Northern Graphite Stock Volatility
| NGPHF Stock | USD 0.06 0 5.00% |
Northern Graphite appears to be out of control, given 3 months investment horizon. Northern Graphite has Sharpe Ratio of 0.0736, which conveys that the firm had a 0.0736% return per unit of risk over the last 3 months. By analyzing Northern Graphite's technical indicators, you can evaluate if the expected return of 0.93% is justified by implied risk. Please exercise Northern Graphite's Mean Deviation of 9.12, risk adjusted performance of 0.0658, and Downside Deviation of 9.99 to check out if our risk estimates are consistent with your expectations. Key indicators related to Northern Graphite's volatility include:
270 Days Market Risk | Chance Of Distress | 270 Days Economic Sensitivity |
Northern Graphite OTC 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 Northern daily returns, and it is calculated using variance and standard deviation. We also use Northern's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Northern Graphite volatility.
Northern |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Northern Graphite 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 Northern Graphite at lower prices to lower their average cost per share. Similarly, when the prices of Northern Graphite's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with Northern OTC Stock
Moving against Northern OTC Stock
| 0.64 | CHKEL | Chesapeake Energy Symbol Change | PairCorr |
| 0.61 | CHKEZ | Chesapeake Energy Symbol Change | PairCorr |
| 0.41 | MAPSW | WM Technology | PairCorr |
| 0.39 | SHG | Shinhan Financial | PairCorr |
| 0.34 | GOEVW | Canoo Holdings | PairCorr |
Northern Graphite Market Sensitivity And Downside Risk
Northern Graphite's beta coefficient measures the volatility of Northern otc 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 Northern otc stock's returns against your selected market. In other words, Northern Graphite's beta of 1.25 provides an investor with an approximation of how much risk Northern Graphite otc stock can potentially add to one of your existing portfolios. Northern Graphite is showing large volatility of returns over the selected time horizon. Northern Graphite is a penny stock. Although Northern Graphite may be in fact a good investment, many penny otc stocks are subject to artificial price hype. Make sure you completely understand the upside potential and downside risk of investing in Northern Graphite. We encourage investors to look for signals such as message board hypes, claims of breakthroughs, email spams, sudden volume upswings, and other similar hype indicators. We also encourage traders to check biographies and work history of company officers before investing in instruments with high volatility. You can indeed make money on Northern instrument if you perfectly time your entry and exit. However, remember that penny otcs 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 Northern Graphite Demand TrendCheck current 90 days Northern Graphite correlation with market (Dow Jones Industrial)Northern Beta |
Northern 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 | 12.59 |
It is essential to understand the difference between upside risk (as represented by Northern Graphite's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Northern Graphite's daily returns or price. Since the actual investment returns on holding a position in northern otc 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 Northern Graphite.
Northern Graphite OTC Stock Volatility Analysis
Volatility refers to the frequency at which Northern Graphite otc price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Northern Graphite's price changes. Investors will then calculate the volatility of Northern Graphite's otc stock to predict their future moves. A otc that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A otc stock with relatively stable price changes has low volatility. A highly volatile otc 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 Northern Graphite's volatility:
Historical Volatility
This type of otc volatility measures Northern Graphite's fluctuations based on previous trends. It's commonly used to predict Northern Graphite's future behavior based on its past. However, it cannot conclusively determine the future direction of the otc stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Northern Graphite's current market price. This means that the otc will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Northern Graphite'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. Northern Graphite 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.
Northern Graphite Projected Return Density Against Market
Assuming the 90 days horizon the otc stock has the beta coefficient of 1.2511 . 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, Northern Graphite 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 Northern Graphite or Metals & Mining 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 Northern Graphite's price will be affected by overall otc 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 Northern otc'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.
Northern Graphite has an alpha of 0.7705, implying that it can generate a 0.77 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Northern Graphite Price Volatility?
Several factors can influence a otc'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.Northern Graphite OTC Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of Northern Graphite is 1358.26. The daily returns are distributed with a variance of 158.56 and standard deviation of 12.59. The mean deviation of Northern Graphite is currently at 8.92. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 0.77 | |
β | Beta against Dow Jones | 1.25 | |
σ | Overall volatility | 12.59 | |
Ir | Information ratio | 0.06 |
Northern Graphite OTC Stock Return Volatility
Northern Graphite historical daily return volatility represents how much of Northern Graphite otc's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 12.5922% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7685% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Northern Graphite Volatility
Volatility is a rate at which the price of Northern Graphite 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 Northern Graphite may increase or decrease. In other words, similar to Northern's beta indicator, it measures the risk of Northern Graphite and helps estimate the fluctuations that may happen in a short period of time. So if prices of Northern Graphite 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.Northern Graphite Corporation explores for and develops graphite properties in Canada. Northern Graphite Corporation was incorporated in 2002 and is headquartered in Ottawa, Canada. Northern Graphite is traded on OTC Exchange in the United States.
Northern Graphite'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 Northern OTC Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Northern Graphite's price varies over time.
3 ways to utilize Northern Graphite's volatility to invest better
Higher Northern Graphite's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Northern Graphite 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. Northern Graphite 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 Northern Graphite investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Northern Graphite'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 Northern Graphite's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Northern Graphite Investment Opportunity
Northern Graphite has a volatility of 12.59 and is 16.35 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Northern Graphite is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use Northern Graphite to enhance the returns of your portfolios. The otc stock experiences a very speculative upward sentiment. The trend is possibly hyped up. Check odds of Northern Graphite to be traded at $0.0788 in 90 days.Significant diversification
The correlation between Northern Graphite and DJI is 0.08 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Northern Graphite and DJI in the same portfolio, assuming nothing else is changed.
Northern Graphite Additional Risk Indicators
The analysis of Northern Graphite'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 Northern Graphite's investment and either accepting that risk or mitigating it. Along with some common measures of Northern Graphite otc 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 | 0.0658 | |||
| Market Risk Adjusted Performance | 0.7466 | |||
| Mean Deviation | 9.12 | |||
| Semi Deviation | 9.22 | |||
| Downside Deviation | 9.99 | |||
| Coefficient Of Variation | 1359.76 | |||
| Standard Deviation | 12.67 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential otc stocks, we recommend comparing similar otcs with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Northern Graphite 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 Northern Graphite 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. Northern Graphite'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, Northern Graphite'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 Northern Graphite.
Complementary Tools for Northern OTC Stock analysis
When running Northern Graphite's price analysis, check to measure Northern Graphite'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 Northern Graphite is operating at the current time. Most of Northern Graphite's value examination focuses on studying past and present price action to predict the probability of Northern Graphite's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Northern Graphite's price. Additionally, you may evaluate how the addition of Northern Graphite to your portfolios can decrease your overall portfolio volatility.
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