On4 Communications Stock Volatility
| ONCI Stock | USD 0.0001 0.00 0.00% |
On4 Communications retains Efficiency (Sharpe Ratio) 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 break down three different technical indicators, which can help you to evaluate if expected returns of 14.29% are justified by taking the suggested risk. Key indicators related to On4 Communications' volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
On4 Communications 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 On4 daily returns, and it is calculated using variance and standard deviation. We also use On4's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of On4 Communications volatility.
On4 |
On4 Communications Pink Sheet Volatility Analysis
Volatility refers to the frequency at which On4 Communications pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with On4 Communications' price changes. Investors will then calculate the volatility of On4 Communications' 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 On4 Communications' volatility:
Historical Volatility
This type of pink sheet volatility measures On4 Communications' fluctuations based on previous trends. It's commonly used to predict On4 Communications' 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 On4 Communications' 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 On4 Communications' 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. On4 Communications 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.
On4 Communications Projected Return Density Against Market
Given the investment horizon of 90 days On4 Communications has a beta that is very close to zero . This indicates the returns on DOW JONES INDUSTRIAL and On4 Communications do not appear to be responsive.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 On4 Communications or Technology 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 On4 Communications' 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 On4 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.
It does not look like On4 Communications' alpha can have any bearing on the current valuation. Predicted Return Density |
| Returns |
What Drives an On4 Communications 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.On4 Communications Pink Sheet Risk Measures
Given the investment horizon of 90 days the coefficient of variation of On4 Communications is 887.73. The daily returns are distributed with a variance of 16082.95 and standard deviation of 126.82. The mean deviation of On4 Communications is currently at 31.29. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 0.00 | |
β | Beta against Dow Jones | 0.00 | |
σ | Overall volatility | 126.82 | |
Ir | Information ratio | 0.00 |
On4 Communications Pink Sheet Return Volatility
On4 Communications historical daily return volatility represents how much of On4 Communications pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 126.8186% 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 On4 Communications Volatility
Volatility is a rate at which the price of On4 Communications 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 On4 Communications may increase or decrease. In other words, similar to On4's beta indicator, it measures the risk of On4 Communications and helps estimate the fluctuations that may happen in a short period of time. So if prices of On4 Communications 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.On4 Communications, Inc., a development stage company, provides wireless communications services to telecommunication companies, consumers, and businesses. On4 Communications, Inc. was founded in 2009 and is based in Roslyn, New York. On4 Communications is traded on OTC Exchange in the United States.
On4 Communications' 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 On4 Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much On4 Communications' price varies over time.
3 ways to utilize On4 Communications' volatility to invest better
Higher On4 Communications' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of On4 Communications 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. On4 Communications 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 On4 Communications investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in On4 Communications' 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 On4 Communications' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
On4 Communications Investment Opportunity
On4 Communications has a volatility of 126.82 and is 162.59 times more volatile than Dow Jones Industrial. 96 percent of all equities and portfolios are less risky than On4 Communications. You can use On4 Communications to protect your portfolios against small market fluctuations. The pink sheet experiences a normal downward fluctuation but is a risky buy. Check odds of On4 Communications to be traded at $1.0E-4 in 90 days.Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
On4 Communications 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 On4 Communications 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. On4 Communications' 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, On4 Communications' 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 On4 Communications.
Complementary Tools for On4 Pink Sheet analysis
When running On4 Communications' price analysis, check to measure On4 Communications' 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 On4 Communications is operating at the current time. Most of On4 Communications' value examination focuses on studying past and present price action to predict the probability of On4 Communications' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move On4 Communications' price. Additionally, you may evaluate how the addition of On4 Communications to your portfolios can decrease your overall portfolio volatility.
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