Reitmans OTC Stock Volatility

RTMAF -  USA Stock  

USD 1.34  0.80  148.15%

Reitmans Canada is out of control given 3 months investment horizon. Reitmans Canada maintains Sharpe Ratio (i.e., Efficiency) of 0.13, which implies the firm had 0.13% of return per unit of risk over the last 3 months. Our standpoint towards forecasting the volatility of a stock is to use Reitmans Canada market data together with company specific technical indicators. We were able to analyze twenty-one different technical indicators, which can help you to evaluate if expected returns of 2.43% are justified by taking the suggested risk. Use Reitmans Canada coefficient of variation of 812.4, and Risk Adjusted Performance of 0.1114 to evaluate company specific risk that cannot be diversified away.

Reitmans Volatility 

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

30 Days Market Risk

Out of control

Chance of Distress

Average

30 Days Economic Sensitivity

Almost neglects market trends
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Reitmans Canada 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 Reitmans Canada at lower prices. For example, an investor can purchase Reitmans 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 Reitmans Canada'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.

Reitmans Canada Market Sensitivity And Downside Risk

Reitmans Canada's beta coefficient measures the volatility of Reitmans 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 Reitmans otc stock's returns against your selected market. In other words, Reitmans Canada's beta of -0.44 provides an investor with an approximation of how much risk Reitmans Canada otc stock can potentially add to one of your existing portfolios.
Let's try to break down what Reitmans's beta means in this case. As returns on the market increase, returns on owning Reitmans Canada are expected to decrease at a much lower rate. During the bear market, Reitmans Canada is likely to outperform the market.
3 Months Beta |Analyze Reitmans Canada Demand Trend
Check current 90 days Reitmans Canada correlation with market (DOW)

Reitmans Beta

    
  -0.44  
Reitmans 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

    
  18.97  
It is essential to understand the difference between upside risk (as represented by Reitmans Canada's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Reitmans Canada stock's daily returns or price. Since the actual investment returns on holding a position in Reitmans Canada 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 Reitmans Canada.

Reitmans Canada OTC Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Reitmans Canada's fluctuations based on previous trends. It's commonly used to predict Reitmans Canada'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 Reitmans Canada's 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. Reitmans Canada 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. View also all equity analysis or get more info about average price price transform indicator.

Reitmans Canada Projected Return Density Against Market

Assuming the 90 days horizon Reitmans Canada Limited has a beta of -0.4399 indicating as returns on benchmark increase, returns on holding Reitmans Canada are expected to decrease at a much lower rate. During the bear market, however, Reitmans Canada Limited is likely to outperform the market.
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 Reitmans Canada or Consumer Cyclical 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 Reitmans Canada 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 Reitmans 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 2.203, implying that it can generate a 2.2 percent excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 
Reitmans Canada's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Reitmans Canada 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.

Reitmans Canada 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 Reitmans Canada or Consumer Cyclical 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 Reitmans Canada 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 Reitmans 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 Reitmans Canada is 781.02. The daily returns are distributed with a variance of 359.8 and standard deviation of 18.97. The mean deviation of Reitmans Canada Limited is currently at 4.78. For similar time horizon, the selected benchmark (DOW) has volatility of 0.83
α
Alpha over DOW
2.20
β
Beta against DOW-0.44
σ
Overall volatility
18.97
Ir
Information ratio 0.13

Reitmans Canada OTC Stock Return Volatility

Reitmans Canada historical daily return volatility represents how much Reitmans Canada 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 18.9684% volatility of returns over 90 . By contrast, DOW inherits 0.8499% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Reitmans Canada Volatility

Volatility is a rate at which the price of Reitmans Canada 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 Reitmans Canada may increase or decrease. In other words, similar to Reitmans's beta indicator, it measures the risk of Reitmans Canada and helps estimate the fluctuations that may happen in a short period of time. So if prices of Reitmans Canada 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.
Reitmans Limited primarily engages in the retail sale of womens wear apparel in Canada. The company was founded in 1926 and is based in Montreal, Canada. Reitmans Canada is traded on OTC Exchange in the United States.

Reitmans Canada Investment Opportunity

Reitmans Canada Limited has a volatility of 18.97 and is 22.32 times more volatile than DOW. 96  of all equities and portfolios are less risky than Reitmans Canada. Compared to the overall equity markets, volatility of historical daily returns of Reitmans Canada Limited is higher than 96 () of all global equities and portfolios over the last 90 days. Use Reitmans Canada Limited to enhance returns of your portfolios. The otc stock experiences a very speculative upward sentiment. The trend is possibly hyped up. Check odds of Reitmans Canada to be traded at $1.675 in 90 days. . Let's try to break down what Reitmans's beta means in this case. As returns on the market increase, returns on owning Reitmans Canada are expected to decrease at a much lower rate. During the bear market, Reitmans Canada is likely to outperform the market.

Good diversification

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

Reitmans Canada Additional Risk Indicators

The analysis of Reitmans Canada'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 Reitmans Canada's investment and either accepting that risk or mitigating it. Along with some common measures of Reitmans Canada 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 Performance0.1114
Market Risk Adjusted Performance(5.07)
Mean Deviation4.42
Coefficient Of Variation812.4
Standard Deviation18.24
Variance332.54
Information Ratio0.1265
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.

Reitmans Canada 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 Reitmans Canada 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. Reitmans Canada'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, Reitmans Canada'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 Reitmans Canada Limited.
Additionally, take a look at Your Equity Center. Note that the Reitmans Canada information on this page should be used as a complementary analysis to other Reitmans Canada'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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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