Encision Volatility
| ECIADelisted Stock | USD 0.46 0.00 0.00% |
We consider Encision dangerous. Encision secures Sharpe Ratio (or Efficiency) of 0.0069, which denotes the company had a 0.0069% return per unit of standard deviation over the last 3 months. We have found twenty-five technical indicators for Encision, which you can use to evaluate the volatility of the firm. Please confirm Encision's Mean Deviation of 1.83, semi deviation of 2.54, and Downside Deviation of 6.81 to check if the risk estimate we provide is consistent with the expected return of 0.0099%. Key indicators related to Encision's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Encision 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 Encision daily returns, and it is calculated using variance and standard deviation. We also use Encision's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Encision volatility.
Encision |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Encision 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 Encision at lower prices. For example, an investor can purchase Encision 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 Encision'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 against Encision Pink Sheet
| 0.42 | TFX | Teleflex Incorporated Financial Report 2nd of May 2024 | PairCorr |
| 0.41 | RVP | Retractable Technologies | PairCorr |
Encision Market Sensitivity And Downside Risk
Encision's beta coefficient measures the volatility of Encision pink sheet 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 Encision pink sheet's returns against your selected market. In other words, Encision's beta of 0.67 provides an investor with an approximation of how much risk Encision pink sheet can potentially add to one of your existing portfolios. Encision shows above-average downside volatility for the selected time horizon. Encision is a potential penny stock. Although Encision may be in fact a good instrument to invest, many penny pink sheets 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 Encision. 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 Encision instrument if you perfectly time your entry and exit. However, remember that penny pink sheets 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 Encision Demand TrendCheck current 90 days Encision correlation with market (NYSE Composite)Encision Beta |
Encision 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 | 1.44 |
It is essential to understand the difference between upside risk (as represented by Encision's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Encision's daily returns or price. Since the actual investment returns on holding a position in encision pink sheet 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 Encision.
Encision Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Encision pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Encision's price changes. Investors will then calculate the volatility of Encision'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 Encision's volatility:
Historical Volatility
This type of pink sheet volatility measures Encision's fluctuations based on previous trends. It's commonly used to predict Encision'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 Encision'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 Encision's 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.
Encision Projected Return Density Against Market
Given the investment horizon of 90 days Encision has a beta of 0.671 suggesting as returns on the market go up, Encision average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Encision 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 Encision 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 Encision'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 Encision 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.
Encision has an alpha of 0.0128, implying that it can generate a 0.0128 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Encision 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.Encision Pink Sheet Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Encision is 14597.92. The daily returns are distributed with a variance of 2.08 and standard deviation of 1.44. The mean deviation of Encision is currently at 0.45. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 0.01 | |
β | Beta against NYSE Composite | 0.67 | |
σ | Overall volatility | 1.44 | |
Ir | Information ratio | -0.0026 |
Encision Pink Sheet Return Volatility
Encision historical daily return volatility represents how much of Encision pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 1.443% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.6275% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Encision Volatility
Volatility is a rate at which the price of Encision 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 Encision may increase or decrease. In other words, similar to Encision's beta indicator, it measures the risk of Encision and helps estimate the fluctuations that may happen in a short period of time. So if prices of Encision 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.Encision Inc., a medical device company, designs, develops, manufactures, and markets patented surgical instruments in the United States. Encision Inc. was incorporated in 1991 and is based in Boulder, Colorado. Encision operates under Medical Instruments Supplies classification in the United States and is traded on OTC Exchange. It employs 31 people.
Encision'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 Encision Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Encision's price varies over time.
3 ways to utilize Encision's volatility to invest better
Higher Encision's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Encision 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. Encision 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 Encision investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Encision'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 Encision's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Encision Investment Opportunity
Encision has a volatility of 1.44 and is 2.29 times more volatile than NYSE Composite. 12 percent of all equities and portfolios are less risky than Encision. You can use Encision to protect your portfolios against small market fluctuations. The pink sheet experiences a normal downward fluctuation but is a risky buy. Check odds of Encision to be traded at $0.4554 in 90 days.Average diversification
The correlation between Encision and NYA is 0.11 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Encision and NYA in the same portfolio, assuming nothing else is changed.
Encision Additional Risk Indicators
The analysis of Encision'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 Encision's investment and either accepting that risk or mitigating it. Along with some common measures of Encision 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 | 0.0196 | |||
| Market Risk Adjusted Performance | 0.0973 | |||
| Mean Deviation | 1.83 | |||
| Semi Deviation | 2.54 | |||
| Downside Deviation | 6.81 | |||
| Coefficient Of Variation | 5495.16 | |||
| Standard Deviation | 3.77 |
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.
Encision 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 Encision 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. Encision'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, Encision'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 Encision.
Check out Investing Opportunities 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 gross domestic product. You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Consideration for investing in Encision Pink Sheet
If you are still planning to invest in Encision 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 Encision's history and understand the potential risks before investing.
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |