Micropac Industries Stock Volatility
| MPAD Stock | USD 19.72 0.07 0.36% |
Micropac Industries appears to be not too volatile, given 3 months investment horizon. Micropac Industries has Sharpe Ratio of 0.14, which conveys that the firm had a 0.14% return per unit of risk over the last 3 months. By analyzing Micropac Industries' technical indicators, you can evaluate if the expected return of 0.52% is justified by implied risk. Please exercise Micropac Industries' Risk Adjusted Performance of 0.1374, downside deviation of 3.35, and Mean Deviation of 1.75 to check out if our risk estimates are consistent with your expectations. Key indicators related to Micropac Industries' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Micropac Industries 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 Micropac daily returns, and it is calculated using variance and standard deviation. We also use Micropac's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Micropac Industries volatility.
Micropac |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Micropac Industries can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game as hey may decide to buy additional stocks of Micropac Industries at lower prices to lower their average cost per share. Similarly, when the prices of Micropac Industries' stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with Micropac Pink Sheet
Moving against Micropac Pink Sheet
| 0.88 | TLK | Telkom Indonesia Tbk | PairCorr |
| 0.87 | MRK | Merck Company Fiscal Year End 6th of February 2025 | PairCorr |
| 0.87 | KO | Coca Cola Aggressive Push | PairCorr |
| 0.8 | PIFMF | PT Indofood Sukses | PairCorr |
| 0.8 | PFE | Pfizer Inc Fiscal Year End 4th of February 2025 | PairCorr |
| 0.74 | EC | Ecopetrol SA ADR | PairCorr |
| 0.61 | PTAIY | Astra International Tbk | PairCorr |
| 0.6 | BA | Boeing Fiscal Year End 29th of January 2025 | PairCorr |
| 0.43 | VZ | Verizon Communications Aggressive Push | PairCorr |
Micropac Industries Market Sensitivity And Downside Risk
Micropac Industries' beta coefficient measures the volatility of Micropac 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 Micropac pink sheet's returns against your selected market. In other words, Micropac Industries's beta of 1.18 provides an investor with an approximation of how much risk Micropac Industries pink sheet can potentially add to one of your existing portfolios. Micropac Industries shows above-average downside volatility for the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Micropac Industries' 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 Micropac Industries' 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 Micropac Industries Demand TrendCheck current 90 days Micropac Industries correlation with market (Dow Jones Industrial)Micropac Beta |
Micropac 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 | 3.73 |
It is essential to understand the difference between upside risk (as represented by Micropac Industries's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Micropac Industries' daily returns or price. Since the actual investment returns on holding a position in micropac 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 Micropac Industries.
Micropac Industries Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Micropac Industries pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Micropac Industries' price changes. Investors will then calculate the volatility of Micropac Industries' 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 Micropac Industries' volatility:
Historical Volatility
This type of pink sheet volatility measures Micropac Industries' fluctuations based on previous trends. It's commonly used to predict Micropac Industries' 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 Micropac Industries' 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 Micropac Industries' 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. Micropac Industries 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.
Micropac Industries Projected Return Density Against Market
Given the investment horizon of 90 days the pink sheet has the beta coefficient of 1.1824 . 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, Micropac Industries 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 Micropac Industries or Electronic Equipment, Instruments & Components 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 Micropac Industries' 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 Micropac 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.
Micropac Industries has an alpha of 0.5547, implying that it can generate a 0.55 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Micropac Industries 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.Micropac Industries Pink Sheet Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Micropac Industries is 712.11. The daily returns are distributed with a variance of 13.89 and standard deviation of 3.73. The mean deviation of Micropac Industries is currently at 1.53. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.75
α | Alpha over Dow Jones | 0.55 | |
β | Beta against Dow Jones | 1.18 | |
σ | Overall volatility | 3.73 | |
Ir | Information ratio | 0.15 |
Micropac Industries Pink Sheet Return Volatility
Micropac Industries historical daily return volatility represents how much of Micropac Industries pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 3.7272% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7668% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Micropac Industries Volatility
Volatility is a rate at which the price of Micropac Industries 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 Micropac Industries may increase or decrease. In other words, similar to Micropac's beta indicator, it measures the risk of Micropac Industries and helps estimate the fluctuations that may happen in a short period of time. So if prices of Micropac Industries 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.Micropac Industries, Inc. designs, manufactures, and distributes various types of microelectronic circuits. Micropac Industries, Inc. was founded in 1963 and is based in Garland, Texas. Micropac Industries operates under Electronic Components classification in the United States and is traded on OTC Exchange. It employs 153 people.
Micropac Industries' 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 Micropac Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Micropac Industries' price varies over time.
3 ways to utilize Micropac Industries' volatility to invest better
Higher Micropac Industries' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Micropac Industries 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. Micropac Industries 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 Micropac Industries investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Micropac Industries' 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 Micropac Industries' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Micropac Industries Investment Opportunity
Micropac Industries has a volatility of 3.73 and is 4.84 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Micropac Industries is lower than 33 percent of all global equities and portfolios over the last 90 days. You can use Micropac Industries to enhance the returns of your portfolios. The pink sheet experiences a normal upward fluctuation. Check odds of Micropac Industries to be traded at $20.71 in 90 days.Modest diversification
The correlation between Micropac Industries and DJI is 0.23 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Micropac Industries and DJI in the same portfolio, assuming nothing else is changed.
Micropac Industries Additional Risk Indicators
The analysis of Micropac Industries' 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 Micropac Industries' investment and either accepting that risk or mitigating it. Along with some common measures of Micropac Industries 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 | 0.1374 | |||
| Market Risk Adjusted Performance | 0.5646 | |||
| Mean Deviation | 1.75 | |||
| Semi Deviation | 1.07 | |||
| Downside Deviation | 3.35 | |||
| Coefficient Of Variation | 582.45 | |||
| Standard Deviation | 3.88 |
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.
Micropac Industries 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 Micropac Industries 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. Micropac Industries' 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, Micropac Industries' 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 Micropac Industries.
Complementary Tools for Micropac Pink Sheet analysis
When running Micropac Industries' price analysis, check to measure Micropac Industries' 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 Micropac Industries is operating at the current time. Most of Micropac Industries' value examination focuses on studying past and present price action to predict the probability of Micropac Industries' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Micropac Industries' price. Additionally, you may evaluate how the addition of Micropac Industries to your portfolios can decrease your overall portfolio volatility.
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |