Aeroclean Stock Volatility

AERC
 Stock
  

USD 3.68  0.27  7.92%   

Aeroclean Technologies appears to be dangerous, given 3 months investment horizon. Aeroclean Technologies secures Sharpe Ratio (or Efficiency) of 0.0746, which signifies that the company had 0.0746% of return per unit of risk over the last 3 months. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. By analyzing Aeroclean Technologies technical indicators you can presently evaluate if the expected return of 0.95% is justified by implied risk. Please makes use of Aeroclean Technologies' Downside Deviation of 7.14, mean deviation of 6.47, and Risk Adjusted Performance of 0.0868 to double-check if our risk estimates are consistent with your expectations.
  
Aeroclean Technologies 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 Aeroclean daily returns, and it is calculated using variance and standard deviation. We also use Aeroclean's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Aeroclean Technologies volatility.

720 Days Market Risk

Dangerous

Chance of Distress

Below Average

720 Days Economic Sensitivity

Hyperactively responds to market trends
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Aeroclean Technologies 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 Aeroclean Technologies at lower prices. For example, an investor can purchase Aeroclean 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 Aeroclean Technologies' 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.

Aeroclean Technologies Market Sensitivity And Downside Risk

Aeroclean Technologies' beta coefficient measures the volatility of Aeroclean 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 Aeroclean stock's returns against your selected market. In other words, Aeroclean Technologies's beta of 3.74 provides an investor with an approximation of how much risk Aeroclean Technologies stock can potentially add to one of your existing portfolios.
Aeroclean Technologies LLC is displaying above-average volatility over the selected time horizon. Investors should scrutinize Aeroclean Technologies LLC independently to ensure intended market timing strategies are aligned with expectations about Aeroclean Technologies volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Aeroclean Technologies' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Aeroclean Technologies' 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 stocks as prices fall.
3 Months Beta |Analyze Aeroclean Technologies Demand Trend
Check current 90 days Aeroclean Technologies correlation with market (NYSE Composite)

Aeroclean Beta

    
  3.74  
Aeroclean 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

    
  12.68  
It is essential to understand the difference between upside risk (as represented by Aeroclean Technologies's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Aeroclean Technologies' daily returns or price. Since the actual investment returns on holding a position in aeroclean 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 Aeroclean Technologies.

Aeroclean Technologies Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Aeroclean Technologies' fluctuations based on previous trends. It's commonly used to predict Aeroclean Technologies' 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 Aeroclean Technologies' 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 Aeroclean Technologies' 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. Aeroclean Technologies 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.
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Aeroclean Technologies Projected Return Density Against Market

Given the investment horizon of 90 days the stock has the beta coefficient of 3.74 . This suggests as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Aeroclean Technologies 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 Aeroclean Technologies or Industrials 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 Aeroclean Technologies' 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 Aeroclean 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 0.2894, implying that it can generate a 0.29 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Aeroclean Technologies' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how aeroclean 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 an Aeroclean Technologies Price Volatility?

Several factors can influence a Stock'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.

Aeroclean Technologies 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 Aeroclean Technologies or Industrials 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 Aeroclean Technologies' 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 Aeroclean 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. Given the investment horizon of 90 days the coefficient of variation of Aeroclean Technologies is 1340.19. The daily returns are distributed with a variance of 160.72 and standard deviation of 12.68. The mean deviation of Aeroclean Technologies LLC is currently at 6.61. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 1.48
α
Alpha over NYSE Composite
0.29
β
Beta against NYSE Composite3.74
σ
Overall volatility
12.68
Ir
Information ratio 0.0443

Aeroclean Technologies Stock Return Volatility

Aeroclean Technologies historical daily return volatility represents how much of Aeroclean Technologies stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 12.6774% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 12.5075% volatility on return distribution over the 90 days horizon.
 Performance (%) 
       Timeline  

About Aeroclean Technologies Volatility

Volatility is a rate at which the price of Aeroclean Technologies 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 Aeroclean Technologies may increase or decrease. In other words, similar to Aeroclean's beta indicator, it measures the risk of Aeroclean Technologies and helps estimate the fluctuations that may happen in a short period of time. So if prices of Aeroclean Technologies 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.
AeroClean Technologies, Inc., an interior space air purification technology company, provides air purification solutions for hospitals and other healthcare facilities. AeroClean Technologies, Inc. was founded in 2011 and is headquartered in Palm Beach Gardens, Florida. Aeroclean Technologies operates under Pollution Treatment Controls classification in the United States and is traded on NASDAQ Exchange. It employs 7 people.

Aeroclean Technologies Investment Opportunity

Aeroclean Technologies LLC has a volatility of 12.68 and is 1.01 times more volatile than NYSE Composite. 96  of all equities and portfolios are less risky than Aeroclean Technologies. Compared to the overall equity markets, volatility of historical daily returns of Aeroclean Technologies LLC is higher than 96 () of all global equities and portfolios over the last 90 days. Use Aeroclean Technologies LLC to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a very speculative upward sentiment. Check odds of Aeroclean Technologies to be traded at $4.6 in 90 days.

Very weak diversification

The correlation between Aeroclean Technologies LLC and NYA is 0.44 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Aeroclean Technologies LLC and NYA in the same portfolio, assuming nothing else is changed.

Aeroclean Technologies Additional Risk Indicators

The analysis of Aeroclean Technologies' 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 Aeroclean Technologies' investment and either accepting that risk or mitigating it. Along with some common measures of Aeroclean Technologies 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.
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.

Aeroclean Technologies 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.
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 Aeroclean Technologies 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. Aeroclean Technologies' 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, Aeroclean Technologies' 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 Aeroclean Technologies LLC.
Please continue to Trending Equities. You can also try Price Transformation module to use Price Transformation models to analyze depth of different equity instruments across global markets.

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When running Aeroclean Technologies price analysis, check to measure Aeroclean Technologies' 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 Aeroclean Technologies is operating at the current time. Most of Aeroclean Technologies' value examination focuses on studying past and present price action to predict the probability of Aeroclean Technologies' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Aeroclean Technologies' price. Additionally, you may evaluate how the addition of Aeroclean Technologies to your portfolios can decrease your overall portfolio volatility.
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Is Aeroclean Technologies' 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 Aeroclean Technologies. If investors know Aeroclean 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 Aeroclean Technologies listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
52.8 M
Quarterly Revenue Growth YOY
(0.78) 
Return On Assets
(0.53) 
Return On Equity
(0.22) 
The market value of Aeroclean Technologies is measured differently than its book value, which is the value of Aeroclean that is recorded on the company's balance sheet. Investors also form their own opinion of Aeroclean Technologies' value that differs from its market value or its book value, called intrinsic value, which is Aeroclean Technologies' 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 Aeroclean Technologies' market value can be influenced by many factors that don't directly affect Aeroclean Technologies' 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 Aeroclean Technologies' value and its price as these two are different measures arrived at by different means. Investors typically determine Aeroclean Technologies value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Aeroclean Technologies' 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.