Umbra Companies Stock Volatility
| UCIX Stock | USD 0.03 0.01 28.57% |
Umbra Companies owns Efficiency Ratio (i.e., Sharpe Ratio) of close to zero, which indicates the firm had a close to zero % return per unit of risk over the last 3 months. Umbra Companies exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Umbra Companies' Risk Adjusted Performance of 0.0068, coefficient of variation of (20,815), and Variance of 925.84 to confirm the risk estimate we provide. Key indicators related to Umbra Companies' volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Umbra Companies 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 Umbra daily returns, and it is calculated using variance and standard deviation. We also use Umbra's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Umbra Companies volatility.
Umbra |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Umbra Companies 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 Umbra Companies at lower prices. For example, an investor can purchase Umbra 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 Umbra Companies' 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.
Moving against Umbra Pink Sheet
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| 0.54 | TERN | Terns Pharmaceuticals | PairCorr |
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| 0.43 | PH | Parker Hannifin Earnings Call This Week | PairCorr |
| 0.42 | SBGSF | Schneider Electric | PairCorr |
| 0.39 | SBGSY | Schneider Electric | PairCorr |
Umbra Companies Market Sensitivity And Downside Risk
Umbra Companies' beta coefficient measures the volatility of Umbra 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 Umbra pink sheet's returns against your selected market. In other words, Umbra Companies's beta of -3.67 provides an investor with an approximation of how much risk Umbra Companies pink sheet can potentially add to one of your existing portfolios. Umbra Companies is displaying above-average volatility over the selected time horizon. Umbra Companies is a penny stock. Although Umbra Companies may be in fact a good investment, many penny pink sheets are subject to artificial price hype. Make sure you completely understand the upside potential and downside risk of investing in Umbra Companies. We encourage investors to look for signals such as message board hypes, claims of breakthroughs, email spams, sudden volume upswings, and other similar hype indicators. We also encourage traders to check biographies and work history of company officers before investing in instruments with high volatility. You can indeed make money on Umbra 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.
3 Months Beta |Analyze Umbra Companies Demand TrendCheck current 90 days Umbra Companies correlation with market (Dow Jones Industrial)Umbra Beta |
Umbra 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 | 30.19 |
It is essential to understand the difference between upside risk (as represented by Umbra Companies's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Umbra Companies' daily returns or price. Since the actual investment returns on holding a position in umbra pink sheet 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 Umbra Companies.
Umbra Companies Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Umbra Companies pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Umbra Companies' price changes. Investors will then calculate the volatility of Umbra Companies' 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 Umbra Companies' volatility:
Historical Volatility
This type of pink sheet volatility measures Umbra Companies' fluctuations based on previous trends. It's commonly used to predict Umbra Companies' 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 Umbra Companies' 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 Umbra Companies' 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. Umbra Companies 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.
Umbra Companies Projected Return Density Against Market
Given the investment horizon of 90 days Umbra Companies has a beta of -3.6741 . This usually implies as returns on its benchmark rise, returns on holding Umbra Companies are expected to decrease by similarly larger amounts. On the other hand, during market turmoils, Umbra Companies 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 Umbra Companies or Industrials 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 Umbra Companies' 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 Umbra 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.
Umbra Companies has an alpha of 0.2314, implying that it can generate a 0.23 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Umbra Companies 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 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.Umbra Companies Pink Sheet Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Umbra Companies is -20971.52. The daily returns are distributed with a variance of 911.6 and standard deviation of 30.19. The mean deviation of Umbra Companies is currently at 12.36. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.63
α | Alpha over Dow Jones | 0.23 | |
β | Beta against Dow Jones | -3.67 | |
σ | Overall volatility | 30.19 | |
Ir | Information ratio | -0.0086 |
Umbra Companies Pink Sheet Return Volatility
Umbra Companies historical daily return volatility represents how much of Umbra Companies pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 30.1926% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.5936% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Umbra Companies Volatility
Volatility is a rate at which the price of Umbra Companies 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 Umbra Companies may increase or decrease. In other words, similar to Umbra's beta indicator, it measures the risk of Umbra Companies and helps estimate the fluctuations that may happen in a short period of time. So if prices of Umbra Companies 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.Umbra Companies Inc., a development stage company, focuses on alternative energy sources. Umbra Companies Inc. was founded in 2006 and is based in Carson City, Nevada. Umbra Companies operates under Specialty Industrial Machinery classification in the United States and is traded on OTC Exchange. It employs 1 people.
Umbra Companies' 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 Umbra Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Umbra Companies' price varies over time.
3 ways to utilize Umbra Companies' volatility to invest better
Higher Umbra Companies' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Umbra Companies 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. Umbra Companies 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 Umbra Companies investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Umbra Companies' 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 Umbra Companies' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Umbra Companies Investment Opportunity
Umbra Companies has a volatility of 30.19 and is 51.17 times more volatile than Dow Jones Industrial. 96 percent of all equities and portfolios are less risky than Umbra Companies. You can use Umbra Companies to protect your portfolios against small market fluctuations. The pink sheet experiences a very speculative downward sentiment. The market maybe over-reacting. Check odds of Umbra Companies to be traded at $0.0238 in 90 days.Good diversification
The correlation between Umbra Companies 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 Umbra Companies and DJI in the same portfolio, assuming nothing else is changed.
Umbra Companies Additional Risk Indicators
The analysis of Umbra Companies' 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 Umbra Companies' investment and either accepting that risk or mitigating it. Along with some common measures of Umbra Companies 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 | 0.0068 | |||
| Market Risk Adjusted Performance | 0.0525 | |||
| Mean Deviation | 12.55 | |||
| Coefficient Of Variation | (20,815) | |||
| Standard Deviation | 30.43 | |||
| Variance | 925.84 | |||
| Information Ratio | (0.01) |
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.
Umbra Companies 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 Umbra Companies 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. Umbra Companies' 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, Umbra Companies' 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 Umbra Companies.
Additional Tools for Umbra Pink Sheet Analysis
When running Umbra Companies' price analysis, check to measure Umbra Companies' 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 Umbra Companies is operating at the current time. Most of Umbra Companies' value examination focuses on studying past and present price action to predict the probability of Umbra Companies' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Umbra Companies' price. Additionally, you may evaluate how the addition of Umbra Companies to your portfolios can decrease your overall portfolio volatility.