MPC Energy (Norway) Volatility
| MPCES Stock | NOK 9.70 0.24 2.41% |
MPC Energy Solutions retains Efficiency (Sharpe Ratio) of close to zero, which conveys that the firm had a close to zero % return per unit of risk over the last 3 months. MPC Energy exposes twenty-eight different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify MPC Energy's Mean Deviation of 1.01, market risk adjusted performance of (0.35), and Semi Deviation of 1.2 to check out the risk estimate we provide. Key indicators related to MPC Energy's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
MPC Energy 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 MPC daily returns, and it is calculated using variance and standard deviation. We also use MPC's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of MPC Energy volatility.
MPC |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as MPC Energy 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 MPC Energy at lower prices. For example, an investor can purchase MPC 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 MPC Energy's 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.
MPC Energy Market Sensitivity And Downside Risk
MPC Energy's beta coefficient measures the volatility of MPC 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 MPC stock's returns against your selected market. In other words, MPC Energy's beta of -0.0794 provides an investor with an approximation of how much risk MPC Energy stock can potentially add to one of your existing portfolios. MPC Energy Solutions has relatively low volatility with skewness of 1.12 and kurtosis of 5.82. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure MPC Energy's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact MPC Energy's 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 MPC Energy Solutions Demand TrendCheck current 90 days MPC Energy correlation with market (Dow Jones Industrial)MPC Beta |
MPC 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 | 1.56 |
It is essential to understand the difference between upside risk (as represented by MPC Energy's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of MPC Energy's daily returns or price. Since the actual investment returns on holding a position in mpc 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 MPC Energy.
MPC Energy Solutions Stock Volatility Analysis
Volatility refers to the frequency at which MPC Energy stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with MPC Energy's price changes. Investors will then calculate the volatility of MPC Energy's 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 MPC Energy's volatility:
Historical Volatility
This type of stock volatility measures MPC Energy's fluctuations based on previous trends. It's commonly used to predict MPC Energy's 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 MPC Energy's 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 MPC Energy'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. Developed by Larry Williams, the Weighted Close is the average of MPC Energy Solutions high, low and close of a chart with the close values weighted twice. It can be used to smooth an indicator that normally takes only MPC Energy closing price as input.
MPC Energy Projected Return Density Against Market
Assuming the 90 days trading horizon MPC Energy Solutions has a beta of -0.0794 . This indicates as returns on the benchmark increase, returns on holding MPC Energy are expected to decrease at a much lower rate. During a bear market, however, MPC Energy Solutions 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 MPC Energy or Utilities 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 MPC Energy's 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 MPC 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.
MPC Energy Solutions has an alpha of 0.0391, implying that it can generate a 0.0391 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a MPC Energy 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.MPC Energy Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of MPC Energy is -11334.74. The daily returns are distributed with a variance of 2.43 and standard deviation of 1.56. The mean deviation of MPC Energy Solutions is currently at 1.05. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.7
α | Alpha over Dow Jones | 0.04 | |
β | Beta against Dow Jones | -0.08 | |
σ | Overall volatility | 1.56 | |
Ir | Information ratio | -0.07 |
MPC Energy Stock Return Volatility
MPC Energy historical daily return volatility represents how much of MPC Energy stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm accepts 1.5575% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.676% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About MPC Energy Volatility
Volatility is a rate at which the price of MPC Energy 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 MPC Energy may increase or decrease. In other words, similar to MPC's beta indicator, it measures the risk of MPC Energy and helps estimate the fluctuations that may happen in a short period of time. So if prices of MPC Energy 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.MPC Energy Solutions NV develop, construct, distribute, own, and operate renewable energy assets globally. The company offers sustainable energy and primarily focuses on low-carbon energy infrastructure, including solar assets, wind assets, hybrid assets, and energy efficiency solutions. MPC ENERGY is traded on Oslo Stock Exchange in Norway.
MPC Energy'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 MPC Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much MPC Energy's price varies over time.
3 ways to utilize MPC Energy's volatility to invest better
Higher MPC Energy's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of MPC Energy Solutions 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. MPC Energy Solutions 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 MPC Energy Solutions investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in MPC Energy'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 MPC Energy's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
MPC Energy Investment Opportunity
MPC Energy Solutions has a volatility of 1.56 and is 2.29 times more volatile than Dow Jones Industrial. 13 percent of all equities and portfolios are less risky than MPC Energy. You can use MPC Energy Solutions to protect your portfolios against small market fluctuations. The stock experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of MPC Energy to be traded at 9.31 in 90 days.Good diversification
The correlation between MPC Energy Solutions and DJI is -0.04 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding MPC Energy Solutions and DJI in the same portfolio, assuming nothing else is changed.
MPC Energy Additional Risk Indicators
The analysis of MPC Energy'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 MPC Energy's investment and either accepting that risk or mitigating it. Along with some common measures of MPC Energy 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 | 0.0233 | |||
| Market Risk Adjusted Performance | (0.35) | |||
| Mean Deviation | 1.01 | |||
| Semi Deviation | 1.2 | |||
| Downside Deviation | 1.57 | |||
| Coefficient Of Variation | 3890.45 | |||
| Standard Deviation | 1.51 |
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.
MPC Energy 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 MPC Energy 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. MPC Energy'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, MPC Energy'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 MPC Energy Solutions.
Other Information on Investing in MPC Stock
MPC Energy financial ratios help investors to determine whether MPC 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 MPC with respect to the benefits of owning MPC Energy security.