The Connecticut Light Stock Volatility
| CNTHP Stock | USD 52.00 0.45 0.87% |
We consider Connecticut Light very steady. Connecticut Light secures Sharpe Ratio (or Efficiency) of 0.0251, which signifies that the company had a 0.0251% return per unit of standard deviation over the last 3 months. We have found nineteen technical indicators for The Connecticut Light, which you can use to evaluate the volatility of the firm. Please confirm Connecticut Light's Standard Deviation of 0.6024, risk adjusted performance of (0), and Coefficient Of Variation of (53,517) to double-check if the risk estimate we provide is consistent with the expected return of 0.0133%. Key indicators related to Connecticut Light's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Connecticut Light 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 Connecticut daily returns, and it is calculated using variance and standard deviation. We also use Connecticut's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Connecticut Light volatility.
Connecticut |
Connecticut Light Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Connecticut Light pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Connecticut Light's price changes. Investors will then calculate the volatility of Connecticut Light'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 Connecticut Light's volatility:
Historical Volatility
This type of pink sheet volatility measures Connecticut Light's fluctuations based on previous trends. It's commonly used to predict Connecticut Light'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 Connecticut Light'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 Connecticut Light'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. Connecticut Light 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.
Connecticut Light Projected Return Density Against Market
Assuming the 90 days horizon Connecticut Light has a beta that is very close to zero suggesting the returns on NYSE COMPOSITE and Connecticut Light do not appear to be sensible.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 Connecticut Light or Utilities 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 Connecticut Light'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 Connecticut 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.
It does not look like Connecticut Light's alpha can have any bearing on the current valuation. Predicted Return Density |
| Returns |
What Drives a Connecticut Light 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.Connecticut Light Pink Sheet Risk Measures
Assuming the 90 days horizon the coefficient of variation of Connecticut Light is 3984.89. The daily returns are distributed with a variance of 0.28 and standard deviation of 0.53. The mean deviation of The Connecticut Light is currently at 0.21. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 0.00 | |
β | Beta against NYSE Composite | 0.00 | |
σ | Overall volatility | 0.53 | |
Ir | Information ratio | -0.03 |
Connecticut Light Pink Sheet Return Volatility
Connecticut Light historical daily return volatility represents how much of Connecticut Light pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The enterprise shows 0.5315% volatility of returns over 90 . By contrast, NYSE Composite accepts 0.6281% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Connecticut Light Volatility
Volatility is a rate at which the price of Connecticut Light 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 Connecticut Light may increase or decrease. In other words, similar to Connecticut's beta indicator, it measures the risk of Connecticut Light and helps estimate the fluctuations that may happen in a short period of time. So if prices of Connecticut Light 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.The Connecticut Light and Power Company, a regulated electric utility, engages in the purchase, delivery, and sale of electricity to residential, commercial, and industrial customers. The Connecticut Light and Power Company is a subsidiary of Eversource Energy. Conn Lt is traded on OTC Exchange in the United States.
Connecticut Light'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 Connecticut Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Connecticut Light's price varies over time.
3 ways to utilize Connecticut Light's volatility to invest better
Higher Connecticut Light's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Connecticut Light 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. Connecticut Light 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 Connecticut Light investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Connecticut Light'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 Connecticut Light's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Connecticut Light Investment Opportunity
NYSE Composite has a standard deviation of returns of 0.63 and is 1.19 times more volatile than The Connecticut Light. 4 percent of all equities and portfolios are less risky than Connecticut Light. You can use The Connecticut Light to enhance the returns of your portfolios. The pink sheet experiences a moderate upward volatility. Check odds of Connecticut Light to be traded at $57.2 in 90 days.Connecticut Light Additional Risk Indicators
The analysis of Connecticut Light'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 Connecticut Light's investment and either accepting that risk or mitigating it. Along with some common measures of Connecticut Light 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) | |||
| Mean Deviation | 0.2601 | |||
| Coefficient Of Variation | (53,517) | |||
| Standard Deviation | 0.6024 | |||
| Variance | 0.3629 | |||
| Information Ratio | (0.03) | |||
| Total Risk Alpha | (0.02) |
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.
Connecticut Light 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 Connecticut Light 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. Connecticut Light'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, Connecticut Light'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 The Connecticut Light.
Additional Tools for Connecticut Pink Sheet Analysis
When running Connecticut Light's price analysis, check to measure Connecticut Light'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 Connecticut Light is operating at the current time. Most of Connecticut Light's value examination focuses on studying past and present price action to predict the probability of Connecticut Light's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Connecticut Light's price. Additionally, you may evaluate how the addition of Connecticut Light to your portfolios can decrease your overall portfolio volatility.