Edap Tms Stock Volatility

EDAP -  USA Stock  

USD 6.01  0.06  0.99%

We consider Edap Tms somewhat reliable. Edap Tms Sa secures Sharpe Ratio (or Efficiency) of 0.0272, which denotes the company had 0.0272% of return per unit of standard deviation over the last 3 months. Our philosophy in predicting the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Edap Tms Sa, which you can use to evaluate the future volatility of the firm. Please confirm Edap Tms Sa Mean Deviation of 1.57, semi deviation of 2.2, and Downside Deviation of 2.51 to check if the risk estimate we provide is consistent with the expected return of 0.0615%.

Edap Tms Volatility 

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

60 Days Market Risk

Somewhat reliable

Chance of Distress

Very Low

60 Days Economic Sensitivity

Almost neglects market trends

Edap Tms Market Sensitivity And Downside Risk

Edap Tms' beta coefficient measures the volatility of Edap Tms 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 Edap Tms stock's returns against your selected market. In other words, Edap Tms's beta of -0.23 provides an investor with an approximation of how much risk Edap Tms stock can potentially add to one of your existing portfolios.
Let's try to break down what Edap Tms's beta means in this case. As returns on the market increase, returns on owning Edap Tms are expected to decrease at a much lower rate. During the bear market, Edap Tms is likely to outperform the market.
3 Months Beta |Analyze Edap Tms Sa Demand Trend
Check current 90 days Edap Tms correlation with market (DOW)

Edap Tms Beta

    
  -0.23  
Edap Tms 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

    
  2.26  
It is essential to understand the difference between upside risk (as represented by Edap Tms's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Edap Tms stock's daily returns or price. Since the actual investment returns on holding a position in Edap Tms 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 Edap Tms.

Edap Tms Implied Volatility

    
  125.95  
Edap Tms' implied volatility exposes the market's sentiment of Edap Tms Sa stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Edap Tms' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Edap Tms stock will not fluctuate a lot when Edap Tms' options near their expiration.

Edap Tms Sa Stock Volatility Analysis

Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Edap Tms Sa 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. View also all equity analysis or get more info about average price price transform indicator.

Edap Tms Projected Return Density Against Market

Given the investment horizon of 90 days Edap Tms Sa has a beta of -0.2303 suggesting as returns on benchmark increase, returns on holding Edap Tms are expected to decrease at a much lower rate. During the bear market, however, Edap Tms Sa 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 Edap Tms 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 Edap Tms 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 Edap Tms 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 0.0368, implying that it can generate a 0.0368 percent excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 

Edap Tms 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 Edap Tms 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 Edap Tms 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 Edap Tms 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 Edap Tms is 3673.4. The daily returns are distributed with a variance of 5.1 and standard deviation of 2.26. The mean deviation of Edap Tms Sa is currently at 1.54. For similar time horizon, the selected benchmark (DOW) has volatility of 0.71
α
Alpha over DOW
0.0368
β
Beta against DOW-0.23
σ
Overall volatility
2.26
Ir
Information ratio 0.0015

Edap Tms Stock Return Volatility

Edap Tms historical daily return volatility represents how much Edap Tms 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 2.2578% 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 Edap Tms Volatility

Volatility is a rate at which the price of Edap Tms 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 Edap Tms may increase or decrease. In other words, similar to Edap Tms's beta indicator, it measures the risk of Edap Tms and helps estimate the fluctuations that may happen in a short period of time. So if prices of Edap Tms 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.
Last ReportedProjected for 2021
Market Capitalization150.7 M122.3 M
EDAP TMS S.A., together with its subsidiaries, develops, produces, markets, distributes, and maintains a portfolio of minimally-invasive medical devices for the treatment of urological diseases in Asia, France, the United States, and internationally. The company was incorporated in 1979 and is headquartered in Lyon, France. Edap Tms operates under Medical Devices classification in the United States and is traded on NASDAQ Exchange. It employs 223 people.

Nearest Edap Tms long CALL Option Payoff at Expiration

Edap Tms' implied volatility is one of the determining factors in the pricing options written on Edap Tms Sa. Implied volatility approximates the future value of Edap Tmsusing the option's current value. Options with high implied volatility have higher premiums and can be used to hedge the downside of investing in Edap Tms Sa over a specific time period.
View All Edap Tms options
2021-11-19 CALL at $1.0 is a CALL option contract on Edap Tms' common stock with a strick price of 1.0 expiring on 2021-11-19. The contract was not traded in recent days and, as of today, has 28 days remaining before the expiration. The option is currently trading at a bid price of $4.8, and an ask price of $6.6. The implied volatility as of the 23rd of October is 969.0693.
 Profit 
Share
      Edap Tms Price At Expiration 

Edap Tms Investment Opportunity

Edap Tms Sa has a volatility of 2.26 and is 3.18 times more volatile than DOW. 19  of all equities and portfolios are less risky than Edap Tms. Compared to the overall equity markets, volatility of historical daily returns of Edap Tms Sa is lower than 19 () of all global equities and portfolios over the last 90 days. Use Edap Tms Sa to protect your portfolios against small market fluctuations. The stock experiences a moderate downward daily trend and can be a good diversifier. Check odds of Edap Tms to be traded at $5.89 in 90 days. . Let's try to break down what Edap Tms's beta means in this case. As returns on the market increase, returns on owning Edap Tms are expected to decrease at a much lower rate. During the bear market, Edap Tms is likely to outperform the market.

Good diversification

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

Edap Tms Additional Risk Indicators

The analysis of Edap Tms' 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 Edap Tms' investment and either accepting that risk or mitigating it. Along with some common measures of Edap Tms 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 Performance0.0195
Market Risk Adjusted Performance(0.12)
Mean Deviation1.57
Semi Deviation2.2
Downside Deviation2.51
Coefficient Of Variation5601.28
Standard Deviation2.27
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.

Edap Tms 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 Edap Tms 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. Edap Tms' 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, Edap Tms' 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 Edap Tms Sa.
Continue to Investing Opportunities. Note that the Edap Tms Sa information on this page should be used as a complementary analysis to other Edap Tms' 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 Focused Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

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