Outset Medical Stock Volatility
| OM Stock | USD 0.76 0.03 4.11% |
Outset Medical appears to be out of control, given 3 months investment horizon. Outset Medical maintains Sharpe Ratio (i.e., Efficiency) of 0.0609, which implies the firm had a 0.0609% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Outset Medical, which you can use to evaluate the volatility of the company. Please evaluate Outset Medical's Coefficient Of Variation of 1859.24, semi deviation of 5.04, and Risk Adjusted Performance of 0.05 to confirm if our risk estimates are consistent with your expectations. Key indicators related to Outset Medical's volatility include:
360 Days Market Risk | Chance Of Distress | 360 Days Economic Sensitivity |
Outset Medical 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 Outset daily returns, and it is calculated using variance and standard deviation. We also use Outset's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Outset Medical volatility.
Outset |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Outset Medical 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 Outset Medical at lower prices. For example, an investor can purchase Outset 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 Outset Medical's 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.
Moving together with Outset Stock
Moving against Outset Stock
| 0.69 | EVH | Evolent Health | PairCorr |
| 0.62 | AMN | AMN Healthcare Services | PairCorr |
| 0.53 | PHG | Koninklijke Philips | PairCorr |
| 0.49 | AGL | agilon health | PairCorr |
| 0.45 | FIGS | Figs Inc | PairCorr |
| 0.32 | FORA | Forian Inc | PairCorr |
Outset Medical Market Sensitivity And Downside Risk
Outset Medical's beta coefficient measures the volatility of Outset 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 Outset stock's returns against your selected market. In other words, Outset Medical's beta of 0.52 provides an investor with an approximation of how much risk Outset Medical stock can potentially add to one of your existing portfolios. Outset Medical is displaying above-average volatility over the selected time horizon. Outset Medical is a potential penny stock. Although Outset Medical may be in fact a good instrument to invest, many penny 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 Outset Medical. 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 Outset instrument if you perfectly time your entry and exit. However, remember that penny stocks 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 Outset Medical Demand TrendCheck current 90 days Outset Medical correlation with market (Dow Jones Industrial)Outset Beta |
Outset 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 | 7.19 |
It is essential to understand the difference between upside risk (as represented by Outset Medical's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Outset Medical's daily returns or price. Since the actual investment returns on holding a position in outset 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 Outset Medical.
Outset Medical Stock Volatility Analysis
Volatility refers to the frequency at which Outset Medical stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Outset Medical's price changes. Investors will then calculate the volatility of Outset Medical's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock 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 Outset Medical's volatility:
Historical Volatility
This type of stock volatility measures Outset Medical's fluctuations based on previous trends. It's commonly used to predict Outset Medical's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Outset Medical's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Outset Medical'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. Outset Medical 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.
Outset Medical Projected Return Density Against Market
Allowing for the 90-day total investment horizon Outset Medical has a beta of 0.5239 . This indicates as returns on the market go up, Outset Medical average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Outset Medical 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 Outset Medical or Health Care Equipment & Supplies 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 Outset Medical's price will be affected by overall 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 Outset stock'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.
Outset Medical has an alpha of 0.3217, implying that it can generate a 0.32 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Outset Medical Price Volatility?
Several factors can influence a stock'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.Outset Medical Stock Risk Measures
Allowing for the 90-day total investment horizon the coefficient of variation of Outset Medical is 1642.5. The daily returns are distributed with a variance of 51.66 and standard deviation of 7.19. The mean deviation of Outset Medical is currently at 5.04. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.32 | |
β | Beta against Dow Jones | 0.52 | |
σ | Overall volatility | 7.19 | |
Ir | Information ratio | 0.04 |
Outset Medical Stock Return Volatility
Outset Medical historical daily return volatility represents how much of Outset Medical stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm accepts 7.1873% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7608% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Outset Medical Volatility
Volatility is a rate at which the price of Outset Medical 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 Outset Medical may increase or decrease. In other words, similar to Outset's beta indicator, it measures the risk of Outset Medical and helps estimate the fluctuations that may happen in a short period of time. So if prices of Outset Medical 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.| Last Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 96.2 M | 60 M | |
| Market Cap | 1.9 B | 1.7 B |
Outset Medical'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 Outset Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Outset Medical's price varies over time.
3 ways to utilize Outset Medical's volatility to invest better
Higher Outset Medical's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Outset Medical 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. Outset Medical 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 Outset Medical investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Outset Medical'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 Outset Medical's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Outset Medical Investment Opportunity
Outset Medical has a volatility of 7.19 and is 9.46 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Outset Medical is higher than 64 percent of all global equities and portfolios over the last 90 days. You can use Outset Medical to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Outset Medical to be traded at $0.95 in 90 days.Significant diversification
The correlation between Outset Medical 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 Outset Medical and DJI in the same portfolio, assuming nothing else is changed.
Outset Medical Additional Risk Indicators
The analysis of Outset Medical'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 Outset Medical's investment and either accepting that risk or mitigating it. Along with some common measures of Outset Medical 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 | 0.05 | |||
| Market Risk Adjusted Performance | 0.7235 | |||
| Mean Deviation | 5.04 | |||
| Semi Deviation | 5.04 | |||
| Downside Deviation | 5.7 | |||
| Coefficient Of Variation | 1859.24 | |||
| Standard Deviation | 7.14 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Outset Medical 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 Outset Medical 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. Outset Medical'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, Outset Medical'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 Outset Medical.
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Outset Medical. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population. To learn how to invest in Outset Stock, please use our How to Invest in Outset Medical guide.You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Is Health Care Equipment & Supplies space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Outset Medical. If investors know Outset will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Outset Medical listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (2.74) | Revenue Per Share 2.235 | Quarterly Revenue Growth (0.06) | Return On Assets (0.27) | Return On Equity (1.41) |
The market value of Outset Medical is measured differently than its book value, which is the value of Outset that is recorded on the company's balance sheet. Investors also form their own opinion of Outset Medical's value that differs from its market value or its book value, called intrinsic value, which is Outset Medical's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Outset Medical's market value can be influenced by many factors that don't directly affect Outset Medical's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Outset Medical's value and its price as these two are different measures arrived at by different means. Investors typically determine if Outset Medical is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Outset Medical's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.