Northland Power Stock Volatility
| NPIFF Stock | USD 14.40 0.10 0.70% |
Northland Power has Sharpe Ratio of -0.0161, which conveys that the firm had a -0.0161% return per unit of risk over the last 3 months. Northland Power exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify Northland Power's Risk Adjusted Performance of (0.06), mean deviation of 1.45, and Standard Deviation of 1.95 to check out the risk estimate we provide. Key indicators related to Northland Power's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Northland Power 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 Northland daily returns, and it is calculated using variance and standard deviation. We also use Northland's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Northland Power volatility.
Northland |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Northland Power 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 Northland Power at lower prices to lower their average cost per share. Similarly, when the prices of Northland Power's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with Northland Pink Sheet
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| 0.8 | SOJC | Southern | PairCorr |
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| 0.79 | DTW | DTE Energy | PairCorr |
| 0.77 | SJIV | South Jersey Industries | PairCorr |
Moving against Northland Pink Sheet
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| 0.47 | NVDA | NVIDIA | PairCorr |
| 0.46 | AMZN | Amazon Inc Aggressive Push | PairCorr |
| 0.44 | GOOG | Alphabet Class C Sell-off Trend | PairCorr |
| 0.38 | AA | Alcoa Corp Fiscal Year End 15th of January 2025 | PairCorr |
| 0.36 | TLN | Talen Energy | PairCorr |
Northland Power Market Sensitivity And Downside Risk
Northland Power's beta coefficient measures the volatility of Northland 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 Northland pink sheet's returns against your selected market. In other words, Northland Power's beta of -0.33 provides an investor with an approximation of how much risk Northland Power pink sheet can potentially add to one of your existing portfolios. Northland Power exhibits very low volatility with skewness of -1.04 and kurtosis of 3.66. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Northland Power'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 Northland Power'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 Northland Power Demand TrendCheck current 90 days Northland Power correlation with market (Dow Jones Industrial)Northland Beta |
Northland 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 | 1.91 |
It is essential to understand the difference between upside risk (as represented by Northland Power's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Northland Power's daily returns or price. Since the actual investment returns on holding a position in northland 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 Northland Power.
Northland Power Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Northland Power pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Northland Power's price changes. Investors will then calculate the volatility of Northland Power'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 Northland Power's volatility:
Historical Volatility
This type of pink sheet volatility measures Northland Power's fluctuations based on previous trends. It's commonly used to predict Northland Power'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 Northland Power'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 Northland Power'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. Northland Power 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.
Northland Power Projected Return Density Against Market
Assuming the 90 days horizon Northland Power has a beta of -0.3319 . This indicates as returns on the benchmark increase, returns on holding Northland Power are expected to decrease at a much lower rate. During a bear market, however, Northland Power is likely to outperform the market.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 Northland Power or Independent Power and Renewable Electricity Producers 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 Northland Power'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 Northland 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.
Northland Power has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives a Northland Power 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.Northland Power Pink Sheet Risk Measures
Assuming the 90 days horizon the coefficient of variation of Northland Power is -6191.99. The daily returns are distributed with a variance of 3.66 and standard deviation of 1.91. The mean deviation of Northland Power is currently at 1.38. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | -0.13 | |
β | Beta against Dow Jones | -0.33 | |
σ | Overall volatility | 1.91 | |
Ir | Information ratio | -0.15 |
Northland Power Pink Sheet Return Volatility
Northland Power historical daily return volatility represents how much of Northland Power pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 1.9119% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7444% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Northland Power Volatility
Volatility is a rate at which the price of Northland Power 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 Northland Power may increase or decrease. In other words, similar to Northland's beta indicator, it measures the risk of Northland Power and helps estimate the fluctuations that may happen in a short period of time. So if prices of Northland Power 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.Northland Power Inc., an independent power producer, develops, builds, owns, and operates clean and green power projects in North America, Europe, Latin America, and Asia. The company was founded in 1987 and is headquartered in Toronto, Canada. Northland Power operates under UtilitiesRenewable classification in the United States and is traded on OTC Exchange.
Northland Power'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 Northland Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Northland Power's price varies over time.
3 ways to utilize Northland Power's volatility to invest better
Higher Northland Power's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Northland Power 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. Northland Power 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 Northland Power investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Northland Power'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 Northland Power's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Northland Power Investment Opportunity
Northland Power has a volatility of 1.91 and is 2.58 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Northland Power is lower than 17 percent of all global equities and portfolios over the last 90 days. You can use Northland Power to enhance the returns of your portfolios. The pink sheet experiences a moderate upward volatility. Check odds of Northland Power to be traded at $15.84 in 90 days.Good diversification
The correlation between Northland Power and DJI is -0.13 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Northland Power and DJI in the same portfolio, assuming nothing else is changed.
Northland Power Additional Risk Indicators
The analysis of Northland Power'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 Northland Power's investment and either accepting that risk or mitigating it. Along with some common measures of Northland Power 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 | (0.06) | |||
| Market Risk Adjusted Performance | 0.5234 | |||
| Mean Deviation | 1.45 | |||
| Coefficient Of Variation | (1,218) | |||
| Standard Deviation | 1.95 | |||
| Variance | 3.82 | |||
| Information Ratio | (0.15) |
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.
Northland Power 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.
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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 Northland Power 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. Northland Power'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, Northland Power'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 Northland Power.
Complementary Tools for Northland Pink Sheet analysis
When running Northland Power's price analysis, check to measure Northland Power'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 Northland Power is operating at the current time. Most of Northland Power's value examination focuses on studying past and present price action to predict the probability of Northland Power's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Northland Power's price. Additionally, you may evaluate how the addition of Northland Power to your portfolios can decrease your overall portfolio volatility.
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