Erhc Energy Stock Volatility
| ERHE Stock | USD 0.0005 0.0005 50.00% |
ERHC Energy is out of control given 3 months investment horizon. ERHC Energy secures Sharpe Ratio (or Efficiency) of 0.17, which denotes the company had a 0.17 % return per unit of return volatility over the last 3 months. We have analyze and collected data for nineteen different technical indicators, which can help you to evaluate if expected returns of 28.91% are justified by taking the suggested risk. Use ERHC Energy standard deviation of 110.78, and Mean Deviation of 26.86 to evaluate company specific risk that cannot be diversified away. Key indicators related to ERHC Energy's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
ERHC 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 ERHC daily returns, and it is calculated using variance and standard deviation. We also use ERHC's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of ERHC Energy volatility.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as ERHC Energy can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game as hey may decide to buy additional stocks of ERHC Energy at lower prices to lower their average cost per share. Similarly, when the prices of ERHC Energy's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving against ERHC Stock
ERHC Energy Market Sensitivity And Downside Risk
ERHC Energy's beta coefficient measures the volatility of ERHC 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 ERHC stock's returns against your selected market. In other words, ERHC Energy's beta of 41.8 provides an investor with an approximation of how much risk ERHC Energy stock can potentially add to one of your existing portfolios. ERHC Energy is displaying above-average volatility over the selected time horizon. ERHC Energy appears to be a penny stock. Although ERHC Energy may be, in fact, a solid short-term or long term investment, many penny stocks are speculative investment instruments that are often subject to artificial stock promotion and campaigns of hype which may lead to misinformation and misrepresentation. Please make sure you fully understand upside potential and downside risks of investing in ERHC Energy or similar risky assets. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswing without any event/news,and sudden news releases. We also encourage traders to check biographies and work history of company President, CEO or other officers before investing in high-volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on ERHC 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 ERHC Energy Demand TrendCheck current 90 days ERHC Energy correlation with market (Dow Jones Industrial)ERHC Beta |
ERHC 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 | 167.1 |
It is essential to understand the difference between upside risk (as represented by ERHC Energy's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of ERHC Energy's daily returns or price. Since the actual investment returns on holding a position in erhc 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 ERHC Energy.
ERHC Energy Stock Volatility Analysis
Volatility refers to the frequency at which ERHC Energy stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with ERHC Energy's price changes. Investors will then calculate the volatility of ERHC 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 ERHC Energy's volatility:
Historical Volatility
This type of stock volatility measures ERHC Energy's fluctuations based on previous trends. It's commonly used to predict ERHC 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 ERHC 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 ERHC 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. ERHC Energy 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.
ERHC Energy Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 41.8039 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, ERHC Energy 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 ERHC Energy or Oil, Gas & Consumable Fuels 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 ERHC 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 ERHC 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.
ERHC Energy has an alpha of 11.5837, implying that it can generate a 11.58 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an ERHC 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.ERHC Energy Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of ERHC Energy is 578.06. The daily returns are distributed with a variance of 27921.01 and standard deviation of 167.1. The mean deviation of ERHC Energy is currently at 57.57. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.64
α | Alpha over Dow Jones | 11.58 | |
β | Beta against Dow Jones | 41.80 | |
σ | Overall volatility | 167.10 | |
Ir | Information ratio | 0.12 |
ERHC Energy Stock Return Volatility
ERHC Energy historical daily return volatility represents how much of ERHC Energy stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 167.0958% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.6373% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About ERHC Energy Volatility
Volatility is a rate at which the price of ERHC 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 ERHC Energy may increase or decrease. In other words, similar to ERHC's beta indicator, it measures the risk of ERHC Energy and helps estimate the fluctuations that may happen in a short period of time. So if prices of ERHC 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.| Last Reported | Projected for Next Year | ||
| Market Cap | 345.3 K | 328 K |
ERHC 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 ERHC Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much ERHC Energy's price varies over time.
3 ways to utilize ERHC Energy's volatility to invest better
Higher ERHC 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 ERHC Energy 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. ERHC Energy 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 ERHC Energy investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in ERHC 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 ERHC Energy's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
ERHC Energy Investment Opportunity
ERHC Energy has a volatility of 167.1 and is 261.09 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of ERHC Energy is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use ERHC Energy to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of ERHC Energy to be traded at $5.0E-4 in 90 days.Modest diversification
The correlation between ERHC Energy and DJI is 0.24 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding ERHC Energy and DJI in the same portfolio, assuming nothing else is changed.
ERHC Energy Additional Risk Indicators
The analysis of ERHC 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 ERHC Energy's investment and either accepting that risk or mitigating it. Along with some common measures of ERHC 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 | 0.0886 | |||
| Market Risk Adjusted Performance | 0.336 | |||
| Mean Deviation | 26.86 | |||
| Coefficient Of Variation | 812.4 | |||
| Standard Deviation | 110.78 | |||
| Variance | 12272.73 | |||
| Information Ratio | 0.1226 |
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.
ERHC 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.
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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 ERHC 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. ERHC 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, ERHC 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 ERHC Energy.
Complementary Tools for ERHC Stock analysis
When running ERHC Energy's price analysis, check to measure ERHC Energy'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 ERHC Energy is operating at the current time. Most of ERHC Energy's value examination focuses on studying past and present price action to predict the probability of ERHC Energy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move ERHC Energy's price. Additionally, you may evaluate how the addition of ERHC Energy to your portfolios can decrease your overall portfolio volatility.
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