Norwegian Air Shuttle Stock Volatility
| NWARF Stock | USD 1.00 0.03 3.09% |
Norwegian Air appears to be abnormally volatile, given 3 months investment horizon. Norwegian Air Shuttle has Sharpe Ratio of 0.0641, which conveys that the firm had a 0.0641% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Norwegian Air, which you can use to evaluate the volatility of the firm. Please exercise Norwegian Air's Mean Deviation of 5.31, risk adjusted performance of 0.041, and Downside Deviation of 6.52 to check out if our risk estimates are consistent with your expectations. Key indicators related to Norwegian Air's volatility include:
270 Days Market Risk | Chance Of Distress | 270 Days Economic Sensitivity |
Norwegian Air 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 Norwegian daily returns, and it is calculated using variance and standard deviation. We also use Norwegian's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Norwegian Air volatility.
Norwegian |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Norwegian Air 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 Norwegian Air at lower prices to lower their average cost per share. Similarly, when the prices of Norwegian Air's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Norwegian Air Market Sensitivity And Downside Risk
Norwegian Air's beta coefficient measures the volatility of Norwegian 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 Norwegian pink sheet's returns against your selected market. In other words, Norwegian Air's beta of 0.63 provides an investor with an approximation of how much risk Norwegian Air pink sheet can potentially add to one of your existing portfolios. Norwegian Air Shuttle is displaying above-average volatility over the selected time horizon. Norwegian Air Shuttle is a potential penny stock. Although Norwegian Air may be in fact a good instrument to invest, many penny pink sheets 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 Norwegian Air Shuttle. 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 Norwegian instrument if you perfectly time your entry and exit. However, remember that penny pink sheets 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 Norwegian Air Shuttle Demand TrendCheck current 90 days Norwegian Air correlation with market (Dow Jones Industrial)Norwegian Beta |
Norwegian 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 | 7.38 |
It is essential to understand the difference between upside risk (as represented by Norwegian Air's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Norwegian Air's daily returns or price. Since the actual investment returns on holding a position in norwegian 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 Norwegian Air.
Norwegian Air Shuttle Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Norwegian Air pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Norwegian Air's price changes. Investors will then calculate the volatility of Norwegian Air'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 Norwegian Air's volatility:
Historical Volatility
This type of pink sheet volatility measures Norwegian Air's fluctuations based on previous trends. It's commonly used to predict Norwegian Air'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 Norwegian Air'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 Norwegian Air'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. Norwegian Air Shuttle 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.
Norwegian Air Projected Return Density Against Market
Assuming the 90 days horizon Norwegian Air has a beta of 0.6329 . This indicates as returns on the market go up, Norwegian Air average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Norwegian Air Shuttle will be expected to be much smaller as well.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 Norwegian Air or Industrials 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 Norwegian Air'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 Norwegian 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.
Norwegian Air Shuttle has an alpha of 0.23, implying that it can generate a 0.23 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Norwegian Air 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.Norwegian Air Pink Sheet Risk Measures
Assuming the 90 days horizon the coefficient of variation of Norwegian Air is 1560.82. The daily returns are distributed with a variance of 54.51 and standard deviation of 7.38. The mean deviation of Norwegian Air Shuttle is currently at 5.17. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 0.23 | |
β | Beta against Dow Jones | 0.63 | |
σ | Overall volatility | 7.38 | |
Ir | Information ratio | 0.02 |
Norwegian Air Pink Sheet Return Volatility
Norwegian Air historical daily return volatility represents how much of Norwegian Air pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 7.3834% 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 Norwegian Air Volatility
Volatility is a rate at which the price of Norwegian Air 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 Norwegian Air may increase or decrease. In other words, similar to Norwegian's beta indicator, it measures the risk of Norwegian Air and helps estimate the fluctuations that may happen in a short period of time. So if prices of Norwegian Air 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.Norwegian Air Shuttle ASA, together with its subsidiaries, provides scheduled and charter airline services in Norway and internationally. Norwegian Air Shuttle ASA was founded in 1993 and is headquartered in Fornebu, Norway. Norwegian Air is traded on OTC Exchange in the United States.
Norwegian Air'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 Norwegian Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Norwegian Air's price varies over time.
3 ways to utilize Norwegian Air's volatility to invest better
Higher Norwegian Air's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Norwegian Air Shuttle 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. Norwegian Air Shuttle 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 Norwegian Air Shuttle investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Norwegian Air'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 Norwegian Air's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Norwegian Air Investment Opportunity
Norwegian Air Shuttle has a volatility of 7.38 and is 9.58 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Norwegian Air Shuttle is higher than 65 percent of all global equities and portfolios over the last 90 days. You can use Norwegian Air Shuttle to enhance the returns of your portfolios. The pink sheet experiences an expected bullish sentiment for its category. Check odds of Norwegian Air to be traded at $1.2 in 90 days.Significant diversification
The correlation between Norwegian Air Shuttle and DJI is 0.06 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Norwegian Air Shuttle and DJI in the same portfolio, assuming nothing else is changed.
Norwegian Air Additional Risk Indicators
The analysis of Norwegian Air'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 Norwegian Air's investment and either accepting that risk or mitigating it. Along with some common measures of Norwegian Air 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 | 0.041 | |||
| Market Risk Adjusted Performance | 0.4941 | |||
| Mean Deviation | 5.31 | |||
| Semi Deviation | 5.48 | |||
| Downside Deviation | 6.52 | |||
| Coefficient Of Variation | 2392.29 | |||
| Standard Deviation | 7.57 |
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.
Norwegian Air 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 Norwegian Air 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. Norwegian Air'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, Norwegian Air'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 Norwegian Air Shuttle.
Complementary Tools for Norwegian Pink Sheet analysis
When running Norwegian Air's price analysis, check to measure Norwegian Air'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 Norwegian Air is operating at the current time. Most of Norwegian Air's value examination focuses on studying past and present price action to predict the probability of Norwegian Air's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Norwegian Air's price. Additionally, you may evaluate how the addition of Norwegian Air to your portfolios can decrease your overall portfolio volatility.
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