Chembio Diagnostics Volatility
| CEMIDelisted Stock | USD 0.46 0.01 2.22% |
We have found twenty-nine technical indicators for Chembio Diagnostics, which you can use to evaluate the volatility of the firm. Please confirm Chembio Diagnostics' mean deviation of 2.55, and Risk Adjusted Performance of 0.0774 to double-check if the risk estimate we provide is consistent with the expected return of 0.0%. Key indicators related to Chembio Diagnostics' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Chembio Diagnostics 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 Chembio daily returns, and it is calculated using variance and standard deviation. We also use Chembio's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Chembio Diagnostics volatility.
Chembio |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Chembio Diagnostics 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 Chembio Diagnostics at lower prices. For example, an investor can purchase Chembio 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 Chembio Diagnostics' 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 against Chembio Stock
| 0.58 | PFE | Pfizer Inc Earnings Call This Week | PairCorr |
| 0.52 | INTC | Intel Earnings Call Tomorrow | PairCorr |
| 0.5 | HPQ | HP Inc Financial Report 4th of June 2024 | PairCorr |
| 0.41 | JNJ | Johnson Johnson Aggressive Push | PairCorr |
Chembio Diagnostics Market Sensitivity And Downside Risk
Chembio Diagnostics' beta coefficient measures the volatility of Chembio 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 Chembio stock's returns against your selected market. In other words, Chembio Diagnostics's beta of 0.0426 provides an investor with an approximation of how much risk Chembio Diagnostics stock can potentially add to one of your existing portfolios. Chembio Diagnostics shows above-average downside volatility for the selected time horizon. Chembio Diagnostics is a potential penny stock. Although Chembio Diagnostics may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Chembio Diagnostics. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Chembio instrument if you perfectly time your entry and exit. However, remember that penny delisted stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.
3 Months Beta |Analyze Chembio Diagnostics Demand TrendCheck current 90 days Chembio Diagnostics correlation with market (NYSE Composite)Chembio Beta |
Chembio 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 | 0.0 |
It is essential to understand the difference between upside risk (as represented by Chembio Diagnostics's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Chembio Diagnostics' daily returns or price. Since the actual investment returns on holding a position in chembio 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 Chembio Diagnostics.
Chembio Diagnostics Stock Volatility Analysis
Volatility refers to the frequency at which Chembio Diagnostics delisted stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Chembio Diagnostics' price changes. Investors will then calculate the volatility of Chembio Diagnostics' stock to predict their future moves. A delisted 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 delisted 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 Chembio Diagnostics' volatility:
Historical Volatility
This type of delisted stock volatility measures Chembio Diagnostics' fluctuations based on previous trends. It's commonly used to predict Chembio Diagnostics' 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 Chembio Diagnostics' current market price. This means that the delisted stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Chembio Diagnostics' to be redeemed at a future date.Transformation |
We are not able to run technical analysis function on this symbol. We either do not have that equity or its historical data is not available at this time. Please try again later.
Chembio Diagnostics Projected Return Density Against Market
Given the investment horizon of 90 days Chembio Diagnostics has a beta of 0.0426 suggesting as returns on the market go up, Chembio Diagnostics average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Chembio Diagnostics 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 Chembio Diagnostics or Health Care Equipment & Supplies 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 Chembio Diagnostics' 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 Chembio delisted 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.
Chembio Diagnostics has an alpha of 0.5112, implying that it can generate a 0.51 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Chembio Diagnostics Price Volatility?
Several factors can influence a delisted 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.Chembio Diagnostics Stock Return Volatility
Chembio Diagnostics historical daily return volatility represents how much of Chembio Diagnostics delisted stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 0.0% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.6321% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Chembio Diagnostics Volatility
Volatility is a rate at which the price of Chembio Diagnostics 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 Chembio Diagnostics may increase or decrease. In other words, similar to Chembio's beta indicator, it measures the risk of Chembio Diagnostics and helps estimate the fluctuations that may happen in a short period of time. So if prices of Chembio Diagnostics 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.Chembio Diagnostics, Inc., together with its subsidiaries, develops, manufactures, and commercializes point-of-care diagnostic tests that are used to detect or diagnose diseases. Chembio Diagnostics, Inc. was founded in 1985 and is headquartered in Hauppauge, New York. Chembio Diagnostics operates under Diagnostics Research classification in the United States and is traded on NASDAQ Exchange. It employs 337 people.
Chembio Diagnostics' 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 Chembio Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Chembio Diagnostics' price varies over time.
3 ways to utilize Chembio Diagnostics' volatility to invest better
Higher Chembio Diagnostics' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Chembio Diagnostics 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. Chembio Diagnostics 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 Chembio Diagnostics investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Chembio Diagnostics' 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 Chembio Diagnostics' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Chembio Diagnostics Investment Opportunity
NYSE Composite has a standard deviation of returns of 0.63 and is 9.223372036854776E16 times more volatile than Chembio Diagnostics. 0 percent of all equities and portfolios are less risky than Chembio Diagnostics. You can use Chembio Diagnostics to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Chembio Diagnostics to be traded at $0.552 in 90 days.Significant diversification
The correlation between Chembio Diagnostics and NYA is 0.01 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Chembio Diagnostics and NYA in the same portfolio, assuming nothing else is changed.
Chembio Diagnostics Additional Risk Indicators
The analysis of Chembio Diagnostics' 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 Chembio Diagnostics' investment and either accepting that risk or mitigating it. Along with some common measures of Chembio Diagnostics 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 | 0.0774 | |||
| Market Risk Adjusted Performance | 12.09 | |||
| Mean Deviation | 2.55 | |||
| Semi Deviation | 3.47 | |||
| Downside Deviation | 7.6 | |||
| Coefficient Of Variation | 907.1 | |||
| Standard Deviation | 4.76 |
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 delisted stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Chembio Diagnostics 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 Chembio Diagnostics 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. Chembio Diagnostics' 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, Chembio Diagnostics' 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 Chembio Diagnostics.
Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population. You can also try the 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.
Other Consideration for investing in Chembio Stock
If you are still planning to invest in Chembio Diagnostics check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Chembio Diagnostics' history and understand the potential risks before investing.
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