Sol Gel Technologies Stock Volatility
| SLGL Stock | USD 67.20 8.92 11.72% |
Sol Gel is not too volatile given 3 months investment horizon. Sol Gel Technologies owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.21, which indicates the firm had a 0.21 % return per unit of risk over the last 3 months. We were able to analyze and collect data for twenty-nine different technical indicators, which can help you to evaluate if expected returns of 1.17% are justified by taking the suggested risk. Use Sol Gel Technologies Coefficient Of Variation of 440.11, risk adjusted performance of 0.1919, and Semi Deviation of 4.2 to evaluate company specific risk that cannot be diversified away.
Sharpe Ratio = 0.2149
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Based on monthly moving average Sol Gel is performing at about 17% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Sol Gel by adding it to a well-diversified portfolio.
Key indicators related to Sol Gel's volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Sol Gel 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 Sol daily returns, and it is calculated using variance and standard deviation. We also use Sol's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Sol Gel volatility.
ESG Sustainability
While most ESG disclosures are voluntary, Sol Gel's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Sol Gel's managers and investors.Environmental | Governance | Social |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Sol Gel at lower prices. For example, an investor can purchase Sol 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. Main indicators related to Sol Gel's market risk premium analysis include:
Beta (1.27) | Alpha 1.32 | Risk 5.46 | Sharpe Ratio 0.21 | Expected Return 1.17 |
Moving together with Sol Stock
| 0.9 | RO | Roche Holding AG | PairCorr |
| 0.92 | RHO6 | Roche Holding | PairCorr |
| 0.61 | H6D | Haleon PLC | PairCorr |
| 0.65 | PFE | Pfizer Inc CDR | PairCorr |
| 0.68 | 7XP | Organon | PairCorr |
| 0.88 | DYF1 | Dynavax Technologies Earnings Call This Week | PairCorr |
| 0.84 | LDZU | ASPEN PHARUNADR 1 | PairCorr |
| 0.86 | SFZN | Siegfried Holding Earnings Call This Week | PairCorr |
| 0.93 | CVG | CSPC Pharmaceutical | PairCorr |
| 0.84 | TEV | Teva Pharmaceutical | PairCorr |
| 0.86 | VTRS | Viatris Sell-off Trend | PairCorr |
| 0.9 | VTYX | Ventyx Biosciences | PairCorr |
| 0.79 | MRK | Merck KGaA | PairCorr |
| 0.85 | BRM | Bristol Myers Squibb | PairCorr |
| 0.87 | ELAN | Elanco Animal Health | PairCorr |
| 0.77 | ELVN | Enliven Therapeutics | PairCorr |
Moving against Sol Stock
| 0.59 | 21P | Aurora Cannabis | PairCorr |
| 0.58 | IQ70 | 1CM INC | PairCorr |
| 0.54 | KG | Kestrel Group Symbol Change | PairCorr |
| 0.4 | NXS | Next Science | PairCorr |
Sol Gel Market Sensitivity And Downside Risk
Sol Gel's beta coefficient measures the volatility of Sol 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 Sol stock's returns against your selected market. In other words, Sol Gel's beta of -1.27 provides an investor with an approximation of how much risk Sol Gel stock can potentially add to one of your existing portfolios. Sol Gel Technologies exhibits above-average semi-deviation for your current time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Sol Gel's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Sol Gel's stock 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 Sol Gel Technologies Demand TrendCheck current 90 days Sol Gel correlation with market (Dow Jones Industrial)Sol Gel Volatility and Downside Risk
Sol 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.
Sol Gel Technologies Stock Volatility Analysis
Volatility refers to the frequency at which Sol Gel stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Sol Gel's price changes. Investors will then calculate the volatility of Sol Gel's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock 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 Sol Gel's volatility:
Historical Volatility
This type of stock volatility measures Sol Gel's fluctuations based on previous trends. It's commonly used to predict Sol Gel's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Sol Gel's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Sol Gel'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. Sol Gel Technologies 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.
Sol Gel Projected Return Density Against Market
Given the investment horizon of 90 days Sol Gel Technologies has a beta of -1.2668 . This usually implies as returns on its benchmark rise, returns on holding Sol Gel Technologies are expected to decrease by similarly larger amounts. On the other hand, during market turmoils, Sol Gel 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 Sol Gel 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 Sol Gel's price will be affected by overall 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 Sol stock'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.
Predicted Return Density |
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What Drives a Sol Gel Price Volatility?
Several factors can influence a stock'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 investor attention to the company. This positive attention may impact the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Sol Gel Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Sol Gel is 465.41. The daily returns are distributed with a variance of 29.82 and standard deviation of 5.46. The mean deviation of Sol Gel Technologies is currently at 3.9. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.81
α | Alpha over Dow Jones | 1.32 | |
β | Beta against Dow Jones | -1.27 | |
σ | Overall volatility | 5.46 | |
Ir | Information ratio | 0.21 |
Sol Gel Stock Return Volatility
Sol Gel historical daily return volatility represents how much of Sol Gel stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 5.4604% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7702% volatility on return distribution over the 90 days horizon. Performance |
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Related Correlations Analysis
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
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Risk-Adjusted Indicators
There is a big difference between Sol Stock performing well and Sol Gel Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Sol Gel's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| OKYO | 5.30 | (0.48) | 0.00 | (0.43) | 0.00 | 11.28 | 34.51 | |||
| CLNN | 4.95 | (1.17) | 0.00 | (0.55) | 0.00 | 9.44 | 38.74 | |||
| COYA | 2.67 | (0.33) | 0.00 | (0.52) | 0.00 | 5.28 | 18.45 | |||
| TLSA | 3.96 | (0.33) | 0.00 | (0.16) | 0.00 | 8.23 | 23.83 | |||
| PLRX | 2.53 | (0.60) | 0.00 | (0.36) | 0.00 | 4.59 | 22.72 | |||
| MGNX | 2.87 | 0.33 | 0.09 | 1.52 | 2.96 | 6.83 | 24.44 | |||
| ZNTL | 5.13 | 1.09 | 0.21 | 0.57 | 4.58 | 17.36 | 49.29 | |||
| ANEB | 4.92 | (1.89) | 0.00 | 1.06 | 0.00 | 5.06 | 58.34 | |||
| OVID | 4.41 | 0.09 | 0.03 | 0.10 | 4.99 | 9.70 | 36.13 | |||
| ORMP | 2.76 | 0.57 | 0.23 | 0.34 | 2.10 | 6.98 | 17.67 |
About Sol Gel Volatility
Volatility is a rate at which the price of Sol Gel 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 Sol Gel may increase or decrease. In other words, similar to Sol's beta indicator, it measures the risk of Sol Gel and helps estimate the fluctuations that may happen in a short period of time. So if prices of Sol Gel 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.| Last Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 307.8 K | 273.6 K | |
| Market Cap | 297.9 M | 283 M |
Sol Gel'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 Sol Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Sol Gel's price varies over time.
3 ways to utilize Sol Gel's volatility to invest better
Higher Sol Gel's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Sol Gel Technologies 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. Sol Gel Technologies 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 Sol Gel Technologies investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Sol Gel'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 Sol Gel's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Sol Gel Investment Opportunity
Sol Gel Technologies has a volatility of 5.46 and is 7.09 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Sol Gel Technologies is lower than 49 percent of all global equities and portfolios over the last 90 days. You can use Sol Gel Technologies to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of Sol Gel to be traded at $63.84 in 90 days.Poor diversification
The correlation between Sol Gel Technologies and DJI is 0.79 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Sol Gel Technologies and DJI in the same portfolio, assuming nothing else is changed.
Sol Gel Additional Risk Indicators
The analysis of Sol Gel'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 Sol Gel's investment and either accepting that risk or mitigating it. Along with some common measures of Sol Gel 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 | 0.1919 | |||
| Market Risk Adjusted Performance | (0.98) | |||
| Mean Deviation | 4.02 | |||
| Semi Deviation | 4.2 | |||
| Downside Deviation | 5.07 | |||
| Coefficient Of Variation | 440.11 | |||
| Standard Deviation | 5.54 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Sol Gel 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 Sol Gel 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. Sol Gel'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, Sol Gel'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 Sol Gel Technologies.
When determining whether Sol Gel Technologies is a strong investment it is important to analyze Sol Gel's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Sol Gel's future performance. For an informed investment choice regarding Sol Stock, refer to the following important reports: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Sol Gel Technologies. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in census. You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Is Pharmaceuticals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Sol Gel. If investors know Sol will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. Comprehensive Sol Gel assessment requires weighing all these inputs, though not all factors influence outcomes equally.
Quarterly Earnings Growth 4.876 | Earnings Share (1.22) | Revenue Per Share | Quarterly Revenue Growth 2.177 | Return On Assets |
Investors evaluate Sol Gel Technologies using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating Sol Gel's intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. External factors like market trends, sector rotation, and investor psychology can cause Sol Gel's market price to deviate significantly from intrinsic value.
Please note, there is a significant difference between Sol Gel's value and its price as these two are different measures arrived at by different means. Investors typically determine if Sol Gel is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. Conversely, Sol Gel's market price signifies the transaction level at which participants voluntarily complete trades.