Smartkem Common Stock Stock Volatility
| SMTK Stock | USD 1.11 0.02 1.83% |
SmartKem Common Stock owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.17, which indicates the firm had a -0.17 % return per unit of risk over the last 3 months. SmartKem Common Stock exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate SmartKem Common's Coefficient Of Variation of (1,605), risk adjusted performance of (0.04), and Variance of 64.43 to confirm the risk estimate we provide.
Sharpe Ratio = -0.1739
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Based on monthly moving average SmartKem Common is not performing at its full potential. However, 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 SmartKem Common by adding SmartKem Common to a well-diversified portfolio.
Key indicators related to SmartKem Common's volatility include:720 Days Market Risk | Chance Of Distress | 720 Days Economic Sensitivity |
SmartKem Common 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 SmartKem daily returns, and it is calculated using variance and standard deviation. We also use SmartKem's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of SmartKem Common volatility.
SmartKem |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of SmartKem Common at lower prices. For example, an investor can purchase SmartKem 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 SmartKem Common's market risk premium analysis include:
Beta 2.51 | Alpha (0.72) | Risk 7.15 | Sharpe Ratio (0.17) | Expected Return (1.24) |
Moving together with SmartKem OTC Stock
Moving against SmartKem OTC Stock
| 0.8 | SNPHF | Santen Pharmaceutical | PairCorr |
| 0.73 | TER | Teradyne | PairCorr |
| 0.65 | AMAT | Applied Materials | PairCorr |
| 0.64 | OPHLF | Ono Pharmaceutical | PairCorr |
| 0.59 | LRCX | Lam Research Corp Buyout Trend | PairCorr |
| 0.57 | KLAC | KLA Tencor | PairCorr |
| 0.51 | ASMLF | ASML Holding NV | PairCorr |
| 0.5 | ASML | ASML Holding NV | PairCorr |
| 0.49 | TOELY | Tokyo Electron | PairCorr |
| 0.49 | TOELF | Tokyo Electron Tech Boost | PairCorr |
SmartKem Common Market Sensitivity And Downside Risk
SmartKem Common's beta coefficient measures the volatility of SmartKem 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 SmartKem otc stock's returns against your selected market. In other words, SmartKem Common's beta of 2.51 provides an investor with an approximation of how much risk SmartKem Common otc stock can potentially add to one of your existing portfolios. SmartKem Common Stock is displaying above-average volatility over the selected time horizon. SmartKem Common Stock is a potential penny stock. Although SmartKem Common 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 SmartKem Common Stock. 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 SmartKem 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 SmartKem Common Stock Demand TrendCheck current 90 days SmartKem Common correlation with market (Dow Jones Industrial)SmartKem Common Volatility and Downside Risk
SmartKem 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.
SmartKem Common Stock OTC Stock Volatility Analysis
Volatility refers to the frequency at which SmartKem Common otc price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with SmartKem Common's price changes. Investors will then calculate the volatility of SmartKem Common's 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 SmartKem Common's volatility:
Historical Volatility
This type of otc volatility measures SmartKem Common's fluctuations based on previous trends. It's commonly used to predict SmartKem Common's 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 SmartKem Common's 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 SmartKem Common'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. SmartKem Common Stock 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.
SmartKem Common Projected Return Density Against Market
Given the investment horizon of 90 days the otc stock has the beta coefficient of 2.5145 . This usually implies as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, SmartKem Common 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 SmartKem Common 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 SmartKem Common's 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 SmartKem 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.
SmartKem Common Stock 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 |
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What Drives a SmartKem Common 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.SmartKem Common OTC Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of SmartKem Common is -575.06. The daily returns are distributed with a variance of 51.08 and standard deviation of 7.15. The mean deviation of SmartKem Common Stock is currently at 5.38. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.74
α | Alpha over Dow Jones | -0.72 | |
β | Beta against Dow Jones | 2.51 | |
σ | Overall volatility | 7.15 | |
Ir | Information ratio | -0.07 |
SmartKem Common OTC Stock Return Volatility
SmartKem Common historical daily return volatility represents how much of SmartKem Common otc's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 7.1472% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7018% 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 SmartKem OTC Stock performing well and SmartKem Common OTC Stock 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 SmartKem Common'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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| OST | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| AEVA | 5.80 | 0.12 | 0.06 | 0.11 | 6.35 | 16.00 | 37.79 | |||
| CLRO | 4.24 | 0.12 | 0.00 | (0.62) | 5.36 | 12.61 | 32.74 | |||
| ARBB | 5.23 | (0.11) | 0.00 | (0.31) | 0.00 | 19.61 | 41.45 | |||
| RVYL | 6.08 | (1.23) | 0.00 | (0.55) | 0.00 | 12.77 | 31.97 | |||
| FIEE | 4.45 | 0.42 | 0.06 | 0.27 | 7.76 | 9.82 | 42.12 | |||
| AIXI | 5.26 | (1.77) | 0.00 | (0.35) | 0.00 | 10.64 | 44.03 | |||
| PRSO | 5.10 | (0.43) | 0.00 | (0.18) | 0.00 | 14.71 | 43.11 | |||
| WATT | 4.53 | (0.67) | 0.00 | (0.22) | 0.00 | 9.57 | 36.44 | |||
| MITQ | 3.45 | (0.58) | 0.00 | (0.14) | 0.00 | 5.88 | 26.62 |
About SmartKem Common Volatility
Volatility is a rate at which the price of SmartKem Common 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 SmartKem Common may increase or decrease. In other words, similar to SmartKem's beta indicator, it measures the risk of SmartKem Common and helps estimate the fluctuations that may happen in a short period of time. So if prices of SmartKem Common 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.SmartKem, Inc. engages in the development of materials and processes for organic thin-film transistors backplanes for the manufacture of flexible electronics. SmartKem, Inc. was founded in 2009 and is headquartered in Manchester, the United Kingdom. Smartkem operates under Semiconductor Equipment Materials classification in the United States and is traded on OTC Exchange. It employs 41 people.
SmartKem Common'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 SmartKem OTC Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much SmartKem Common's price varies over time.
3 ways to utilize SmartKem Common's volatility to invest better
Higher SmartKem Common's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of SmartKem Common Stock 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. SmartKem Common Stock 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 SmartKem Common Stock investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in SmartKem Common'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 SmartKem Common's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
SmartKem Common Investment Opportunity
SmartKem Common Stock has a volatility of 7.15 and is 10.21 times more volatile than Dow Jones Industrial. 64 percent of all equities and portfolios are less risky than SmartKem Common. You can use SmartKem Common Stock to enhance the returns of your portfolios. The otc stock experiences a large bullish trend. Check odds of SmartKem Common to be traded at $1.221 in 90 days.Modest diversification
The correlation between SmartKem Common Stock and DJI is 0.23 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding SmartKem Common Stock and DJI in the same portfolio, assuming nothing else is changed.
SmartKem Common Additional Risk Indicators
The analysis of SmartKem Common'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 SmartKem Common's investment and either accepting that risk or mitigating it. Along with some common measures of SmartKem Common 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 | (0.04) | |||
| Market Risk Adjusted Performance | (0.19) | |||
| Mean Deviation | 5.75 | |||
| Coefficient Of Variation | (1,605) | |||
| Standard Deviation | 8.03 | |||
| Variance | 64.43 | |||
| Information Ratio | (0.07) |
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.
SmartKem Common 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.
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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 SmartKem Common 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. SmartKem Common'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, SmartKem Common'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 SmartKem Common Stock.
Other Information on Investing in SmartKem OTC Stock
SmartKem Common financial ratios help investors to determine whether SmartKem 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 SmartKem with respect to the benefits of owning SmartKem Common security.