Canfor Stock Volatility
| CFPZF Stock | USD 11.42 0.13 1.13% |
Canfor secures Sharpe Ratio (or Efficiency) of -0.0303, which signifies that the company had a -0.0303% return per unit of risk over the last 3 months. Canfor exposes twenty-eight different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Canfor's Mean Deviation of 1.51, risk adjusted performance of 0.0109, and Downside Deviation of 2.5 to double-check the risk estimate we provide. Key indicators related to Canfor's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Canfor Pink Sheet 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 Canfor daily returns, and it is calculated using variance and standard deviation. We also use Canfor's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Canfor volatility.
Canfor |
Canfor Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Canfor pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Canfor's price changes. Investors will then calculate the volatility of Canfor's pink sheet to predict their future moves. A pink sheet that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A pink sheet with relatively stable price changes has low volatility. A highly volatile pink sheet 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 Canfor's volatility:
Historical Volatility
This type of pink sheet volatility measures Canfor's fluctuations based on previous trends. It's commonly used to predict Canfor's future behavior based on its past. However, it cannot conclusively determine the future direction of the pink sheet.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Canfor's current market price. This means that the pink sheet will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Canfor'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. Canfor 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.
Canfor Projected Return Density Against Market
Assuming the 90 days horizon Canfor has a beta of 0.9981 suggesting Canfor market returns are reactive to returns on the market. As the market goes up or down, Canfor is expected to follow.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 Canfor or Paper & Forest Products 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 Canfor's price will be affected by overall pink sheet 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 Canfor pink sheet'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.
Canfor has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the NYSE Composite. Predicted Return Density |
| Returns |
What Drives a Canfor Price Volatility?
Several factors can influence a pink sheet'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.Canfor Pink Sheet Risk Measures
Assuming the 90 days horizon the coefficient of variation of Canfor is -3304.39. The daily returns are distributed with a variance of 5.07 and standard deviation of 2.25. The mean deviation of Canfor is currently at 1.48. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.59
α | Alpha over NYSE Composite | -0.09 | |
β | Beta against NYSE Composite | 1.00 | |
σ | Overall volatility | 2.25 | |
Ir | Information ratio | -0.04 |
Canfor Pink Sheet Return Volatility
Canfor historical daily return volatility represents how much of Canfor pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 2.2509% volatility of returns over 90 . By contrast, NYSE Composite accepts 0.5766% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Canfor Volatility
Volatility is a rate at which the price of Canfor 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 Canfor may increase or decrease. In other words, similar to Canfor's beta indicator, it measures the risk of Canfor and helps estimate the fluctuations that may happen in a short period of time. So if prices of Canfor 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.Canfor Corporation operates as an integrated forest products company in the United States, Asia, Canada, Europe, and internationally. The company was founded in 1938 and is headquartered in Vancouver, Canada. Canfor Corp operates under Lumber Wood Production classification in the United States and is traded on OTC Exchange. It employs 7391 people.
Canfor'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 Canfor Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Canfor's price varies over time.
3 ways to utilize Canfor's volatility to invest better
Higher Canfor's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Canfor 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. Canfor 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 Canfor investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Canfor'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 Canfor's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Canfor Investment Opportunity
Canfor has a volatility of 2.25 and is 3.88 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Canfor is lower than 19 percent of all global equities and portfolios over the last 90 days. You can use Canfor to protect your portfolios against small market fluctuations. The pink sheet experiences a bearish sentiment with high volatility. Check odds of Canfor to be traded at $11.08 in 90 days.Modest diversification
The correlation between Canfor and NYA is 0.26 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Canfor and NYA in the same portfolio, assuming nothing else is changed.
Canfor Additional Risk Indicators
The analysis of Canfor'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 Canfor's investment and either accepting that risk or mitigating it. Along with some common measures of Canfor pink sheet'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 | 0.0109 | |||
| Market Risk Adjusted Performance | 0.0135 | |||
| Mean Deviation | 1.51 | |||
| Semi Deviation | 1.89 | |||
| Downside Deviation | 2.5 | |||
| Coefficient Of Variation | 16880.97 | |||
| Standard Deviation | 2.28 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential pink sheets, we recommend comparing similar pink sheets with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Canfor 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 Canfor 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. Canfor'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, Canfor'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 Canfor.
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Canfor. 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 Canfor information on this page should be used as a complementary analysis to other Canfor'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 Stocks Directory module to find actively traded stocks across global markets.
Complementary Tools for Canfor Pink Sheet analysis
When running Canfor's price analysis, check to measure Canfor's 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 Canfor is operating at the current time. Most of Canfor's value examination focuses on studying past and present price action to predict the probability of Canfor's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Canfor's price. Additionally, you may evaluate how the addition of Canfor to your portfolios can decrease your overall portfolio volatility.
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