Flame OTC Stock Volatility

FLMP
 Stock
  

USD 0.0002  0.00  0.00%   

Flame Seal is out of control given 3 months investment horizon. Flame Seal Products secures Sharpe Ratio (or Efficiency) of 0.1, which denotes the company had 0.1% of return per unit of standard deviation over the last 3 months. Our philosophy in predicting the volatility of a stock is to use Flame Seal Products market data together with company specific technical indicators. We have collected data for twenty-one different technical indicators, which can help you to evaluate if expected returns of 3.23% are justified by taking the suggested risk. Use Flame Seal mean deviation of 8.4 to evaluate company specific risk that cannot be diversified away.
  
Flame Seal 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 Flame daily returns, and it is calculated using variance and standard deviation. We also use Flame's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Flame Seal volatility.

690 Days Market Risk

Out of control

Chance of Distress

Very High

690 Days Economic Sensitivity

Barely shadows the market
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Flame Seal 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 Flame Seal at lower prices. For example, an investor can purchase Flame 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 Flame Seal'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 against Flame Seal

-0.69VLKAFVolkswagen A GPairCorr
-0.68VWAPYVolkswagen Ag RepstgPairCorr
-0.57GVDNYGivaudan Sa ADRPairCorr
-0.56SHWSherwin-WilliamsPairCorr

Flame Seal Market Sensitivity And Downside Risk

Flame Seal's beta coefficient measures the volatility of Flame 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 Flame otc stock's returns against your selected market. In other words, Flame Seal's beta of 0.0493 provides an investor with an approximation of how much risk Flame Seal otc stock can potentially add to one of your existing portfolios.
Flame Seal Products is displaying above-average volatility over the selected time horizon. Investors should scrutinize Flame Seal Products independently to ensure intended market timing strategies are aligned with expectations about Flame Seal volatility. Flame Seal Products appears to be a penny stock. Although Flame Seal Products may be, in fact, a solid short-term or long term investment, many penny otc stocks are speculative investment instruments that are often subject to artificial stock promotion and campaigns of hype which may lead to misinformation and misrepresentation. Please make sure you fully understand upside potential and downside risks of investing in Flame Seal Products or similar risky assets. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswing without any event/news,and sudden news releases. We also encourage traders to check biographies and work history of company President, CEO or other officers before investing in high-volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Flame instrument if you perfectly time your entry and exit. However, remember that penny otcs that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.
3 Months Beta |Analyze Flame Seal Products Demand Trend
Check current 90 days Flame Seal correlation with market (DOW)

Flame Beta

    
  0.0493  
Flame 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

    
  31.8  
It is essential to understand the difference between upside risk (as represented by Flame Seal's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Flame Seal's daily returns or price. Since the actual investment returns on holding a position in flame otc 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 Flame Seal.

Flame Seal Products OTC Stock Volatility Analysis

Volatility refers to the frequency at which Flame Seal otc price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Flame Seal's price changes. Investors will then calculate the volatility of Flame Seal's otc stock to predict their future moves. A otc that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A otc stock with relatively stable price changes has low volatility. A highly volatile otc 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 Flame Seal's volatility:

Historical Volatility

This type of otc volatility measures Flame Seal's fluctuations based on previous trends. It's commonly used to predict Flame Seal's future behavior based on its past. However, it cannot conclusively determine the future direction of the otc stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Flame Seal's current market price. This means that the otc will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Flame Seal's 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. The Median Price line plots median indexes of Flame Seal Products price series.
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Flame Seal Projected Return Density Against Market

Given the investment horizon of 90 days Flame Seal has a beta of 0.0493 . This usually indicates as returns on the market go up, Flame Seal average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Flame Seal Products will be expected to be much smaller as well.
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 Flame Seal 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 Flame Seal's price will be affected by overall otc 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 Flame otc'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 3.0678, implying that it can generate a 3.07 percent excess return over DOW after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Flame Seal's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how flame otc 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 Flame Seal Price Volatility?

Several factors can influence a OTC'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.

Flame Seal 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 Flame Seal 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 Flame Seal's price will be affected by overall otc 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 Flame otc'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 Flame Seal is 985.21. The daily returns are distributed with a variance of 1011.1 and standard deviation of 31.8. The mean deviation of Flame Seal Products is currently at 8.79. For similar time horizon, the selected benchmark (DOW) has volatility of 1.41
α
Alpha over DOW
3.07
β
Beta against DOW0.0493
σ
Overall volatility
31.80
Ir
Information ratio 0.1

Flame Seal OTC Stock Return Volatility

Flame Seal historical daily return volatility represents how much of Flame Seal otc's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 31.7978% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 1.3814% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About Flame Seal Volatility

Volatility is a rate at which the price of Flame Seal 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 Flame Seal may increase or decrease. In other words, similar to Flame's beta indicator, it measures the risk of Flame Seal and helps estimate the fluctuations that may happen in a short period of time. So if prices of Flame Seal 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.
Flame Seal Products, Inc. develops fire prevention technologies in the United States. Flame Seal Products, Inc. was founded in 1992 and is headquartered in Houston, Texas. Flame Seal operates under Specialty Chemicals classification in the United States and is traded on OTC Exchange.

Flame Seal Investment Opportunity

Flame Seal Products has a volatility of 31.8 and is 23.04 times more volatile than DOW. 96  of all equities and portfolios are less risky than Flame Seal. Compared to the overall equity markets, volatility of historical daily returns of Flame Seal Products is higher than 96 () of all global equities and portfolios over the last 90 days. Use Flame Seal Products to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The otc stock experiences a normal downward fluctuation but is a risky buy. Check odds of Flame Seal to be traded at $2.0E-4 in 90 days.

Flame Seal Additional Risk Indicators

The analysis of Flame Seal'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 Flame Seal's investment and either accepting that risk or mitigating it. Along with some common measures of Flame Seal otc 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 otc stocks, we recommend comparing similar otcs with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Flame Seal 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 Flame Seal 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. Flame Seal'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, Flame Seal'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 Flame Seal Products.
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When running Flame Seal Products price analysis, check to measure Flame Seal'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 Flame Seal is operating at the current time. Most of Flame Seal's value examination focuses on studying past and present price action to predict the probability of Flame Seal's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Flame Seal's price. Additionally, you may evaluate how the addition of Flame Seal to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between Flame Seal's value and its price as these two are different measures arrived at by different means. Investors typically determine Flame Seal value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Flame Seal'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.