Majic Wheels Corp Stock Volatility
| MJWL Stock | USD 0.0001 0.00 0.00% |
Majic Wheels is out of control given 3 months investment horizon. Majic Wheels Corp has Sharpe Ratio of 0.12, which conveys that the firm had a 0.12 % return per unit of risk over the last 3 months. We are able to interpolate and break down seventeen different technical indicators, which can help you to evaluate if expected returns of 15.0% are justified by taking the suggested risk. Use Majic Wheels Corp Risk Adjusted Performance of 0.091, mean deviation of 32.3, and Standard Deviation of 128.89 to evaluate company specific risk that cannot be diversified away. Key indicators related to Majic Wheels' volatility include:
720 Days Market Risk | Chance Of Distress | 720 Days Economic Sensitivity |
Majic Wheels 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 Majic daily returns, and it is calculated using variance and standard deviation. We also use Majic's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Majic Wheels volatility.
Majic |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Majic Wheels at lower prices. For example, an investor can purchase Majic 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.
Majic Wheels Market Sensitivity And Downside Risk
Majic Wheels' beta coefficient measures the volatility of Majic 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 Majic stock's returns against your selected market. In other words, Majic Wheels's beta of -59.19 provides an investor with an approximation of how much risk Majic Wheels stock can potentially add to one of your existing portfolios. Majic Wheels Corp is displaying above-average volatility over the selected time horizon. Majic Wheels Corp appears to be a penny stock. Although Majic Wheels Corp may be, in fact, a solid short-term or long term investment, many penny stocks are speculative investment instruments that are often subject to artificial stock promotion and campaigns of hype which may lead to misinformation and misrepresentation. Please make sure you fully understand upside potential and downside risks of investing in Majic Wheels Corp or similar risky assets. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswing without any event/news,and sudden news releases. We also encourage traders to check biographies and work history of company President, CEO or other officers before investing in high-volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Majic 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 Majic Wheels Corp Demand TrendCheck current 90 days Majic Wheels correlation with market (Dow Jones Industrial)Majic Beta |
Majic 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 | 129.96 |
It is essential to understand the difference between upside risk (as represented by Majic Wheels's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Majic Wheels' daily returns or price. Since the actual investment returns on holding a position in majic 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 Majic Wheels.
Majic Wheels Corp Stock Volatility Analysis
Volatility refers to the frequency at which Majic Wheels stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Majic Wheels' price changes. Investors will then calculate the volatility of Majic Wheels' 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 Majic Wheels' volatility:
Historical Volatility
This type of stock volatility measures Majic Wheels' fluctuations based on previous trends. It's commonly used to predict Majic Wheels' 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 Majic Wheels' 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 Majic Wheels' 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. Majic Wheels Corp 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.
Majic Wheels Projected Return Density Against Market
Given the investment horizon of 90 days Majic Wheels Corp has a beta of -59.1875 . This indicates as returns on its benchmark rise, returns on holding Majic Wheels Corp are expected to decrease by similarly larger amounts. On the other hand, during market turmoils, Majic Wheels is expected to outperform its benchmark.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 Majic Wheels 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 Majic Wheels' 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 Majic 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.
Majic Wheels Corp has an alpha of 14.8095, implying that it can generate a 14.81 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 Majic Wheels 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.Majic Wheels Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Majic Wheels is 866.41. The daily returns are distributed with a variance of 16889.83 and standard deviation of 129.96. The mean deviation of Majic Wheels Corp is currently at 32.83. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.71
α | Alpha over Dow Jones | 14.81 | |
β | Beta against Dow Jones | -59.19 | |
σ | Overall volatility | 129.96 | |
Ir | Information ratio | 0.11 |
Majic Wheels Stock Return Volatility
Majic Wheels historical daily return volatility represents how much of Majic Wheels stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 129.9609% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7177% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Majic Wheels Volatility
Volatility is a rate at which the price of Majic Wheels 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 Majic Wheels may increase or decrease. In other words, similar to Majic's beta indicator, it measures the risk of Majic Wheels and helps estimate the fluctuations that may happen in a short period of time. So if prices of Majic Wheels 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.Majic Wheels Corp. focuses on disruptive industries of Fintech and software development by means of acquisitions. The company was incorporated in 2007 and is based in Houston, Texas. Majic Wheels operates under Waste Management classification in the United States and is traded on OTC Exchange. It employs 2 people.
Majic Wheels' 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 Majic Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Majic Wheels' price varies over time.
3 ways to utilize Majic Wheels' volatility to invest better
Higher Majic Wheels' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Majic Wheels Corp 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. Majic Wheels Corp 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 Majic Wheels Corp investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Majic Wheels' 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 Majic Wheels' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Majic Wheels Investment Opportunity
Majic Wheels Corp has a volatility of 129.96 and is 180.5 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Majic Wheels Corp is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use Majic Wheels Corp to protect your portfolios against small market fluctuations. The stock experiences a normal downward trend, but the immediate impact on correlations cannot be determined at the moment . Check odds of Majic Wheels to be traded at $1.0E-4 in 90 days.Good diversification
The correlation between Majic Wheels Corp and DJI is -0.14 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Majic Wheels Corp and DJI in the same portfolio, assuming nothing else is changed.
Majic Wheels Additional Risk Indicators
The analysis of Majic Wheels' 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 Majic Wheels' investment and either accepting that risk or mitigating it. Along with some common measures of Majic Wheels 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 | 0.091 | |||
| Market Risk Adjusted Performance | (0.24) | |||
| Mean Deviation | 32.3 | |||
| Coefficient Of Variation | 873.57 | |||
| Standard Deviation | 128.89 | |||
| Variance | 16612.02 | |||
| Information Ratio | 0.1144 |
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.
Majic Wheels 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 Majic Wheels 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. Majic Wheels' 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, Majic Wheels' 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 Majic Wheels Corp.
When determining whether Majic Wheels Corp is a strong investment it is important to analyze Majic Wheels' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Majic Wheels' future performance. For an informed investment choice regarding Majic Stock, refer to the following important reports: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Majic Wheels Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in housing. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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 Majic Wheels. If investors know Majic 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 Majic Wheels listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Majic Wheels Corp is measured differently than its book value, which is the value of Majic that is recorded on the company's balance sheet. Investors also form their own opinion of Majic Wheels' value that differs from its market value or its book value, called intrinsic value, which is Majic Wheels' 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 Majic Wheels' market value can be influenced by many factors that don't directly affect Majic Wheels' 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 Majic Wheels' value and its price as these two are different measures arrived at by different means. Investors typically determine if Majic Wheels is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Majic Wheels' 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.