Nordic American Tankers Stock Volatility

NAT Stock  USD 3.91  0.05  1.30%   
Nordic American Tankers has Sharpe Ratio of -0.0294, which conveys that the firm had a -0.0294% return per unit of risk over the last 3 months. Nordic American exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify Nordic American's Mean Deviation of 1.41, risk adjusted performance of (0.02), and Standard Deviation of 1.84 to check out the risk estimate we provide. Key indicators related to Nordic American's volatility include:
360 Days Market Risk
Chance Of Distress
360 Days Economic Sensitivity
Nordic American 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 Nordic daily returns, and it is calculated using variance and standard deviation. We also use Nordic's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Nordic American volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Nordic American 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 Nordic American at lower prices. For example, an investor can purchase Nordic 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 Nordic American'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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Nordic American Market Sensitivity And Downside Risk

Nordic American's beta coefficient measures the volatility of Nordic 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 Nordic stock's returns against your selected market. In other words, Nordic American's beta of -0.13 provides an investor with an approximation of how much risk Nordic American stock can potentially add to one of your existing portfolios. Nordic American Tankers exhibits very low volatility with skewness of 0.42 and kurtosis of 0.09. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Nordic American'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 Nordic American'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 Nordic American Tankers Demand Trend
Check current 90 days Nordic American correlation with market (NYSE Composite)

Nordic Beta

    
  -0.13  
Nordic 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

    
  1.73  
It is essential to understand the difference between upside risk (as represented by Nordic American's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Nordic American's daily returns or price. Since the actual investment returns on holding a position in nordic 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 Nordic American.

Using Nordic Put Option to Manage Risk

Put options written on Nordic American grant holders of the option the right to sell a specified amount of Nordic American 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 Nordic Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Nordic American'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 Nordic American will be realized, the loss incurred will be offset by the profits made with the option trade.

Nordic American's PUT expiring on 2024-04-19

   Profit   
       Nordic American Price At Expiration  

Current Nordic American Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2024-04-19 PUT at $7.0-0.85420.126732024-04-192.95 - 3.22.35View
Put
2024-04-19 PUT at $4.5-0.82310.45633272024-04-190.55 - 0.650.7View
Put
2024-04-19 PUT at $4.0-0.60421.166371562024-04-190.1 - 0.20.19View
View All Nordic American Options

Nordic American Tankers Stock Volatility Analysis

Volatility refers to the frequency at which Nordic American stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Nordic American's price changes. Investors will then calculate the volatility of Nordic American'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 Nordic American's volatility:

Historical Volatility

This type of stock volatility measures Nordic American's fluctuations based on previous trends. It's commonly used to predict Nordic American'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 Nordic American'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 Nordic American'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. Nordic American Tankers 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.

Nordic American Projected Return Density Against Market

Considering the 90-day investment horizon Nordic American Tankers has a beta of -0.1297 . This indicates as returns on benchmark increase, returns on holding Nordic American are expected to decrease at a much lower rate. During the bear market, however, Nordic American Tankers 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 Nordic American or Oil, Gas & Consumable Fuels 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 Nordic American'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 Nordic 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.
Nordic American Tankers has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming NYSE Composite.
   Predicted Return Density   
       Returns  
Nordic American's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how nordic stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Nordic American 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.

Nordic American Stock Risk Measures

Considering the 90-day investment horizon the coefficient of variation of Nordic American is -3401.96. The daily returns are distributed with a variance of 3.01 and standard deviation of 1.73. The mean deviation of Nordic American Tankers is currently at 1.34. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
-0.1
β
Beta against NYSE Composite-0.13
σ
Overall volatility
1.73
Ir
Information ratio -0.13

Nordic American Stock Return Volatility

Nordic American historical daily return volatility represents how much of Nordic American stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 1.7347% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.5731% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Nordic American Volatility

Volatility is a rate at which the price of Nordic American 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 Nordic American may increase or decrease. In other words, similar to Nordic's beta indicator, it measures the risk of Nordic American and helps estimate the fluctuations that may happen in a short period of time. So if prices of Nordic American 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.
Nordic American Tankers Limited, a tanker company, acquires and charters double-hull tankers in Bermuda and internationally. The company was incorporated in 1995 and is based in Hamilton, Bermuda. Nordic American operates under Marine Shipping classification in the United States and is traded on New York Stock Exchange. It employs 19 people.
Nordic American'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 Nordic Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Nordic American's price varies over time.

3 ways to utilize Nordic American's volatility to invest better

Higher Nordic American's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Nordic American Tankers 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. Nordic American Tankers 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 Nordic American Tankers investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Nordic American'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 Nordic American's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Nordic American Investment Opportunity

Nordic American Tankers has a volatility of 1.73 and is 3.04 times more volatile than NYSE Composite. 15 percent of all equities and portfolios are less risky than Nordic American. You can use Nordic American Tankers to enhance the returns of your portfolios. The stock experiences a large bullish trend. Check odds of Nordic American to be traded at $4.3 in 90 days.

Good diversification

The correlation between Nordic American Tankers and NYA is -0.04 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Nordic American Tankers and NYA in the same portfolio, assuming nothing else is changed.

Nordic American Additional Risk Indicators

The analysis of Nordic American'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 Nordic American's investment and either accepting that risk or mitigating it. Along with some common measures of Nordic American 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.
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.

Nordic American 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 Nordic American 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. Nordic American'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, Nordic American'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 Nordic American Tankers.
When determining whether Nordic American Tankers 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 Nordic 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 Nordic American Tankers Stock. Highlighted below are key reports to facilitate an investment decision about Nordic American Tankers Stock:
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Nordic American Tankers. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.
Note that the Nordic American Tankers information on this page should be used as a complementary analysis to other Nordic American'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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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Is Nordic American'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 Nordic American. If investors know Nordic 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 Nordic American 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
(0.50)
Dividend Share
0.46
Earnings Share
0.47
Revenue Per Share
1.256
Quarterly Revenue Growth
(0.76)
The market value of Nordic American Tankers is measured differently than its book value, which is the value of Nordic that is recorded on the company's balance sheet. Investors also form their own opinion of Nordic American's value that differs from its market value or its book value, called intrinsic value, which is Nordic American'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 Nordic American's market value can be influenced by many factors that don't directly affect Nordic American'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 Nordic American's value and its price as these two are different measures arrived at by different means. Investors typically determine if Nordic American is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nordic American'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.