Software Effective Solutions Stock Volatility
| SFWJ Stock | USD 0.01 0.01 27.78% |
Software Effective is out of control given 3 months investment horizon. Software Effective owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0877, which indicates the firm had a 0.0877% return per unit of risk over the last 3 months. We are able to interpolate and break down twenty-eight different technical indicators, which can help you to evaluate if expected returns of 1.94% are justified by taking the suggested risk. Use Software Effective Risk Adjusted Performance of 0.0554, coefficient of variation of 1677.38, and Semi Deviation of 13.7 to evaluate company specific risk that cannot be diversified away. Key indicators related to Software Effective's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Software Effective 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 Software daily returns, and it is calculated using variance and standard deviation. We also use Software's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Software Effective volatility.
Software |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Software Effective at lower prices. For example, an investor can purchase Software 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 Software Pink Sheet
| 0.61 | EPGG | Empire Global Gaming | PairCorr |
| 0.39 | INFY | Infosys Ltd ADR | PairCorr |
| 0.36 | TPDDF | Talon Energy | PairCorr |
Software Effective Market Sensitivity And Downside Risk
Software Effective's beta coefficient measures the volatility of Software 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 Software pink sheet's returns against your selected market. In other words, Software Effective's beta of -1.31 provides an investor with an approximation of how much risk Software Effective pink sheet can potentially add to one of your existing portfolios. Software Effective Solutions is showing large volatility of returns over the selected time horizon. Software Effective Solutions is a penny stock. Although Software Effective 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 Software Effective Solutions. 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 Software 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 Software Effective Demand TrendCheck current 90 days Software Effective correlation with market (Dow Jones Industrial)Software Beta |
Software 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 | 22.15 |
It is essential to understand the difference between upside risk (as represented by Software Effective's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Software Effective's daily returns or price. Since the actual investment returns on holding a position in software 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 Software Effective.
Software Effective Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Software Effective pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Software Effective's price changes. Investors will then calculate the volatility of Software Effective'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 Software Effective's volatility:
Historical Volatility
This type of pink sheet volatility measures Software Effective's fluctuations based on previous trends. It's commonly used to predict Software Effective'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 Software Effective'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 Software Effective'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. Software Effective 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.
Software Effective Projected Return Density Against Market
Given the investment horizon of 90 days Software Effective Solutions has a beta of -1.3088 . This usually implies as returns on its benchmark rise, returns on holding Software Effective Solutions are expected to decrease by similarly larger amounts. On the other hand, during market turmoils, Software Effective is expected to outperform its benchmark.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 Software Effective 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 Software Effective'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 Software 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.
Software Effective Solutions has an alpha of 1.494, implying that it can generate a 1.49 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Software Effective 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.Software Effective Pink Sheet Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Software Effective is 1140.19. The daily returns are distributed with a variance of 490.57 and standard deviation of 22.15. The mean deviation of Software Effective Solutions is currently at 11.64. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 1.49 | |
β | Beta against Dow Jones | -1.31 | |
σ | Overall volatility | 22.15 | |
Ir | Information ratio | 0.05 |
Software Effective Pink Sheet Return Volatility
Software Effective historical daily return volatility represents how much of Software Effective pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 22.1489% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7626% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Software Effective Volatility
Volatility is a rate at which the price of Software Effective 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 Software Effective may increase or decrease. In other words, similar to Software's beta indicator, it measures the risk of Software Effective and helps estimate the fluctuations that may happen in a short period of time. So if prices of Software Effective 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.Software Effective Solutions, Inc. provides customer relations management software tools for small and medium-sized organizations, and telecom operators in the Asia Pacific region. The company is headquartered in Makati City, the Philippines. Software Eff is traded on OTC Exchange in the United States.
Software Effective'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 Software Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Software Effective's price varies over time.
3 ways to utilize Software Effective's volatility to invest better
Higher Software Effective's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Software Effective 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. Software Effective 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 Software Effective investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Software Effective'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 Software Effective's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Software Effective Investment Opportunity
Software Effective Solutions has a volatility of 22.15 and is 29.14 times more volatile than Dow Jones Industrial. 96 percent of all equities and portfolios are less risky than Software Effective. You can use Software Effective Solutions 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 Software Effective to be traded at $0.0123 in 90 days.Good diversification
The correlation between Software Effective Solutions 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 Software Effective Solutions and DJI in the same portfolio, assuming nothing else is changed.
Software Effective Additional Risk Indicators
The analysis of Software Effective'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 Software Effective's investment and either accepting that risk or mitigating it. Along with some common measures of Software Effective 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 | 0.0554 | |||
| Market Risk Adjusted Performance | (1.01) | |||
| Mean Deviation | 11.88 | |||
| Semi Deviation | 13.7 | |||
| Downside Deviation | 21.01 | |||
| Coefficient Of Variation | 1677.38 | |||
| Standard Deviation | 22.58 |
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.
Software Effective 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 Software Effective 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. Software Effective'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, Software Effective'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 Software Effective Solutions.
Other Information on Investing in Software Pink Sheet
Software Effective financial ratios help investors to determine whether Software Pink Sheet 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 Software with respect to the benefits of owning Software Effective security.