Cbdmd Inc Preferred Stock Volatility
| YCBD-PA Preferred Stock | USD 0.71 0.09 14.52% |
CbdMD appears to be out of control, given 3 months investment horizon. cbdMD Inc secures Sharpe Ratio (or Efficiency) of 0.15, which signifies that the company had a 0.15% return per unit of standard deviation over the last 3 months. By analyzing CbdMD's technical indicators, you can evaluate if the expected return of 0.77% is justified by implied risk. Please makes use of CbdMD's Risk Adjusted Performance of 0.1382, mean deviation of 3.81, and Semi Deviation of 3.52 to double-check if our risk estimates are consistent with your expectations. Key indicators related to CbdMD's volatility include:
720 Days Market Risk | Chance Of Distress | 720 Days Economic Sensitivity |
CbdMD Preferred 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 CbdMD daily returns, and it is calculated using variance and standard deviation. We also use CbdMD's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of CbdMD volatility.
CbdMD |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as CbdMD can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game as hey may decide to buy additional stocks of CbdMD at lower prices to lower their average cost per share. Similarly, when the prices of CbdMD's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with CbdMD Preferred Stock
Moving against CbdMD Preferred Stock
| 0.8 | WUHN | Wuhan General Gr | PairCorr |
| 0.59 | ELAN | Elanco Animal Health Sell-off Trend | PairCorr |
| 0.39 | CGC | Canopy Growth Corp | PairCorr |
| 0.38 | DRRX | Durect | PairCorr |
| 0.32 | ACB | Aurora Cannabis | PairCorr |
CbdMD Market Sensitivity And Downside Risk
CbdMD's beta coefficient measures the volatility of CbdMD preferred 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 CbdMD preferred stock's returns against your selected market. In other words, CbdMD's beta of -0.61 provides an investor with an approximation of how much risk CbdMD preferred stock can potentially add to one of your existing portfolios. cbdMD Inc shows above-average downside volatility for the selected time horizon. cbdMD Inc is a potential penny preferred stock. Although CbdMD may be in fact a good instrument to invest, many penny preferred 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 cbdMD Inc. 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 CbdMD instrument if you perfectly time your entry and exit. However, remember that penny preferred stocks 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 cbdMD Inc Demand TrendCheck current 90 days CbdMD correlation with market (Dow Jones Industrial)CbdMD Beta |
CbdMD 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 | 5.24 |
It is essential to understand the difference between upside risk (as represented by CbdMD's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of CbdMD's daily returns or price. Since the actual investment returns on holding a position in cbdmd preferred 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 CbdMD.
cbdMD Inc Preferred Stock Volatility Analysis
Volatility refers to the frequency at which CbdMD preferred stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with CbdMD's price changes. Investors will then calculate the volatility of CbdMD's preferred stock to predict their future moves. A preferred stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A preferred stock with relatively stable price changes has low volatility. A highly volatile preferred 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 CbdMD's volatility:
Historical Volatility
This type of preferred stock volatility measures CbdMD's fluctuations based on previous trends. It's commonly used to predict CbdMD's future behavior based on its past. However, it cannot conclusively determine the future direction of the preferred stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for CbdMD's current market price. This means that the preferred stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on CbdMD'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. cbdMD Inc 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.
CbdMD Projected Return Density Against Market
Assuming the 90 days trading horizon cbdMD Inc has a beta of -0.6116 . This entails as returns on the benchmark increase, returns on holding CbdMD are expected to decrease at a much lower rate. During a bear market, however, cbdMD Inc 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 CbdMD 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 CbdMD's price will be affected by overall preferred 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 CbdMD preferred 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.
CbdMD Inc has an alpha of 1.0461, implying that it can generate a 1.05 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a CbdMD Price Volatility?
Several factors can influence a preferred 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.CbdMD Preferred Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of CbdMD is 682.08. The daily returns are distributed with a variance of 27.42 and standard deviation of 5.24. The mean deviation of cbdMD Inc is currently at 3.36. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 1.05 | |
β | Beta against Dow Jones | -0.61 | |
σ | Overall volatility | 5.24 | |
Ir | Information ratio | 0.15 |
CbdMD Preferred Stock Return Volatility
CbdMD historical daily return volatility represents how much of CbdMD preferred stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 5.236% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7608% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About CbdMD Volatility
Volatility is a rate at which the price of CbdMD 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 CbdMD may increase or decrease. In other words, similar to CbdMD's beta indicator, it measures the risk of CbdMD and helps estimate the fluctuations that may happen in a short period of time. So if prices of CbdMD 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.cbdMD, Inc. produces and distributes various cannabidiol products. The company was formerly known as Level Brands, Inc. and changed its name to cbdMD, Inc. in May 2019. cbdMD, Inc. was incorporated in 2015 and is headquartered in Charlotte, North Carolina. CbdMD Inc is traded on ASE Exchange in the United States.
CbdMD'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 CbdMD Preferred Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much CbdMD's price varies over time.
3 ways to utilize CbdMD's volatility to invest better
Higher CbdMD's preferred stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of cbdMD Inc preferred 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. cbdMD Inc preferred 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 cbdMD Inc investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in CbdMD's preferred 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 CbdMD's preferred stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
CbdMD Investment Opportunity
cbdMD Inc has a volatility of 5.24 and is 6.89 times more volatile than Dow Jones Industrial. 46 percent of all equities and portfolios are less risky than CbdMD. You can use cbdMD Inc to enhance the returns of your portfolios. The preferred stock experiences a very speculative upward sentiment. Check odds of CbdMD to be traded at $0.8875 in 90 days.Good diversification
The correlation between cbdMD Inc and DJI is -0.08 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding cbdMD Inc and DJI in the same portfolio, assuming nothing else is changed.
CbdMD Additional Risk Indicators
The analysis of CbdMD'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 CbdMD's investment and either accepting that risk or mitigating it. Along with some common measures of CbdMD preferred 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 | 0.1382 | |||
| Market Risk Adjusted Performance | (1.60) | |||
| Mean Deviation | 3.81 | |||
| Semi Deviation | 3.52 | |||
| Downside Deviation | 4.99 | |||
| Coefficient Of Variation | 588.93 | |||
| Standard Deviation | 5.86 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential preferred stocks, we recommend comparing similar preferred stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
CbdMD 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 CbdMD 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. CbdMD'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, CbdMD'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 cbdMD Inc.
Complementary Tools for CbdMD Preferred Stock analysis
When running CbdMD's price analysis, check to measure CbdMD's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy CbdMD is operating at the current time. Most of CbdMD's value examination focuses on studying past and present price action to predict the probability of CbdMD's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CbdMD's price. Additionally, you may evaluate how the addition of CbdMD to your portfolios can decrease your overall portfolio volatility.
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