NWFAF OTC Stock Volatility

NWFAF -  USA Stock  

USD 0.0112  0.0005  4.27%

New Focus Auto has Sharpe Ratio of -0.034, which conveys that the firm had -0.034% of return per unit of risk over the last 3 months. Macroaxis standpoint towards estimating the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. New Focus exposes twenty-six different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to verify New Focus Auto risk adjusted performance of (0.019795), and Mean Deviation of 1.36 to check out the risk estimate we provide.

NWFAF Volatility 

 
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New Focus OTC 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 NWFAF daily returns, and it is calculated using variance and standard deviation. We also use NWFAF's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of New Focus volatility.

480 Days Market Risk

Out of control

Chance of Distress

Average

480 Days Economic Sensitivity

Slowly supersedes the market
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as New Focus 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 New Focus at lower prices. For example, an investor can purchase NWFAF 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 New Focus' 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.

New Focus Market Sensitivity And Downside Risk

New Focus' beta coefficient measures the volatility of NWFAF otc 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 NWFAF otc stock's returns against your selected market. In other words, New Focus's beta of 0.34 provides an investor with an approximation of how much risk New Focus otc stock can potentially add to one of your existing portfolios.
Let's try to break down what NWFAF's beta means in this case. As returns on the market increase, New Focus returns are expected to increase less than the market. However, during the bear market, the loss on holding New Focus will be expected to be smaller as well.
3 Months Beta |Analyze New Focus Auto Demand Trend
Check current 90 days New Focus correlation with market (DOW)

NWFAF Beta

    
  0.34  
NWFAF 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

    
  4.23  
It is essential to understand the difference between upside risk (as represented by New Focus's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of New Focus stock's daily returns or price. Since the actual investment returns on holding a position in New Focus 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 New Focus.

New Focus Auto OTC Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures New Focus' fluctuations based on previous trends. It's commonly used to predict New Focus' 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 New Focus' current market price. This means that the stock will return to its initially predicted market price.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. New Focus Typical Price indicator is an average of each day price and can be used instead of closing price when creating different New Focus Auto moving average lines. View also all equity analysis or get more info about typical price price transform indicator.

New Focus Projected Return Density Against Market

Assuming the 90 days horizon New Focus has a beta of 0.344 . This indicates as returns on the market go up, New Focus average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding New Focus Auto 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 New Focus or New Focus Auto 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 New Focus stock'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 NWFAF 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 a negative alpha, implying that the risk taken by holding this instrument is not justified. New Focus Auto is significantly underperforming DOW.
 Predicted Return Density 
      Returns 
New Focus' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how New Focus 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 Company's Stock Price Volatility?

Several factors can influence a company'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.

New Focus OTC 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 New Focus or New Focus Auto 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 New Focus stock'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 NWFAF 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.
Assuming the 90 days horizon the coefficient of variation of New Focus is -2944.63. The daily returns are distributed with a variance of 17.91 and standard deviation of 4.23. The mean deviation of New Focus Auto is currently at 1.38. For similar time horizon, the selected benchmark (DOW) has volatility of 0.83
α
Alpha over DOW
-0.14
β
Beta against DOW0.34
σ
Overall volatility
4.23
Ir
Information ratio -0.03

New Focus OTC Stock Return Volatility

New Focus historical daily return volatility represents how much New Focus stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The firm shows 4.2317% volatility of returns over 90 . By contrast, DOW inherits 0.8317% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About New Focus Volatility

Volatility is a rate at which the price of New Focus 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 New Focus may increase or decrease. In other words, similar to NWFAF's beta indicator, it measures the risk of New Focus and helps estimate the fluctuations that may happen in a short period of time. So if prices of New Focus 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.
New Focus Auto Tech Holdings Limited, an investment holding company, manufactures and sells electronic and power-related automotive parts and accessories. The company was incorporated in 2002 and is headquartered in Shanghai, the Peoples Republic of China. New Focus operates under Auto Truck Dealerships classification in the United States and is traded on OTC Exchange. It employs 1142 people.

New Focus Investment Opportunity

New Focus Auto has a volatility of 4.23 and is 5.1 times more volatile than DOW. 36  of all equities and portfolios are less risky than New Focus. Compared to the overall equity markets, volatility of historical daily returns of New Focus Auto is lower than 36 () of all global equities and portfolios over the last 90 days. Use New Focus Auto to protect your portfolios against small market fluctuations. The otc stock experiences a very speculative downward sentiment. The market maybe over-reacting. Check odds of New Focus to be traded at $0.0106 in 90 days. . Let's try to break down what NWFAF's beta means in this case. As returns on the market increase, New Focus returns are expected to increase less than the market. However, during the bear market, the loss on holding New Focus will be expected to be smaller as well.

Significant diversification

The correlation between New Focus Auto and DJI is Significant diversification for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding New Focus Auto and DJI in the same portfolio assuming nothing else is changed.

New Focus Additional Risk Indicators

The analysis of New Focus' 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 New Focus' investment and either accepting that risk or mitigating it. Along with some common measures of New Focus stock 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(0.019795)
Market Risk Adjusted Performance(0.43)
Mean Deviation1.36
Coefficient Of Variation(2,967)
Standard Deviation4.2
Variance17.63
Information Ratio(0.026946)
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stock investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

New Focus 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 New Focus 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. New Focus' 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, New Focus' 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 New Focus Auto.
Additionally, see Stocks Correlation. Note that the New Focus Auto information on this page should be used as a complementary analysis to other New Focus' 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

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When running New Focus Auto price analysis, check to measure New Focus' 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 New Focus is operating at the current time. Most of New Focus' value examination focuses on studying past and present price action to predict the probability of New Focus' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move New Focus' price. Additionally, you may evaluate how the addition of New Focus to your portfolios can decrease your overall portfolio volatility.
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Is New Focus' 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 New Focus. If investors know NWFAF 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 New Focus 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 New Focus Auto is measured differently than its book value, which is the value of NWFAF that is recorded on the company's balance sheet. Investors also form their own opinion of New Focus' value that differs from its market value or its book value, called intrinsic value, which is New Focus' 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 New Focus' market value can be influenced by many factors that don't directly affect New Focus' 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 New Focus' value and its price as these two are different measures arrived at by different means. Investors typically determine New Focus value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, New Focus' 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.