Kura Oncology Stock Volatility

KURA
 Stock
  

USD 15.37  0.28  1.79%   

We consider Kura Oncology not too volatile. Kura Oncology has Sharpe Ratio of 0.0299, which conveys that the firm had 0.0299% of return per unit of risk over the last 3 months. Our standpoint towards estimating the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Kura Oncology, which you can use to evaluate the future volatility of the firm. Please verify Kura Oncology Risk Adjusted Performance of 0.0564, downside deviation of 3.31, and Mean Deviation of 2.79 to check out if the risk estimate we provide is consistent with the expected return of 0.11%.
  
Kura Oncology 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 Kura Oncology daily returns, and it is calculated using variance and standard deviation. We also use Kura Oncology's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Kura Oncology volatility.

720 Days Market Risk

Not too volatile

Chance of Distress

Below Average

720 Days Economic Sensitivity

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

-0.65APTXAptinyxPairCorr
-0.54CSBRChampions Oncology Earnings Call This WeekPairCorr

Kura Oncology Market Sensitivity And Downside Risk

Kura Oncology's beta coefficient measures the volatility of Kura Oncology 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 Kura Oncology stock's returns against your selected market. In other words, Kura Oncology's beta of 0.9 provides an investor with an approximation of how much risk Kura Oncology stock can potentially add to one of your existing portfolios.
Kura Oncology shows above-average downside volatility for the selected time horizon. We advise investors to inspect Kura Oncology further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Kura Oncology future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Kura Oncology's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Kura Oncology's 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 Kura Oncology Demand Trend
Check current 90 days Kura Oncology correlation with market (NYSE Composite)

Kura Oncology Beta

    
  0.9  
Kura Oncology 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

    
  3.71  
It is essential to understand the difference between upside risk (as represented by Kura Oncology's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Kura Oncology's daily returns or price. Since the actual investment returns on holding a position in kura oncology 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 Kura Oncology.

Using Kura Oncology Put Option to Manage Risk

Put options written on Kura Oncology grant holders of the option the right to sell a specified amount of Kura Oncology 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 Kura Oncology Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Kura Oncology's 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 Kura Oncology will be realized, the loss incurred will be offset by the profits made with the option trade.

Kura Oncology's PUT expiring on 2022-12-16

   Profit   
Share
       Kura Oncology Price At Expiration  

Current Kura Oncology Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2022-12-16 PUT at $17.5-0.69410.1088292022-12-161.85 - 3.52.3View
Put
2022-12-16 PUT at $15.0-0.39550.06243052022-12-160.85 - 3.61.6View
Put
2022-12-16 PUT at $12.5-0.25240.04172492022-12-160.25 - 2.80.6View
View All Kura Oncology Options

Kura Oncology Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Kura Oncology's fluctuations based on previous trends. It's commonly used to predict Kura Oncology'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 Kura Oncology's 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 Kura Oncology'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. Kura Oncology Typical Price indicator is an average of each day price and can be used instead of closing price when creating different Kura Oncology moving average lines.
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Kura Oncology Projected Return Density Against Market

Given the investment horizon of 90 days Kura Oncology has a beta of 0.8985 . This indicates Kura Oncology market returns are sensitive to returns on the market. As the market goes up or down, Kura Oncology 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 Kura Oncology or Biotechnology 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 Kura Oncology'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 Kura Oncology 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 0.055, implying that it can generate a 0.055 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Kura Oncology's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how kura oncology 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 Kura Oncology 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.

Kura Oncology 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 Kura Oncology or Biotechnology 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 Kura Oncology'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 Kura Oncology 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 Kura Oncology is 3348.25. The daily returns are distributed with a variance of 13.79 and standard deviation of 3.71. The mean deviation of Kura Oncology is currently at 2.83. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 1.5
α
Alpha over NYSE Composite
0.06
β
Beta against NYSE Composite0.90
σ
Overall volatility
3.71
Ir
Information ratio 0.0132

Kura Oncology Stock Return Volatility

Kura Oncology historical daily return volatility represents how much of Kura Oncology stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 3.7138% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 1.5114% volatility on return distribution over the 90 days horizon.
 Performance (%) 
       Timeline  

About Kura Oncology Volatility

Volatility is a rate at which the price of Kura Oncology 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 Kura Oncology may increase or decrease. In other words, similar to Kura Oncology's beta indicator, it measures the risk of Kura Oncology and helps estimate the fluctuations that may happen in a short period of time. So if prices of Kura Oncology 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 Capitalization931.8 M879.9 M

Kura Oncology Investment Opportunity

Kura Oncology has a volatility of 3.71 and is 2.46 times more volatile than NYSE Composite. 32  of all equities and portfolios are less risky than Kura Oncology. Compared to the overall equity markets, volatility of historical daily returns of Kura Oncology is lower than 32 () of all global equities and portfolios over the last 90 days. Use Kura Oncology to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of Kura Oncology to be traded at $14.91 in 90 days.

Weak diversification

The correlation between Kura Oncology and NYA is 0.37 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Kura Oncology and NYA in the same portfolio, assuming nothing else is changed.

Kura Oncology Additional Risk Indicators

The analysis of Kura Oncology'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 Kura Oncology's investment and either accepting that risk or mitigating it. Along with some common measures of Kura Oncology 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.

Kura Oncology 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 Kura Oncology 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. Kura Oncology'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, Kura Oncology'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 Kura Oncology.
Please see Correlation Analysis. You can also try Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

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When running Kura Oncology price analysis, check to measure Kura Oncology'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 Kura Oncology is operating at the current time. Most of Kura Oncology's value examination focuses on studying past and present price action to predict the probability of Kura Oncology's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Kura Oncology's price. Additionally, you may evaluate how the addition of Kura Oncology to your portfolios can decrease your overall portfolio volatility.
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Is Kura Oncology'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 Kura Oncology. If investors know Kura Oncology 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 Kura Oncology listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
1.1 B
Return On Assets
(0.17) 
Return On Equity
(0.28) 
The market value of Kura Oncology is measured differently than its book value, which is the value of Kura Oncology that is recorded on the company's balance sheet. Investors also form their own opinion of Kura Oncology's value that differs from its market value or its book value, called intrinsic value, which is Kura Oncology'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 Kura Oncology's market value can be influenced by many factors that don't directly affect Kura Oncology'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 Kura Oncology's value and its price as these two are different measures arrived at by different means. Investors typically determine Kura Oncology value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Kura Oncology'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.