Eurodry Stock Volatility

EDRY -  USA Stock  

USD 22.35  0.41  1.80%

Eurodry appears to be somewhat reliable, given 3 months investment horizon. Eurodry secures Sharpe Ratio (or Efficiency) of 0.13, which denotes the company had 0.13% of return per unit of risk over the last 3 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 Eurodry technical indicators you can presently evaluate if the expected return of 0.89% is justified by implied risk. Please utilize Eurodry's Coefficient Of Variation of 609.02, mean deviation of 5.21, and Downside Deviation of 5.45 to check if our risk estimates are consistent with your expectations.

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

720 Days Market Risk

Somewhat reliable

Chance of Distress

Below Average

720 Days Economic Sensitivity

Actively responds to the market

Eurodry Market Sensitivity And Downside Risk

Eurodry's beta coefficient measures the volatility of Eurodry 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 Eurodry stock's returns against your selected market. In other words, Eurodry's beta of 1.91 provides an investor with an approximation of how much risk Eurodry stock can potentially add to one of your existing portfolios.
Let's try to break down what Eurodry'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, Eurodry will likely underperform.
3 Months Beta |Analyze Eurodry Demand Trend
Check current 90 days Eurodry correlation with market (DOW)

Eurodry Beta

    
  1.91  
Eurodry 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

    
  7.08  
It is essential to understand the difference between upside risk (as represented by Eurodry's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Eurodry stock's daily returns or price. Since the actual investment returns on holding a position in Eurodry 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 Eurodry.

Eurodry Stock Volatility Analysis

Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Eurodry 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.

Eurodry Projected Return Density Against Market

Given the investment horizon of 90 days the stock has the beta coefficient of 1.9138 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, Eurodry 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 Eurodry 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 Eurodry 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 Eurodry 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 1.0873, implying that it can generate a 1.09 percent excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 

Eurodry 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 Eurodry 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 Eurodry 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 Eurodry 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 Eurodry is 792.88. The daily returns are distributed with a variance of 50.06 and standard deviation of 7.08. The mean deviation of Eurodry is currently at 5.06. For similar time horizon, the selected benchmark (DOW) has volatility of 0.74
α
Alpha over DOW
1.09
β
Beta against DOW1.91
σ
Overall volatility
7.08
Ir
Information ratio 0.16

Eurodry Stock Return Volatility

Eurodry historical daily return volatility represents how much Eurodry stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The company inherits 7.0751% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 0.7344% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Eurodry Volatility

Volatility is a rate at which the price of Eurodry 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 Eurodry may increase or decrease. In other words, similar to Eurodry's beta indicator, it measures the risk of Eurodry and helps estimate the fluctuations that may happen in a short period of time. So if prices of Eurodry 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 Capitalization12.6 M13.6 M
EuroDry Ltd., through its subsidiaries, provides ocean-going transportation services worldwide. EuroDry Ltd. was incorporated in 2018 and is based in Marousi, Greece. Eurodry operates under Marine Shipping classification in the United States and is traded on NASDAQ Exchange.

Eurodry Investment Opportunity

Eurodry has a volatility of 7.08 and is 9.7 times more volatile than DOW. 60  of all equities and portfolios are less risky than Eurodry. Compared to the overall equity markets, volatility of historical daily returns of Eurodry is higher than 60 () of all global equities and portfolios over the last 90 days. Use Eurodry to protect your portfolios against small market fluctuations. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of Eurodry to be traded at $21.68 in 90 days. . Let's try to break down what Eurodry'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, Eurodry will likely underperform.

Modest diversification

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

Eurodry Additional Risk Indicators

The analysis of Eurodry'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 Eurodry's investment and either accepting that risk or mitigating it. Along with some common measures of Eurodry 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 Performance0.1298
Market Risk Adjusted Performance0.62
Mean Deviation5.21
Semi Deviation4.8
Downside Deviation5.45
Coefficient Of Variation609.02
Standard Deviation7.17
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.

Eurodry 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 Eurodry 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. Eurodry'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, Eurodry'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 Eurodry.
Continue to Investing Opportunities. Note that the Eurodry information on this page should be used as a complementary analysis to other Eurodry's 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

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