Environmmtl Tectonic Stock Volatility

ETCC Stock  USD 0.75  0.01  1.32%   
We consider Environmmtl Tectonic abnormally volatile. Environmmtl Tectonic secures Sharpe Ratio (or Efficiency) of 0.0276, which denotes the company had a 0.0276% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Environmmtl Tectonic, which you can use to evaluate the volatility of the firm. Please confirm Environmmtl Tectonic's Downside Deviation of 6.06, mean deviation of 2.65, and Coefficient Of Variation of 3617.85 to check if the risk estimate we provide is consistent with the expected return of 0.13%. Key indicators related to Environmmtl Tectonic's volatility include:
720 Days Market Risk
Chance Of Distress
720 Days Economic Sensitivity
Environmmtl Tectonic 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 Environmmtl daily returns, and it is calculated using variance and standard deviation. We also use Environmmtl's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Environmmtl Tectonic volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Environmmtl Tectonic 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 Environmmtl Tectonic at lower prices. For example, an investor can purchase Environmmtl 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 Environmmtl Tectonic'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.

Moving against Environmmtl Pink Sheet

  0.44VYNE Vyne Therapeutics TrendingPairCorr

Environmmtl Tectonic Market Sensitivity And Downside Risk

Environmmtl Tectonic's beta coefficient measures the volatility of Environmmtl 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 Environmmtl pink sheet's returns against your selected market. In other words, Environmmtl Tectonic's beta of 0.94 provides an investor with an approximation of how much risk Environmmtl Tectonic pink sheet can potentially add to one of your existing portfolios. Environmmtl Tectonic shows above-average downside volatility for the selected time horizon. Environmmtl Tectonic is a potential penny stock. Although Environmmtl Tectonic may be in fact a good instrument to invest, many penny pink sheets are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Environmmtl Tectonic. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Environmmtl 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 Environmmtl Tectonic Demand Trend
Check current 90 days Environmmtl Tectonic correlation with market (NYSE Composite)

Environmmtl Beta

    
  0.94  
Environmmtl 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

    
  4.75  
It is essential to understand the difference between upside risk (as represented by Environmmtl Tectonic's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Environmmtl Tectonic's daily returns or price. Since the actual investment returns on holding a position in environmmtl 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 Environmmtl Tectonic.

Environmmtl Tectonic Pink Sheet Volatility Analysis

Volatility refers to the frequency at which Environmmtl Tectonic pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Environmmtl Tectonic's price changes. Investors will then calculate the volatility of Environmmtl Tectonic's 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 Environmmtl Tectonic's volatility:

Historical Volatility

This type of pink sheet volatility measures Environmmtl Tectonic's fluctuations based on previous trends. It's commonly used to predict Environmmtl Tectonic's 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 Environmmtl Tectonic's 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 Environmmtl Tectonic'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. Environmmtl Tectonic 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.

Environmmtl Tectonic Projected Return Density Against Market

Given the investment horizon of 90 days Environmmtl Tectonic has a beta of 0.937 suggesting Environmmtl Tectonic market returns are highly-sensitive to returns on the market. As the market goes up or down, Environmmtl Tectonic is expected to follow.
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 Environmmtl Tectonic or Aerospace & Defense 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 Environmmtl Tectonic's 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 Environmmtl 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.
Environmmtl Tectonic has an alpha of 0.0043, implying that it can generate a 0.0043 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Environmmtl Tectonic's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how environmmtl pink sheet's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives an Environmmtl Tectonic 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.

Environmmtl Tectonic Pink Sheet Risk Measures

Given the investment horizon of 90 days the coefficient of variation of Environmmtl Tectonic is 3617.85. The daily returns are distributed with a variance of 22.59 and standard deviation of 4.75. The mean deviation of Environmmtl Tectonic is currently at 2.65. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
0
β
Beta against NYSE Composite0.94
σ
Overall volatility
4.75
Ir
Information ratio -0.0007

Environmmtl Tectonic Pink Sheet Return Volatility

Environmmtl Tectonic historical daily return volatility represents how much of Environmmtl Tectonic pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 4.7524% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.5689% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Environmmtl Tectonic Volatility

Volatility is a rate at which the price of Environmmtl Tectonic 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 Environmmtl Tectonic may increase or decrease. In other words, similar to Environmmtl's beta indicator, it measures the risk of Environmmtl Tectonic and helps estimate the fluctuations that may happen in a short period of time. So if prices of Environmmtl Tectonic 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.
Environmental Tectonics Corporation, together with its subsidiaries, operates as an engineered solutions company in the United States and internationally. Environmental Tectonics Corporation was incorporated in 1969 and is headquartered in Southampton, Pennsylvania. Environmmtl Tectonic operates under Aerospace Defense classification in the United States and is traded on OTC Exchange. It employs 203 people.
Environmmtl Tectonic'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 Environmmtl Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Environmmtl Tectonic's price varies over time.

3 ways to utilize Environmmtl Tectonic's volatility to invest better

Higher Environmmtl Tectonic's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Environmmtl Tectonic 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. Environmmtl Tectonic 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 Environmmtl Tectonic investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Environmmtl Tectonic'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 Environmmtl Tectonic's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Environmmtl Tectonic Investment Opportunity

Environmmtl Tectonic has a volatility of 4.75 and is 8.33 times more volatile than NYSE Composite. 41 percent of all equities and portfolios are less risky than Environmmtl Tectonic. You can use Environmmtl Tectonic to protect your portfolios against small market fluctuations. The pink sheet experiences a bearish sentiment with high volatility. Check odds of Environmmtl Tectonic to be traded at $0.7275 in 90 days.

Average diversification

The correlation between Environmmtl Tectonic and NYA is 0.11 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Environmmtl Tectonic and NYA in the same portfolio, assuming nothing else is changed.

Environmmtl Tectonic Additional Risk Indicators

The analysis of Environmmtl Tectonic'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 Environmmtl Tectonic's investment and either accepting that risk or mitigating it. Along with some common measures of Environmmtl Tectonic 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.
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.

Environmmtl Tectonic 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 Environmmtl Tectonic 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. Environmmtl Tectonic'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, Environmmtl Tectonic'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 Environmmtl Tectonic.
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Environmmtl Tectonic. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in main economic indicators.
Note that the Environmmtl Tectonic information on this page should be used as a complementary analysis to other Environmmtl Tectonic's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

Complementary Tools for Environmmtl Pink Sheet analysis

When running Environmmtl Tectonic's price analysis, check to measure Environmmtl Tectonic's 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 Environmmtl Tectonic is operating at the current time. Most of Environmmtl Tectonic's value examination focuses on studying past and present price action to predict the probability of Environmmtl Tectonic's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Environmmtl Tectonic's price. Additionally, you may evaluate how the addition of Environmmtl Tectonic to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between Environmmtl Tectonic's value and its price as these two are different measures arrived at by different means. Investors typically determine if Environmmtl Tectonic is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Environmmtl Tectonic'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.