Sk3 Group Stock Volatility
Sk3 is out of control given 3 months investment horizon. Sk3 Group retains Efficiency (Sharpe Ratio) of 0.13, which indicates the firm had a 0.13 % return per unit of risk over the last 3 months. We were able to interpolate and analyze data for twelve different technical indicators, which can help you to evaluate if expected returns of 15.63% are justified by taking the suggested risk. Use Sk3 Group Standard Deviation of 125.0, market risk adjusted performance of 1.37, and Risk Adjusted Performance of 0.0821 to evaluate company specific risk that cannot be diversified away. Key indicators related to Sk3's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Sk3 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 Sk3 daily returns, and it is calculated using variance and standard deviation. We also use Sk3's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Sk3 volatility.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Sk3 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 Sk3 at lower prices. For example, an investor can purchase Sk3 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 Sk3'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.
Sk3 Market Sensitivity And Downside Risk
Sk3's beta coefficient measures the volatility of Sk3 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 Sk3 stock's returns against your selected market. In other words, Sk3's beta of 11.45 provides an investor with an approximation of how much risk Sk3 stock can potentially add to one of your existing portfolios. Sk3 Group is displaying above-average volatility over the selected time horizon. You can indeed make money on Sk3 instrument if you perfectly time your entry and exit. However, remember that penny 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 Sk3 Group Demand TrendCheck current 90 days Sk3 correlation with market (Dow Jones Industrial)Sk3 Beta |
Sk3 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 | 125.0 |
It is essential to understand the difference between upside risk (as represented by Sk3's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Sk3's daily returns or price. Since the actual investment returns on holding a position in sk3 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 Sk3.
Sk3 Group Stock Volatility Analysis
Volatility refers to the frequency at which Sk3 stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Sk3's price changes. Investors will then calculate the volatility of Sk3'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 Sk3's volatility:
Historical Volatility
This type of stock volatility measures Sk3's fluctuations based on previous trends. It's commonly used to predict Sk3'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 Sk3'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 Sk3's to be redeemed at a future date.Transformation |
The function did not generate any output. Please change time horizon or modify your input parameters. The output start index for this execution was zero with a total number of output elements of sixty-one. Sk3 Group 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.
Sk3 Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 11.4464 . 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, Sk3 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 Sk3 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 Sk3'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 Sk3 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.
Sk3 Group has an alpha of 14.8087, implying that it can generate a 14.81 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Sk3 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.Sk3 Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Sk3 is 800.0. The daily returns are distributed with a variance of 15625.0 and standard deviation of 125.0. The mean deviation of Sk3 Group is currently at 30.76. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.58
α | Alpha over Dow Jones | 14.81 | |
β | Beta against Dow Jones | 11.45 | |
σ | Overall volatility | 125.00 | |
Ir | Information ratio | 0.12 |
Sk3 Stock Return Volatility
Sk3 historical daily return volatility represents how much of Sk3 stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 125.0% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.5755% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Sk3 Volatility
Volatility is a rate at which the price of Sk3 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 Sk3 may increase or decrease. In other words, similar to Sk3's beta indicator, it measures the risk of Sk3 and helps estimate the fluctuations that may happen in a short period of time. So if prices of Sk3 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.SK3 Group, Inc. provides management advisory, licensing, and marketing services for medical marijuana collectives in California. The company was founded in 2000 and is headquartered in Los Angeles, California. Sk3 is traded on OTC Exchange in the United States.
Sk3'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 Sk3 Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Sk3's price varies over time.
3 ways to utilize Sk3's volatility to invest better
Higher Sk3's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Sk3 Group 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. Sk3 Group 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 Sk3 Group investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Sk3'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 Sk3's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Sk3 Investment Opportunity
Sk3 Group has a volatility of 125.0 and is 215.52 times more volatile than Dow Jones Industrial. 96 percent of all equities and portfolios are less risky than Sk3. You can use Sk3 Group to protect your portfolios against small market fluctuations. The stock experiences a normal downward trend, but the immediate impact on correlations cannot be determined at the moment . Check odds of Sk3 to be traded at $0.0 in 90 days.Significant diversification
The correlation between Sk3 Group and DJI is 0.03 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Sk3 Group and DJI in the same portfolio, assuming nothing else is changed.
Sk3 Additional Risk Indicators
The analysis of Sk3'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 Sk3's investment and either accepting that risk or mitigating it. Along with some common measures of Sk3 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 | 0.0821 | |||
| Market Risk Adjusted Performance | 1.37 | |||
| Mean Deviation | 30.76 | |||
| Coefficient Of Variation | 800.0 | |||
| Standard Deviation | 125.0 | |||
| Variance | 15625.0 | |||
| Information Ratio | 0.1244 |
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.
Sk3 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.
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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 Sk3 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. Sk3'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, Sk3'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 Sk3 Group.
When determining whether Sk3 Group offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Sk3's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Sk3 Group Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Sk3 Group Stock: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Sk3 Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as various price indices. You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
Is Drug Manufacturers - Specialty & Generic 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 Sk3. If investors know Sk3 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 Sk3 listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Sk3 Group is measured differently than its book value, which is the value of Sk3 that is recorded on the company's balance sheet. Investors also form their own opinion of Sk3's value that differs from its market value or its book value, called intrinsic value, which is Sk3's 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 Sk3's market value can be influenced by many factors that don't directly affect Sk3's 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 Sk3's value and its price as these two are different measures arrived at by different means. Investors typically determine if Sk3 is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sk3's 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.