Monogram Orthopaedics Common Stock Volatility
| MGRM Stock | 5.67 0.12 2.07% |
Monogram Orthopaedics is very risky given 3 months investment horizon. Monogram Orthopaedics has Sharpe Ratio of 0.15, which conveys that the firm had a 0.15 % return per unit of risk over the last 3 months. We were able to interpolate data for thirty different technical indicators, which can help you to evaluate if expected returns of 1.59% are justified by taking the suggested risk. Use Monogram Orthopaedics Downside Deviation of 3.25, risk adjusted performance of 0.1519, and Mean Deviation of 3.82 to evaluate company specific risk that cannot be diversified away. Key indicators related to Monogram Orthopaedics' volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Monogram Orthopaedics 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 Monogram daily returns, and it is calculated using variance and standard deviation. We also use Monogram's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Monogram Orthopaedics volatility.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Monogram Orthopaedics 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 Monogram Orthopaedics at lower prices. For example, an investor can purchase Monogram 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 Monogram Orthopaedics' 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 Monogram Stock
Monogram Orthopaedics Market Sensitivity And Downside Risk
Monogram Orthopaedics' beta coefficient measures the volatility of Monogram 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 Monogram stock's returns against your selected market. In other words, Monogram Orthopaedics's beta of -0.87 provides an investor with an approximation of how much risk Monogram Orthopaedics stock can potentially add to one of your existing portfolios. Monogram Orthopaedics Common is displaying above-average volatility over the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Monogram Orthopaedics' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Monogram Orthopaedics' 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 Monogram Orthopaedics Demand TrendCheck current 90 days Monogram Orthopaedics correlation with market (Dow Jones Industrial)Monogram Beta |
Monogram 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 | 10.37 |
It is essential to understand the difference between upside risk (as represented by Monogram Orthopaedics's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Monogram Orthopaedics' daily returns or price. Since the actual investment returns on holding a position in monogram 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 Monogram Orthopaedics.
Monogram Orthopaedics Stock Volatility Analysis
Volatility refers to the frequency at which Monogram Orthopaedics stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Monogram Orthopaedics' price changes. Investors will then calculate the volatility of Monogram Orthopaedics' 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 Monogram Orthopaedics' volatility:
Historical Volatility
This type of stock volatility measures Monogram Orthopaedics' fluctuations based on previous trends. It's commonly used to predict Monogram Orthopaedics' 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 Monogram Orthopaedics' 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 Monogram Orthopaedics' 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. Monogram Orthopaedics 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.
Monogram Orthopaedics Projected Return Density Against Market
Given the investment horizon of 90 days Monogram Orthopaedics Common has a beta of -0.8682 . This indicatesMost 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 Monogram Orthopaedics or Health Care Equipment & Supplies 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 Monogram Orthopaedics' 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 Monogram 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.
Monogram Orthopaedics Common has an alpha of 1.6894, implying that it can generate a 1.69 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Monogram Orthopaedics 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.Monogram Orthopaedics Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Monogram Orthopaedics is 654.16. The daily returns are distributed with a variance of 107.62 and standard deviation of 10.37. The mean deviation of Monogram Orthopaedics Common is currently at 3.82. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.93
α | Alpha over Dow Jones | 1.69 | |
β | Beta against Dow Jones | -0.87 | |
σ | Overall volatility | 10.37 | |
Ir | Information ratio | 0.14 |
Monogram Orthopaedics Stock Return Volatility
Monogram Orthopaedics historical daily return volatility represents how much of Monogram Orthopaedics stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 10.3741% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8352% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Monogram Orthopaedics Volatility
Volatility is a rate at which the price of Monogram Orthopaedics 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 Monogram Orthopaedics may increase or decrease. In other words, similar to Monogram's beta indicator, it measures the risk of Monogram Orthopaedics and helps estimate the fluctuations that may happen in a short period of time. So if prices of Monogram Orthopaedics 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.3 ways to utilize Monogram Orthopaedics' volatility to invest better
Higher Monogram Orthopaedics' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Monogram Orthopaedics 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. Monogram Orthopaedics 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 Monogram Orthopaedics investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Monogram Orthopaedics' 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 Monogram Orthopaedics' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Monogram Orthopaedics Investment Opportunity
Monogram Orthopaedics Common has a volatility of 10.37 and is 12.35 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Monogram Orthopaedics Common is higher than 92 percent of all global equities and portfolios over the last 90 days. You can use Monogram Orthopaedics Common 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 Monogram Orthopaedics to be traded at 5.44 in 90 days.Good diversification
The correlation between Monogram Orthopaedics Common 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 Monogram Orthopaedics Common and DJI in the same portfolio, assuming nothing else is changed.
Monogram Orthopaedics Additional Risk Indicators
The analysis of Monogram Orthopaedics' 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 Monogram Orthopaedics' investment and either accepting that risk or mitigating it. Along with some common measures of Monogram Orthopaedics 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 | 0.1519 | |||
| Market Risk Adjusted Performance | (1.81) | |||
| Mean Deviation | 3.82 | |||
| Semi Deviation | 1.94 | |||
| Downside Deviation | 3.25 | |||
| Coefficient Of Variation | 654.16 | |||
| Standard Deviation | 10.37 |
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.
Monogram Orthopaedics 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 Monogram Orthopaedics 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. Monogram Orthopaedics' 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, Monogram Orthopaedics' 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 Monogram Orthopaedics Common.
When determining whether Monogram Orthopaedics is a strong investment it is important to analyze Monogram Orthopaedics' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Monogram Orthopaedics' future performance. For an informed investment choice regarding Monogram Stock, refer to the following important reports: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Monogram Orthopaedics Common. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. You can also try the USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Is Health Care Equipment & Supplies 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 Monogram Orthopaedics. If investors know Monogram 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 Monogram Orthopaedics 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 Monogram Orthopaedics is measured differently than its book value, which is the value of Monogram that is recorded on the company's balance sheet. Investors also form their own opinion of Monogram Orthopaedics' value that differs from its market value or its book value, called intrinsic value, which is Monogram Orthopaedics' 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 Monogram Orthopaedics' market value can be influenced by many factors that don't directly affect Monogram Orthopaedics' 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 Monogram Orthopaedics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Monogram Orthopaedics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Monogram Orthopaedics' 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.