Innovative OTC Stock Volatility

IMTH -  USA Stock  

USD 1.84  0.58  46.03%

Innovative Medtech is out of control given 3 months investment horizon. Innovative Medtech holds Efficiency (Sharpe) Ratio of 0.18, which attests that the entity had 0.18% of return per unit of risk over the last 3 months. Our standpoint towards determining the volatility of a stock is to use Innovative Medtech market data together with company specific technical indicators. We were able to interpolate and analyze data for twenty-eight different technical indicators, which can help you to evaluate if expected returns of 11.14% are justified by taking the suggested risk. Use Innovative Medtech Market Risk Adjusted Performance of 30.1, risk adjusted performance of 0.1428, and Downside Deviation of 36.18 to evaluate company specific risk that cannot be diversified away.

Innovative Volatility 

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

30 Days Market Risk

Out of control

Chance of Distress

30 Days Economic Sensitivity

Slowly supersedes the market
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Innovative Medtech 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 Innovative Medtech at lower prices. For example, an investor can purchase Innovative 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 Innovative Medtech'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.

Innovative Medtech Market Sensitivity And Downside Risk

Innovative Medtech's beta coefficient measures the volatility of Innovative 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 Innovative otc stock's returns against your selected market. In other words, Innovative Medtech's beta of 0.32 provides an investor with an approximation of how much risk Innovative Medtech otc stock can potentially add to one of your existing portfolios.
Let's try to break down what Innovative's beta means in this case. As returns on the market increase, Innovative Medtech returns are expected to increase less than the market. However, during the bear market, the loss on holding Innovative Medtech will be expected to be smaller as well.
3 Months Beta |Analyze Innovative Medtech Demand Trend
Check current 90 days Innovative Medtech correlation with market (DOW)

Innovative Beta

    
  0.32  
Innovative 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

    
  61.71  
It is essential to understand the difference between upside risk (as represented by Innovative Medtech's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Innovative Medtech stock's daily returns or price. Since the actual investment returns on holding a position in Innovative Medtech 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 Innovative Medtech.

Innovative Medtech OTC Stock Volatility Analysis

Volatility refers to the frequency at which Innovative Medtech stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Innovative Medtech's price changes. Investors will then calculate the volatility of Innovative Medtech's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock 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 Innovative Medtech's volatility:

Historical Volatility

This type of stock volatility measures Innovative Medtech's fluctuations based on previous trends. It's commonly used to predict Innovative Medtech's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Innovative Medtech's current market price. This means that the stock will return to its initially predicted market price.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Innovative Medtech 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.

Innovative Medtech Projected Return Density Against Market

Given the investment horizon of 90 days Innovative Medtech has a beta of 0.316 . This usually indicates as returns on the market go up, Innovative Medtech average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Innovative Medtech 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 Innovative Medtech 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 Innovative Medtech 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 Innovative 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 9.5283, implying that it can generate a 9.53 percent excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 
Innovative Medtech's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Innovative Medtech stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Company's Stock Price Volatility?

Several factors can influence a company's stock 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.

Innovative Medtech 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 Innovative Medtech 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 Innovative Medtech 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 Innovative 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 Innovative Medtech is 554.09. The daily returns are distributed with a variance of 3808.66 and standard deviation of 61.71. The mean deviation of Innovative Medtech is currently at 29.62. For similar time horizon, the selected benchmark (DOW) has volatility of 0.83
α
Alpha over DOW
9.53
β
Beta against DOW0.32
σ
Overall volatility
61.71
Ir
Information ratio 0.16

Innovative Medtech OTC Stock Return Volatility

Innovative Medtech historical daily return volatility represents how much Innovative Medtech 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 61.7143% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 0.8439% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Innovative Medtech Volatility

Volatility is a rate at which the price of Innovative Medtech 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 Innovative Medtech may increase or decrease. In other words, similar to Innovative's beta indicator, it measures the risk of Innovative Medtech and helps estimate the fluctuations that may happen in a short period of time. So if prices of Innovative Medtech 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.
Innovative MedTech Inc., through its subsidiaries, provides health and wellness services in the United States. Innovative MedTech Inc. was incorporated in 2005 and is based in Blue Island, Illinois. Innovative Medtech operates under Medical Instruments Supplies classification in the United States and is traded on OTC Exchange. It employs 37 people.

Innovative Medtech Investment Opportunity

Innovative Medtech has a volatility of 61.71 and is 73.46 times more volatile than DOW. 96  of all equities and portfolios are less risky than Innovative Medtech. Compared to the overall equity markets, volatility of historical daily returns of Innovative Medtech is higher than 96 () of all global equities and portfolios over the last 90 days.

Innovative Medtech Additional Risk Indicators

The analysis of Innovative Medtech'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 Innovative Medtech's investment and either accepting that risk or mitigating it. Along with some common measures of Innovative Medtech 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 Performance0.1428
Market Risk Adjusted Performance30.1
Mean Deviation26.67
Semi Deviation15.5
Downside Deviation36.18
Coefficient Of Variation622.25
Standard Deviation59.23
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.

Innovative Medtech 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 Innovative Medtech 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. Innovative Medtech'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, Innovative Medtech'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 Innovative Medtech.
Please see Risk vs Return Analysis. Note that the Innovative Medtech information on this page should be used as a complementary analysis to other Innovative Medtech'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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.

Complementary Tools for Innovative OTC Stock analysis

When running Innovative Medtech price analysis, check to measure Innovative Medtech'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 Innovative Medtech is operating at the current time. Most of Innovative Medtech's value examination focuses on studying past and present price action to predict the probability of Innovative Medtech's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Innovative Medtech's price. Additionally, you may evaluate how the addition of Innovative Medtech to your portfolios can decrease your overall portfolio volatility.
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Is Innovative Medtech's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Innovative Medtech. If investors know Innovative will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Innovative Medtech listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Innovative Medtech is measured differently than its book value, which is the value of Innovative that is recorded on the company's balance sheet. Investors also form their own opinion of Innovative Medtech's value that differs from its market value or its book value, called intrinsic value, which is Innovative Medtech'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 Innovative Medtech's market value can be influenced by many factors that don't directly affect Innovative Medtech's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Innovative Medtech's value and its price as these two are different measures arrived at by different means. Investors typically determine Innovative Medtech value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Innovative Medtech'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.