Natural Gas Services Stock Volatility
| NGS Stock | USD 23.38 0.20 0.86% |
Natural Gas appears to be very steady, given 3 months investment horizon. Natural Gas Services 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. By analyzing Natural Gas' technical indicators, you can evaluate if the expected return of 0.77% is justified by implied risk. Please exercise Natural Gas' Downside Deviation of 1.81, mean deviation of 1.89, and Risk Adjusted Performance of 0.2054 to check out if our risk estimates are consistent with your expectations. Key indicators related to Natural Gas' volatility include:
180 Days Market Risk | Chance Of Distress | 180 Days Economic Sensitivity |
Natural Gas 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 Natural daily returns, and it is calculated using variance and standard deviation. We also use Natural's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Natural Gas volatility.
Natural |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Natural Gas 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 Natural Gas at lower prices. For example, an investor can purchase Natural 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 Natural Gas' 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 Natural Stock
| 0.9 | NR | Newpark Resources Financial Report 7th of May 2024 | PairCorr |
| 0.84 | TS | Tenaris SA ADR Earnings Call This Week | PairCorr |
| 0.76 | EFXT | Enerflex Financial Report 1st of May 2024 | PairCorr |
| 0.72 | ENSV | Enservco | PairCorr |
| 0.87 | WFRD | Weatherford International Earnings Call This Week | PairCorr |
| 0.82 | BKR | Baker Hughes Financial Report 17th of July 2024 | PairCorr |
Natural Gas Market Sensitivity And Downside Risk
Natural Gas' beta coefficient measures the volatility of Natural 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 Natural stock's returns against your selected market. In other words, Natural Gas's beta of 0.59 provides an investor with an approximation of how much risk Natural Gas stock can potentially add to one of your existing portfolios. Natural Gas Services has relatively low volatility with skewness of 1.43 and kurtosis of 5.67. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Natural Gas' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Natural Gas' 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 financial instruments as prices fall.
3 Months Beta |Analyze Natural Gas Services Demand TrendCheck current 90 days Natural Gas correlation with market (NYSE Composite)Natural Beta |
Natural 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 | 2.53 |
It is essential to understand the difference between upside risk (as represented by Natural Gas's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Natural Gas' daily returns or price. Since the actual investment returns on holding a position in natural 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 Natural Gas.
Using Natural Put Option to Manage Risk
Put options written on Natural Gas grant holders of the option the right to sell a specified amount of Natural Gas 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 Natural Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Natural Gas' 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 Natural Gas will be realized, the loss incurred will be offset by the profits made with the option trade.
Natural Gas' PUT expiring on 2024-04-19
Profit |
| Natural Gas Price At Expiration |
Current Natural Gas Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | 2024-04-19 PUT at $25.0 | -0.9344 | 0.1123 | 1 | 2024-04-19 | 0.9 - 2.8 | 1.95 | View |
Natural Gas Services Stock Volatility Analysis
Volatility refers to the frequency at which Natural Gas stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Natural Gas' price changes. Investors will then calculate the volatility of Natural Gas' 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 Natural Gas' volatility:
Historical Volatility
This type of stock volatility measures Natural Gas' fluctuations based on previous trends. It's commonly used to predict Natural Gas' 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 Natural Gas' 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 Natural Gas' 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. Natural Gas Services 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.
Natural Gas Projected Return Density Against Market
Considering the 90-day investment horizon Natural Gas has a beta of 0.5921 . This indicates as returns on the market go up, Natural Gas average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Natural Gas Services 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 Natural Gas or Energy Equipment & Services 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 Natural Gas' 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 Natural 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.
Natural Gas Services has an alpha of 0.755, implying that it can generate a 0.76 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Natural Gas 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.Natural Gas Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Natural Gas is 328.5. The daily returns are distributed with a variance of 6.41 and standard deviation of 2.53. The mean deviation of Natural Gas Services is currently at 1.86. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.63
α | Alpha over NYSE Composite | 0.76 | |
β | Beta against NYSE Composite | 0.59 | |
σ | Overall volatility | 2.53 | |
Ir | Information ratio | 0.29 |
Natural Gas Stock Return Volatility
Natural Gas historical daily return volatility represents how much of Natural Gas stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 2.5324% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.6171% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Natural Gas Volatility
Volatility is a rate at which the price of Natural Gas 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 Natural Gas may increase or decrease. In other words, similar to Natural's beta indicator, it measures the risk of Natural Gas and helps estimate the fluctuations that may happen in a short period of time. So if prices of Natural Gas 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 | 1.5 M | 1.3 M | |
| Market Cap | 178.2 M | 130.2 M |
Natural Gas' 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 Natural Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Natural Gas' price varies over time.
3 ways to utilize Natural Gas' volatility to invest better
Higher Natural Gas' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Natural Gas Services 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. Natural Gas Services 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 Natural Gas Services investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Natural Gas' 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 Natural Gas' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Natural Gas Investment Opportunity
Natural Gas Services has a volatility of 2.53 and is 4.08 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Natural Gas Services is lower than 22 percent of all global equities and portfolios over the last 90 days. You can use Natural Gas Services to enhance the returns of your portfolios. The stock experiences a moderate upward volatility. Check odds of Natural Gas to be traded at $25.72 in 90 days.Average diversification
The correlation between Natural Gas Services and NYA is 0.15 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Natural Gas Services and NYA in the same portfolio, assuming nothing else is changed.
Natural Gas Additional Risk Indicators
The analysis of Natural Gas' 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 Natural Gas' investment and either accepting that risk or mitigating it. Along with some common measures of Natural Gas 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 | 0.2054 | |||
| Market Risk Adjusted Performance | 1.33 | |||
| Mean Deviation | 1.89 | |||
| Semi Deviation | 1.22 | |||
| Downside Deviation | 1.81 | |||
| Coefficient Of Variation | 318.53 | |||
| Standard Deviation | 2.52 |
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.
Natural Gas 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 Natural Gas 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. Natural Gas' 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, Natural Gas' 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 Natural Gas Services.
When determining whether Natural Gas Services is a strong investment it is important to analyze Natural Gas' 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 Natural Gas' future performance. For an informed investment choice regarding Natural Stock, refer to the following important reports: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Natural Gas Services. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in price. Note that the Natural Gas Services information on this page should be used as a complementary analysis to other Natural Gas' 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 the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Complementary Tools for Natural Stock analysis
When running Natural Gas' price analysis, check to measure Natural Gas' 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 Natural Gas is operating at the current time. Most of Natural Gas' value examination focuses on studying past and present price action to predict the probability of Natural Gas' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Natural Gas' price. Additionally, you may evaluate how the addition of Natural Gas to your portfolios can decrease your overall portfolio volatility.
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Is Natural Gas' 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 Natural Gas. If investors know Natural 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 Natural Gas listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.116 | Earnings Share 0.38 | Revenue Per Share 9.838 | Quarterly Revenue Growth 0.608 | Return On Assets 0.0243 |
The market value of Natural Gas Services is measured differently than its book value, which is the value of Natural that is recorded on the company's balance sheet. Investors also form their own opinion of Natural Gas' value that differs from its market value or its book value, called intrinsic value, which is Natural Gas' 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 Natural Gas' market value can be influenced by many factors that don't directly affect Natural Gas' 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 Natural Gas' value and its price as these two are different measures arrived at by different means. Investors typically determine if Natural Gas is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Natural Gas' 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.