Clearsign Stock Volatility

CLIR
 Stock
  

USD 1.20  0.06  4.76%   

Clearsign Combustion secures Sharpe Ratio (or Efficiency) of -0.0565, which signifies that the company had -0.0565% 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. Clearsign Combustion exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Clearsign Combustion mean deviation of 3.6, and Risk Adjusted Performance of (0.11) to double-check the risk estimate we provide.
  
Refresh
Clearsign Combustion 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 Clearsign daily returns, and it is calculated using variance and standard deviation. We also use Clearsign's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Clearsign Combustion volatility.

30 Days Market Risk

Very risky

Chance of Distress

Very Small

30 Days Economic Sensitivity

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

0.72ADESAdvanced EmissionsPairCorr
0.81AQUAEvoqua Water Technologies Fiscal Year End 15th of November 2022 PairCorr

Moving against Clearsign Combustion

0.72ACBAAce Global BusinessPairCorr
0.52ACAQAthena Consumer AcquPairCorr

Clearsign Combustion Market Sensitivity And Downside Risk

Clearsign Combustion's beta coefficient measures the volatility of Clearsign 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 Clearsign stock's returns against your selected market. In other words, Clearsign Combustion's beta of 1.36 provides an investor with an approximation of how much risk Clearsign Combustion stock can potentially add to one of your existing portfolios.
Let's try to break down what Clearsign's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Clearsign Combustion will likely underperform.
3 Months Beta |Analyze Clearsign Combustion Demand Trend
Check current 90 days Clearsign Combustion correlation with market (DOW)

Clearsign Beta

    
  1.36  
Clearsign 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

    
  4.6  
It is essential to understand the difference between upside risk (as represented by Clearsign Combustion's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Clearsign Combustion stock's daily returns or price. Since the actual investment returns on holding a position in Clearsign Combustion 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 Clearsign Combustion.

Clearsign Combustion Implied Volatility

    
  0.0  
Clearsign Combustion's implied volatility exposes the market's sentiment of Clearsign Combustion stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Clearsign Combustion's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Clearsign Combustion stock will not fluctuate a lot when Clearsign Combustion's options are near their expiration.

Clearsign Combustion Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Clearsign Combustion's fluctuations based on previous trends. It's commonly used to predict Clearsign Combustion'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 Clearsign Combustion'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. The Median Price line plots median indexes of Clearsign Combustion price series.
.

Clearsign Combustion Projected Return Density Against Market

Given the investment horizon of 90 days the stock has the beta coefficient of 1.3564 suggesting as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Clearsign Combustion 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 Clearsign Combustion 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 Clearsign Combustion 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 Clearsign 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 a negative alpha, implying that the risk taken by holding this instrument is not justified. Clearsign Combustion is significantly underperforming DOW.
 Predicted Return Density 
      Returns 
Clearsign Combustion's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Clearsign Combustion 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.

Clearsign Combustion 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 Clearsign Combustion 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 Clearsign Combustion 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 Clearsign 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 Clearsign Combustion is -1771.43. The daily returns are distributed with a variance of 21.15 and standard deviation of 4.6. The mean deviation of Clearsign Combustion is currently at 3.52. For similar time horizon, the selected benchmark (DOW) has volatility of 1.42
α
Alpha over DOW
-0.14
β
Beta against DOW1.36
σ
Overall volatility
4.60
Ir
Information ratio -0.05

Clearsign Combustion Stock Return Volatility

Clearsign Combustion historical daily return volatility represents how much Clearsign Combustion stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The enterprise inherits 4.5991% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 1.4607% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Clearsign Combustion Volatility

Volatility is a rate at which the price of Clearsign Combustion 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 Clearsign Combustion may increase or decrease. In other words, similar to Clearsign's beta indicator, it measures the risk of Clearsign Combustion and helps estimate the fluctuations that may happen in a short period of time. So if prices of Clearsign Combustion 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 Capitalization43.6 M46.3 M
ClearSign Technologies Corporation designs and develops products and technologies to enhance operational performance, energy efficiency, emission reduction, safety, and overall cost-effectiveness of industrial and commercial systems in the United States and the Peoples Republic of China. ClearSign Technologies Corporation was incorporated in 2008 and is headquartered in Tulsa, Oklahoma. Clearsign Combustion operates under Pollution Treatment Controls classification in the United States and is traded on NASDAQ Exchange. It employs 12 people.

Clearsign Combustion Investment Opportunity

Clearsign Combustion has a volatility of 4.6 and is 3.15 times more volatile than DOW. 39  of all equities and portfolios are less risky than Clearsign Combustion. Compared to the overall equity markets, volatility of historical daily returns of Clearsign Combustion is lower than 39 () of all global equities and portfolios over the last 90 days. Use Clearsign Combustion to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of Clearsign Combustion to be traded at $1.14 in 90 days. . Let's try to break down what Clearsign's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Clearsign Combustion will likely underperform.

Very weak diversification

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

Clearsign Combustion Additional Risk Indicators

The analysis of Clearsign Combustion'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 Clearsign Combustion's investment and either accepting that risk or mitigating it. Along with some common measures of Clearsign Combustion 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 Performance(0.11)
Market Risk Adjusted Performance(0.29)
Mean Deviation3.6
Coefficient Of Variation(1,174)
Standard Deviation4.62
Variance21.31
Information Ratio(0.045061)
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.

Clearsign Combustion 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.
GM vs. Clearsign Combustion
Purecycle Technologies vs. Clearsign Combustion
Ezcorp vs. Clearsign Combustion
Twitter vs. Clearsign Combustion
Eastgroup Properties vs. Clearsign Combustion
Ollies Bargain vs. Clearsign Combustion
Erie Indemnity vs. Clearsign Combustion
Penn Natl vs. Clearsign Combustion
Occidental Petroleum vs. Clearsign Combustion
Interactive Brokers vs. Clearsign Combustion
ATT vs. Clearsign Combustion
Albemarle Corp vs. Clearsign Combustion
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 Clearsign Combustion 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. Clearsign Combustion'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, Clearsign Combustion'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 Clearsign Combustion.
Continue to Trending Equities. Note that the Clearsign Combustion information on this page should be used as a complementary analysis to other Clearsign Combustion'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 Valuation module to check real value of public entities based on technical and fundamental data.

Complementary Tools for Clearsign Stock analysis

When running Clearsign Combustion price analysis, check to measure Clearsign Combustion'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 Clearsign Combustion is operating at the current time. Most of Clearsign Combustion's value examination focuses on studying past and present price action to predict the probability of Clearsign Combustion's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Clearsign Combustion's price. Additionally, you may evaluate how the addition of Clearsign Combustion to your portfolios can decrease your overall portfolio volatility.
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Is Clearsign Combustion'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 Clearsign Combustion. If investors know Clearsign 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 Clearsign Combustion listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
45.8 M
Return On Assets
-0.43
Return On Equity
-0.76
The market value of Clearsign Combustion is measured differently than its book value, which is the value of Clearsign that is recorded on the company's balance sheet. Investors also form their own opinion of Clearsign Combustion's value that differs from its market value or its book value, called intrinsic value, which is Clearsign Combustion'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 Clearsign Combustion's market value can be influenced by many factors that don't directly affect Clearsign Combustion'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 Clearsign Combustion's value and its price as these two are different measures arrived at by different means. Investors typically determine Clearsign Combustion value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Clearsign Combustion'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.