HOPTO OTC Stock Volatility

HPTO -  USA Stock  

USD 0.37  0.09  19.57%

HOPTO INC appears to be out of control, given 3 months investment horizon. HOPTO INC holds Efficiency (Sharpe) Ratio of 0.067, which attests that the entity had 0.067% of return per unit of volatility over the last 3 months. Our approach towards determining 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-six technical indicators for HOPTO INC, which you can use to evaluate the future volatility of the firm. Please utilize HOPTO INC's risk adjusted performance of 0.0933, and Market Risk Adjusted Performance of 1.81 to validate if our risk estimates are consistent with your expectations.

HOPTO Volatility 

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

720 Days Market Risk

Out of control

Chance of Distress

Below Average

720 Days Economic Sensitivity

Slowly supersedes the market

HOPTO INC Market Sensitivity And Downside Risk

HOPTO INC's beta coefficient measures the volatility of HOPTO 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 HOPTO otc stock's returns against your selected market. In other words, HOPTO INC's beta of 0.39 provides an investor with an approximation of how much risk HOPTO INC otc stock can potentially add to one of your existing portfolios.
Let's try to break down what HOPTO's beta means in this case. As returns on the market increase, HOPTO INC returns are expected to increase less than the market. However, during the bear market, the loss on holding HOPTO INC will be expected to be smaller as well.
3 Months Beta |Analyze HOPTO INC Demand Trend
Check current 90 days HOPTO INC correlation with market (DOW)

HOPTO Beta

    
  0.39  
HOPTO 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

    
  5.53  
It is essential to understand the difference between upside risk (as represented by HOPTO INC's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of HOPTO INC stock's daily returns or price. Since the actual investment returns on holding a position in HOPTO INC 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 HOPTO INC.

HOPTO INC OTC Stock Volatility Analysis

Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. The Median Price line plots median indexes of HOPTO INC price series. View also all equity analysis or get more info about median price price transform indicator.

HOPTO INC Projected Return Density Against Market

Given the investment horizon of 90 days HOPTO INC has a beta of 0.3867 . This usually indicates as returns on the market go up, HOPTO INC average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding HOPTO INC 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 HOPTO INC or Technology 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 HOPTO INC 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 HOPTO 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 0.6905, implying that it can generate a 0.69 percent excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 

HOPTO INC 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 HOPTO INC or Technology 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 HOPTO INC 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 HOPTO 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 HOPTO INC is 1491.58. The daily returns are distributed with a variance of 30.55 and standard deviation of 5.53. The mean deviation of HOPTO INC is currently at 3.31. For similar time horizon, the selected benchmark (DOW) has volatility of 0.78
α
Alpha over DOW
0.69
β
Beta against DOW0.39
σ
Overall volatility
5.53
Ir
Information ratio 0.10

HOPTO INC OTC Stock Return Volatility

HOPTO INC historical daily return volatility represents how much HOPTO INC 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 5.5268% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 0.7144% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About HOPTO INC Volatility

Volatility is a rate at which the price of HOPTO INC 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 HOPTO INC may increase or decrease. In other words, similar to HOPTO's beta indicator, it measures the risk of HOPTO INC and helps estimate the fluctuations that may happen in a short period of time. So if prices of HOPTO INC 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 Capitalization8.9 M9.6 M
hopTo Inc., together with its subsidiaries, develops and sells application publishing software in the United States, Brazil, Japan, Germany, the Netherlands, and internationally. The company was formerly known as GraphOn Corporation and changed its name to hopTo Inc. in September 2013. hopTo Inc. was incorporated in 1996 and is headquartered in Concord, New Hampshire. HOPTO INC operates under SoftwareApplication classification in the United States and is traded on OTC Exchange. It employs 12 people.

HOPTO INC Investment Opportunity

HOPTO INC has a volatility of 5.53 and is 7.79 times more volatile than DOW. 47  of all equities and portfolios are less risky than HOPTO INC. Compared to the overall equity markets, volatility of historical daily returns of HOPTO INC is lower than 47 () of all global equities and portfolios over the last 90 days. Use HOPTO INC to protect your portfolios against small market fluctuations. The otc stock experiences a very speculative downward sentiment. The market maybe over-reacting. Check odds of HOPTO INC to be traded at $0.3515 in 90 days. . Let's try to break down what HOPTO's beta means in this case. As returns on the market increase, HOPTO INC returns are expected to increase less than the market. However, during the bear market, the loss on holding HOPTO INC will be expected to be smaller as well.

Significant diversification

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

HOPTO INC Additional Risk Indicators

The analysis of HOPTO INC'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 HOPTO INC's investment and either accepting that risk or mitigating it. Along with some common measures of HOPTO INC 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 Performance0.0933
Market Risk Adjusted Performance1.81
Mean Deviation3.89
Semi Deviation4.49
Downside Deviation8.94
Coefficient Of Variation924.5
Standard Deviation6.54
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.

HOPTO INC 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.
Upstart Holdings vs. HOPTO INC
General Mills vs. HOPTO INC
Flowers Foods vs. HOPTO INC
Realty Income vs. HOPTO INC
GM vs. HOPTO INC
Citigroup vs. HOPTO INC
Main Street vs. HOPTO INC
Facebook vs. HOPTO INC
Walker Dunlop vs. HOPTO INC
Vmware vs. HOPTO INC
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 HOPTO INC 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. HOPTO INC'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, HOPTO INC'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 HOPTO INC.
Please check Risk vs Return Analysis. Note that the HOPTO INC information on this page should be used as a complementary analysis to other HOPTO INC'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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

Complementary Tools for HOPTO OTC Stock analysis

When running HOPTO INC price analysis, check to measure HOPTO INC'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 HOPTO INC is operating at the current time. Most of HOPTO INC's value examination focuses on studying past and present price action to predict the probability of HOPTO INC's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move HOPTO INC's price. Additionally, you may evaluate how the addition of HOPTO INC to your portfolios can decrease your overall portfolio volatility.
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
The market value of HOPTO INC is measured differently than its book value, which is the value of HOPTO that is recorded on the company's balance sheet. Investors also form their own opinion of HOPTO INC's value that differs from its market value or its book value, called intrinsic value, which is HOPTO INC'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 HOPTO INC's market value can be influenced by many factors that don't directly affect HOPTO INC 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 HOPTO INC's value and its price as these two are different measures arrived at by different means. Investors typically determine HOPTO INC value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, HOPTO INC'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.