Earthworks OTC Stock Volatility

EAATF -  USA Stock  

USD 0.26  0.03  13.04%

Earthworks Indus appears to be out of control, given 21 months investment horizon. Earthworks Indus secures Sharpe Ratio (or Efficiency) of 0.0773, which denotes the company had 0.0773% of return per unit of risk over the last 21 months. Our standpoint towards predicting the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. By reviewing Earthworks Indus technical indicators you can presently evaluate if the expected return of 0.54% is justified by implied risk. Please utilize Earthworks Indus' Coefficient Of Variation of 1142.74, downside deviation of 11.81, and Mean Deviation of 2.43 to check if our risk estimates are consistent with your expectations.

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Earthworks Indus OTC 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 Earthworks daily returns, and it is calculated using variance and standard deviation. We also use Earthworks's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Earthworks Indus volatility.

60 Days Market Risk

Out of control

Chance of Distress

Quite High

60 Days Economic Sensitivity

Moves indifferently to market moves

Earthworks Indus Market Sensitivity And Downside Risk

Earthworks Indus' beta coefficient measures the volatility of Earthworks otc 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 Earthworks otc stock's returns against your selected market. In other words, Earthworks Indus's beta of -0.19 provides an investor with an approximation of how much risk Earthworks Indus otc stock can potentially add to one of your existing portfolios.
Let's try to break down what Earthworks's beta means in this case. As returns on the market increase, returns on owning Earthworks Indus are expected to decrease at a much lower rate. During the bear market, Earthworks Indus is likely to outperform the market.
21 Months Beta |Analyze Earthworks Indus Demand Trend
Check current 90 days Earthworks Indus correlation with market (DOW)

Earthworks Beta

    
  -0.19  
Earthworks 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

    
  7.03  
It is essential to understand the difference between upside risk (as represented by Earthworks Indus's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Earthworks Indus stock's daily returns or price. Since the actual investment returns on holding a position in Earthworks Indus 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 Earthworks Indus.

Earthworks Indus OTC Stock Volatility Analysis

Transformation
The output start index for this execution was zero with a total number of output elements of four hundred fifty-seven. Earthworks Indus Typical Price indicator is an average of each day price and can be used instead of closing price when creating different Earthworks Indus moving average lines. View also all equity analysis or get more info about typical price price transform indicator.

Earthworks Indus Projected Return Density Against Market

Assuming the 90 days horizon Earthworks Indus has a beta of -0.1925 suggesting as returns on benchmark increase, returns on holding Earthworks Indus are expected to decrease at a much lower rate. During the bear market, however, Earthworks Indus 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 Earthworks Indus or Industrials 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 Earthworks Indus stock'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 Earthworks 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 0.6952, implying that it can generate a 0.7 percent excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 

Earthworks Indus OTC 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 Earthworks Indus or Industrials 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 Earthworks Indus stock'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 Earthworks 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.
Assuming the 90 days horizon the coefficient of variation of Earthworks Indus is 1293.57. The daily returns are distributed with a variance of 49.36 and standard deviation of 7.03. The mean deviation of Earthworks Indus is currently at 2.23. For similar time horizon, the selected benchmark (DOW) has volatility of 1.79
α
Alpha over DOW
0.70
β
Beta against DOW-0.19
σ
Overall volatility
7.03
Ir
Information ratio 0.08

Earthworks Indus OTC Stock Return Volatility

Earthworks Indus historical daily return volatility represents how much Earthworks Indus stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The firm shows 7.0253% volatility of returns over 90 . By contrast, DOW inherits 1.8345% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Earthworks Indus Volatility

Volatility is a rate at which the price of Earthworks Indus 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 Earthworks Indus may increase or decrease. In other words, similar to Earthworks's beta indicator, it measures the risk of Earthworks Indus and helps estimate the fluctuations that may happen in a short period of time. So if prices of Earthworks Indus 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.
Earthworks Industries Inc., a development stage company, focuses on providing waste disposal services for private and public sectors in Canada and the United States. It designs, constructs, and operates an integrated waste handling facility on 443 acres of the Cortina Rancheria in Colusa County California. The company was founded in 1993 and is headquartered in Vancouver, Canada.

Earthworks Indus Investment Opportunity

Earthworks Indus has a volatility of 7.03 and is 3.84 times more volatile than DOW. 60  of all equities and portfolios are less risky than Earthworks Indus. Compared to the overall equity markets, volatility of historical daily returns of Earthworks Indus is higher than 60 () of all global equities and portfolios over the last 90 days. Use Earthworks Indus to enhance returns of your portfolios. The otc stock experiences a very speculative upward sentiment. The trend is possibly hyped up. Check odds of Earthworks Indus to be traded at $0.325 in 90 days. . Let's try to break down what Earthworks's beta means in this case. As returns on the market increase, returns on owning Earthworks Indus are expected to decrease at a much lower rate. During the bear market, Earthworks Indus is likely to outperform the market.

Good diversification

The correlation between Earthworks Indus and DJI is Good diversification for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Earthworks Indus and DJI in the same portfolio assuming nothing else is changed.

Earthworks Indus Additional Risk Indicators

The analysis of Earthworks Indus' 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 Earthworks Indus' investment and either accepting that risk or mitigating it. Along with some common measures of Earthworks Indus stock 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 Performance0.1642
Market Risk Adjusted Performance(3.55)
Mean Deviation2.43
Semi Deviation2.82
Downside Deviation11.81
Coefficient Of Variation1142.74
Standard Deviation7.94
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stock investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Earthworks Indus 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.
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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 Earthworks Indus 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. Earthworks Indus' 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, Earthworks Indus' 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 Earthworks Indus.
Continue to Investing Opportunities. Note that the Earthworks Indus information on this page should be used as a complementary analysis to other Earthworks Indus' 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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When running Earthworks Indus price analysis, check to measure Earthworks Indus' 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 Earthworks Indus is operating at the current time. Most of Earthworks Indus' value examination focuses on studying past and present price action to predict the probability of Earthworks Indus' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Earthworks Indus' price. Additionally, you may evaluate how the addition of Earthworks Indus to your portfolios can decrease your overall portfolio volatility.
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The market value of Earthworks Indus is measured differently than its book value, which is the value of Earthworks that is recorded on the company's balance sheet. Investors also form their own opinion of Earthworks Indus' value that differs from its market value or its book value, called intrinsic value, which is Earthworks Indus' 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 Earthworks Indus' market value can be influenced by many factors that don't directly affect Earthworks Indus underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Earthworks Indus' value and its price as these two are different measures arrived at by different means. Investors typically determine Earthworks Indus value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Earthworks Indus' 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.