Tecogen Stock Volatility
| TGEN Stock | USD 8.39 1.38 19.69% |
Tecogen is risky given 3 months investment horizon. Tecogen owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.28, which indicates the firm had a 0.28 % return per unit of risk over the last 3 months. We were able to analyze and collect data for twenty-nine different technical indicators, which can help you to evaluate if expected returns of 2.66% are justified by taking the suggested risk. Use Tecogen Coefficient Of Variation of 340.45, risk adjusted performance of 0.2704, and Semi Deviation of 4.78 to evaluate company specific risk that cannot be diversified away. Key indicators related to Tecogen's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Tecogen 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 Tecogen daily returns, and it is calculated using variance and standard deviation. We also use Tecogen's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Tecogen volatility.
Tecogen |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Tecogen 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 Tecogen at lower prices. For example, an investor can purchase Tecogen 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 Tecogen'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 together with Tecogen OTC Stock
| 0.88 | BE | Bloom Energy Corp Earnings Call This Week | PairCorr |
| 0.84 | ELVA | Electrovaya Common Shares Upward Rally | PairCorr |
| 0.77 | ENVX | Enovix Corp Earnings Call This Week | PairCorr |
| 0.74 | FCEL | FuelCell Energy | PairCorr |
| 0.92 | AYI | Acuity Brands | PairCorr |
Moving against Tecogen OTC Stock
| 0.71 | ENR | Energizer Holdings | PairCorr |
| 0.6 | GWH | ESS Tech Buyout Trend | PairCorr |
| 0.47 | GTI | Graphjet Technology | PairCorr |
| 0.31 | EPOW | Sunrise New Energy | PairCorr |
Tecogen Market Sensitivity And Downside Risk
Tecogen's beta coefficient measures the volatility of Tecogen 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 Tecogen otc stock's returns against your selected market. In other words, Tecogen's beta of 1.83 provides an investor with an approximation of how much risk Tecogen otc stock can potentially add to one of your existing portfolios. Tecogen 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 Tecogen'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 Tecogen'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.
3 Months Beta |Analyze Tecogen Demand TrendCheck current 90 days Tecogen correlation with market (Dow Jones Industrial)Tecogen Beta |
Tecogen 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 | 9.42 |
It is essential to understand the difference between upside risk (as represented by Tecogen's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Tecogen's daily returns or price. Since the actual investment returns on holding a position in tecogen otc 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 Tecogen.
Using Tecogen Put Option to Manage Risk
Put options written on Tecogen grant holders of the option the right to sell a specified amount of Tecogen at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Tecogen OTC Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Tecogen's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Tecogen will be realized, the loss incurred will be offset by the profits made with the option trade.
Tecogen's PUT expiring on 2025-10-17
Profit |
| Tecogen Price At Expiration |
Tecogen OTC Stock Volatility Analysis
Volatility refers to the frequency at which Tecogen otc price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Tecogen's price changes. Investors will then calculate the volatility of Tecogen'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 Tecogen's volatility:
Historical Volatility
This type of otc volatility measures Tecogen's fluctuations based on previous trends. It's commonly used to predict Tecogen'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 Tecogen'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 Tecogen'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. Tecogen 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.
Tecogen Projected Return Density Against Market
Given the investment horizon of 90 days the otc stock has the beta coefficient of 1.8288 . This usually implies as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Tecogen 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 Tecogen or Building Products 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 Tecogen'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 Tecogen 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.
Tecogen has an alpha of 2.2794, implying that it can generate a 2.28 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Tecogen 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.Tecogen OTC Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Tecogen is 354.35. The daily returns are distributed with a variance of 88.79 and standard deviation of 9.42. The mean deviation of Tecogen is currently at 7.1. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.89
α | Alpha over Dow Jones | 2.28 | |
β | Beta against Dow Jones | 1.83 | |
σ | Overall volatility | 9.42 | |
Ir | Information ratio | 0.27 |
Tecogen OTC Stock Return Volatility
Tecogen historical daily return volatility represents how much of Tecogen otc's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 9.4229% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7788% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Tecogen Volatility
Volatility is a rate at which the price of Tecogen 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 Tecogen may increase or decrease. In other words, similar to Tecogen's beta indicator, it measures the risk of Tecogen and helps estimate the fluctuations that may happen in a short period of time. So if prices of Tecogen 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.Tecogen Inc. designs, manufactures, markets, and maintains industrial and commercial cogeneration systems for residential, commercial, recreational, and industrial use in the United States and internationally. The company was incorporated in 2000 and is headquartered in Waltham, Massachusetts. Tecogen operates under Electrical Equipment Parts classification in the United States and is traded on OTC Exchange. It employs 77 people.
Tecogen'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 Tecogen OTC Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Tecogen's price varies over time.
3 ways to utilize Tecogen's volatility to invest better
Higher Tecogen's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Tecogen 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. Tecogen 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 Tecogen investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Tecogen'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 Tecogen's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Tecogen Investment Opportunity
Tecogen has a volatility of 9.42 and is 12.08 times more volatile than Dow Jones Industrial. 84 percent of all equities and portfolios are less risky than Tecogen. You can use Tecogen 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 Tecogen to be traded at $10.49 in 90 days.Average diversification
The correlation between Tecogen and DJI is 0.18 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Tecogen and DJI in the same portfolio, assuming nothing else is changed.
Tecogen Additional Risk Indicators
The analysis of Tecogen'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 Tecogen's investment and either accepting that risk or mitigating it. Along with some common measures of Tecogen 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 | 0.2704 | |||
| Market Risk Adjusted Performance | 1.46 | |||
| Mean Deviation | 6.71 | |||
| Semi Deviation | 4.78 | |||
| Downside Deviation | 5.71 | |||
| Coefficient Of Variation | 340.45 | |||
| Standard Deviation | 9.08 |
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.
Tecogen 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 Tecogen 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. Tecogen'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, Tecogen'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 Tecogen.
Other Information on Investing in Tecogen OTC Stock
Tecogen financial ratios help investors to determine whether Tecogen OTC Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Tecogen with respect to the benefits of owning Tecogen security.