Omnitek Engineering Stock Volatility
| OMTK Stock | USD 0.02 0.01 100.00% |
Omnitek Engineering is out of control given 3 months investment horizon. Omnitek Engineering maintains Sharpe Ratio (i.e., Efficiency) of 0.11, which implies the firm had a 0.11 % return per unit of risk over the last 3 months. We were able to interpolate and analyze data for twenty-one different technical indicators, which can help you to evaluate if expected returns of 3.13% are justified by taking the suggested risk. Use Omnitek Engineering Coefficient Of Variation of 909.69, risk adjusted performance of 0.0869, and Variance of 759.91 to evaluate company specific risk that cannot be diversified away. Key indicators related to Omnitek Engineering's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Omnitek Engineering 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 Omnitek daily returns, and it is calculated using variance and standard deviation. We also use Omnitek's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Omnitek Engineering volatility.
Omnitek |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Omnitek Engineering at lower prices. For example, an investor can purchase Omnitek stock that has halved in price over a short period. This will lower their average cost per share, thereby improving the overall portfolio performance when market normalizes.
Moving against Omnitek OTC Stock
| 0.51 | STAG | STAG Industrial | PairCorr |
| 0.46 | EGP | EastGroup Properties | PairCorr |
| 0.37 | PBCRY | Bank Central Asia | PairCorr |
| 0.36 | PBCRF | PT Bank Central | PairCorr |
| 0.36 | CYPS | Cyclo3pss | PairCorr |
| 0.34 | SHG | Shinhan Financial | PairCorr |
Omnitek Engineering Market Sensitivity And Downside Risk
Omnitek Engineering's beta coefficient measures the volatility of Omnitek 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 Omnitek otc stock's returns against your selected market. In other words, Omnitek Engineering's beta of 3.17 provides an investor with an approximation of how much risk Omnitek Engineering otc stock can potentially add to one of your existing portfolios. Omnitek Engineering is displaying above-average volatility over the selected time horizon. Omnitek Engineering is a penny stock. Although Omnitek Engineering 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 Omnitek Engineering. 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 Omnitek 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 Omnitek Engineering Demand TrendCheck current 90 days Omnitek Engineering correlation with market (Dow Jones Industrial)Omnitek Beta |
Omnitek 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 | 28.0 |
It is essential to understand the difference between upside risk (as represented by Omnitek Engineering's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Omnitek Engineering's daily returns or price. Since the actual investment returns on holding a position in omnitek 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 Omnitek Engineering.
Omnitek Engineering OTC Stock Volatility Analysis
Volatility refers to the frequency at which Omnitek Engineering otc price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Omnitek Engineering's price changes. Investors will then calculate the volatility of Omnitek Engineering'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 Omnitek Engineering's volatility:
Historical Volatility
This type of otc volatility measures Omnitek Engineering's fluctuations based on previous trends. It's commonly used to predict Omnitek Engineering'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 Omnitek Engineering'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 Omnitek Engineering'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. The Median Price line plots median indexes of Omnitek Engineering price series.
Omnitek Engineering Projected Return Density Against Market
Given the investment horizon of 90 days the otc stock has the beta coefficient of 3.1695 . 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, Omnitek Engineering 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 Omnitek Engineering or Auto Components 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 Omnitek Engineering'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 Omnitek 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.
Omnitek Engineering has an alpha of 2.7819, implying that it can generate a 2.78 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Omnitek Engineering 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.Omnitek Engineering OTC Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Omnitek Engineering is 895.85. The daily returns are distributed with a variance of 783.73 and standard deviation of 28.0. The mean deviation of Omnitek Engineering is currently at 12.11. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.7
α | Alpha over Dow Jones | 2.78 | |
β | Beta against Dow Jones | 3.17 | |
σ | Overall volatility | 28.00 | |
Ir | Information ratio | 0.11 |
Omnitek Engineering OTC Stock Return Volatility
Omnitek Engineering historical daily return volatility represents how much of Omnitek Engineering otc's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 27.9952% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7066% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Omnitek Engineering Volatility
Volatility is a rate at which the price of Omnitek Engineering 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 Omnitek Engineering may increase or decrease. In other words, similar to Omnitek's beta indicator, it measures the risk of Omnitek Engineering and helps estimate the fluctuations that may happen in a short period of time. So if prices of Omnitek Engineering 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.Omnitek Engineering Corp. develops and sells technology to convert diesel engines to an alternative fuel, natural gas engines, and complementary products in the United States and internationally. Omnitek Engineering Corp. was incorporated in 2001 and is headquartered in Vista, California. OMNITEK ENGINEERING operates under Auto Parts classification in the United States and is traded on OTC Exchange. It employs 6 people.
Omnitek Engineering'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 Omnitek OTC Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Omnitek Engineering's price varies over time.
3 ways to utilize Omnitek Engineering's volatility to invest better
Higher Omnitek Engineering's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Omnitek Engineering 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. Omnitek Engineering 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 Omnitek Engineering investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Omnitek Engineering'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 Omnitek Engineering's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Omnitek Engineering Investment Opportunity
Omnitek Engineering has a volatility of 28.0 and is 39.44 times more volatile than Dow Jones Industrial. 96 percent of all equities and portfolios are less risky than Omnitek Engineering. You can use Omnitek Engineering 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 Omnitek Engineering to be traded at $0.025 in 90 days.Significant diversification
The correlation between Omnitek Engineering 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 Omnitek Engineering and DJI in the same portfolio, assuming nothing else is changed.
Omnitek Engineering Additional Risk Indicators
The analysis of Omnitek Engineering'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 Omnitek Engineering's investment and either accepting that risk or mitigating it. Along with some common measures of Omnitek Engineering 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 | 0.0869 | |||
| Market Risk Adjusted Performance | 0.9629 | |||
| Mean Deviation | 11.75 | |||
| Coefficient Of Variation | 909.69 | |||
| Standard Deviation | 27.57 | |||
| Variance | 759.91 | |||
| Information Ratio | 0.1068 |
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.
Omnitek Engineering 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 Omnitek Engineering 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. Omnitek Engineering'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, Omnitek Engineering'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 Omnitek Engineering.
Other Information on Investing in Omnitek OTC Stock
Omnitek Engineering financial ratios help investors to determine whether Omnitek 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 Omnitek with respect to the benefits of owning Omnitek Engineering security.