Stemtech Stock Volatility

STEK Stock  USD 0.0006  0.0001  14.29%   
Stemtech owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.2, which indicates the firm had a -0.2 % return per unit of risk over the last 3 months. Stemtech exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Stemtech's Coefficient Of Variation of (453.15), variance of 187.0, and Risk Adjusted Performance of (0.16) to confirm the risk estimate we provide.

Sharpe Ratio = -0.1956

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Negative ReturnsSTEK
Based on monthly moving average Stemtech 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 Stemtech by adding Stemtech to a well-diversified portfolio.
Key indicators related to Stemtech's volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
Stemtech 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 Stemtech daily returns, and it is calculated using variance and standard deviation. We also use Stemtech's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Stemtech volatility.
  
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Stemtech at lower prices. For example, an investor can purchase Stemtech 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 Stemtech's market risk premium analysis include:
Beta
2.97
Alpha
(3.27)
Risk
13.88
Sharpe Ratio
(0.20)
Expected Return
(2.71)

Moving together with Stemtech OTC Stock

  0.8FNMFO Federal National Mortgage Downward RallyPairCorr
  0.78HPQ HP IncPairCorr
  0.71HD Home DepotPairCorr

Moving against Stemtech OTC Stock

  0.93BCH Banco De ChilePairCorr
  0.86TEVA Teva Pharma IndustriesPairCorr
  0.84TEVA Teva PharmaceuticalPairCorr
  0.83F Ford MotorPairCorr
  0.8HLN Haleon plcPairCorr
  0.77HLNCF Haleon plcPairCorr
  0.76KB KB Financial GroupPairCorr
  0.76WSFS WSFS FinancialPairCorr
  0.75SHG Shinhan FinancialPairCorr
  0.7AVAL Grupo AvalPairCorr

Stemtech Market Sensitivity And Downside Risk

Stemtech's beta coefficient measures the volatility of Stemtech 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 Stemtech otc stock's returns against your selected market. In other words, Stemtech's beta of 2.97 provides an investor with an approximation of how much risk Stemtech otc stock can potentially add to one of your existing portfolios. Stemtech is displaying above-average volatility over the selected time horizon. Stemtech appears to be a penny stock. Although Stemtech may be, in fact, a solid short-term or long term investment, many penny otc stocks 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 Stemtech 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 Stemtech 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.
Check current 90 days Stemtech correlation with market (Dow Jones Industrial)
α-3.27   β2.97
3 Months Beta |Analyze Stemtech Demand Trend
Check current 90 days Stemtech correlation with market (Dow Jones Industrial)

Stemtech Volatility and Downside Risk

Stemtech 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.

Stemtech OTC Stock Volatility Analysis

Volatility refers to the frequency at which Stemtech otc price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Stemtech's price changes. Investors will then calculate the volatility of Stemtech'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 Stemtech's volatility:

Historical Volatility

This type of otc volatility measures Stemtech's fluctuations based on previous trends. It's commonly used to predict Stemtech'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 Stemtech'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 Stemtech'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. Stemtech 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.

Stemtech Projected Return Density Against Market

Given the investment horizon of 90 days the otc stock has the beta coefficient of 2.9709 . 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, Stemtech 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 Stemtech or Healthcare 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 Stemtech'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 Stemtech 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.
Stemtech 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  
Stemtech's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how stemtech otc stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Stemtech 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.

Stemtech OTC Stock Risk Measures

Given the investment horizon of 90 days the coefficient of variation of Stemtech is -511.38. The daily returns are distributed with a variance of 192.53 and standard deviation of 13.88. The mean deviation of Stemtech is currently at 10.36. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.75
α
Alpha over Dow Jones
-3.27
β
Beta against Dow Jones2.97
σ
Overall volatility
13.88
Ir
Information ratio -0.23

Stemtech OTC Stock Return Volatility

Stemtech historical daily return volatility represents how much of Stemtech otc's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 13.8756% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7049% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

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

TRLFFVRTHF
DYNTSTSN
XBRAFGRCU
ERBBGRPS
DYNTGRPS
GRPSXBRAF
  

High negative correlations

TRLFFNRXCF
NRXCFVRTHF
STSNERBB
DYNTGRCU
STSNGRPS
STSNGRCU

Risk-Adjusted Indicators

There is a big difference between Stemtech OTC Stock performing well and Stemtech 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 Stemtech'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 DeviationJensen AlphaSortino RatioTreynor RatioSemi DeviationExpected ShortfallPotential UpsideValue @RiskMaximum Drawdown
GRCU  27.78  8.02  0.16  2.25  20.02 
 100.00 
 150.00 
VRTHF  0.00  0.00  0.00  0.00  0.00 
 0.00 
 0.00 
XBRAF  18.15  4.87  0.10  2.23  17.21 
 78.46 
 215.18 
GRPS  8.88  1.56  0.03 (0.15) 10.90 
 50.00 
 83.33 
GEATF  0.00  0.00  0.00  0.00  0.00 
 0.00 
 0.00 
ERBB  14.35  2.22  0.07  1.16  14.03 
 50.00 
 83.33 
NRXCF  0.00  0.00  0.00  0.00  0.00 
 0.00 
 0.00 
TRLFF  0.00  0.00  0.00  0.00  0.00 
 0.00 
 0.00 
STSN  6.58 (0.89) 0.00 (0.23) 0.00 
 26.67 
 63.33 
DYNT  5.50 (0.48) 0.00 (0.94) 0.00 
 18.75 
 49.51 

About Stemtech Volatility

Volatility is a rate at which the price of Stemtech 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 Stemtech may increase or decrease. In other words, similar to Stemtech's beta indicator, it measures the risk of Stemtech and helps estimate the fluctuations that may happen in a short period of time. So if prices of Stemtech 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.
Stemtech Corporation, a stem cell nutrition company, develops science-based products to help the body maintain healthy stem cell physiology in the Americas, Latin America, and Asia. It offers its dietary supplement products under the RCM System, stemrelease3, Stemflo MigraStem, DermaStem, DermaStem Lift, OraStem, and D-Fuze brands. Stemtech Corp operates under Drug ManufacturersSpecialty Generic classification in the United States and is traded on OTC Exchange.
Stemtech'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 Stemtech OTC Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Stemtech's price varies over time.

3 ways to utilize Stemtech's volatility to invest better

Higher Stemtech's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Stemtech 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. Stemtech 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 Stemtech investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Stemtech'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 Stemtech's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Stemtech Investment Opportunity

Stemtech has a volatility of 13.88 and is 19.83 times more volatile than Dow Jones Industrial. 96 percent of all equities and portfolios are less risky than Stemtech. You can use Stemtech 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 Stemtech to be traded at $6.0E-4 in 90 days.

Average diversification

The correlation between Stemtech and DJI is 0.16 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Stemtech and DJI in the same portfolio, assuming nothing else is changed.

Stemtech Additional Risk Indicators

The analysis of Stemtech'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 Stemtech's investment and either accepting that risk or mitigating it. Along with some common measures of Stemtech 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.
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.

Stemtech 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 Stemtech 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. Stemtech'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, Stemtech'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 Stemtech.

Other Information on Investing in Stemtech OTC Stock

Stemtech financial ratios help investors to determine whether Stemtech 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 Stemtech with respect to the benefits of owning Stemtech security.