Biomea Stock Volatility

BMEA Stock  USD 15.12  0.00  0.00%   
We consider Biomea Fusion somewhat reliable. Biomea Fusion secures Sharpe Ratio (or Efficiency) of 0.0237, which signifies that the company had 0.0237% of return per unit of risk over the last 24 months. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-seven technical indicators for Biomea Fusion, which you can use to evaluate the future volatility of the firm. Please confirm Biomea Fusion Risk Adjusted Performance of 0.0335, mean deviation of 3.98, and Downside Deviation of 5.18 to double-check if the risk estimate we provide is consistent with the expected return of 0.14%.
Biomea Fusion 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 Biomea daily returns, and it is calculated using variance and standard deviation. We also use Biomea's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Biomea Fusion volatility.

720 Days Market Risk

Somewhat reliable

Chance of Distress

Above Average

720 Days Economic Sensitivity

Follows the market closely
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Biomea Fusion 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 Biomea Fusion at lower prices. For example, an investor can purchase Biomea 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 Biomea Fusion'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 Biomea Fusion

+0.68MBIOMustang Bio Earnings Call TodayPairCorr
+0.7MBRXMoleculin Biotech Financial Report 10th of May 2023 PairCorr
+0.69MCRBSeres Therapeutics Fiscal Quarter End 31st of March 2023 PairCorr

Biomea Fusion Market Sensitivity And Downside Risk

Biomea Fusion's beta coefficient measures the volatility of Biomea stock compared to the systematic risk of the entire stock 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 Biomea stock's returns against your selected market. In other words, Biomea Fusion's beta of 0.75 provides an investor with an approximation of how much risk Biomea Fusion stock can potentially add to one of your existing portfolios.
Biomea Fusion exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Biomea Fusion individually to make sure intended market timing strategies and available technical indicators are consistent with their estimates about Biomea Fusion future systematic risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Biomea Fusion'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 Biomea Fusion'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.
24 Months Beta |Analyze Biomea Fusion Demand Trend
Check current 90 days Biomea Fusion correlation with market (NYSE Composite)

Biomea Beta

Biomea standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity 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

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

Using Biomea Put Option to Manage Risk

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

Biomea Fusion's PUT expiring on 2023-04-21

       Biomea Fusion Price At Expiration  

Current Biomea Fusion Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
2023-04-21 PUT at $15.0-0.41590.063782023-04-212.05 - 2.752.3View
2023-04-21 PUT at $12.5-0.24660.056562023-04-210.45 - 1.551.35View
View All Biomea Fusion Options

Biomea Fusion Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Biomea Fusion's fluctuations based on previous trends. It's commonly used to predict Biomea Fusion'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 Biomea Fusion'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 Biomea Fusion's to be redeemed at a future date.
The output start index for this execution was zero with a total number of output elements of four hundred eighty-eight. Biomea Fusion 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.

Biomea Fusion Projected Return Density Against Market

Given the investment horizon of 90 days Biomea Fusion has a beta of 0.7451 suggesting as returns on the market go up, Biomea Fusion average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Biomea Fusion 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 Biomea Fusion or Healthcare 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 Biomea Fusion'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 Biomea 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.
The company has an alpha of 0.1323, implying that it can generate a 0.13 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
Biomea Fusion's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how biomea 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 Biomea Fusion Price Volatility?

Several factors can influence a stock's market volatility:


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.

Biomea Fusion Stock Risk Measures

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 Biomea Fusion or Healthcare 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 Biomea Fusion'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 Biomea 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. Given the investment horizon of 90 days the coefficient of variation of Biomea Fusion is 4218.64. The daily returns are distributed with a variance of 32.6 and standard deviation of 5.71. The mean deviation of Biomea Fusion is currently at 3.98. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 1.08
Alpha over NYSE Composite
Beta against NYSE Composite0.75
Overall volatility
Information ratio 0.0237

Biomea Fusion Stock Return Volatility

Biomea Fusion historical daily return volatility represents how much of Biomea Fusion stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 5.71% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 1.0935% volatility on return distribution over the 90 days horizon.
 Performance (%) 

About Biomea Fusion Volatility

Volatility is a rate at which the price of Biomea Fusion 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 Biomea Fusion may increase or decrease. In other words, similar to Biomea's beta indicator, it measures the risk of Biomea Fusion and helps estimate the fluctuations that may happen in a short period of time. So if prices of Biomea Fusion 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 ReportedProjected for 2023
Market Capitalization194.7 M193.6 M
Biomea Fusion'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 Biomea Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Biomea Fusion's price varies over time.

3 ways to utilize Biomea Fusion's volatility to invest better

Higher Biomea Fusion's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Biomea Fusion 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. Biomea Fusion 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 Biomea Fusion investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Biomea Fusion'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 Biomea Fusion'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.

Biomea Fusion Investment Opportunity

Biomea Fusion has a volatility of 5.71 and is 5.24 times more volatile than NYSE Composite. 49  of all equities and portfolios are less risky than Biomea Fusion. Compared to the overall equity markets, volatility of historical daily returns of Biomea Fusion is lower than 49 () of all global equities and portfolios over the last 90 days. Use Biomea Fusion to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a normal downward trend, but the immediate impact on correlations cannot be determined at the moment . Check odds of Biomea Fusion to be traded at $14.97 in 90 days.

Average diversification

The correlation between Biomea Fusion and NYA is 0.14 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Biomea Fusion and NYA in the same portfolio, assuming nothing else is changed.

Biomea Fusion Additional Risk Indicators

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

Biomea Fusion 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 Biomea Fusion 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. Biomea Fusion'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, Biomea Fusion'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 Biomea Fusion.
Check out Trending Equities. For information on how to trade Biomea Stock refer to our How to Trade Biomea Stock guide. Note that the Biomea Fusion information on this page should be used as a complementary analysis to other Biomea Fusion'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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

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Is Biomea Fusion'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 Biomea Fusion. If investors know Biomea 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 Biomea Fusion listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
Return On Assets
Return On Equity
The market value of Biomea Fusion is measured differently than its book value, which is the value of Biomea that is recorded on the company's balance sheet. Investors also form their own opinion of Biomea Fusion's value that differs from its market value or its book value, called intrinsic value, which is Biomea Fusion'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 Biomea Fusion's market value can be influenced by many factors that don't directly affect Biomea Fusion'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 Biomea Fusion's value and its price as these two are different measures arrived at by different means. Investors typically determine Biomea Fusion value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Biomea Fusion'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.