Electronic Control Security Stock Volatility
| EKCS Stock | USD 0 0.00 0.00% |
Electronic Control appears to be out of control, given 3 months investment horizon. Electronic Control secures Sharpe Ratio (or Efficiency) of 0.13, which denotes the company had a 0.13% return per unit of risk over the last 3 months. We have found sixteen technical indicators for Electronic Control Security, which you can use to evaluate the volatility of the firm. Please utilize Electronic Control's Variance of 2.67, standard deviation of 1.63, and Mean Deviation of 0.4771 to check if our risk estimates are consistent with your expectations. Key indicators related to Electronic Control's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Electronic Control 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 Electronic daily returns, and it is calculated using variance and standard deviation. We also use Electronic's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Electronic Control volatility.
Electronic |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Electronic Control 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 Electronic Control at lower prices. For example, an investor can purchase Electronic 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 Electronic Control'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 Electronic Pink Sheet
| 0.79 | DIS | Walt Disney Report 8th of May 2024 | PairCorr |
| 0.9 | BAC | Bank of America Financial Report 16th of July 2024 | PairCorr |
| 0.67 | IBM | International Business Earnings Call This Week | PairCorr |
| 0.67 | CVX | Chevron Corp Earnings Call This Week | PairCorr |
Moving against Electronic Pink Sheet
| 0.63 | MCD | McDonalds Report 23rd of April 2024 | PairCorr |
| 0.49 | INTC | Intel Earnings Call This Week | PairCorr |
| 0.41 | JNJ | Johnson Johnson Financial Report 18th of July 2024 | PairCorr |
Electronic Control Market Sensitivity And Downside Risk
Electronic Control's beta coefficient measures the volatility of Electronic 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 Electronic pink sheet's returns against your selected market. In other words, Electronic Control's beta of 0.095 provides an investor with an approximation of how much risk Electronic Control pink sheet can potentially add to one of your existing portfolios. Electronic Control Security exhibits very low volatility with skewness of 7.47 and kurtosis of 57.78. Electronic Control Security is a penny stock. Even though Electronic Control may be a good instrument to invest, many penny pink sheets are speculative instruments that are subject to artificial stock promotions. Please make sure you fully understand upside and downside scenarios of investing in Electronic Control Security or similar risky assets. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings,sudden promotions and many other similar artificial hype indicators. We also encourage traders to check work history of company executives before investing in high-volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Electronic 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 Electronic Control Demand TrendCheck current 90 days Electronic Control correlation with market (NYSE Composite)Electronic Beta |
Electronic 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 | 1.64 |
It is essential to understand the difference between upside risk (as represented by Electronic Control's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Electronic Control's daily returns or price. Since the actual investment returns on holding a position in electronic 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 Electronic Control.
Electronic Control Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Electronic Control pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Electronic Control's price changes. Investors will then calculate the volatility of Electronic Control'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 Electronic Control's volatility:
Historical Volatility
This type of pink sheet volatility measures Electronic Control's fluctuations based on previous trends. It's commonly used to predict Electronic Control'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 Electronic Control'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 Electronic Control'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. Electronic Control 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.
Electronic Control Projected Return Density Against Market
Given the investment horizon of 90 days Electronic Control has a beta of 0.095 suggesting as returns on the market go up, Electronic Control average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Electronic Control Security will be expected to be much smaller as well.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 Electronic Control or Electronic Equipment, Instruments & Components 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 Electronic Control'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 Electronic 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.
Electronic Control Security has an alpha of 0.2304, implying that it can generate a 0.23 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Electronic Control 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.Electronic Control Pink Sheet Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Electronic Control is 787.4. The daily returns are distributed with a variance of 2.69 and standard deviation of 1.64. The mean deviation of Electronic Control Security is currently at 0.41. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 0.23 | |
β | Beta against NYSE Composite | 0.1 | |
σ | Overall volatility | 1.64 | |
Ir | Information ratio | 0.11 |
Electronic Control Pink Sheet Return Volatility
Electronic Control historical daily return volatility represents how much of Electronic Control pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 1.6387% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.6214% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Electronic Control Volatility
Volatility is a rate at which the price of Electronic Control 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 Electronic Control may increase or decrease. In other words, similar to Electronic's beta indicator, it measures the risk of Electronic Control and helps estimate the fluctuations that may happen in a short period of time. So if prices of Electronic Control 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.Electronic Control Security Inc. designs, develops, manufactures, and markets technology-based integrated security solutions in the United States and the Middle East. The company was founded in 1976 and is headquartered in Clifton, New Jersey. Electronic Control operates under Security Protection Services classification in the United States and is traded on OTC Exchange.
Electronic Control'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 Electronic Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Electronic Control's price varies over time.
3 ways to utilize Electronic Control's volatility to invest better
Higher Electronic Control's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Electronic Control 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. Electronic Control 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 Electronic Control investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Electronic Control'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 Electronic Control's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Electronic Control Investment Opportunity
Electronic Control Security has a volatility of 1.64 and is 2.65 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Electronic Control Security is lower than 14 percent of all global equities and portfolios over the last 90 days. You can use Electronic Control Security to protect your portfolios against small market fluctuations. The pink sheet experiences a normal downward fluctuation but is a risky buy. Check odds of Electronic Control to be traded at $0.0035 in 90 days.Significant diversification
The correlation between Electronic Control Security and NYA is 0.04 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Electronic Control Security and NYA in the same portfolio, assuming nothing else is changed.
Electronic Control Additional Risk Indicators
The analysis of Electronic Control'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 Electronic Control's investment and either accepting that risk or mitigating it. Along with some common measures of Electronic Control 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.
| Risk Adjusted Performance | 0.0993 | |||
| Market Risk Adjusted Performance | 2.49 | |||
| Mean Deviation | 0.4771 | |||
| Coefficient Of Variation | 664.33 | |||
| Standard Deviation | 1.63 | |||
| Variance | 2.67 | |||
| Information Ratio | 0.1086 |
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.
Electronic Control 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 Electronic Control 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. Electronic Control'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, Electronic Control'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 Electronic Control Security.
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Electronic Control Security. 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 Electronic Control information on this page should be used as a complementary analysis to other Electronic Control'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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Complementary Tools for Electronic Pink Sheet analysis
When running Electronic Control's price analysis, check to measure Electronic Control'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 Electronic Control is operating at the current time. Most of Electronic Control's value examination focuses on studying past and present price action to predict the probability of Electronic Control's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Electronic Control's price. Additionally, you may evaluate how the addition of Electronic Control to your portfolios can decrease your overall portfolio volatility.
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