OAT OTC Stock Volatility

OAT appears to be out of control, given 3 months investment horizon. OAT Inc maintains Sharpe Ratio (i.e., Efficiency) of 0.0574, which implies the company had 0.0574% of return per unit of standard deviation over the last 3 months. Our approach into 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 OAT Inc, which you can use to evaluate the future volatility of the entity. Please evaluate OAT's Coefficient Of Variation of 1740.67, mean deviation of 1.89, and Market Risk Adjusted Performance of 1.26 to confirm if our risk estimates are consistent with your expectations.
  
OAT 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 OAT daily returns, and it is calculated using variance and standard deviation. We also use OAT's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of OAT volatility.

OAT Inc OTC Stock Volatility Analysis

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

Historical Volatility

This type of otc volatility measures OAT's fluctuations based on previous trends. It's commonly used to predict OAT'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 OAT'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 OAT's to be redeemed at a future date.
Transformation
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OAT Projected Return Density Against Market

Given the investment horizon of 90 days OAT has a beta of 0.2479 . This indicates as returns on the market go up, OAT average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding OAT Inc 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 OAT 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 OAT'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 OAT 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 0.3273, implying that it can generate a 0.33 percent excess return over DOW after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
OAT's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how oat 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 an OAT 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.

OAT 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 OAT 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 OAT'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 OAT 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 OAT is 1740.67. The daily returns are distributed with a variance of 30.77 and standard deviation of 5.55. The mean deviation of OAT Inc is currently at 1.89. For similar time horizon, the selected benchmark (DOW) has volatility of 1.15
α
Alpha over DOW
0.33
β
Beta against DOW0.25
σ
Overall volatility
5.55
Ir
Information ratio 0.07

OAT OTC Stock Return Volatility

OAT historical daily return volatility represents how much of OAT otc's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 5.5472% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 1.1077% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

OAT Investment Opportunity

OAT Inc has a volatility of 5.55 and is 5.0 times more volatile than DOW. 48  of all equities and portfolios are less risky than OAT. Compared to the overall equity markets, volatility of historical daily returns of OAT Inc is lower than 48 () of all global equities and portfolios over the last 90 days. Use OAT Inc 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 OAT to be traded at $0.0 in 90 days.

Significant diversification

The correlation between OAT Inc and DJI is 0.05 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding OAT Inc and DJI in the same portfolio, assuming nothing else is changed.

OAT Additional Risk Indicators

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

OAT 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 OAT 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. OAT'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, OAT'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 OAT Inc.
Check out Your Equity Center. You can also try Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

Other Tools for OAT OTC Stock

When running OAT Inc price analysis, check to measure OAT'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 OAT is operating at the current time. Most of OAT's value examination focuses on studying past and present price action to predict the probability of OAT's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move OAT's price. Additionally, you may evaluate how the addition of OAT to your portfolios can decrease your overall portfolio volatility.
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