Seachange International Stock Volatility
| SEAC Stock | USD 3.51 0.21 6.36% |
SeaChange International appears to be dangerous, given 3 months investment horizon. SeaChange International owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0626, which indicates the firm had a 0.0626 % return per unit of risk over the last 3 months. By inspecting SeaChange International's technical indicators, you can evaluate if the expected return of 0.73% is justified by implied risk. Please review SeaChange International's Coefficient Of Variation of 2993.93, risk adjusted performance of 0.0326, and Semi Deviation of 7.82 to confirm if our risk estimates are consistent with your expectations.
Sharpe Ratio = 0.0626
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Based on monthly moving average SeaChange International is performing at about 4% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of SeaChange International by adding it to a well-diversified portfolio.
Key indicators related to SeaChange International's volatility include:30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
SeaChange International OTC 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 SeaChange daily returns, and it is calculated using variance and standard deviation. We also use SeaChange's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of SeaChange International volatility.
SeaChange |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as SeaChange International 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 SeaChange International at lower prices to lower their average cost per share. Similarly, when the prices of SeaChange International's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities. Main indicators related to SeaChange International's market risk premium analysis include:
Beta (0.22) | Alpha 0.41 | Risk 11.74 | Sharpe Ratio 0.0626 | Expected Return 0.73 |
Moving against SeaChange OTC Stock
| 0.4 | GE | GE Aerospace Earnings Call This Week | PairCorr |
SeaChange International Market Sensitivity And Downside Risk
SeaChange International's beta coefficient measures the volatility of SeaChange otc 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 SeaChange otc stock's returns against your selected market. In other words, SeaChange International's beta of -0.22 provides an investor with an approximation of how much risk SeaChange International otc stock can potentially add to one of your existing portfolios. SeaChange International is showing large volatility of returns 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 SeaChange International's otc stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact SeaChange International's otc 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.
| α | 0.41 | β | -0.22 | Check current 90 days SeaChange International correlation with market (Dow Jones Industrial)
SeaChange International Volatility and Downside Risk
SeaChange 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.
SeaChange International OTC Stock Volatility Analysis
Volatility refers to the frequency at which SeaChange International otc price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with SeaChange International's price changes. Investors will then calculate the volatility of SeaChange International's otc stock to predict their future moves. A otc that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A otc stock with relatively stable price changes has low volatility. A highly volatile otc 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 SeaChange International's volatility:
Historical Volatility
This type of otc volatility measures SeaChange International's fluctuations based on previous trends. It's commonly used to predict SeaChange International's future behavior based on its past. However, it cannot conclusively determine the future direction of the otc stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for SeaChange International's current market price. This means that the otc will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on SeaChange International'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. SeaChange International 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.
SeaChange International Projected Return Density Against Market
Given the investment horizon of 90 days SeaChange International has a beta of -0.2212 . This usually implies as returns on the benchmark increase, returns on holding SeaChange International are expected to decrease at a much lower rate. During a bear market, however, SeaChange International is likely to outperform the market.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 SeaChange International or Software 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 SeaChange International's price will be affected by overall otc 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 SeaChange otc'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.
SeaChange International has an alpha of 0.4079, implying that it can generate a 0.41 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
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What Drives a SeaChange International Price Volatility?
Several factors can influence a otc'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.SeaChange International OTC Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of SeaChange International is 1597.5. The daily returns are distributed with a variance of 137.74 and standard deviation of 11.74. The mean deviation of SeaChange International is currently at 4.07. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.69
α | Alpha over Dow Jones | 0.41 | |
β | Beta against Dow Jones | -0.22 | |
σ | Overall volatility | 11.74 | |
Ir | Information ratio | 0.02 |
SeaChange International OTC Stock Return Volatility
SeaChange International historical daily return volatility represents how much of SeaChange International otc's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 11.7363% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.6994% volatility on return distribution over the 90 days horizon. Performance |
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Related Correlations Analysis
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
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Risk-Adjusted Indicators
There is a big difference between SeaChange OTC Stock performing well and SeaChange International OTC Stock doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze SeaChange International's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| APYP | 5.50 | 0.34 | 0.05 | 0.43 | 5.92 | 19.01 | 45.93 | |||
| GRWC | 11.67 | 3.04 | 0.07 | (51.45) | 12.74 | 53.33 | 173.75 | |||
| ZDGGF | 1.40 | (0.10) | 0.00 | 1.11 | 0.00 | 0.00 | 69.64 | |||
| BCTCF | 0.07 | 0.03 | 0.00 | (2.38) | 0.00 | 0.00 | 2.50 | |||
| MYIDF | 4.65 | (0.46) | 0.00 | (0.20) | 0.00 | 12.75 | 44.62 | |||
| ELCO | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| KWIK | 1.78 | (0.55) | 0.00 | 1.32 | 0.00 | 2.86 | 40.05 | |||
| VQSSF | 2.26 | 0.19 | 0.02 | 0.29 | 2.94 | 8.33 | 22.62 | |||
| ROBOF | 6.72 | (3.89) | 0.00 | (0.99) | 0.00 | 0.00 | 99.00 | |||
| EBZT | 9.49 | (0.58) | 0.00 | (0.09) | 0.00 | 21.21 | 81.03 |
About SeaChange International Volatility
Volatility is a rate at which the price of SeaChange International 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 SeaChange International may increase or decrease. In other words, similar to SeaChange's beta indicator, it measures the risk of SeaChange International and helps estimate the fluctuations that may happen in a short period of time. So if prices of SeaChange International 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.SeaChange International, Inc. provides multiscreen, advertising, and premium over the top video products and services that facilitate the aggregation, licensing, management, and distribution of video and advertising content worldwide. The company was incorporated in 1993 and is headquartered in Boston, Massachusetts. Sea Change operates under SoftwareApplication classification in the United States and is traded on NASDAQ Exchange. It employs 101 people.
SeaChange International'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 SeaChange OTC Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much SeaChange International's price varies over time.
3 ways to utilize SeaChange International's volatility to invest better
Higher SeaChange International's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of SeaChange International 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. SeaChange International 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 SeaChange International investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in SeaChange International'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 SeaChange International's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
SeaChange International Investment Opportunity
SeaChange International has a volatility of 11.74 and is 16.77 times more volatile than Dow Jones Industrial. 96 percent of all equities and portfolios are less risky than SeaChange International. You can use SeaChange International to enhance the returns of your portfolios. The otc stock experiences a very speculative upward sentiment. The trend is possibly hyped up. Check odds of SeaChange International to be traded at $4.39 in 90 days.Good diversification
The correlation between SeaChange International and DJI is -0.01 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding SeaChange International and DJI in the same portfolio, assuming nothing else is changed.
SeaChange International Additional Risk Indicators
The analysis of SeaChange International'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 SeaChange International's investment and either accepting that risk or mitigating it. Along with some common measures of SeaChange International otc 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 | 0.0326 | |||
| Market Risk Adjusted Performance | (1.73) | |||
| Mean Deviation | 4.28 | |||
| Semi Deviation | 7.82 | |||
| Downside Deviation | 17.72 | |||
| Coefficient Of Variation | 2993.93 | |||
| Standard Deviation | 11.85 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential otc stocks, we recommend comparing similar otcs with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
SeaChange International 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 SeaChange International 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. SeaChange International'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, SeaChange International'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 SeaChange International.
Complementary Tools for SeaChange OTC Stock analysis
When running SeaChange International's price analysis, check to measure SeaChange International'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 SeaChange International is operating at the current time. Most of SeaChange International's value examination focuses on studying past and present price action to predict the probability of SeaChange International's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move SeaChange International's price. Additionally, you may evaluate how the addition of SeaChange International to your portfolios can decrease your overall portfolio volatility.
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