Lightning Emotors Stock Volatility
| ZEVY Stock | 0.0001 0.00 0.00% |
Lightning EMotors is out of control given 3 months investment horizon. Lightning eMotors has Sharpe Ratio of 0.11, which conveys that the firm had a 0.11 % return per unit of risk over the last 3 months. We were able to interpolate and analyze data for seventeen different technical indicators, which can help you to evaluate if expected returns of 14.53% are justified by taking the suggested risk. Use Lightning eMotors Risk Adjusted Performance of 0.0994, mean deviation of 295.5, and Standard Deviation of 1218.85 to evaluate company specific risk that cannot be diversified away.
Lightning |
Lightning EMotors 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 Lightning daily returns, and it is calculated using variance and standard deviation. We also use Lightning's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Lightning EMotors volatility.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Lightning EMotors 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 Lightning EMotors at lower prices. For example, an investor can purchase Lightning 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 Lightning EMotors' 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 Lightning EMotors' market risk premium analysis include:
Moving against Lightning Pink Sheet
| 0.48 | AXP | American Express | PairCorr |
| 0.45 | HD | Home Depot | PairCorr |
| 0.45 | IBM | International Business | PairCorr |
| 0.44 | META | Meta Platforms Aggressive Push | PairCorr |
| 0.42 | AMZN | Amazon Inc Earnings Call Tomorrow | PairCorr |
| 0.39 | BAC | Bank of America Aggressive Push | PairCorr |
| 0.37 | SHPHF | Sihuan Pharmaceutical | PairCorr |
| 0.36 | BA | Boeing | PairCorr |
| 0.36 | JPM | JPMorgan Chase | PairCorr |
| 0.34 | TSM | Taiwan Semiconductor | PairCorr |
Lightning EMotors Market Sensitivity And Downside Risk
Lightning EMotors' beta coefficient measures the volatility of Lightning 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 Lightning pink sheet's returns against your selected market. In other words, Lightning EMotors's beta of -318.46 provides an investor with an approximation of how much risk Lightning EMotors pink sheet can potentially add to one of your existing portfolios. Lightning eMotors is displaying above-average volatility over the selected time horizon. Lightning eMotors appears to be a penny stock. Although Lightning eMotors 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 Lightning eMotors 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 Lightning 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.
| α | 162.18 | β | -318.46 | Check current 90 days Lightning EMotors correlation with market (Dow Jones Industrial)
Lightning EMotors Volatility and Downside Risk
Lightning 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.
Lightning eMotors Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Lightning EMotors pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Lightning EMotors' price changes. Investors will then calculate the volatility of Lightning EMotors' 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 Lightning EMotors' volatility:
Historical Volatility
This type of pink sheet volatility measures Lightning EMotors' fluctuations based on previous trends. It's commonly used to predict Lightning EMotors' 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 Lightning EMotors' 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 Lightning EMotors' 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. Lightning eMotors 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.
Lightning EMotors Projected Return Density Against Market
Given the investment horizon of 90 days Lightning eMotors has a beta of -318.4605 . This usually means as returns on its benchmark rise, returns on holding Lightning eMotors are expected to decrease by similarly larger amounts. On the other hand, during market turmoils, Lightning EMotors is expected to outperform its benchmark.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 Lightning EMotors or Lightning 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 Lightning EMotors' 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 Lightning 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.
Predicted Return Density |
| Returns |
What Drives a Lightning EMotors 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 investor attention to the company. This positive attention may impact the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Lightning EMotors Pink Sheet Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Lightning EMotors is 879.6. The daily returns are distributed with a variance of 16339.47 and standard deviation of 127.83. The mean deviation of Lightning eMotors is currently at 31.79. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.73
α | Alpha over Dow Jones | 162.18 | |
β | Beta against Dow Jones | -318.46 | |
σ | Overall volatility | 127.83 | |
Ir | Information ratio | 0.12 |
Lightning EMotors Pink Sheet Return Volatility
Lightning EMotors historical daily return volatility represents how much of Lightning EMotors pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 127.8259% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7511% 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
| High negative correlations
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Risk-Adjusted Indicators
There is a big difference between Lightning Pink Sheet performing well and Lightning EMotors 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 Lightning EMotors' 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| KARE | 2.98 | 1.49 | 0.00 | 4.36 | 0.00 | 0.00 | 100.00 | |||
| TDYT | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| TCGN | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| BWOWF | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| PMAH | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| SYVN | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| EKSN | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| MCELQ | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| SLUP | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| TFRY | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Lightning EMotors Investment Opportunity
Lightning eMotors has a volatility of 127.83 and is 170.44 times more volatile than Dow Jones Industrial. 96 percent of all equities and portfolios are less risky than Lightning EMotors. You can use Lightning eMotors to protect your portfolios against small market fluctuations. The pink sheet experiences a normal downward fluctuation but is a risky buy. Check odds of Lightning EMotors to be traded at 1.0E-4 in 90 days.Excellent diversification
The correlation between Lightning eMotors and DJI is -0.55 (i.e., Excellent diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Lightning eMotors and DJI in the same portfolio, assuming nothing else is changed.
Lightning EMotors Additional Risk Indicators
The analysis of Lightning EMotors' 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 Lightning EMotors' investment and either accepting that risk or mitigating it. Along with some common measures of Lightning EMotors 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 | 0.0994 | |||
| Market Risk Adjusted Performance | (0.46) | |||
| Mean Deviation | 295.5 | |||
| Coefficient Of Variation | 820.78 | |||
| Standard Deviation | 1218.85 | |||
| Variance | 1485605.42 | |||
| Information Ratio | 0.1218 |
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.
Lightning EMotors 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 Lightning EMotors 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. Lightning EMotors' 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, Lightning EMotors' 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 Lightning eMotors.
Additional Tools for Lightning Pink Sheet Analysis
When running Lightning EMotors' price analysis, check to measure Lightning EMotors' 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 Lightning EMotors is operating at the current time. Most of Lightning EMotors' value examination focuses on studying past and present price action to predict the probability of Lightning EMotors' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Lightning EMotors' price. Additionally, you may evaluate how the addition of Lightning EMotors to your portfolios can decrease your overall portfolio volatility.