22nd Century Group Stock Volatility
| XXII Stock | USD 1.84 0.17 10.18% |
22nd Century appears to be very risky, given 3 months investment horizon. 22nd Century Group secures Sharpe Ratio (or Efficiency) of 0.0291, which signifies that the company had a 0.0291% return per unit of standard deviation over the last 3 months. By examining 22nd Century's technical indicators, you can evaluate if the expected return of 0.57% is justified by implied risk. Please makes use of 22nd Century's Mean Deviation of 6.96, coefficient of variation of 4858.84, and Semi Deviation of 9.08 to double-check if our risk estimates are consistent with your expectations. Key indicators related to 22nd Century's volatility include:
60 Days Market Risk | Chance Of Distress | 60 Days Economic Sensitivity |
22nd Century 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 22nd daily returns, and it is calculated using variance and standard deviation. We also use 22nd's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of 22nd Century volatility.
22nd |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as 22nd Century 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 22nd Century at lower prices. For example, an investor can purchase 22nd 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 22nd Century'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.
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22nd Century Market Sensitivity And Downside Risk
22nd Century's beta coefficient measures the volatility of 22nd 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 22nd stock's returns against your selected market. In other words, 22nd Century's beta of 4.88 provides an investor with an approximation of how much risk 22nd Century stock can potentially add to one of your existing portfolios. 22nd Century Group 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 22nd Century's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact 22nd Century's 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 22nd Century Group Demand TrendCheck current 90 days 22nd Century correlation with market (NYSE Composite)22nd Beta |
22nd 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 | 19.67 |
It is essential to understand the difference between upside risk (as represented by 22nd Century's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of 22nd Century's daily returns or price. Since the actual investment returns on holding a position in 22nd 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 22nd Century.
22nd Century Group Stock Volatility Analysis
Volatility refers to the frequency at which 22nd Century stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with 22nd Century's price changes. Investors will then calculate the volatility of 22nd Century'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 22nd Century's volatility:
Historical Volatility
This type of stock volatility measures 22nd Century's fluctuations based on previous trends. It's commonly used to predict 22nd Century'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 22nd Century'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 22nd Century'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. 22nd Century Group 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.
22nd Century Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 4.8796 . This entails as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, 22nd Century 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 22nd Century or Tobacco 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 22nd Century'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 22nd 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.
22nd Century Group has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the NYSE Composite. Predicted Return Density |
| Returns |
What Drives a 22nd Century 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.22nd Century Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of 22nd Century is 3439.69. The daily returns are distributed with a variance of 387.02 and standard deviation of 19.67. The mean deviation of 22nd Century Group is currently at 7.43. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | -0.03 | |
β | Beta against NYSE Composite | 4.88 | |
σ | Overall volatility | 19.67 | |
Ir | Information ratio | 0.02 |
22nd Century Stock Return Volatility
22nd Century historical daily return volatility represents how much of 22nd Century stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 19.6729% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.6372% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About 22nd Century Volatility
Volatility is a rate at which the price of 22nd Century 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 22nd Century may increase or decrease. In other words, similar to 22nd's beta indicator, it measures the risk of 22nd Century and helps estimate the fluctuations that may happen in a short period of time. So if prices of 22nd Century 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 | ||
| Selling And Marketing Expenses | 1.2 M | 2.1 M | |
| Market Cap | 3.9 M | 3.7 M |
22nd Century'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 22nd Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much 22nd Century's price varies over time.
3 ways to utilize 22nd Century's volatility to invest better
Higher 22nd Century's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of 22nd Century Group 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. 22nd Century Group 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 22nd Century Group investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in 22nd Century'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 22nd Century's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
22nd Century Investment Opportunity
22nd Century Group has a volatility of 19.67 and is 30.73 times more volatile than NYSE Composite. 96 percent of all equities and portfolios are less risky than 22nd Century. You can use 22nd Century Group to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of 22nd Century to be traded at $2.3 in 90 days.Average diversification
The correlation between 22nd Century Group and NYA is 0.16 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding 22nd Century Group and NYA in the same portfolio, assuming nothing else is changed.
22nd Century Additional Risk Indicators
The analysis of 22nd Century'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 22nd Century's investment and either accepting that risk or mitigating it. Along with some common measures of 22nd Century 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 | 0.0225 | |||
| Market Risk Adjusted Performance | 0.0882 | |||
| Mean Deviation | 6.96 | |||
| Semi Deviation | 9.08 | |||
| Downside Deviation | 10.42 | |||
| Coefficient Of Variation | 4858.84 | |||
| Standard Deviation | 19.04 |
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.
22nd Century 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 22nd Century 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. 22nd Century'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, 22nd Century'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 22nd Century Group.
When determining whether 22nd Century Group offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of 22nd Century's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of 22nd Century Group Stock. Outlined below are crucial reports that will aid in making a well-informed decision on 22nd Century Group Stock: Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in 22nd Century Group. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in gross domestic product. You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Complementary Tools for 22nd Stock analysis
When running 22nd Century's price analysis, check to measure 22nd Century'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 22nd Century is operating at the current time. Most of 22nd Century's value examination focuses on studying past and present price action to predict the probability of 22nd Century's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move 22nd Century's price. Additionally, you may evaluate how the addition of 22nd Century to your portfolios can decrease your overall portfolio volatility.
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| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |
Is 22nd Century's industry 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 22nd Century. If investors know 22nd 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 22nd Century listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (49.92) | Revenue Per Share 16.834 | Quarterly Revenue Growth (0.02) | Return On Assets (0.37) | Return On Equity (1.25) |
The market value of 22nd Century Group is measured differently than its book value, which is the value of 22nd that is recorded on the company's balance sheet. Investors also form their own opinion of 22nd Century's value that differs from its market value or its book value, called intrinsic value, which is 22nd Century's 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 22nd Century's market value can be influenced by many factors that don't directly affect 22nd Century's 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 22nd Century's value and its price as these two are different measures arrived at by different means. Investors typically determine if 22nd Century is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, 22nd Century's 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.