Echo Therapeutics OTC Stock Volatility

ECTE -  USA Stock  

USD 0.0002  0.00  0.00%

Echo Therapeutics is out of control given 3 months investment horizon. Echo Therapeutics secures Sharpe Ratio (or Efficiency) of 0.18, which denotes the company had 0.18% of return per unit of risk over the last 3 months. Our standpoint towards predicting the volatility of a stock is to use Echo Therapeutics market data together with company specific technical indicators. We were able to interpolate and analyze data for twenty-one different technical indicators, which can help you to evaluate if expected returns of 31.94% are justified by taking the suggested risk. Use Echo Therapeutics Mean Deviation of 75.97, coefficient of variation of 827.53, and Downside Deviation of 71.96 to evaluate company specific risk that cannot be diversified away.

Echo Therapeutics Volatility 

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

30 Days Market Risk

Out of control

Chance of Distress

Close to Average

30 Days Economic Sensitivity

Hyperactively responds to market trends

Echo Therapeutics Market Sensitivity And Downside Risk

Echo Therapeutics' beta coefficient measures the volatility of Echo Therapeutics 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 Echo Therapeutics otc stock's returns against your selected market. In other words, Echo Therapeutics's beta of 7.35 provides an investor with an approximation of how much risk Echo Therapeutics otc stock can potentially add to one of your existing portfolios.
Let's try to break down what Echo Therapeutics's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Echo Therapeutics will likely underperform.
3 Months Beta |Analyze Echo Therapeutics Demand Trend
Check current 90 days Echo Therapeutics correlation with market (DOW)

Echo Therapeutics Beta

    
  7.35  
Echo Therapeutics 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

    
  176.6  
It is essential to understand the difference between upside risk (as represented by Echo Therapeutics's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Echo Therapeutics stock's daily returns or price. Since the actual investment returns on holding a position in Echo Therapeutics 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 Echo Therapeutics.

Echo Therapeutics OTC Stock Volatility Analysis

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Echo Therapeutics Projected Return Density Against Market

Given the investment horizon of 90 days the otc stock has the beta coefficient of 7.3498 suggesting as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Echo Therapeutics will likely underperform.
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 Echo Therapeutics or Healthcare 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 Echo Therapeutics 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 Echo Therapeutics 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 35.6571, implying that it can generate a 35.66 percent excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 

Echo Therapeutics 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 Echo Therapeutics or Healthcare 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 Echo Therapeutics 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 Echo Therapeutics 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.
Given the investment horizon of 90 days the coefficient of variation of Echo Therapeutics is 552.94. The daily returns are distributed with a variance of 31189.12 and standard deviation of 176.6. The mean deviation of Echo Therapeutics is currently at 66.92. For similar time horizon, the selected benchmark (DOW) has volatility of 0.71
α
Alpha over DOW
35.66
β
Beta against DOW7.35
σ
Overall volatility
176.60
Ir
Information ratio 0.12

Echo Therapeutics OTC Stock Return Volatility

Echo Therapeutics historical daily return volatility represents how much Echo Therapeutics stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The firm inherits 176.6044% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 0.7131% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Echo Therapeutics Volatility

Volatility is a rate at which the price of Echo Therapeutics 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 Echo Therapeutics may increase or decrease. In other words, similar to Echo Therapeutics's beta indicator, it measures the risk of Echo Therapeutics and helps estimate the fluctuations that may happen in a short period of time. So if prices of Echo Therapeutics 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.
Echo Therapeutics, Inc. engages in the development of transdermal skin permeation and diagnostic medical devices for wearable-health consumer and diabetes outpatient markets. The company was founded in 1989 and is headquartered in Iselin, New Jersey. Echo Therapeutics operates under Medical Devices classification in the United States and is traded on OTC Exchange. It employs 19 people.

Echo Therapeutics Investment Opportunity

Echo Therapeutics has a volatility of 176.6 and is 248.73 times more volatile than DOW. 96  of all equities and portfolios are less risky than Echo Therapeutics. Compared to the overall equity markets, volatility of historical daily returns of Echo Therapeutics is higher than 96 () of all global equities and portfolios over the last 90 days. Use Echo Therapeutics to protect your portfolios against small market fluctuations. The otc stock experiences a normal downward fluctuation but is a risky buy. Check odds of Echo Therapeutics to be traded at $2.0E-4 in 90 days. . Let's try to break down what Echo Therapeutics's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Echo Therapeutics will likely underperform.

Significant diversification

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

Echo Therapeutics Additional Risk Indicators

The analysis of Echo Therapeutics' 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 Echo Therapeutics' investment and either accepting that risk or mitigating it. Along with some common measures of Echo Therapeutics 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 Performance0.0954
Market Risk Adjusted Performance4.89
Mean Deviation75.97
Semi Deviation20.06
Downside Deviation71.96
Coefficient Of Variation827.53
Standard Deviation296.81
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.

Echo Therapeutics 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 Echo Therapeutics 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. Echo Therapeutics' 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, Echo Therapeutics' 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 Echo Therapeutics.
Continue to Investing Opportunities. Note that the Echo Therapeutics information on this page should be used as a complementary analysis to other Echo Therapeutics' 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

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