Nordic Stock Volatility

NAT
 Stock
  

USD 2.76  0.09  3.37%   

Nordic American appears to be very risky, given 3 months investment horizon. Nordic American Tanker has Sharpe Ratio of 0.16, which conveys that the firm had 0.16% of 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. By analyzing Nordic American Tanker technical indicators you can presently evaluate if the expected return of 0.74% is justified by implied risk. Please exercise Nordic American's Downside Deviation of 5.22, mean deviation of 3.63, and Risk Adjusted Performance of 0.1334 to check out if our risk estimates are consistent with your expectations.
  
Nordic American 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 Nordic daily returns, and it is calculated using variance and standard deviation. We also use Nordic's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Nordic American volatility.

720 Days Market Risk

Very risky

Chance of Distress

Below Average

720 Days Economic Sensitivity

Follows the market closely
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Nordic American 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 Nordic American at lower prices. For example, an investor can purchase Nordic 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 Nordic American'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 against Nordic American

-0.76SIGLSignal AdvancePairCorr
-0.68OROVFOrient Overseas IntePairCorr
-0.62CICOYChina Cosco HoldingsPairCorr
-0.59OROVYOrient Overseas IntePairCorr
-0.55CICOFChina Cosco HoldingPairCorr

Nordic American Market Sensitivity And Downside Risk

Nordic American's beta coefficient measures the volatility of Nordic 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 Nordic stock's returns against your selected market. In other words, Nordic American's beta of 0.77 provides an investor with an approximation of how much risk Nordic American stock can potentially add to one of your existing portfolios.
Nordic American Tanker exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Nordic American Tanker individually to make sure intended market timing strategies and available technical indicators are consistent with their estimates about Nordic American future systematic risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Nordic American's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Nordic American's stock 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 Nordic American Tanker Demand Trend
Check current 90 days Nordic American correlation with market (DOW)

Nordic Beta

    
  0.77  
Nordic 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

    
  4.77  
It is essential to understand the difference between upside risk (as represented by Nordic American's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Nordic American's daily returns or price. Since the actual investment returns on holding a position in nordic 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 Nordic American.

Using Nordic Put Option to Manage Risk

Put options written on Nordic American grant holders of the option the right to sell a specified amount of Nordic American 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 Nordic Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Nordic American'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 Nordic American will be realized, the loss incurred will be offset by the profits made with the option trade.

Nordic American's PUT expiring on 2022-10-21

   Profit   
Share
       Nordic American Price At Expiration  

Current Nordic American Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2022-10-21 PUT at $5.0-0.94070.121512022-10-212.25 - 2.451.9View
Put
2022-10-21 PUT at $4.5-0.85180.207192022-10-211.75 - 1.91.45View
Put
2022-10-21 PUT at $4.0-0.83440.26371302022-10-211.25 - 1.40.82View
Put
2022-10-21 PUT at $3.5-0.90840.32123342022-10-210.8 - 0.850.8View
Put
2022-10-21 PUT at $3.0-0.85860.802310942022-10-210.35 - 0.450.35View
Put
2022-10-21 PUT at $2.5-0.31690.800714502022-10-210.1 - 0.150.1View
View All Nordic American Options

Nordic American Tanker Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Nordic American's fluctuations based on previous trends. It's commonly used to predict Nordic American'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 Nordic American'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 Nordic American'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. The Median Price line plots median indexes of Nordic American Tanker price series.
.

Nordic American Projected Return Density Against Market

Considering the 90-day investment horizon Nordic American has a beta of 0.7742 . This indicates as returns on the market go up, Nordic American average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Nordic American Tanker 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 Nordic American or Industrials 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 Nordic American'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 Nordic 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 0.5503, implying that it can generate a 0.55 percent excess return over DOW after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Nordic American's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how nordic 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 Nordic American Price Volatility?

Several factors can influence a Stock'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.

Nordic American 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 Nordic American or Industrials 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 Nordic American'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 Nordic 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. Considering the 90-day investment horizon the coefficient of variation of Nordic American is 642.42. The daily returns are distributed with a variance of 22.73 and standard deviation of 4.77. The mean deviation of Nordic American Tanker is currently at 3.54. For similar time horizon, the selected benchmark (DOW) has volatility of 1.19
α
Alpha over DOW
0.55
β
Beta against DOW0.77
σ
Overall volatility
4.77
Ir
Information ratio 0.12

Nordic American Stock Return Volatility

Nordic American historical daily return volatility represents how much of Nordic American stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 4.7676% on return distribution over 90 days investment horizon. By contrast, DOW inherits 1.2047% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About Nordic American Volatility

Volatility is a rate at which the price of Nordic American 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 Nordic American may increase or decrease. In other words, similar to Nordic's beta indicator, it measures the risk of Nordic American and helps estimate the fluctuations that may happen in a short period of time. So if prices of Nordic American 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.
Nordic American Tankers Limited, a tanker company, acquires and charters double-hull tankers in Bermuda and internationally. The company was incorporated in 1995 and is based in Hamilton, Bermuda. Nordic American operates under Marine Shipping classification in the United States and is traded on New York Stock Exchange. It employs 19 people.

Nordic American Investment Opportunity

Nordic American Tanker has a volatility of 4.77 and is 3.97 times more volatile than DOW. 41  of all equities and portfolios are less risky than Nordic American. Compared to the overall equity markets, volatility of historical daily returns of Nordic American Tanker is lower than 41 () of all global equities and portfolios over the last 90 days. Use Nordic American Tanker to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Nordic American to be traded at $3.31 in 90 days.

Average diversification

The correlation between Nordic American Tanker and DJI is 0.19 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Nordic American Tanker and DJI in the same portfolio, assuming nothing else is changed.

Nordic American Additional Risk Indicators

The analysis of Nordic American'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 Nordic American's investment and either accepting that risk or mitigating it. Along with some common measures of Nordic American 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.
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.

Nordic American 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 Nordic American 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. Nordic American'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, Nordic American'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 Nordic American Tanker.
Additionally, see Correlation Analysis. Note that the Nordic American Tanker information on this page should be used as a complementary analysis to other Nordic American'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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

Complementary Tools for Nordic Stock analysis

When running Nordic American Tanker price analysis, check to measure Nordic American'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 Nordic American is operating at the current time. Most of Nordic American's value examination focuses on studying past and present price action to predict the probability of Nordic American's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Nordic American's price. Additionally, you may evaluate how the addition of Nordic American to your portfolios can decrease your overall portfolio volatility.
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Is Nordic American'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 Nordic American. If investors know Nordic 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 Nordic American 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 Nordic American Tanker is measured differently than its book value, which is the value of Nordic that is recorded on the company's balance sheet. Investors also form their own opinion of Nordic American's value that differs from its market value or its book value, called intrinsic value, which is Nordic American'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 Nordic American's market value can be influenced by many factors that don't directly affect Nordic American'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 Nordic American's value and its price as these two are different measures arrived at by different means. Investors typically determine Nordic American value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nordic American'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.