Check Cap is currently at 7.59. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.72
α | Alpha over Dow Jones | 0.80 | |
β | Beta against Dow Jones | 5.06 | |
σ | Overall volatility | 16.68 | |
Ir | Information ratio | 0.06 |
Check Cap Stock Return Volatility
Check Cap historical daily return volatility represents how much of Check Cap stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 16.6768% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7413% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
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 Check Stock performing well and Check Cap 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 Check Cap'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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| VIDE | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| B | 1.93 | 0.55 | 0.16 | 0.55 | 2.72 | 4.37 | 12.93 | |||
| ISPAF | 0.10 | 0.01 | (0.07) | 0.40 | 0.00 | 0.39 | 1.20 | |||
| TETEF | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| GENMF | 3.82 | 0.39 | 0.07 | 0.19 | 4.93 | 8.20 | 25.15 | |||
| MARIF | 1.99 | 0.13 | 0.05 | 0.11 | 2.37 | 5.46 | 14.35 | |||
| CTYMF | 2.25 | 0.64 | 0.15 | 1.23 | 1.81 | 6.56 | 30.39 | |||
| HGMCF | 1.47 | 0.54 | 0.11 | (0.76) | 1.05 | 5.14 | 20.37 |
About Check Cap Volatility
Volatility is a rate at which the price of Check Cap 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 Check Cap may increase or decrease. In other words, similar to Check's beta indicator, it measures the risk of Check Cap and helps estimate the fluctuations that may happen in a short period of time. So if prices of Check Cap 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 | ||
| Market Cap | 7.1 M | 6.2 M |
Check Cap'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 Check Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Check Cap's price varies over time.
3 ways to utilize Check Cap's volatility to invest better
Higher Check Cap's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Check Cap 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. Check Cap 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 Check Cap investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Check Cap'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 Check Cap's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Check Cap Investment Opportunity
Check Cap has a volatility of 16.68 and is 22.54 times more volatile than Dow Jones Industrial. 96 percent of all equities and portfolios are less risky than Check Cap. You can use Check Cap to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of Check Cap to be traded at 1.596 in 90 days.Very weak diversification
The correlation between Check Cap and DJI is 0.47 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Check Cap and DJI in the same portfolio, assuming nothing else is changed.
Check Cap Additional Risk Indicators
The analysis of Check Cap'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 Check Cap's investment and either accepting that risk or mitigating it. Along with some common measures of Check Cap 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 | 0.0534 | |||
| Market Risk Adjusted Performance | 0.2022 | |||
| Mean Deviation | 7.34 | |||
| Semi Deviation | 6.81 | |||
| Downside Deviation | 7.83 | |||
| Coefficient Of Variation | 1649.13 | |||
| Standard Deviation | 16.21 |
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.
Check Cap 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 Check Cap 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. Check Cap'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, Check Cap'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 Check Cap.
Complementary Tools for Check Stock analysis
When running Check Cap's price analysis, check to measure Check Cap'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 Check Cap is operating at the current time. Most of Check Cap's value examination focuses on studying past and present price action to predict the probability of Check Cap's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Check Cap's price. Additionally, you may evaluate how the addition of Check Cap to your portfolios can decrease your overall portfolio volatility.
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