Cpi Aerostructures Stock Volatility
| CVU Stock | USD 2.73 0.06 2.25% |
We consider CPI Aerostructures moderately volatile. CPI Aerostructures secures Sharpe Ratio (or Efficiency) of 0.0051, which signifies that the company had a 0.0051% return per unit of return volatility over the last 3 months. We have found twenty-nine technical indicators for CPI Aerostructures, which you can use to evaluate the volatility of the firm. Please confirm CPI Aerostructures' Risk Adjusted Performance of 0.034, mean deviation of 1.8, and Semi Deviation of 2.06 to double-check if the risk estimate we provide is consistent with the expected return of 0.0129%. Key indicators related to CPI Aerostructures' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
CPI Aerostructures 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 CPI daily returns, and it is calculated using variance and standard deviation. We also use CPI's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of CPI Aerostructures volatility.
CPI |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as CPI Aerostructures 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 CPI Aerostructures at lower prices. For example, an investor can purchase CPI 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 CPI Aerostructures' 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 CPI Stock
| 0.61 | DPRO | Draganfly Financial Report 14th of May 2024 | PairCorr |
Moving against CPI Stock
| 0.61 | EVTL | Vertical Aerospace | PairCorr |
| 0.56 | CW | Curtiss Wright Earnings Call This Week | PairCorr |
| 0.55 | VSEC | VSE Corporation Financial Report 6th of May 2024 | PairCorr |
| 0.55 | DRS | Leonardo DRS Common Earnings Call This Week | PairCorr |
| 0.49 | EH | Ehang Holdings | PairCorr |
CPI Aerostructures Market Sensitivity And Downside Risk
CPI Aerostructures' beta coefficient measures the volatility of CPI 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 CPI stock's returns against your selected market. In other words, CPI Aerostructures's beta of -0.0788 provides an investor with an approximation of how much risk CPI Aerostructures stock can potentially add to one of your existing portfolios. CPI Aerostructures currently demonstrates below-average downside deviation. It has Information Ratio of 0.0 and Jensen Alpha of 0.1. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure CPI Aerostructures' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact CPI Aerostructures' 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 CPI Aerostructures Demand TrendCheck current 90 days CPI Aerostructures correlation with market (NYSE Composite)CPI Beta |
CPI 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 | 2.51 |
It is essential to understand the difference between upside risk (as represented by CPI Aerostructures's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of CPI Aerostructures' daily returns or price. Since the actual investment returns on holding a position in cpi 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 CPI Aerostructures.
CPI Aerostructures Stock Volatility Analysis
Volatility refers to the frequency at which CPI Aerostructures stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with CPI Aerostructures' price changes. Investors will then calculate the volatility of CPI Aerostructures' 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 CPI Aerostructures' volatility:
Historical Volatility
This type of stock volatility measures CPI Aerostructures' fluctuations based on previous trends. It's commonly used to predict CPI Aerostructures' 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 CPI Aerostructures' 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 CPI Aerostructures' 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. CPI Aerostructures 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.
CPI Aerostructures Projected Return Density Against Market
Considering the 90-day investment horizon CPI Aerostructures has a beta of -0.0788 suggesting as returns on the benchmark increase, returns on holding CPI Aerostructures are expected to decrease at a much lower rate. During a bear market, however, CPI Aerostructures 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 CPI Aerostructures or Aerospace & Defense 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 CPI Aerostructures' 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 CPI 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.
CPI Aerostructures has an alpha of 0.1025, implying that it can generate a 0.1 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a CPI Aerostructures 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.CPI Aerostructures Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of CPI Aerostructures is 19468.96. The daily returns are distributed with a variance of 6.3 and standard deviation of 2.51. The mean deviation of CPI Aerostructures is currently at 1.79. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 0.10 | |
β | Beta against NYSE Composite | -0.08 | |
σ | Overall volatility | 2.51 | |
Ir | Information ratio | 0 |
CPI Aerostructures Stock Return Volatility
CPI Aerostructures historical daily return volatility represents how much of CPI Aerostructures stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 2.509% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.6372% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About CPI Aerostructures Volatility
Volatility is a rate at which the price of CPI Aerostructures 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 CPI Aerostructures may increase or decrease. In other words, similar to CPI's beta indicator, it measures the risk of CPI Aerostructures and helps estimate the fluctuations that may happen in a short period of time. So if prices of CPI Aerostructures 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 | ||
| Market Cap | 30.2 M | 36.5 M |
CPI Aerostructures' 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 CPI Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much CPI Aerostructures' price varies over time.
3 ways to utilize CPI Aerostructures' volatility to invest better
Higher CPI Aerostructures' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of CPI Aerostructures 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. CPI Aerostructures 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 CPI Aerostructures investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in CPI Aerostructures' 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 CPI Aerostructures' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
CPI Aerostructures Investment Opportunity
CPI Aerostructures has a volatility of 2.51 and is 3.92 times more volatile than NYSE Composite. 22 percent of all equities and portfolios are less risky than CPI Aerostructures. You can use CPI Aerostructures to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of CPI Aerostructures to be traded at $3.28 in 90 days.Good diversification
The correlation between CPI Aerostructures and NYA is -0.02 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding CPI Aerostructures and NYA in the same portfolio, assuming nothing else is changed.
CPI Aerostructures Additional Risk Indicators
The analysis of CPI Aerostructures' 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 CPI Aerostructures' investment and either accepting that risk or mitigating it. Along with some common measures of CPI Aerostructures 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 | 0.034 | |||
| Market Risk Adjusted Performance | (1.21) | |||
| Mean Deviation | 1.8 | |||
| Semi Deviation | 2.06 | |||
| Downside Deviation | 2.45 | |||
| Coefficient Of Variation | 2355.74 | |||
| Standard Deviation | 2.49 |
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.
CPI Aerostructures 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 CPI Aerostructures 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. CPI Aerostructures' 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, CPI Aerostructures' 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 CPI Aerostructures.
When determining whether CPI Aerostructures is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if CPI Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Cpi Aerostructures Stock. Highlighted below are key reports to facilitate an investment decision about Cpi Aerostructures Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in CPI Aerostructures. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in real. For more information on how to buy CPI Stock please use our How to Invest in CPI Aerostructures guide.You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Complementary Tools for CPI Stock analysis
When running CPI Aerostructures' price analysis, check to measure CPI Aerostructures' 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 CPI Aerostructures is operating at the current time. Most of CPI Aerostructures' value examination focuses on studying past and present price action to predict the probability of CPI Aerostructures' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CPI Aerostructures' price. Additionally, you may evaluate how the addition of CPI Aerostructures to your portfolios can decrease your overall portfolio volatility.
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Is CPI Aerostructures' 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 CPI Aerostructures. If investors know CPI 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 CPI Aerostructures listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.27 | Earnings Share 1.38 | Revenue Per Share 7.023 | Quarterly Revenue Growth (0.02) | Return On Assets 0.0589 |
The market value of CPI Aerostructures is measured differently than its book value, which is the value of CPI that is recorded on the company's balance sheet. Investors also form their own opinion of CPI Aerostructures' value that differs from its market value or its book value, called intrinsic value, which is CPI Aerostructures' 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 CPI Aerostructures' market value can be influenced by many factors that don't directly affect CPI Aerostructures' 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 CPI Aerostructures' value and its price as these two are different measures arrived at by different means. Investors typically determine if CPI Aerostructures is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CPI Aerostructures' 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.