Energy Recovery Stock Volatility
| ERII Stock | USD 9.48 0.02 0.21% |
Recent trading patterns suggest Energy Recovery maintains relatively low price volatility over the last 3 months. The current Sharpe ratio for Energy Recovery is -0.0949, showing negative reward per unit of risk over the last 3 months. Current risk dynamics are supported by 24 technical indicators.
Sharpe Ratio = -0.0949
| High Returns | Best Equity | |||
| Good Returns | ||||
| Average Returns | ||||
| Small Returns | ||||
| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
| Negative Returns | ERII |
Energy Recovery posted a Market Risk Adjusted Performance of -0.4%, a Risk of 4.92, and a Risk Adjusted Performance of -0.1% for the reported period. Moving average data indicates Energy Recovery is not operating at maximum efficiency. Including it in a well-diversified portfolio may reduce unsystematic risk and improve returns. Within a multi-asset framework, Energy Recovery position sizing affects the overall risk-return balance. This analysis highlights the gap between Energy Recovery standalone and portfolio-level performance.
Key indicators related to Energy Recovery's volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Volatility analysis for Energy Recovery draws on both historical price data and forward-looking implied volatility. Periods of elevated Energy Recovery volatility are typically followed by calmer conditions, and vice versa. The odds of financial distress provide a fundamental complement to statistical volatility measures for Energy Recovery. A high-volatility Energy Recovery's environment expands both upside and downside scenarios for Energy Recovery investors.
Volatility Strategy
Observed trading dispersion in Energy Recovery can affect long-term allocation structure. Current statistical measures show total volatility near 4.92% with a beta coefficient of 1.25, indicating sensitivity relative to the broader market benchmark. Risk-adjusted efficiency, represented by a Sharpe ratio of -0.0949, evaluates return per unit of total risk. An alpha value of -0.39 reflects performance relative to systematic market exposure. Expected return estimates near -0.47% are derived from historical distribution modeling and help frame forward-looking return assumptions within a portfolio context. Equity volatility may reflect changes in growth expectations.
Main indicators related to Energy Recovery's market risk premium analysis include:
Beta 1.25 | Alpha -0.39 | Risk 4.92 | Sharpe Ratio -0.09 | Expected Return -0.47 |
Moving together with Energy Stock
| 0.73 | EPAC | Enerpac Tool Group Earnings Call This Week | PairCorr |
| 0.73 | ESAB | ESAB Corp | PairCorr |
| 0.82 | CXT | Crane NXT | PairCorr |
| 0.78 | DCI | Donaldson | PairCorr |
| 0.9 | GF | Georg Fischer AG | PairCorr |
Moving against Energy Stock
| 0.42 | CE3 | Chongqing Machinery | PairCorr |
| 0.38 | RFG | Roebuck Food Group | PairCorr |
| 0.35 | PL | Planet Labs PBC Trending | PairCorr |
Sensitivity To Market
Energy Recovery systematic risk exposure is reflected in a beta value of 1.25. Beta is derived from regression analysis comparing asset and benchmark returns. Measured volatility currently stands near 4.92%.Over the current lookback period, Energy Recovery shows a forward elevated volatility profile, using downside deviation (0.0%) as a primary reference. Options markets imply a forward-looking volatility estimate near 92.0%. This suggests the market is pricing in the possibility of wider future price swings compared to recent historical dispersion. Equity volatility often increases when trading volume rises and spreads widen in fast markets.
3 Months Beta |Analyze Energy Recovery Demand TrendCheck current 90 days Energy Recovery correlation with market (Dow Jones Industrial)Downside Risk
Standard deviation for Energy expresses the daily price volatility as a spread around the mean. A large standard deviation indicates a volatile instrument; a small one indicates relative price stability. Energy standard deviation captures the average daily price deviation from the mean over the selected horizon. The daily dispersion captured by standard deviation is one of the most widely used risk metrics for Energy.
Standard Deviation | 4.92 |
For Energy Recovery investors, the distinction between upside and downside risk matters. Downside risk, the risk of loss specifically, is better measured by semi-deviation or downside deviation of Energy Recovery's returns. Standard deviation of Energy Recovery measures total price dispersion, including upside moves. Using both metrics together provides a more complete view of Energy Recovery's risk characteristics. Energy Recovery posted a Maximum Drawdown of 39.74 for the reported period.
Using Energy Put Option to Manage Risk Based on 2026-05-15 Contracts
Energy Recovery posted an Option Implied Volatility of 0.92 and an Option Max Pain Price of -1 for the reported period. One of the most common ways to protect a Energy Recovery investment is to purchase a put option on Energy Stock. Holding a put on Energy Stock locks in a minimum effective selling price for Energy Recovery during the option's life. For investors in Energy Recovery, put options serve as a relatively low-cost way to protect against unexpected price drops. The choice of strike and expiration for Energy Recovery puts determines the level and duration of protection on Energy Stock.
Energy Recovery's PUT expiring on 2026-05-15
Profit |
| Energy Recovery Price At Expiration |
Current Energy Recovery Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
| Put | ERII260515P00010000 | -0.51417 | 0.147118 | 202 | 2026-05-15 | 0.55 - 2.2 | 0.0 | View |
| Put | ERII260515P00012500 | 0.0 | 0.0 | 63 | 2026-05-15 | 2.4 - 3.5 | 0.0 | View |
| Put | ERII260515P00015000 | 0.0 | 0.0 | 22 | 2026-05-15 | 4.6 - 5.8 | 0.0 | View |
Stock Volatility Analysis
Volatility describes the degree to which Energy Recovery stock price fluctuates in either direction. It captures how much Energy Recovery's price fluctuates, helping investors set appropriate position sizes. Volatility in Energy Recovery reflects the degree of uncertainty around Energy Recovery's stock price. Periods of elevated volatility in Energy Recovery can reward disciplined traders while exposing long-term holders to drawdowns.
Transformation |
This analysis covers sixty-one data points across the selected time horizon. Energy Recovery 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.
Projected Return Density Against Market
Given the investment horizon of 90 days Energy Recovery has a beta of 1.2525 suggesting as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Energy Recovery will likely underperform.Systematic risk links Energy Recovery to overall stock market cycles, while unsystematic risk stems from company or sector-specific developments. Diversification addresses the latter, but macro sensitivity persists. Beta measures relative responsiveness. Energy Recovery posted a Mean Deviation of 2.06, an Option Implied Volatility of 0.92, and a Standard Deviation of 4.75 for the reported period.
Predicted Return Density |
| Returns |
What Drives Energy Recovery's Price Volatility?
Several factors can influence Energy Recovery's market volatility:Industry Dynamics
Sector-level events can directly affect Energy Recovery's price stability. Regulatory changes, supply disruptions, or shifts in demand within Energy Recovery's industry may create volatility even when the broader market is calm. Competitive dynamics and industry consolidation can also amplify price swings for companies like Energy Recovery.Political and Economic Environment
Macroeconomic conditions and policy decisions shape the backdrop for Energy Recovery's price movements. Interest rate changes, trade policy shifts, and fiscal legislation can all alter investor sentiment toward Energy Recovery. During periods of economic expansion, Energy Recovery's price tends to benefit from broader market optimism, while downturns can amplify selling pressure.Energy Recovery's Company-Specific Factors
Volatility can also stem from events unique to Energy Recovery. Earnings surprises, management changes, product launches, or legal developments may trigger sharp price reactions in Energy Recovery's stock. Conversely, operational setbacks, guidance revisions, or data breaches can weigh on Energy Recovery's share price.Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Energy Recovery is -1053.36. The daily returns are distributed with a variance of 24.21 and standard deviation of 4.92. The mean deviation of Energy Recovery is currently at 2.11. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.8
α | Alpha over Dow Jones | -0.3932 | |
β | Beta against Dow Jones | 1.25 | |
σ | Overall volatility | 4.92 | |
Ir | Information ratio | -0.088 |
Stock Return Volatility
Energy Recovery historical daily return volatility represents how much of Energy Recovery stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm reported 4.9208% volatility on return distribution over a 90-day investment horizon. By contrast, Dow Jones Industrial has volatility of 0.8242% on return distribution over a 90-day investment 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
|
Risk-Adjusted Indicators
There is a big difference between Energy Stock performing well and Energy Recovery Company doing well as a business compared to the competition. Risk-adjusted metrics allow investors to compare Energy Recovery's efficiency and downside exposure against peers in a more meaningful way. 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| UP | 5.02 | -0.02 | 0.00 | -0.11 | 0.00 | 7.58 | 61.04 | |||
| THR | 1.98 | 0.43 | 0.17 | 0.18 | 2.00 | 4.80 | 11.14 | |||
| MRTN | 1.69 | 0.24 | 0.08 | 0.05 | 2.07 | 4.22 | 14.15 | |||
| WLFC | 2.27 | 0.57 | 0.18 | 0.20 | 2.40 | 5.42 | 13.41 | |||
| MEG | 2.82 | -0.02 | 0.00 | -0.11 | 0.00 | 4.93 | 27.91 | |||
| AEBI | 2.15 | -0.19 | 0.00 | -0.18 | 0.00 | 4.08 | 18.78 | |||
| HTZ | 2.64 | -0.08 | 0.00 | -0.13 | 0.00 | 7.63 | 23.15 | |||
| SFL | 1.35 | 0.53 | 0.37 | 0.69 | 1.08 | 2.84 | 13.35 | |||
| GSL | 1.30 | 0.31 | 0.17 | 0.26 | 1.56 | 2.60 | 7.31 | |||
| PLPC | 2.44 | 0.43 | 0.11 | 0.14 | 3.07 | 4.31 | 14.23 |
Risk Metrics, Assumptions & Methodology
Volatility for Energy Recovery measures return dispersion and uncertainty over time. Range expansion increases sensitivity to market stress conditions. Energy Recovery has a market cap of 501.12 M, P/E of 47.23, ROE of 11.03%.
Inputs for Energy Recovery come from periodic company reporting and market reference feeds and are mapped into a consistent schema for analysis. Some fields can appear with publication lag. Volatility and downside metrics are estimated from historical return dispersion.
This content is curated and reviewed by:
Michael Smolkin - Member of Macroaxis Board of DirectorsEnergy Recovery Investment Opportunity
Recent data suggests that Energy Recovery is meaningfully more volatile than Dow Jones Industrial, by roughly a 6.0x factor. Across the current 90-day horizon, that places the security below 44% of the broader equity and portfolio universe on a pure volatility basis.You can use Energy Recovery to enhance the returns of the portfolio. This short-horizon strategy note focuses on what the latest move may imply for immediate trading context. It works best as a directional cue rather than as a standalone forecast. a normal upward fluctuation. Check odds of Energy Recovery to be traded at $9.95 in 90 days.Poor diversification
Energy Recovery currently posts a 0.77 correlation with Dow Jones, indicating a Poor diversification relationship for the active sample. In portfolio terms, the overlap shows how much shared movement remains after combining both positions.
Energy Recovery Additional Risk Indicators
Looking at additional risk metrics for Energy Recovery frames how the position may behave under different market and portfolio conditions. The practical goal is to identify how much risk is being accepted and whether that risk still fits the thesis.
| Risk Adjusted Performance | -0.08 | |||
| Market Risk Adjusted Performance | -0.40 | |||
| Mean Deviation | 2.06 | |||
| Coefficient Of Variation | -938.09 | |||
| Standard Deviation | 4.75 | |||
| Variance | 22.57 | |||
| Information Ratio | -0.09 |
Energy Recovery Suggested Diversification Pairs
Pair trading with Energy Recovery can help investors hedge some company-specific exposure by balancing a long view with an offsetting position. Used properly, pair trading is less about prediction in isolation and more about identifying relative mispricing between related positions.
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 Energy Recovery 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. Energy Recovery'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, Energy Recovery'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 Energy Recovery.
Popular Tools for Energy Stock analysis
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |