Avalon OTC Stock Volatility

AVLNF -  USA Stock  

USD 0.09  0.0041  4.62%

Avalon Advanced Materials secures Sharpe Ratio (or Efficiency) of -0.0429, which signifies that the company had -0.0429% of return per unit of standard deviation over the last 3 months. Macroaxis philosophy in foreseeing 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. Avalon Advanced Materials exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Avalon Advanced Materials risk adjusted performance of 0.0103, and Mean Deviation of 4.26 to double-check the risk estimate we provide.
  
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Avalon Advanced 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 Avalon daily returns, and it is calculated using variance and standard deviation. We also use Avalon's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Avalon Advanced volatility.

30 Days Market Risk

Out of control

Chance of Distress

Very Low

30 Days Economic Sensitivity

Almost mirrors the market
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Avalon Advanced 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 Avalon Advanced at lower prices. For example, an investor can purchase Avalon 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 Avalon Advanced'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 Avalon Advanced

0.72CHNRChina Natural ResPairCorr
0.83CMPCompass Minerals IntlPairCorr
0.81EXNExcellon ResourcesPairCorr
0.67FURYFury Gold MinesPairCorr

Avalon Advanced Market Sensitivity And Downside Risk

Avalon Advanced's beta coefficient measures the volatility of Avalon 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 Avalon otc stock's returns against your selected market. In other words, Avalon Advanced's beta of 1.15 provides an investor with an approximation of how much risk Avalon Advanced otc stock can potentially add to one of your existing portfolios.
Let's try to break down what Avalon's beta means in this case. Avalon Advanced returns are very sensitive to returns on the market. As the market goes up or down, Avalon Advanced is expected to follow.
3 Months Beta |Analyze Avalon Advanced Materials Demand Trend
Check current 90 days Avalon Advanced correlation with market (DOW)

Avalon Beta

    
  1.15  
Avalon 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

    
  7.17  
It is essential to understand the difference between upside risk (as represented by Avalon Advanced's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Avalon Advanced stock's daily returns or price. Since the actual investment returns on holding a position in Avalon Advanced 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 Avalon Advanced.

Avalon Advanced Materials OTC Stock Volatility Analysis

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

Historical Volatility

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

Assuming the 90 days horizon the otc stock has the beta coefficient of 1.147 . This suggests Avalon Advanced Materials market returns are highly-sensitive to returns on the market. As the market goes up or down, Avalon Advanced is expected to follow.
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 Avalon Advanced or Basic Materials 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 Avalon Advanced 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 Avalon 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 0.175, implying that it can generate a 0.18 percent excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 
Avalon Advanced's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Avalon Advanced 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.

Avalon Advanced 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 Avalon Advanced or Basic Materials 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 Avalon Advanced 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 Avalon 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 Avalon Advanced is -2333.34. The daily returns are distributed with a variance of 51.4 and standard deviation of 7.17. The mean deviation of Avalon Advanced Materials is currently at 3.99. For similar time horizon, the selected benchmark (DOW) has volatility of 1.42
α
Alpha over DOW
0.17
β
Beta against DOW1.15
σ
Overall volatility
7.17
Ir
Information ratio 0.0195

Avalon Advanced OTC Stock Return Volatility

Avalon Advanced historical daily return volatility represents how much Avalon Advanced 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 7.1694% volatility of returns over 90 . By contrast, DOW inherits 1.438% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Avalon Advanced Volatility

Volatility is a rate at which the price of Avalon Advanced 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 Avalon Advanced may increase or decrease. In other words, similar to Avalon's beta indicator, it measures the risk of Avalon Advanced and helps estimate the fluctuations that may happen in a short period of time. So if prices of Avalon Advanced 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 ReportedProjected for 2022
Market Capitalization16 M16.4 M
Avalon Advanced Materials Inc., together with its subsidiaries, engages in the acquisition, exploration, evaluation, and development of rare metal and mineral properties primarily in Canada. Avalon Advanced Materials Inc. was founded in 1991 and is headquartered in Toronto, Canada. Avalon Advanced operates under Other Industrial Metals Mining classification in the United States and is traded on OTC Exchange. It employs 7 people.

Avalon Advanced Investment Opportunity

Avalon Advanced Materials has a volatility of 7.17 and is 4.98 times more volatile than DOW. 62  of all equities and portfolios are less risky than Avalon Advanced. Compared to the overall equity markets, volatility of historical daily returns of Avalon Advanced Materials is higher than 62 () of all global equities and portfolios over the last 90 days. Use Avalon Advanced Materials to enhance the returns of your portfolios. The otc stock experiences a very speculative upward sentiment. The trend is possibly hyped up. Check odds of Avalon Advanced to be traded at $0.1161 in 90 days. . Let's try to break down what Avalon's beta means in this case. Avalon Advanced returns are very sensitive to returns on the market. As the market goes up or down, Avalon Advanced is expected to follow.

Modest diversification

The correlation between Avalon Advanced Materials and DJI is Modest diversification for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Avalon Advanced Materials and DJI in the same portfolio, assuming nothing else is changed.

Avalon Advanced Additional Risk Indicators

The analysis of Avalon Advanced'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 Avalon Advanced's investment and either accepting that risk or mitigating it. Along with some common measures of Avalon Advanced 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 Performance0.0103
Market Risk Adjusted Performance0.0115
Mean Deviation4.26
Semi Deviation4.41
Downside Deviation6.43
Coefficient Of Variation66910.06
Standard Deviation7.83
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.

Avalon Advanced 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 Avalon Advanced 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. Avalon Advanced'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, Avalon Advanced'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 Avalon Advanced Materials.
Please continue to Trending Equities. Note that the Avalon Advanced Materials information on this page should be used as a complementary analysis to other Avalon Advanced'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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

Complementary Tools for Avalon OTC Stock analysis

When running Avalon Advanced Materials price analysis, check to measure Avalon Advanced'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 Avalon Advanced is operating at the current time. Most of Avalon Advanced's value examination focuses on studying past and present price action to predict the probability of Avalon Advanced's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Avalon Advanced's price. Additionally, you may evaluate how the addition of Avalon Advanced to your portfolios can decrease your overall portfolio volatility.
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Is Avalon Advanced'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 Avalon Advanced. If investors know Avalon 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 Avalon Advanced listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
35.6 M
Quarterly Revenue Growth YOY
0.23
Return On Assets
-0.0138
Return On Equity
-0.0027
The market value of Avalon Advanced Materials is measured differently than its book value, which is the value of Avalon that is recorded on the company's balance sheet. Investors also form their own opinion of Avalon Advanced's value that differs from its market value or its book value, called intrinsic value, which is Avalon Advanced'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 Avalon Advanced's market value can be influenced by many factors that don't directly affect Avalon Advanced'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 Avalon Advanced's value and its price as these two are different measures arrived at by different means. Investors typically determine Avalon Advanced value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Avalon Advanced'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.