Prairie Provident Resources Stock Volatility
| PRPRF Stock | USD 0.03 0 9.86% |
Prairie Provident is out of control given 3 months investment horizon. Prairie Provident maintains Sharpe Ratio (i.e., Efficiency) of 0.1, which implies the firm had a 0.1 % return per unit of risk over the last 3 months. We were able to interpolate data for twenty-seven different technical indicators, which can help you to evaluate if expected returns of 3.48% are justified by taking the suggested risk. Use Prairie Provident Semi Deviation of 10.13, coefficient of variation of 1193.23, and Risk Adjusted Performance of 0.08 to evaluate company specific risk that cannot be diversified away. Key indicators related to Prairie Provident's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Prairie Provident 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 Prairie daily returns, and it is calculated using variance and standard deviation. We also use Prairie's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Prairie Provident volatility.
Prairie |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Prairie Provident 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 Prairie Provident at lower prices to lower their average cost per share. Similarly, when the prices of Prairie Provident's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with Prairie Pink Sheet
Moving against Prairie Pink Sheet
| 0.4 | PBCRF | PT Bank Central | PairCorr |
| 0.35 | PBMRF | PT Bumi Resources | PairCorr |
| 0.33 | BKRKF | PT Bank Rakyat Earnings Call This Week | PairCorr |
| 0.31 | HCMC | Healthier Choices | PairCorr |
| 0.31 | VLY | Valley National Bancorp | PairCorr |
Prairie Provident Market Sensitivity And Downside Risk
Prairie Provident's beta coefficient measures the volatility of Prairie 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 Prairie pink sheet's returns against your selected market. In other words, Prairie Provident's beta of -0.35 provides an investor with an approximation of how much risk Prairie Provident pink sheet can potentially add to one of your existing portfolios. Prairie Provident Resources is showing large volatility of returns over the selected time horizon. Prairie Provident Resources is a penny stock. Although Prairie Provident may be in fact a good investment, many penny pink sheets are subject to artificial price hype. Make sure you completely understand the upside potential and downside risk of investing in Prairie Provident Resources. 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 Prairie 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 Prairie Provident Demand TrendCheck current 90 days Prairie Provident correlation with market (Dow Jones Industrial)Prairie Beta |
Prairie 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 | 34.7 |
It is essential to understand the difference between upside risk (as represented by Prairie Provident's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Prairie Provident's daily returns or price. Since the actual investment returns on holding a position in prairie 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 Prairie Provident.
Prairie Provident Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Prairie Provident pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Prairie Provident's price changes. Investors will then calculate the volatility of Prairie Provident'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 Prairie Provident's volatility:
Historical Volatility
This type of pink sheet volatility measures Prairie Provident's fluctuations based on previous trends. It's commonly used to predict Prairie Provident'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 Prairie Provident'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 Prairie Provident'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. Prairie Provident 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.
Prairie Provident Projected Return Density Against Market
Assuming the 90 days horizon Prairie Provident Resources has a beta of -0.3514 indicating as returns on the benchmark increase, returns on holding Prairie Provident are expected to decrease at a much lower rate. During a bear market, however, Prairie Provident Resources is likely to outperform the market.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 Prairie Provident or Oil, Gas & Consumable Fuels 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 Prairie Provident'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 Prairie 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.
Prairie Provident Resources has an alpha of 2.8526, implying that it can generate a 2.85 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Prairie Provident 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.Prairie Provident Pink Sheet Risk Measures
Assuming the 90 days horizon the coefficient of variation of Prairie Provident is 996.46. The daily returns are distributed with a variance of 1204.13 and standard deviation of 34.7. The mean deviation of Prairie Provident Resources is currently at 11.72. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.84
α | Alpha over Dow Jones | 2.85 | |
β | Beta against Dow Jones | -0.35 | |
σ | Overall volatility | 34.70 | |
Ir | Information ratio | 0.08 |
Prairie Provident Pink Sheet Return Volatility
Prairie Provident historical daily return volatility represents how much of Prairie Provident pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 34.7006% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.8455% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Prairie Provident Volatility
Volatility is a rate at which the price of Prairie Provident 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 Prairie Provident may increase or decrease. In other words, similar to Prairie's beta indicator, it measures the risk of Prairie Provident and helps estimate the fluctuations that may happen in a short period of time. So if prices of Prairie Provident 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.Prairie Provident Resources Inc. engages in the exploration and development of oil and natural gas properties in Alberta. The company was incorporated in 2016 and is headquartered in Calgary, Canada. Prairie Provident operates under Oil Gas EP classification in the United States and is traded on OTC Exchange. It employs 38 people.
Prairie Provident'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 Prairie Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Prairie Provident's price varies over time.
3 ways to utilize Prairie Provident's volatility to invest better
Higher Prairie Provident's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Prairie Provident 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. Prairie Provident 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 Prairie Provident investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Prairie Provident'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 Prairie Provident's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Prairie Provident Investment Opportunity
Prairie Provident Resources has a volatility of 34.7 and is 40.82 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Prairie Provident Resources is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use Prairie Provident Resources to protect your portfolios against small market fluctuations. The pink sheet experiences a very speculative downward sentiment. The market maybe over-reacting. Check odds of Prairie Provident to be traded at $0.0304 in 90 days.Good diversification
The correlation between Prairie Provident Resources and DJI is -0.01 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Prairie Provident Resources and DJI in the same portfolio, assuming nothing else is changed.
Prairie Provident Additional Risk Indicators
The analysis of Prairie Provident'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 Prairie Provident's investment and either accepting that risk or mitigating it. Along with some common measures of Prairie Provident 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 | 0.08 | |||
| Market Risk Adjusted Performance | (8.04) | |||
| Mean Deviation | 11.64 | |||
| Semi Deviation | 10.13 | |||
| Downside Deviation | 17.44 | |||
| Coefficient Of Variation | 1193.23 | |||
| Standard Deviation | 33.87 |
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.
Prairie Provident 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 Prairie Provident 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. Prairie Provident'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, Prairie Provident'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 Prairie Provident Resources.
Complementary Tools for Prairie Pink Sheet analysis
When running Prairie Provident's price analysis, check to measure Prairie Provident'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 Prairie Provident is operating at the current time. Most of Prairie Provident's value examination focuses on studying past and present price action to predict the probability of Prairie Provident's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Prairie Provident's price. Additionally, you may evaluate how the addition of Prairie Provident to your portfolios can decrease your overall portfolio volatility.
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