Roadrunner Transportation Systems Stock Volatility
| RRTS Stock | USD 2.77 0.11 3.82% |
Roadrunner Transportation appears to be very risky, given 3 months investment horizon. Roadrunner Transportation 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. By analyzing Roadrunner Transportation's technical indicators, you can evaluate if the expected return of 0.51% is justified by implied risk. Please evaluate Roadrunner Transportation's Semi Deviation of 3.39, risk adjusted performance of 0.0859, and Coefficient Of Variation of 909.69 to confirm if our risk estimates are consistent with your expectations. Key indicators related to Roadrunner Transportation's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Roadrunner Transportation 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 Roadrunner daily returns, and it is calculated using variance and standard deviation. We also use Roadrunner's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Roadrunner Transportation volatility.
Roadrunner |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Roadrunner Transportation 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 Roadrunner Transportation at lower prices. For example, an investor can purchase Roadrunner 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 Roadrunner Transportation'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 against Roadrunner Pink Sheet
| 0.53 | BKRKF | PT Bank Rakyat | PairCorr |
| 0.5 | CYPS | Cyclo3pss | PairCorr |
| 0.36 | BKRKY | Bank Rakyat | PairCorr |
| 0.31 | PBCRF | PT Bank Central | PairCorr |
Roadrunner Transportation Market Sensitivity And Downside Risk
Roadrunner Transportation's beta coefficient measures the volatility of Roadrunner 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 Roadrunner pink sheet's returns against your selected market. In other words, Roadrunner Transportation's beta of 1.17 provides an investor with an approximation of how much risk Roadrunner Transportation pink sheet can potentially add to one of your existing portfolios. Roadrunner Transportation Systems shows above-average downside volatility for the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Roadrunner Transportation's pink sheet risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Roadrunner Transportation's pink sheet price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Roadrunner Transportation Demand TrendCheck current 90 days Roadrunner Transportation correlation with market (Dow Jones Industrial)Roadrunner Beta |
Roadrunner 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 | 4.76 |
It is essential to understand the difference between upside risk (as represented by Roadrunner Transportation's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Roadrunner Transportation's daily returns or price. Since the actual investment returns on holding a position in roadrunner 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 Roadrunner Transportation.
Roadrunner Transportation Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Roadrunner Transportation pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Roadrunner Transportation's price changes. Investors will then calculate the volatility of Roadrunner Transportation'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 Roadrunner Transportation's volatility:
Historical Volatility
This type of pink sheet volatility measures Roadrunner Transportation's fluctuations based on previous trends. It's commonly used to predict Roadrunner Transportation'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 Roadrunner Transportation'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 Roadrunner Transportation'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 Roadrunner Transportation price series.
Roadrunner Transportation Projected Return Density Against Market
Given the investment horizon of 90 days the pink sheet has the beta coefficient of 1.1748 indicating as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Roadrunner Transportation 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 Roadrunner Transportation or Road & Rail 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 Roadrunner Transportation'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 Roadrunner 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.
Roadrunner Transportation Systems has an alpha of 0.4293, implying that it can generate a 0.43 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Roadrunner Transportation 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.Roadrunner Transportation Pink Sheet Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Roadrunner Transportation is 929.2. The daily returns are distributed with a variance of 22.62 and standard deviation of 4.76. The mean deviation of Roadrunner Transportation Systems is currently at 3.03. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.7
α | Alpha over Dow Jones | 0.43 | |
β | Beta against Dow Jones | 1.17 | |
σ | Overall volatility | 4.76 | |
Ir | Information ratio | 0.09 |
Roadrunner Transportation Pink Sheet Return Volatility
Roadrunner Transportation historical daily return volatility represents how much of Roadrunner Transportation pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 4.7561% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7122% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Roadrunner Transportation Volatility
Volatility is a rate at which the price of Roadrunner Transportation 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 Roadrunner Transportation may increase or decrease. In other words, similar to Roadrunner's beta indicator, it measures the risk of Roadrunner Transportation and helps estimate the fluctuations that may happen in a short period of time. So if prices of Roadrunner Transportation 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.Roadrunner Transportation Systems, Inc. provides asset-right transportation and asset-light logistics services. Roadrunner Transportation Systems, Inc. was incorporated in 2005 and is headquartered in Downers Grove, Illinois. Roadrunner Transportation operates under Trucking classification in the United States and is traded on OTC Exchange. It employs 3600 people.
Roadrunner Transportation'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 Roadrunner Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Roadrunner Transportation's price varies over time.
3 ways to utilize Roadrunner Transportation's volatility to invest better
Higher Roadrunner Transportation's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Roadrunner Transportation 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. Roadrunner Transportation 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 Roadrunner Transportation investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Roadrunner Transportation'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 Roadrunner Transportation's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Roadrunner Transportation Investment Opportunity
Roadrunner Transportation Systems has a volatility of 4.76 and is 6.7 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Roadrunner Transportation Systems is lower than 42 percent of all global equities and portfolios over the last 90 days. You can use Roadrunner Transportation Systems to protect your portfolios against small market fluctuations. The pink sheet experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of Roadrunner Transportation to be traded at $2.66 in 90 days.Average diversification
The correlation between Roadrunner Transportation Syst and DJI is 0.17 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Roadrunner Transportation Syst and DJI in the same portfolio, assuming nothing else is changed.
Roadrunner Transportation Additional Risk Indicators
The analysis of Roadrunner Transportation'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 Roadrunner Transportation's investment and either accepting that risk or mitigating it. Along with some common measures of Roadrunner Transportation 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 | 0.0859 | |||
| Market Risk Adjusted Performance | 0.4457 | |||
| Mean Deviation | 3.12 | |||
| Semi Deviation | 3.39 | |||
| Downside Deviation | 4.9 | |||
| Coefficient Of Variation | 909.69 | |||
| Standard Deviation | 4.75 |
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.
Roadrunner Transportation 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 Roadrunner Transportation 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. Roadrunner Transportation'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, Roadrunner Transportation'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 Roadrunner Transportation Systems.
Additional Tools for Roadrunner Pink Sheet Analysis
When running Roadrunner Transportation's price analysis, check to measure Roadrunner Transportation'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 Roadrunner Transportation is operating at the current time. Most of Roadrunner Transportation's value examination focuses on studying past and present price action to predict the probability of Roadrunner Transportation's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Roadrunner Transportation's price. Additionally, you may evaluate how the addition of Roadrunner Transportation to your portfolios can decrease your overall portfolio volatility.