Kaleido Stock Volatility

KLDO -  USA Stock  

USD 1.74  0.15  7.94%

Kaleido Biosciences has Sharpe Ratio of -0.02, which conveys that the firm had -0.02% of return per unit of risk over the last 24 months. Macroaxis standpoint towards estimating the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Kaleido Biosciences exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to verify Kaleido Biosciences Downside Deviation of 5.65, risk adjusted performance of 0.0136, and Mean Deviation of 4.61 to check out the risk estimate we provide.

Kaleido Volatility 

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

30 Days Market Risk

Unstable

Chance of Distress

Very High

30 Days Economic Sensitivity

Almost mirrors the market
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Kaleido Biosciences 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 Kaleido Biosciences at lower prices. For example, an investor can purchase Kaleido 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 Kaleido Biosciences' 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.

Kaleido Biosciences Market Sensitivity And Downside Risk

Kaleido Biosciences' beta coefficient measures the volatility of Kaleido 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 Kaleido stock's returns against your selected market. In other words, Kaleido Biosciences's beta of 0.64 provides an investor with an approximation of how much risk Kaleido Biosciences stock can potentially add to one of your existing portfolios.
Let's try to break down what Kaleido's beta means in this case. As returns on the market increase, Kaleido Biosciences returns are expected to increase less than the market. However, during the bear market, the loss on holding Kaleido Biosciences will be expected to be smaller as well.
24 Months Beta |Analyze Kaleido Biosciences Demand Trend
Check current 90 days Kaleido Biosciences correlation with market (DOW)

Kaleido Beta

    
  0.64  
Kaleido 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

    
  6.69  
It is essential to understand the difference between upside risk (as represented by Kaleido Biosciences's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Kaleido Biosciences stock's daily returns or price. Since the actual investment returns on holding a position in Kaleido Biosciences 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 Kaleido Biosciences.

Kaleido Biosciences Implied Volatility

    
  222.15  
Kaleido Biosciences' implied volatility exposes the market's sentiment of Kaleido Biosciences stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Kaleido Biosciences' 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 Kaleido Biosciences stock will not fluctuate a lot when Kaleido Biosciences' options are near their expiration.

Kaleido Biosciences Stock Volatility Analysis

Volatility refers to the frequency at which Kaleido Biosciences stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Kaleido Biosciences' price changes. Investors will then calculate the volatility of Kaleido Biosciences' 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 Kaleido Biosciences' volatility:

Historical Volatility

This type of stock volatility measures Kaleido Biosciences' fluctuations based on previous trends. It's commonly used to predict Kaleido Biosciences' 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 Kaleido Biosciences' 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 five hundred seventeen. Kaleido Biosciences 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.

Kaleido Biosciences Projected Return Density Against Market

Given the investment horizon of 90 days Kaleido Biosciences has a beta of 0.6449 . This indicates as returns on the market go up, Kaleido Biosciences average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Kaleido Biosciences 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 Kaleido Biosciences 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 Kaleido Biosciences 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 Kaleido 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 a negative alpha, implying that the risk taken by holding this instrument is not justified. Kaleido Biosciences is significantly underperforming DOW.
 Predicted Return Density 
      Returns 
Kaleido Biosciences' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Kaleido Biosciences 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.

Kaleido Biosciences 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 Kaleido Biosciences 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 Kaleido Biosciences 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 Kaleido 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 Kaleido Biosciences is -4990.7. The daily returns are distributed with a variance of 44.72 and standard deviation of 6.69. The mean deviation of Kaleido Biosciences is currently at 4.52. For similar time horizon, the selected benchmark (DOW) has volatility of 1.71
α
Alpha over DOW
-0.0094
β
Beta against DOW0.64
σ
Overall volatility
6.69
Ir
Information ratio -0.0033

Kaleido Biosciences Stock Return Volatility

Kaleido Biosciences historical daily return volatility represents how much Kaleido Biosciences 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 6.6874% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 1.7383% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Kaleido Biosciences Volatility

Volatility is a rate at which the price of Kaleido Biosciences 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 Kaleido Biosciences may increase or decrease. In other words, similar to Kaleido's beta indicator, it measures the risk of Kaleido Biosciences and helps estimate the fluctuations that may happen in a short period of time. So if prices of Kaleido Biosciences 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 2022
Market Capitalization376.6 M336.7 M
Kaleido Biosciences, Inc., a clinical-stage healthcare company, develops microbiome metabolic therapies. The company was incorporated in 2015 and is headquartered in Lexington, Massachusetts. Kaleido Biosciences operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 82 people.

Nearest Kaleido long CALL Option Payoff at Expiration

Kaleido Biosciences' implied volatility is one of the determining factors in the pricing options written on Kaleido Biosciences. Implied volatility approximates the future value of Kaleido Biosciencesusing the option's current value. Options with high implied volatility have higher premiums and can be used to hedge the downside of investing in Kaleido Biosciences over a specific time period.
View All Kaleido options
2022-02-18 CALL at $2.5 is a CALL option contract on Kaleido Biosciences' common stock with a strick price of 2.5 expiring on 2022-02-18. The contract was last traded on 2022-01-26 at 12:57:22 for $0.2 and, as of today, has 21 days remaining before the expiration. The option is currently trading at a bid price of $0.05, and an ask price of $0.2. The implied volatility as of the 28th of January is 164.148.
 Profit 
Share
      Kaleido Biosciences Price At Expiration 

Kaleido Biosciences Investment Opportunity

Kaleido Biosciences has a volatility of 6.69 and is 3.84 times more volatile than DOW. 57  of all equities and portfolios are less risky than Kaleido Biosciences. Compared to the overall equity markets, volatility of historical daily returns of Kaleido Biosciences is higher than 57 () of all global equities and portfolios over the last 90 days. Use Kaleido Biosciences to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of Kaleido Biosciences to be traded at $1.653 in 90 days. . Let's try to break down what Kaleido's beta means in this case. As returns on the market increase, Kaleido Biosciences returns are expected to increase less than the market. However, during the bear market, the loss on holding Kaleido Biosciences will be expected to be smaller as well.

Average diversification

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

Kaleido Biosciences Additional Risk Indicators

The analysis of Kaleido Biosciences' 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 Kaleido Biosciences' investment and either accepting that risk or mitigating it. Along with some common measures of Kaleido Biosciences 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 Performance0.0136
Market Risk Adjusted Performance0.0326
Mean Deviation4.61
Semi Deviation5.58
Downside Deviation5.65
Coefficient Of Variation27973.87
Standard Deviation6.88
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.

Kaleido Biosciences 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 Kaleido Biosciences 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. Kaleido Biosciences' 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, Kaleido Biosciences' 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 Kaleido Biosciences.
Please see Stocks Correlation. Note that the Kaleido Biosciences information on this page should be used as a complementary analysis to other Kaleido Biosciences' 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

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