Stoke Therapeutics Stock Volatility
| STOK Stock | USD 11.43 0.16 1.42% |
Stoke Therapeutics owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0725, which indicates the firm had a -0.0725% return per unit of risk over the last 3 months. Stoke Therapeutics exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Stoke Therapeutics' Coefficient Of Variation of (1,702), variance of 13.18, and Risk Adjusted Performance of (0.04) to confirm the risk estimate we provide. Key indicators related to Stoke Therapeutics' volatility include:
360 Days Market Risk | Chance Of Distress | 360 Days Economic Sensitivity |
Stoke Therapeutics 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 Stoke daily returns, and it is calculated using variance and standard deviation. We also use Stoke's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Stoke Therapeutics volatility.
Stoke |
ESG Sustainability
While most ESG disclosures are voluntary, Stoke Therapeutics' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Stoke Therapeutics' 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 Stoke Therapeutics at lower prices. For example, an investor can purchase Stoke 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 Stoke Stock
Stoke Therapeutics Market Sensitivity And Downside Risk
Stoke Therapeutics' beta coefficient measures the volatility of Stoke 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 Stoke stock's returns against your selected market. In other words, Stoke Therapeutics's beta of 1.32 provides an investor with an approximation of how much risk Stoke Therapeutics stock can potentially add to one of your existing portfolios. Stoke Therapeutics exhibits very low volatility with skewness of -0.74 and kurtosis of 2.37. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Stoke Therapeutics' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Stoke Therapeutics' 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 Stoke Therapeutics Demand TrendCheck current 90 days Stoke Therapeutics correlation with market (Dow Jones Industrial)Stoke Beta |
Stoke 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 | 3.64 |
It is essential to understand the difference between upside risk (as represented by Stoke Therapeutics's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Stoke Therapeutics' daily returns or price. Since the actual investment returns on holding a position in stoke stock 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 Stoke Therapeutics.
Stoke Therapeutics Stock Volatility Analysis
Volatility refers to the frequency at which Stoke Therapeutics stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Stoke Therapeutics' price changes. Investors will then calculate the volatility of Stoke Therapeutics' 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 Stoke Therapeutics' volatility:
Historical Volatility
This type of stock volatility measures Stoke Therapeutics' fluctuations based on previous trends. It's commonly used to predict Stoke Therapeutics' 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 Stoke Therapeutics' 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 Stoke Therapeutics' 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. Stoke Therapeutics 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.
Stoke Therapeutics Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 1.3213 . 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, Stoke Therapeutics 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 Stoke Therapeutics or Biotechnology 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 Stoke Therapeutics' 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 Stoke 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.
Stoke Therapeutics 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 |
What Drives a Stoke Therapeutics 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 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.Stoke Therapeutics Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Stoke Therapeutics is -1379.23. The daily returns are distributed with a variance of 13.28 and standard deviation of 3.64. The mean deviation of Stoke Therapeutics is currently at 2.62. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | -0.38 | |
β | Beta against Dow Jones | 1.32 | |
σ | Overall volatility | 3.64 | |
Ir | Information ratio | -0.09 |
Stoke Therapeutics Stock Return Volatility
Stoke Therapeutics historical daily return volatility represents how much of Stoke Therapeutics stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 3.6447% 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 Stoke Therapeutics Volatility
Volatility is a rate at which the price of Stoke Therapeutics 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 Stoke Therapeutics may increase or decrease. In other words, similar to Stoke's beta indicator, it measures the risk of Stoke Therapeutics and helps estimate the fluctuations that may happen in a short period of time. So if prices of Stoke Therapeutics 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 | 2 M | 1.8 M | |
| Market Cap | 231.4 M | 219.8 M |
Stoke Therapeutics' 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 Stoke Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Stoke Therapeutics' price varies over time.
3 ways to utilize Stoke Therapeutics' volatility to invest better
Higher Stoke Therapeutics' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Stoke Therapeutics 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. Stoke Therapeutics 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 Stoke Therapeutics investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Stoke Therapeutics' 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 Stoke Therapeutics' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Stoke Therapeutics Investment Opportunity
Stoke Therapeutics has a volatility of 3.64 and is 4.79 times more volatile than Dow Jones Industrial. 32 percent of all equities and portfolios are less risky than Stoke Therapeutics. You can use Stoke Therapeutics to enhance the returns of your portfolios. The stock experiences a large bullish trend. Check odds of Stoke Therapeutics to be traded at $12.57 in 90 days.Modest diversification
The correlation between Stoke Therapeutics and DJI is 0.28 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Stoke Therapeutics and DJI in the same portfolio, assuming nothing else is changed.
Stoke Therapeutics Additional Risk Indicators
The analysis of Stoke Therapeutics' 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 Stoke Therapeutics' investment and either accepting that risk or mitigating it. Along with some common measures of Stoke Therapeutics 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 | (0.16) | |||
| Mean Deviation | 2.63 | |||
| Coefficient Of Variation | (1,702) | |||
| Standard Deviation | 3.63 | |||
| Variance | 13.18 | |||
| Information Ratio | (0.09) |
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.
Stoke Therapeutics 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 Stoke Therapeutics 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. Stoke Therapeutics' 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, Stoke Therapeutics' 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 Stoke Therapeutics.
When determining whether Stoke Therapeutics is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Stoke Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Stoke Therapeutics Stock. Highlighted below are key reports to facilitate an investment decision about Stoke Therapeutics Stock: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Stoke Therapeutics. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons. For more information on how to buy Stoke Stock please use our How to buy in Stoke Stock guide.You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Is Biotechnology 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 Stoke Therapeutics. If investors know Stoke 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. All the valuation information about Stoke Therapeutics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (2.08) | Revenue Per Share 0.328 | Quarterly Revenue Growth 0.479 | Return On Assets (0.28) | Return On Equity (0.52) |
The market value of Stoke Therapeutics is measured differently than its book value, which is the value of Stoke that is recorded on the company's balance sheet. Investors also form their own opinion of Stoke Therapeutics' value that differs from its market value or its book value, called intrinsic value, which is Stoke Therapeutics' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Stoke Therapeutics' market value can be influenced by many factors that don't directly affect Stoke Therapeutics' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Stoke Therapeutics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Stoke Therapeutics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Stoke Therapeutics' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.