Pure Cycle Stock Volatility
| PCYO Stock | USD 9.64 0.11 1.15% |
Pure Cycle maintains Sharpe Ratio (i.e., Efficiency) of -0.0667, which implies the firm had a -0.0667% return per unit of risk over the last 3 months. Pure Cycle exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check Pure Cycle's Coefficient Of Variation of (3,338), variance of 3.24, and Risk Adjusted Performance of (0.01) to confirm the risk estimate we provide. Key indicators related to Pure Cycle's volatility include:
210 Days Market Risk | Chance Of Distress | 210 Days Economic Sensitivity |
Pure Cycle 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 Pure daily returns, and it is calculated using variance and standard deviation. We also use Pure's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Pure Cycle volatility.
Pure |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Pure Cycle 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 Pure Cycle at lower prices. For example, an investor can purchase Pure 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 Pure Cycle'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 Pure Stock
| 0.67 | AWK | American Water Works Financial Report 24th of April 2024 | PairCorr |
| 0.74 | AWR | American States Water Financial Report 8th of May 2024 | PairCorr |
| 0.73 | SJW | SJW Corporation Earnings Call This Week | PairCorr |
Moving against Pure Stock
| 0.75 | VIVHY | Vivendi SA PK Earnings Call This Week | PairCorr |
| 0.75 | ARIS | Aris Water Solutions Financial Report 13th of May 2024 | PairCorr |
| 0.68 | D | Dominion Energy Financial Report 3rd of May 2024 | PairCorr |
| 0.68 | FE | FirstEnergy Earnings Call This Week | PairCorr |
| 0.65 | NI | NiSource Financial Report 1st of May 2024 | PairCorr |
| 0.56 | ES | Eversource Energy Financial Report 1st of May 2024 | PairCorr |
| 0.52 | SO | Southern Financial Report 25th of April 2024 | PairCorr |
Pure Cycle Market Sensitivity And Downside Risk
Pure Cycle's beta coefficient measures the volatility of Pure 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 Pure stock's returns against your selected market. In other words, Pure Cycle's beta of 1.61 provides an investor with an approximation of how much risk Pure Cycle stock can potentially add to one of your existing portfolios. Pure Cycle exhibits very low volatility with skewness of 0.23 and kurtosis of 0.46. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Pure Cycle'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 Pure Cycle'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 financial instruments as prices fall.
3 Months Beta |Analyze Pure Cycle Demand TrendCheck current 90 days Pure Cycle correlation with market (NYSE Composite)Pure Beta |
Pure 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 | 1.82 |
It is essential to understand the difference between upside risk (as represented by Pure Cycle's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Pure Cycle's daily returns or price. Since the actual investment returns on holding a position in pure 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 Pure Cycle.
Using Pure Put Option to Manage Risk
Put options written on Pure Cycle grant holders of the option the right to sell a specified amount of Pure Cycle 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 Pure Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Pure Cycle'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 Pure Cycle will be realized, the loss incurred will be offset by the profits made with the option trade.
Pure Cycle's PUT expiring on 2024-05-17
Profit |
| Pure Cycle Price At Expiration |
Current Pure Cycle Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | 2024-05-17 PUT at $7.5 | -0.123 | 0.0918 | 1 | 2024-05-17 | 0.0 - 1.5 | 0.15 | View |
Pure Cycle Stock Volatility Analysis
Volatility refers to the frequency at which Pure Cycle stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Pure Cycle's price changes. Investors will then calculate the volatility of Pure Cycle'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 Pure Cycle's volatility:
Historical Volatility
This type of stock volatility measures Pure Cycle's fluctuations based on previous trends. It's commonly used to predict Pure Cycle'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 Pure Cycle'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 Pure Cycle'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. Pure Cycle 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.
Pure Cycle Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 1.6054 indicating as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Pure Cycle 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 Pure Cycle or Water Utilities 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 Pure Cycle'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 Pure 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.
Pure Cycle 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 Pure Cycle 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.Pure Cycle Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Pure Cycle is -1499.55. The daily returns are distributed with a variance of 3.32 and standard deviation of 1.82. The mean deviation of Pure Cycle is currently at 1.4. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.61
α | Alpha over NYSE Composite | -0.18 | |
β | Beta against NYSE Composite | 1.61 | |
σ | Overall volatility | 1.82 | |
Ir | Information ratio | -0.08 |
Pure Cycle Stock Return Volatility
Pure Cycle historical daily return volatility represents how much of Pure Cycle stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 1.8212% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.6294% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Pure Cycle Volatility
Volatility is a rate at which the price of Pure Cycle 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 Pure Cycle may increase or decrease. In other words, similar to Pure's beta indicator, it measures the risk of Pure Cycle and helps estimate the fluctuations that may happen in a short period of time. So if prices of Pure Cycle 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 | 2.1 B | 2 B | |
| Market Cap | 237.7 M | 249.6 M |
Pure Cycle'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 Pure Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Pure Cycle's price varies over time.
3 ways to utilize Pure Cycle's volatility to invest better
Higher Pure Cycle's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Pure Cycle 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. Pure Cycle 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 Pure Cycle investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Pure Cycle'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 Pure Cycle's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Pure Cycle Investment Opportunity
Pure Cycle has a volatility of 1.82 and is 2.89 times more volatile than NYSE Composite. 16 percent of all equities and portfolios are less risky than Pure Cycle. You can use Pure Cycle to enhance the returns of your portfolios. The stock experiences a large bullish trend. Check odds of Pure Cycle to be traded at $10.6 in 90 days.Very weak diversification
The correlation between Pure Cycle and NYA is 0.55 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Pure Cycle and NYA in the same portfolio, assuming nothing else is changed.
Pure Cycle Additional Risk Indicators
The analysis of Pure Cycle'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 Pure Cycle's investment and either accepting that risk or mitigating it. Along with some common measures of Pure Cycle 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 | (0.01) | |||
| Market Risk Adjusted Performance | (0.03) | |||
| Mean Deviation | 1.39 | |||
| Coefficient Of Variation | (3,338) | |||
| Standard Deviation | 1.8 | |||
| Variance | 3.24 | |||
| Information Ratio | (0.08) |
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.
Pure Cycle 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.
| Alphabet vs. Pure Cycle | ||
| GM vs. Pure Cycle | ||
| Citigroup vs. Pure Cycle | ||
| Walker Dunlop vs. Pure Cycle | ||
| Visa vs. Pure Cycle | ||
| Dupont De vs. Pure Cycle | ||
| SentinelOne vs. Pure Cycle | ||
| Ford vs. Pure Cycle | ||
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 Pure Cycle 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. Pure Cycle'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, Pure Cycle'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 Pure Cycle.
When determining whether Pure Cycle offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Pure Cycle'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 Pure Cycle Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Pure Cycle Stock: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Pure Cycle. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in manufacturing. To learn how to invest in Pure Stock, please use our How to Invest in Pure Cycle guide.You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Complementary Tools for Pure Stock analysis
When running Pure Cycle's price analysis, check to measure Pure Cycle'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 Pure Cycle is operating at the current time. Most of Pure Cycle's value examination focuses on studying past and present price action to predict the probability of Pure Cycle's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Pure Cycle's price. Additionally, you may evaluate how the addition of Pure Cycle to your portfolios can decrease your overall portfolio volatility.
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |
Is Pure Cycle'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 Pure Cycle. If investors know Pure 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 Pure Cycle 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 (0.38) | Earnings Share 0.27 | Revenue Per Share 0.782 | Quarterly Revenue Growth 0.066 | Return On Assets 0.0249 |
The market value of Pure Cycle is measured differently than its book value, which is the value of Pure that is recorded on the company's balance sheet. Investors also form their own opinion of Pure Cycle's value that differs from its market value or its book value, called intrinsic value, which is Pure Cycle'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 Pure Cycle's market value can be influenced by many factors that don't directly affect Pure Cycle'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 Pure Cycle's value and its price as these two are different measures arrived at by different means. Investors typically determine if Pure Cycle is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Pure Cycle'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.