Magellan Aerospace Stock Volatility

MALJF Stock  USD 6.21  0.09  1.47%   
Magellan Aerospace appears to be not too volatile, given 3 months investment horizon. Magellan Aerospace has Sharpe Ratio of 0.14, which conveys that the firm had 0.14% return per unit of risk over the last 3 months. Our standpoint towards estimating 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 Magellan Aerospace, which you can use to evaluate the future volatility of the firm. Please exercise Magellan Aerospace's Mean Deviation of 0.9235, risk adjusted performance of 0.0366, and Downside Deviation of 2.07 to check out if our risk estimates are consistent with your expectations. Key indicators related to Magellan Aerospace's volatility include:
480 Days Market Risk
Chance Of Distress
480 Days Economic Sensitivity
Magellan Aerospace Pink Sheet 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 Magellan daily returns, and it is calculated using variance and standard deviation. We also use Magellan's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Magellan Aerospace volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Magellan Aerospace 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 Magellan Aerospace at lower prices. For example, an investor can purchase Magellan 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 Magellan Aerospace'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.

Moving together with Magellan Pink Sheet

  0.65NDEKY Nitto Denko CorpPairCorr

Moving against Magellan Pink Sheet

  0.73CSCO Cisco Systems Fiscal Quarter End 30th of April 2024 PairCorr
  0.44MCD McDonalds Sell-off TrendPairCorr

Magellan Aerospace Market Sensitivity And Downside Risk

Magellan Aerospace's beta coefficient measures the volatility of Magellan pink sheet 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 Magellan pink sheet's returns against your selected market. In other words, Magellan Aerospace's beta of -0.42 provides an investor with an approximation of how much risk Magellan Aerospace pink sheet can potentially add to one of your existing portfolios.
Magellan Aerospace currently demonstrates below-average downside deviation. It has Information Ratio of -0.04 and Jensen Alpha of 0.12. However, we advise investors to further question Magellan Aerospace expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Magellan Aerospace's pink sheet risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Magellan Aerospace's pink sheet price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
3 Months Beta |Analyze Magellan Aerospace Demand Trend
Check current 90 days Magellan Aerospace correlation with market (NYSE Composite)

Magellan Beta

    
  -0.42  
Magellan 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

    
  1.46  
It is essential to understand the difference between upside risk (as represented by Magellan Aerospace's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Magellan Aerospace's daily returns or price. Since the actual investment returns on holding a position in magellan pink sheet 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 Magellan Aerospace.

Magellan Aerospace Pink Sheet Volatility Analysis

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

Historical Volatility

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

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Magellan Aerospace's current market price. This means that the pink sheet will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Magellan Aerospace's to be redeemed at a future date.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Magellan Aerospace 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.

Magellan Aerospace Projected Return Density Against Market

Assuming the 90 days horizon Magellan Aerospace has a beta of -0.4217 . This indicates as returns on benchmark increase, returns on holding Magellan Aerospace are expected to decrease at a much lower rate. During the bear market, however, Magellan Aerospace 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 Magellan Aerospace or Aerospace & Defense 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 Magellan Aerospace's price will be affected by overall pink sheet 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 Magellan pink sheet'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 0.1214, implying that it can generate a 0.12 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Magellan Aerospace's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how magellan pink sheet'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 Magellan Aerospace Price Volatility?

Several factors can influence a pink sheet's market 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.

Magellan Aerospace Pink Sheet 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 Magellan Aerospace or Aerospace & Defense 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 Magellan Aerospace's price will be affected by overall pink sheet 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 Magellan pink sheet'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. Assuming the 90 days horizon the coefficient of variation of Magellan Aerospace is 735.42. The daily returns are distributed with a variance of 2.12 and standard deviation of 1.45. The mean deviation of Magellan Aerospace is currently at 0.93. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.63
α
Alpha over NYSE Composite
0.12
β
Beta against NYSE Composite-0.42
σ
Overall volatility
1.46
Ir
Information ratio -0.04

Magellan Aerospace Pink Sheet Return Volatility

Magellan Aerospace historical daily return volatility represents how much of Magellan Aerospace pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 1.455% volatility of returns over 90 . By contrast, NYSE Composite accepts 0.5638% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Magellan Aerospace Volatility

Volatility is a rate at which the price of Magellan Aerospace 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 Magellan Aerospace may increase or decrease. In other words, similar to Magellan's beta indicator, it measures the risk of Magellan Aerospace and helps estimate the fluctuations that may happen in a short period of time. So if prices of Magellan Aerospace 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.
Magellan Aerospace Corporation, through its subsidiaries, designs, engineers, manufactures, and sells aero engine and structure components for the aerospace markets in Canada, the United States, Europe, and Asia. Magellan Aerospace Corporation was incorporated in 1996 and is headquartered in Mississauga, Canada. Magellan Aerospace operates under Aerospace Defense classification in the United States and is traded on OTC Exchange. It employs 3400 people.
Magellan Aerospace's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Magellan Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Magellan Aerospace's price varies over time.

3 ways to utilize Magellan Aerospace's volatility to invest better

Higher Magellan Aerospace's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Magellan Aerospace stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Magellan Aerospace stock volatility can provide helpful information for making investment decisions in the following ways:
  • Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Magellan Aerospace investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Magellan Aerospace's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
  • Diversification: Understanding how the volatility of Magellan Aerospace's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Magellan Aerospace Investment Opportunity

Magellan Aerospace has a volatility of 1.46 and is 2.61 times more volatile than NYSE Composite. 12  of all equities and portfolios are less risky than Magellan Aerospace. Compared to the overall equity markets, volatility of historical daily returns of Magellan Aerospace is lower than 12 () of all global equities and portfolios over the last 90 days. Use Magellan Aerospace to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The pink sheet experiences a large bullish trend. Check odds of Magellan Aerospace to be traded at $6.83 in 90 days.

Good diversification

The correlation between Magellan Aerospace and NYA is -0.17 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Magellan Aerospace and NYA in the same portfolio, assuming nothing else is changed.

Magellan Aerospace Additional Risk Indicators

The analysis of Magellan Aerospace'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 Magellan Aerospace's investment and either accepting that risk or mitigating it. Along with some common measures of Magellan Aerospace pink sheet's 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.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential pink sheets, we recommend comparing similar pink sheets with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Magellan Aerospace 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.
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 Magellan Aerospace 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. Magellan Aerospace'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, Magellan Aerospace'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 Magellan Aerospace.
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Magellan Aerospace. Also, note that the market value of any Company could be tightly coupled with the direction of predictive economic indicators such as signals in inflation.
You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.

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When running Magellan Aerospace's price analysis, check to measure Magellan Aerospace'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 Magellan Aerospace is operating at the current time. Most of Magellan Aerospace's value examination focuses on studying past and present price action to predict the probability of Magellan Aerospace's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Magellan Aerospace's price. Additionally, you may evaluate how the addition of Magellan Aerospace to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between Magellan Aerospace's value and its price as these two are different measures arrived at by different means. Investors typically determine if Magellan Aerospace is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Magellan Aerospace'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.