Milestone Scientific Stock Volatility
| MLSS Stock | USD 0.57 0.02 3.39% |
We consider Milestone Scientific dangerous. Milestone Scientific has Sharpe Ratio of 0.0095, which conveys that the firm had a 0.0095% return per unit of risk over the last 3 months. We have found twenty-three technical indicators for Milestone Scientific, which you can use to evaluate the volatility of the firm. Please verify Milestone Scientific's Mean Deviation of 2.8, risk adjusted performance of 0.0059, and Standard Deviation of 3.61 to check out if the risk estimate we provide is consistent with the expected return of 0.0348%. Key indicators related to Milestone Scientific's volatility include:
360 Days Market Risk | Chance Of Distress | 360 Days Economic Sensitivity |
Milestone Scientific 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 Milestone daily returns, and it is calculated using variance and standard deviation. We also use Milestone's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Milestone Scientific volatility.
Milestone |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Milestone Scientific 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 Milestone Scientific at lower prices. For example, an investor can purchase Milestone 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 Milestone Scientific'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 Milestone Stock
| 0.61 | ELMD | Electromed | PairCorr |
| 0.75 | FEMY | Femasys Financial Report 9th of May 2024 | PairCorr |
| 0.67 | ALC | Alcon AG Financial Report 14th of May 2024 | PairCorr |
| 0.62 | BAX | Baxter International Sell-off Trend | PairCorr |
| 0.62 | CAH | Cardinal Health Financial Report 2nd of May 2024 | PairCorr |
Milestone Scientific Market Sensitivity And Downside Risk
Milestone Scientific's beta coefficient measures the volatility of Milestone 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 Milestone stock's returns against your selected market. In other words, Milestone Scientific's beta of 0.54 provides an investor with an approximation of how much risk Milestone Scientific stock can potentially add to one of your existing portfolios. Milestone Scientific exhibits very low volatility with skewness of 0.04 and kurtosis of -0.14. Milestone Scientific is a potential penny stock. Although Milestone Scientific 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 Milestone Scientific. 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 Milestone 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 Milestone Scientific Demand TrendCheck current 90 days Milestone Scientific correlation with market (NYSE Composite)Milestone Beta |
Milestone 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 | 3.68 |
It is essential to understand the difference between upside risk (as represented by Milestone Scientific's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Milestone Scientific's daily returns or price. Since the actual investment returns on holding a position in milestone 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 Milestone Scientific.
Using Milestone Put Option to Manage Risk
Put options written on Milestone Scientific grant holders of the option the right to sell a specified amount of Milestone Scientific at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Milestone Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Milestone Scientific's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Milestone Scientific will be realized, the loss incurred will be offset by the profits made with the option trade.
Milestone Scientific's PUT expiring on 2024-04-19
Profit |
| Milestone Scientific Price At Expiration |
Milestone Scientific Stock Volatility Analysis
Volatility refers to the frequency at which Milestone Scientific stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Milestone Scientific's price changes. Investors will then calculate the volatility of Milestone Scientific'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 Milestone Scientific's volatility:
Historical Volatility
This type of stock volatility measures Milestone Scientific's fluctuations based on previous trends. It's commonly used to predict Milestone Scientific'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 Milestone Scientific'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 Milestone Scientific'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. Milestone Scientific 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.
Milestone Scientific Projected Return Density Against Market
Given the investment horizon of 90 days Milestone Scientific has a beta of 0.5409 . This indicates as returns on the market go up, Milestone Scientific average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Milestone Scientific 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 Milestone Scientific or Health Care Equipment & Supplies 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 Milestone Scientific'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 Milestone 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.
Milestone Scientific 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 Milestone Scientific 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.Milestone Scientific Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Milestone Scientific is 10569.41. The daily returns are distributed with a variance of 13.52 and standard deviation of 3.68. The mean deviation of Milestone Scientific is currently at 2.88. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.63
α | Alpha over NYSE Composite | -0.05 | |
β | Beta against NYSE Composite | 0.54 | |
σ | Overall volatility | 3.68 | |
Ir | Information ratio | -0.02 |
Milestone Scientific Stock Return Volatility
Milestone Scientific historical daily return volatility represents how much of Milestone Scientific stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 3.6763% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.6171% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Milestone Scientific Volatility
Volatility is a rate at which the price of Milestone Scientific 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 Milestone Scientific may increase or decrease. In other words, similar to Milestone's beta indicator, it measures the risk of Milestone Scientific and helps estimate the fluctuations that may happen in a short period of time. So if prices of Milestone Scientific 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 | ||
| Market Cap | 50.2 M | 28.5 M |
Milestone Scientific'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 Milestone Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Milestone Scientific's price varies over time.
3 ways to utilize Milestone Scientific's volatility to invest better
Higher Milestone Scientific's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Milestone Scientific 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. Milestone Scientific 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 Milestone Scientific investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Milestone Scientific'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 Milestone Scientific's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Milestone Scientific Investment Opportunity
Milestone Scientific has a volatility of 3.68 and is 5.94 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Milestone Scientific is lower than 32 percent of all global equities and portfolios over the last 90 days. You can use Milestone Scientific 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 Milestone Scientific to be traded at $0.5472 in 90 days.Significant diversification
The correlation between Milestone Scientific and NYA is 0.09 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Milestone Scientific and NYA in the same portfolio, assuming nothing else is changed.
Milestone Scientific Additional Risk Indicators
The analysis of Milestone Scientific'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 Milestone Scientific's investment and either accepting that risk or mitigating it. Along with some common measures of Milestone Scientific 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 | 0.0059 | |||
| Market Risk Adjusted Performance | (0.03) | |||
| Mean Deviation | 2.8 | |||
| Coefficient Of Variation | (26,531) | |||
| Standard Deviation | 3.61 | |||
| Variance | 13.01 | |||
| Information Ratio | (0.02) |
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.
Milestone Scientific 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 Milestone Scientific 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. Milestone Scientific'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, Milestone Scientific'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 Milestone Scientific.
When determining whether Milestone Scientific is a strong investment it is important to analyze Milestone Scientific's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Milestone Scientific's future performance. For an informed investment choice regarding Milestone Stock, refer to the following important reports: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Milestone Scientific. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in state. For more information on how to buy Milestone Stock please use our How to Invest in Milestone Scientific guide.You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Complementary Tools for Milestone Stock analysis
When running Milestone Scientific's price analysis, check to measure Milestone Scientific'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 Milestone Scientific is operating at the current time. Most of Milestone Scientific's value examination focuses on studying past and present price action to predict the probability of Milestone Scientific's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Milestone Scientific's price. Additionally, you may evaluate how the addition of Milestone Scientific to your portfolios can decrease your overall portfolio volatility.
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Is Milestone Scientific'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 Milestone Scientific. If investors know Milestone 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 Milestone Scientific listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.10) | Revenue Per Share 0.135 | Quarterly Revenue Growth 0.009 | Return On Assets (0.35) | Return On Equity (0.77) |
The market value of Milestone Scientific is measured differently than its book value, which is the value of Milestone that is recorded on the company's balance sheet. Investors also form their own opinion of Milestone Scientific's value that differs from its market value or its book value, called intrinsic value, which is Milestone Scientific'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 Milestone Scientific's market value can be influenced by many factors that don't directly affect Milestone Scientific'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 Milestone Scientific's value and its price as these two are different measures arrived at by different means. Investors typically determine if Milestone Scientific is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Milestone Scientific'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.