Solar Enertech Corp Stock Volatility
| SOEN Stock | USD 0.0001 0.00 0.00% |
Solar Enertech appears to be out of control, given 3 months investment horizon. Solar Enertech Corp owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0564, which indicates the firm had a 0.0564 % return per unit of risk over the last 3 months. By inspecting Solar Enertech's technical indicators, you can evaluate if the expected return of 0.81% is justified by implied risk. Please review Solar Enertech's Coefficient Of Variation of 1827.74, variance of 191.72, and Risk Adjusted Performance of 0.0492 to confirm if our risk estimates are consistent with your expectations.
Sharpe Ratio = 0.0564
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Based on monthly moving average Solar Enertech is performing at about 4% 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 Solar Enertech by adding it to a well-diversified portfolio.
Key indicators related to Solar Enertech's volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Solar Enertech 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 Solar daily returns, and it is calculated using variance and standard deviation. We also use Solar's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Solar Enertech volatility.
Solar |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Solar Enertech 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 Solar Enertech at lower prices. For example, an investor can purchase Solar 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 Solar Enertech'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. Main indicators related to Solar Enertech's market risk premium analysis include:
Beta (0.49) | Alpha 0.77 | Risk 14.29 | Sharpe Ratio 0.0564 | Expected Return 0.81 |
Moving against Solar Pink Sheet
Solar Enertech Market Sensitivity And Downside Risk
Solar Enertech's beta coefficient measures the volatility of Solar 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 Solar pink sheet's returns against your selected market. In other words, Solar Enertech's beta of -0.49 provides an investor with an approximation of how much risk Solar Enertech pink sheet can potentially add to one of your existing portfolios. Solar Enertech Corp is displaying above-average volatility over the selected time horizon. Solar Enertech Corp appears to be a penny stock. Although Solar Enertech Corp may be, in fact, a solid short-term or long term investment, many penny pink sheets are speculative investment instruments that are often subject to artificial stock promotion and campaigns of hype which may lead to misinformation and misrepresentation. Please make sure you fully understand upside potential and downside risks of investing in Solar Enertech Corp or similar risky assets. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswing without any event/news,and sudden news releases. We also encourage traders to check biographies and work history of company President, CEO or other officers before investing in high-volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Solar 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 Solar Enertech Corp Demand TrendCheck current 90 days Solar Enertech correlation with market (Dow Jones Industrial)Solar Enertech Volatility and Downside Risk
Solar 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.
Solar Enertech Corp Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Solar Enertech pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Solar Enertech's price changes. Investors will then calculate the volatility of Solar Enertech'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 Solar Enertech's volatility:
Historical Volatility
This type of pink sheet volatility measures Solar Enertech's fluctuations based on previous trends. It's commonly used to predict Solar Enertech'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 Solar Enertech'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 Solar Enertech'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. Solar Enertech Corp 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.
Solar Enertech Projected Return Density Against Market
Given the investment horizon of 90 days Solar Enertech Corp has a beta of -0.4916 . This usually implies as returns on the benchmark increase, returns on holding Solar Enertech are expected to decrease at a much lower rate. During a bear market, however, Solar Enertech Corp 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 Solar Enertech or Semiconductors & Semiconductor Equipment 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 Solar Enertech'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 Solar 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.
Solar Enertech Corp has an alpha of 0.7728, implying that it can generate a 0.77 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
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What Drives a Solar Enertech 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.Solar Enertech Pink Sheet Return Volatility
Solar Enertech historical daily return volatility represents how much of Solar Enertech pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 14.2919% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7474% 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 Solar Pink Sheet performing well and Solar Enertech 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 Solar Enertech'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 | ||
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| XDSL | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| OPVS | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| SNRS | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| TRSI | 9.97 | (2.51) | 0.00 | 1.96 | 0.00 | 18.18 | 77.27 | |||
| BRZV | 17.74 | 7.82 | 0.00 | 143.72 | 0.00 | 33.33 | 508.33 | |||
| FRGY | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| GSLO | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| KALG | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| MBCI | 6.00 | 2.12 | 0.00 | (0.98) | 0.00 | 0.00 | 266.67 | |||
| NTAC | 4.53 | 0.68 | 0.00 | (0.38) | 0.00 | 0.00 | 210.00 |
About Solar Enertech Volatility
Volatility is a rate at which the price of Solar Enertech 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 Solar Enertech may increase or decrease. In other words, similar to Solar's beta indicator, it measures the risk of Solar Enertech and helps estimate the fluctuations that may happen in a short period of time. So if prices of Solar Enertech 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.Solar EnerTech Corp. operates as a photovoltaic solar energy cell manufacturing company. Solar EnerTech Corp. was incorporated in 2004 is headquartered in Mountain View, California. SOLAR ENERTECH operates under Solar classification in the United States and is traded on OTC Exchange. It employs 290 people.
Solar Enertech'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 Solar Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Solar Enertech's price varies over time.
3 ways to utilize Solar Enertech's volatility to invest better
Higher Solar Enertech's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Solar Enertech Corp 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. Solar Enertech Corp 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 Solar Enertech Corp investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Solar Enertech'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 Solar Enertech's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Solar Enertech Investment Opportunity
Solar Enertech Corp has a volatility of 14.29 and is 19.05 times more volatile than Dow Jones Industrial. 96 percent of all equities and portfolios are less risky than Solar Enertech. You can use Solar Enertech Corp to protect your portfolios against small market fluctuations. The pink sheet experiences a normal downward fluctuation but is a risky buy. Check odds of Solar Enertech to be traded at $1.0E-4 in 90 days.Significant diversification
The correlation between Solar Enertech Corp and DJI is 0.06 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Solar Enertech Corp and DJI in the same portfolio, assuming nothing else is changed.
Solar Enertech Additional Risk Indicators
The analysis of Solar Enertech'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 Solar Enertech's investment and either accepting that risk or mitigating it. Along with some common measures of Solar Enertech 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 | 0.0492 | |||
| Market Risk Adjusted Performance | (1.51) | |||
| Mean Deviation | 3.01 | |||
| Coefficient Of Variation | 1827.74 | |||
| Standard Deviation | 13.85 | |||
| Variance | 191.72 | |||
| Information Ratio | 0.0503 |
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.
Solar Enertech 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 Solar Enertech 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. Solar Enertech'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, Solar Enertech'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 Solar Enertech Corp.
Other Information on Investing in Solar Pink Sheet
Solar Enertech financial ratios help investors to determine whether Solar 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 Solar with respect to the benefits of owning Solar Enertech security.