Seelos Therapeutics Stock Volatility
| SEEL Stock | USD 0.39 0.11 22.00% |
Seelos Therapeutics owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.23, which indicates the firm had a -0.23% return per unit of risk over the last 3 months. Seelos Therapeutics exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Seelos Therapeutics' Coefficient Of Variation of (389.04), risk adjusted performance of (0.19), and Variance of 172.31 to confirm the risk estimate we provide. Key indicators related to Seelos Therapeutics' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Seelos Therapeutics 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 Seelos daily returns, and it is calculated using variance and standard deviation. We also use Seelos's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Seelos Therapeutics volatility.
Seelos |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Seelos Therapeutics at lower prices. For example, an investor can purchase Seelos 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 together with Seelos OTC Stock
Moving against Seelos OTC Stock
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| 0.64 | HPQ | HP Inc | PairCorr |
Seelos Therapeutics Market Sensitivity And Downside Risk
Seelos Therapeutics' beta coefficient measures the volatility of Seelos 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 Seelos otc stock's returns against your selected market. In other words, Seelos Therapeutics's beta of -0.75 provides an investor with an approximation of how much risk Seelos Therapeutics otc stock can potentially add to one of your existing portfolios. Seelos Therapeutics is displaying above-average volatility over the selected time horizon. Seelos Therapeutics is a potential penny stock. Although Seelos Therapeutics may be in fact a good instrument to invest, many penny otc 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 Seelos Therapeutics. 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 Seelos 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 Seelos Therapeutics Demand TrendCheck current 90 days Seelos Therapeutics correlation with market (Dow Jones Industrial)Seelos Beta |
Seelos 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 | 13.5 |
It is essential to understand the difference between upside risk (as represented by Seelos Therapeutics's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Seelos Therapeutics' daily returns or price. Since the actual investment returns on holding a position in seelos 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 Seelos Therapeutics.
Seelos Therapeutics OTC Stock Volatility Analysis
Volatility refers to the frequency at which Seelos Therapeutics otc price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Seelos Therapeutics' price changes. Investors will then calculate the volatility of Seelos Therapeutics' 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 Seelos Therapeutics' volatility:
Historical Volatility
This type of otc volatility measures Seelos Therapeutics' fluctuations based on previous trends. It's commonly used to predict Seelos Therapeutics' 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 Seelos Therapeutics' 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 Seelos Therapeutics' 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. Seelos Therapeutics 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.
Seelos Therapeutics Projected Return Density Against Market
Given the investment horizon of 90 days Seelos Therapeutics has a beta of -0.7543 . This usually implies as returns on the benchmark increase, returns on holding Seelos Therapeutics are expected to decrease at a much lower rate. During a bear market, however, Seelos Therapeutics 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 Seelos Therapeutics or Pharmaceuticals 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 Seelos Therapeutics' 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 Seelos 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.
Seelos Therapeutics has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives a Seelos Therapeutics 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.Seelos Therapeutics OTC Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Seelos Therapeutics is -430.74. The daily returns are distributed with a variance of 182.32 and standard deviation of 13.5. The mean deviation of Seelos Therapeutics is currently at 8.7. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | -3.29 | |
β | Beta against Dow Jones | -0.75 | |
σ | Overall volatility | 13.50 | |
Ir | Information ratio | -0.27 |
Seelos Therapeutics OTC Stock Return Volatility
Seelos Therapeutics historical daily return volatility represents how much of Seelos Therapeutics otc's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 13.5027% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7685% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Seelos Therapeutics Volatility
Volatility is a rate at which the price of Seelos Therapeutics 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 Seelos Therapeutics may increase or decrease. In other words, similar to Seelos's beta indicator, it measures the risk of Seelos Therapeutics and helps estimate the fluctuations that may happen in a short period of time. So if prices of Seelos Therapeutics 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.Seelos Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of therapeutics for the treatment of central nervous system, respiratory, and other disorders. Seelos Therapeutics, Inc. was incorporated in 1987 and is headquartered in New York, New York. Seelos Therapeutics operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 15 people.
Seelos Therapeutics' 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 Seelos OTC Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Seelos Therapeutics' price varies over time.
3 ways to utilize Seelos Therapeutics' volatility to invest better
Higher Seelos Therapeutics' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Seelos Therapeutics 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. Seelos Therapeutics 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 Seelos Therapeutics investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Seelos Therapeutics' 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 Seelos Therapeutics' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Seelos Therapeutics Investment Opportunity
Seelos Therapeutics has a volatility of 13.5 and is 17.53 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Seelos Therapeutics is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use Seelos Therapeutics to protect your portfolios against small market fluctuations. The otc stock experiences a very speculative downward sentiment. The market maybe over-reacting. Check odds of Seelos Therapeutics to be traded at $0.3705 in 90 days.Good diversification
The correlation between Seelos Therapeutics and DJI is -0.04 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Seelos Therapeutics and DJI in the same portfolio, assuming nothing else is changed.
Seelos Therapeutics Additional Risk Indicators
The analysis of Seelos Therapeutics' 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 Seelos Therapeutics' investment and either accepting that risk or mitigating it. Along with some common measures of Seelos Therapeutics 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 | (0.19) | |||
| Market Risk Adjusted Performance | 4.5 | |||
| Mean Deviation | 8.53 | |||
| Coefficient Of Variation | (389.04) | |||
| Standard Deviation | 13.13 | |||
| Variance | 172.31 | |||
| Information Ratio | (0.27) |
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.
Seelos Therapeutics 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 Seelos Therapeutics 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. Seelos Therapeutics' 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, Seelos Therapeutics' 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 Seelos Therapeutics.
Other Information on Investing in Seelos OTC Stock
Seelos Therapeutics financial ratios help investors to determine whether Seelos 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 Seelos with respect to the benefits of owning Seelos Therapeutics security.