Tsakos Story

Closer look at Tsakos Energy Variance

Tsakos Energy Navigation has current Variance of 11.58. Variance is another measure of security risk that shows the amount of dispersion of equity returns around their mean value. Variance is calculated as the average squared deviations from the mean. Evaluating a set of investment alternatives one can use variance to help determine the volatility when purchasing a specific security. Similar to Standard Deviation, the variance is a measure of how far a set of numbers is spread out around its mean.

Variance is also a measure of stock volatility and can help determine the risk an investor might take on when purchasing a specific security. A relatively big variance indicates that the daily prices or returns are far from the mean and a small variance indicates that they are located around the mean.

Variance   =  SUM(RET DEV)2  N

=

11.58

SUM	=	Summation notation
RET DEV	=	Actual returns deviation over selected period
N	=	Number of points for the period

Let's now compare Tsakos Energy Variance to its closest peers:

	TNP	11.584243959645388
	ENBBF	61.05
	ENB	1.96
	EPD	3.15
	TRP	2.37

Is Tsakos Energy decline permanent?

Recent expected short fall indicator falls down to -2.91. Possible price boost? Tsakos Energy Navigation currently demonstrates below-average downside deviation. It has Information Ratio of -0.01 and Jensen Alpha of 0.07. However, we advise investors to further question Tsakos Energy Navigation expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Tsakos Energy's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Tsakos Energy'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 stocks as prices fall.

The Current Takeaway on Tsakos Energy Investment

Although some other companies in the oil & gas midstream industry are either recovering or due for a correction, Tsakos Energy may not be performing as strong as the other in terms of long-term growth potentials. All things considered, as of the 24th of March 2021, we believe that Tsakos Energy is currently overvalued with close to average chance of bankruptcy in the next two years. Our ongoing 30 days buy-hold-sell recommendation on the firm is Strong Sell.