Noble Romans Stock Volatility
| NROM Stock | USD 0.32 0.03 8.57% |
Noble Romans appears to be out of control, given 3 months investment horizon. Noble Romans has Sharpe Ratio of 0.0236, which conveys that the firm had a 0.0236% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Noble Romans, which you can use to evaluate the volatility of the firm. Please exercise Noble Romans' Mean Deviation of 5.62, downside deviation of 13.25, and Risk Adjusted Performance of 0.0611 to check out if our risk estimates are consistent with your expectations. Key indicators related to Noble Romans' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Noble Romans 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 Noble daily returns, and it is calculated using variance and standard deviation. We also use Noble's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Noble Romans volatility.
Noble |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Noble Romans can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Noble Romans at lower prices. For example, an investor can purchase Noble stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Noble Romans' stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Noble Romans Market Sensitivity And Downside Risk
Noble Romans' beta coefficient measures the volatility of Noble 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 Noble otc stock's returns against your selected market. In other words, Noble Romans's beta of 1.65 provides an investor with an approximation of how much risk Noble Romans otc stock can potentially add to one of your existing portfolios. Noble Romans is showing large volatility of returns over the selected time horizon. Noble Romans is a potential penny stock. Although Noble Romans may be in fact a good instrument to invest, many penny otc stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Noble Romans. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Noble 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 Noble Romans Demand TrendCheck current 90 days Noble Romans correlation with market (Dow Jones Industrial)Noble Beta |
Noble 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 | 10.4 |
It is essential to understand the difference between upside risk (as represented by Noble Romans's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Noble Romans' daily returns or price. Since the actual investment returns on holding a position in noble 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 Noble Romans.
Noble Romans OTC Stock Volatility Analysis
Volatility refers to the frequency at which Noble Romans otc price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Noble Romans' price changes. Investors will then calculate the volatility of Noble Romans' 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 Noble Romans' volatility:
Historical Volatility
This type of otc volatility measures Noble Romans' fluctuations based on previous trends. It's commonly used to predict Noble Romans' 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 Noble Romans' 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 Noble Romans' 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. Noble Romans 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.
Noble Romans Projected Return Density Against Market
Given the investment horizon of 90 days the otc stock has the beta coefficient of 1.6531 . 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, Noble Romans 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 Noble Romans or Hotels, Restaurants & Leisure 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 Noble Romans' 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 Noble 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.
Noble Romans has an alpha of 0.4967, implying that it can generate a 0.5 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Noble Romans 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.Noble Romans OTC Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Noble Romans is 4235.88. The daily returns are distributed with a variance of 108.18 and standard deviation of 10.4. The mean deviation of Noble Romans is currently at 5.41. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 0.50 | |
β | Beta against Dow Jones | 1.65 | |
σ | Overall volatility | 10.40 | |
Ir | Information ratio | 0.06 |
Noble Romans OTC Stock Return Volatility
Noble Romans historical daily return volatility represents how much of Noble Romans otc's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 10.4008% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7796% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Noble Romans Volatility
Volatility is a rate at which the price of Noble Romans 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 Noble Romans may increase or decrease. In other words, similar to Noble's beta indicator, it measures the risk of Noble Romans and helps estimate the fluctuations that may happen in a short period of time. So if prices of Noble Romans 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.Noble Romans, Inc. sells and services franchises, and licenses and operates foodservice locations for stand-alone restaurants and non-traditional foodservice operations. Noble Romans, Inc. was incorporated in 1972 and is headquartered in Indianapolis, Indiana. Noble Romans operates under Restaurants classification in the United States and is traded on OTC Exchange. It employs 44 people.
Noble Romans' 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 Noble OTC Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Noble Romans' price varies over time.
3 ways to utilize Noble Romans' volatility to invest better
Higher Noble Romans' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Noble Romans 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. Noble Romans 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 Noble Romans investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Noble Romans' 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 Noble Romans' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Noble Romans Investment Opportunity
Noble Romans has a volatility of 10.4 and is 13.33 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Noble Romans is higher than 92 percent of all global equities and portfolios over the last 90 days. You can use Noble Romans to protect your portfolios against small market fluctuations. The otc stock experiences a very speculative downward sentiment. The market maybe over-reacting. Check odds of Noble Romans to be traded at $0.304 in 90 days.Average diversification
The correlation between Noble Romans and DJI is 0.12 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Noble Romans and DJI in the same portfolio, assuming nothing else is changed.
Noble Romans Additional Risk Indicators
The analysis of Noble Romans' 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 Noble Romans' investment and either accepting that risk or mitigating it. Along with some common measures of Noble Romans 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 | 0.0611 | |||
| Market Risk Adjusted Performance | 0.4313 | |||
| Mean Deviation | 5.62 | |||
| Semi Deviation | 7.28 | |||
| Downside Deviation | 13.25 | |||
| Coefficient Of Variation | 1481.04 | |||
| Standard Deviation | 10.46 |
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.
Noble Romans 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 Noble Romans 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. Noble Romans' 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, Noble Romans' 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 Noble Romans.
Other Information on Investing in Noble OTC Stock
Noble Romans financial ratios help investors to determine whether Noble OTC Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Noble with respect to the benefits of owning Noble Romans security.