Oasis Stock Volatility

OAS
 Stock
  

USD 127.01  2.95  2.27%   

Oasis Petroleum appears to be very steady, given 3 months investment horizon. Oasis Petroleum maintains Sharpe Ratio (i.e., Efficiency) of 0.0512, which implies the firm had 0.0512% of return per unit of risk over the last 3 months. Our standpoint towards forecasting 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-one technical indicators for Oasis Petroleum, which you can use to evaluate the future volatility of the company. Please evaluate Oasis Petroleum's Coefficient Of Variation of 3309.63, risk adjusted performance of 0.0449, and Semi Deviation of 4.52 to confirm if our risk estimates are consistent with your expectations.
  
Oasis Petroleum 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 Oasis daily returns, and it is calculated using variance and standard deviation. We also use Oasis's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Oasis Petroleum volatility.

510 Days Market Risk

Very steady

Chance of Distress

Below Average

510 Days Economic Sensitivity

Moves indifferently to market moves
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Oasis Petroleum 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 Oasis Petroleum at lower prices. For example, an investor can purchase Oasis 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 Oasis Petroleum'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 Oasis Petroleum

0.8COPConocoPhillipsPairCorr
0.78EOGEog ResourcesPairCorr
0.71CNQCanadian Natural ResPairCorr
0.69PXDPioneer Natural ResourcesPairCorr
0.71WDSWoodside Energy GroupPairCorr
0.73DVNDevon Energy Corp Potential GrowthPairCorr

Oasis Petroleum Market Sensitivity And Downside Risk

Oasis Petroleum's beta coefficient measures the volatility of Oasis 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 Oasis stock's returns against your selected market. In other words, Oasis Petroleum's beta of -0.0835 provides an investor with an approximation of how much risk Oasis Petroleum stock can potentially add to one of your existing portfolios.
Oasis Petroleum exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Oasis Petroleum individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Oasis Petroleum future systematic risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Oasis Petroleum's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Oasis Petroleum'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.

Oasis Petroleum Implied Volatility

Oasis Petroleum's implied volatility exposes the market's sentiment of Oasis Petroleum stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Oasis Petroleum'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 Oasis Petroleum stock will not fluctuate a lot when Oasis Petroleum's options are near their expiration.
3 Months Beta |Analyze Oasis Petroleum Demand Trend
Check current 90 days Oasis Petroleum correlation with market (DOW)

Oasis Beta

    
  -0.0835  
Oasis 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

    
  4.61  
It is essential to understand the difference between upside risk (as represented by Oasis Petroleum's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Oasis Petroleum stock's daily returns or price. Since the actual investment returns on holding a position in Oasis Petroleum 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 Oasis Petroleum.

Oasis Petroleum Stock Volatility Analysis

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

Historical Volatility

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

Considering the 90-day investment horizon Oasis Petroleum has a beta of -0.0835 . This indicates as returns on benchmark increase, returns on holding Oasis Petroleum are expected to decrease at a much lower rate. During the bear market, however, Oasis Petroleum is likely to outperform the market.
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 Oasis Petroleum or Energy 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 Oasis Petroleum 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 Oasis 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 0.1332, implying that it can generate a 0.13 percent excess return over DOW after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Oasis Petroleum's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Oasis Petroleum 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.

Oasis Petroleum 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 Oasis Petroleum or Energy 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 Oasis Petroleum 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 Oasis 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.
Considering the 90-day investment horizon the coefficient of variation of Oasis Petroleum is 1952.7. The daily returns are distributed with a variance of 21.22 and standard deviation of 4.61. The mean deviation of Oasis Petroleum is currently at 3.31. For similar time horizon, the selected benchmark (DOW) has volatility of 1.24
α
Alpha over DOW
0.13
β
Beta against DOW-0.08
σ
Overall volatility
4.61
Ir
Information ratio 0.0176

Oasis Petroleum Stock Return Volatility

Oasis Petroleum historical daily return volatility represents how much Oasis Petroleum stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The enterprise has volatility of 4.6061% on return distribution over 90 days investment horizon. By contrast, DOW inherits 1.2622% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About Oasis Petroleum Volatility

Volatility is a rate at which the price of Oasis Petroleum 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 Oasis Petroleum may increase or decrease. In other words, similar to Oasis's beta indicator, it measures the risk of Oasis Petroleum and helps estimate the fluctuations that may happen in a short period of time. So if prices of Oasis Petroleum 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.
Oasis Petroleum Inc., an independent exploration and production company, focuses on the acquisition and development of onshore unconventional oil and natural gas resources in the United States. Oasis Petroleum Inc. was founded in 2007 and is headquartered in Houston, Texas. Oasis Petroleum operates under Oil Gas EP classification in the United States and is traded on NMS Exchange. It employs 255 people.

Oasis Petroleum Investment Opportunity

Oasis Petroleum has a volatility of 4.61 and is 3.66 times more volatile than DOW. 39  of all equities and portfolios are less risky than Oasis Petroleum. Compared to the overall equity markets, volatility of historical daily returns of Oasis Petroleum is lower than 39 () of all global equities and portfolios over the last 90 days.
Use Oasis Petroleum to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of Oasis Petroleum to be traded at $121.93 in 90 days. .

Good diversification

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

Oasis Petroleum Additional Risk Indicators

The analysis of Oasis Petroleum'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 Oasis Petroleum's investment and either accepting that risk or mitigating it. Along with some common measures of Oasis Petroleum 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 Performance0.0449
Market Risk Adjusted Performance(1.54)
Mean Deviation3.36
Semi Deviation4.52
Downside Deviation4.69
Coefficient Of Variation3309.63
Standard Deviation4.61
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.

Oasis Petroleum 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 Oasis Petroleum 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. Oasis Petroleum'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, Oasis Petroleum'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 Oasis Petroleum.
Please check Your Equity Center. Note that the Oasis Petroleum information on this page should be used as a complementary analysis to other Oasis Petroleum'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 Probability Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

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When running Oasis Petroleum price analysis, check to measure Oasis Petroleum'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 Oasis Petroleum is operating at the current time. Most of Oasis Petroleum's value examination focuses on studying past and present price action to predict the probability of Oasis Petroleum's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Oasis Petroleum's price. Additionally, you may evaluate how the addition of Oasis Petroleum to your portfolios can decrease your overall portfolio volatility.
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Is Oasis Petroleum'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 Oasis Petroleum. If investors know Oasis 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 Oasis Petroleum listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
1.45
Market Capitalization
2.1 B
Quarterly Revenue Growth YOY
1.0
Return On Assets
4.0E-4
Return On Equity
0.21
The market value of Oasis Petroleum is measured differently than its book value, which is the value of Oasis that is recorded on the company's balance sheet. Investors also form their own opinion of Oasis Petroleum's value that differs from its market value or its book value, called intrinsic value, which is Oasis Petroleum'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 Oasis Petroleum's market value can be influenced by many factors that don't directly affect Oasis Petroleum'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 Oasis Petroleum's value and its price as these two are different measures arrived at by different means. Investors typically determine Oasis Petroleum value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Oasis Petroleum'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.