Cactus Inc Stock Volatility
| WHD Stock | USD 49.17 0.23 0.47% |
Cactus appears to be very steady, given 3 months investment horizon. Cactus Inc secures Sharpe Ratio (or Efficiency) of 0.21, which signifies that the company had a 0.21% return per unit of standard deviation over the last 3 months. We have found twenty-eight technical indicators for Cactus Inc, which you can use to evaluate the volatility of the firm. Please makes use of Cactus' risk adjusted performance of 0.1317, and Mean Deviation of 1.3 to double-check if our risk estimates are consistent with your expectations. Key indicators related to Cactus' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Cactus 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 Cactus daily returns, and it is calculated using variance and standard deviation. We also use Cactus's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Cactus volatility.
Cactus |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Cactus 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 Cactus at lower prices. For example, an investor can purchase Cactus 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 Cactus' 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 Cactus Stock
| 0.88 | NR | Newpark Resources Financial Report 7th of May 2024 | PairCorr |
| 0.9 | TS | Tenaris SA ADR Earnings Call This Week | PairCorr |
| 0.79 | EFXT | Enerflex Financial Report 1st of May 2024 | PairCorr |
| 0.91 | WFRD | Weatherford International Earnings Call This Week | PairCorr |
| 0.76 | BKR | Baker Hughes Financial Report 17th of July 2024 | PairCorr |
Cactus Market Sensitivity And Downside Risk
Cactus' beta coefficient measures the volatility of Cactus 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 Cactus stock's returns against your selected market. In other words, Cactus's beta of 1.57 provides an investor with an approximation of how much risk Cactus stock can potentially add to one of your existing portfolios. Cactus Inc has relatively low volatility with skewness of 0.72 and kurtosis of 1.49. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Cactus' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Cactus' 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 Cactus Inc Demand TrendCheck current 90 days Cactus correlation with market (NYSE Composite)Cactus Beta |
Cactus 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 | 1.78 |
It is essential to understand the difference between upside risk (as represented by Cactus's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Cactus' daily returns or price. Since the actual investment returns on holding a position in cactus 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 Cactus.
Using Cactus Put Option to Manage Risk
Put options written on Cactus grant holders of the option the right to sell a specified amount of Cactus 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 Cactus Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Cactus' 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 Cactus will be realized, the loss incurred will be offset by the profits made with the option trade.
Cactus' PUT expiring on 2024-04-19
Profit |
| Cactus Price At Expiration |
Cactus Inc Stock Volatility Analysis
Volatility refers to the frequency at which Cactus stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Cactus' price changes. Investors will then calculate the volatility of Cactus' 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 Cactus' volatility:
Historical Volatility
This type of stock volatility measures Cactus' fluctuations based on previous trends. It's commonly used to predict Cactus' 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 Cactus' 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 Cactus' 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. Cactus Inc 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.
Cactus Projected Return Density Against Market
Considering the 90-day investment horizon the stock has the beta coefficient of 1.5661 . This entails as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Cactus 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 Cactus 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 Cactus' 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 Cactus 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.
Cactus Inc has an alpha of 0.2609, implying that it can generate a 0.26 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Cactus 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.Cactus Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Cactus is 465.43. The daily returns are distributed with a variance of 3.17 and standard deviation of 1.78. The mean deviation of Cactus Inc is currently at 1.27. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 0.26 | |
β | Beta against NYSE Composite | 1.57 | |
σ | Overall volatility | 1.78 | |
Ir | Information ratio | 0.16 |
Cactus Stock Return Volatility
Cactus historical daily return volatility represents how much of Cactus stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 1.7818% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.6179% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Cactus Volatility
Volatility is a rate at which the price of Cactus 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 Cactus may increase or decrease. In other words, similar to Cactus's beta indicator, it measures the risk of Cactus and helps estimate the fluctuations that may happen in a short period of time. So if prices of Cactus 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 | ||
| Market Cap | 1.9 B | 1 B |
Cactus' 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 Cactus Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Cactus' price varies over time.
3 ways to utilize Cactus' volatility to invest better
Higher Cactus' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Cactus Inc 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. Cactus Inc 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 Cactus Inc investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Cactus' 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 Cactus' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Cactus Investment Opportunity
Cactus Inc has a volatility of 1.78 and is 2.87 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Cactus Inc is lower than 15 percent of all global equities and portfolios over the last 90 days. You can use Cactus Inc to protect your portfolios against small market fluctuations. The stock experiences a normal downward trend and little activity. Check odds of Cactus to be traded at $48.68 in 90 days.Very weak diversification
The correlation between Cactus Inc and NYA is 0.54 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Cactus Inc and NYA in the same portfolio, assuming nothing else is changed.
Cactus Additional Risk Indicators
The analysis of Cactus' 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 Cactus' investment and either accepting that risk or mitigating it. Along with some common measures of Cactus 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 | 0.1317 | |||
| Market Risk Adjusted Performance | 0.2352 | |||
| Mean Deviation | 1.3 | |||
| Semi Deviation | 1.23 | |||
| Downside Deviation | 1.53 | |||
| Coefficient Of Variation | 493.77 | |||
| Standard Deviation | 1.79 |
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.
Cactus 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 Cactus 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. Cactus' 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, Cactus' 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 Cactus Inc.
When determining whether Cactus Inc is a strong investment it is important to analyze Cactus' 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 Cactus' future performance. For an informed investment choice regarding Cactus Stock, refer to the following important reports: Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Cactus Inc. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in rate. Note that the Cactus Inc information on this page should be used as a complementary analysis to other Cactus' 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Complementary Tools for Cactus Stock analysis
When running Cactus' price analysis, check to measure Cactus' 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 Cactus is operating at the current time. Most of Cactus' value examination focuses on studying past and present price action to predict the probability of Cactus' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cactus' price. Additionally, you may evaluate how the addition of Cactus to your portfolios can decrease your overall portfolio volatility.
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Is Cactus' 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 Cactus. If investors know Cactus 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 Cactus 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 0.468 | Dividend Share 0.46 | Earnings Share 2.57 | Revenue Per Share 16.97 | Quarterly Revenue Growth 0.464 |
The market value of Cactus Inc is measured differently than its book value, which is the value of Cactus that is recorded on the company's balance sheet. Investors also form their own opinion of Cactus' value that differs from its market value or its book value, called intrinsic value, which is Cactus' 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 Cactus' market value can be influenced by many factors that don't directly affect Cactus' 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 Cactus' value and its price as these two are different measures arrived at by different means. Investors typically determine if Cactus is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cactus' 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.