Mustang Bio Stock Volatility
| MBIO Stock | USD 0.35 0.01 2.78% |
Mustang Bio has Sharpe Ratio of -0.3, which conveys that the firm had a -0.3% return per unit of risk over the last 3 months. Mustang Bio exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify Mustang Bio's Mean Deviation of 4.46, risk adjusted performance of (0.16), and Standard Deviation of 6.53 to check out the risk estimate we provide. Key indicators related to Mustang Bio's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Mustang Bio 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 Mustang daily returns, and it is calculated using variance and standard deviation. We also use Mustang's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Mustang Bio volatility.
Mustang |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Mustang Bio 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 Mustang Bio at lower prices. For example, an investor can purchase Mustang 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 Mustang Bio'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 Mustang Stock
| 0.86 | JNJ | Johnson Johnson Aggressive Push | PairCorr |
Moving against Mustang Stock
| 0.81 | ACB | Aurora Cannabis Trending | PairCorr |
| 0.74 | ELYM | Eliem Therapeutics | PairCorr |
| 0.71 | CGC | Canopy Growth Corp Trending | PairCorr |
| 0.71 | XFOR | X4 Pharmaceuticals Earnings Call This Week | PairCorr |
| 0.68 | NRSNW | NeuroSense Therapeutics | PairCorr |
| 0.55 | ELEV | Elevation Oncology Earnings Call This Week | PairCorr |
| 0.47 | VKTX | Viking Therapeutics Potential Growth | PairCorr |
Mustang Bio Market Sensitivity And Downside Risk
Mustang Bio's beta coefficient measures the volatility of Mustang stock compared to the systematic risk of the entire 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 Mustang stock's returns against your selected market. In other words, Mustang Bio's beta of 3.51 provides an investor with an approximation of how much risk Mustang Bio stock can potentially add to one of your existing portfolios. Mustang Bio is displaying above-average volatility over the selected time horizon. Mustang Bio is a potential penny stock. Although Mustang Bio may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Mustang Bio. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Mustang instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.
3 Months Beta |Analyze Mustang Bio Demand TrendCheck current 90 days Mustang Bio correlation with market (NYSE Composite)Mustang Beta |
Mustang standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity 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 | 6.67 |
It is essential to understand the difference between upside risk (as represented by Mustang Bio's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Mustang Bio's daily returns or price. Since the actual investment returns on holding a position in mustang 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 Mustang Bio.
Mustang Bio Stock Volatility Analysis
Volatility refers to the frequency at which Mustang Bio stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Mustang Bio's price changes. Investors will then calculate the volatility of Mustang Bio'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 Mustang Bio's volatility:
Historical Volatility
This type of stock volatility measures Mustang Bio's fluctuations based on previous trends. It's commonly used to predict Mustang Bio'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 Mustang Bio's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Mustang Bio'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. Mustang Bio 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.
Mustang Bio Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 3.5056 . This indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Mustang Bio 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 Mustang Bio or Biotechnology 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 Mustang Bio'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 Mustang 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.
Mustang Bio has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the NYSE Composite. Predicted Return Density |
| Returns |
What Drives a Mustang Bio Price Volatility?
Several factors can influence a stock'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.Mustang Bio Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Mustang Bio is -332.65. The daily returns are distributed with a variance of 44.49 and standard deviation of 6.67. The mean deviation of Mustang Bio is currently at 4.54. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | -2.06 | |
β | Beta against NYSE Composite | 3.51 | |
σ | Overall volatility | 6.67 | |
Ir | Information ratio | -0.28 |
Mustang Bio Stock Return Volatility
Mustang Bio historical daily return volatility represents how much of Mustang Bio stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 6.6701% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.6372% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Mustang Bio Volatility
Volatility is a rate at which the price of Mustang Bio 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 Mustang Bio may increase or decrease. In other words, similar to Mustang's beta indicator, it measures the risk of Mustang Bio and helps estimate the fluctuations that may happen in a short period of time. So if prices of Mustang Bio 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 Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 328.5 K | 292 K | |
| Market Cap | 11.6 M | 11 M |
Mustang Bio'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 Mustang Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Mustang Bio's price varies over time.
3 ways to utilize Mustang Bio's volatility to invest better
Higher Mustang Bio's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Mustang Bio 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. Mustang Bio 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 Mustang Bio investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Mustang Bio'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 Mustang Bio's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Mustang Bio Investment Opportunity
Mustang Bio has a volatility of 6.67 and is 10.42 times more volatile than NYSE Composite. 59 percent of all equities and portfolios are less risky than Mustang Bio. You can use Mustang Bio to protect your portfolios against small market fluctuations. The stock experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of Mustang Bio to be traded at $0.336 in 90 days.Weak diversification
The correlation between Mustang Bio and NYA is 0.33 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Mustang Bio and NYA in the same portfolio, assuming nothing else is changed.
Mustang Bio Additional Risk Indicators
The analysis of Mustang Bio'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 Mustang Bio's investment and either accepting that risk or mitigating it. Along with some common measures of Mustang Bio stock'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.
| Risk Adjusted Performance | (0.16) | |||
| Market Risk Adjusted Performance | (0.49) | |||
| Mean Deviation | 4.46 | |||
| Coefficient Of Variation | (372.63) | |||
| Standard Deviation | 6.53 | |||
| Variance | 42.66 | |||
| Information Ratio | (0.28) |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Mustang Bio 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 Mustang Bio 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. Mustang Bio'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, Mustang Bio'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 Mustang Bio.
When determining whether Mustang Bio offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Mustang Bio's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Mustang Bio Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Mustang Bio Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Mustang Bio. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in gross domestic product. To learn how to invest in Mustang Stock, please use our How to Invest in Mustang Bio guide.You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Complementary Tools for Mustang Stock analysis
When running Mustang Bio's price analysis, check to measure Mustang Bio'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 Mustang Bio is operating at the current time. Most of Mustang Bio's value examination focuses on studying past and present price action to predict the probability of Mustang Bio's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Mustang Bio's price. Additionally, you may evaluate how the addition of Mustang Bio to your portfolios can decrease your overall portfolio volatility.
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Is Mustang Bio'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 Mustang Bio. If investors know Mustang 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 Mustang Bio listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (6.00) | Revenue Per Share (0) | Return On Assets (0.58) | Return On Equity (2.22) |
The market value of Mustang Bio is measured differently than its book value, which is the value of Mustang that is recorded on the company's balance sheet. Investors also form their own opinion of Mustang Bio's value that differs from its market value or its book value, called intrinsic value, which is Mustang Bio'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 Mustang Bio's market value can be influenced by many factors that don't directly affect Mustang Bio'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 Mustang Bio's value and its price as these two are different measures arrived at by different means. Investors typically determine if Mustang Bio is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Mustang Bio'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.