OCA Acquisition Stock Volatility

OCAX
 Stock
  

USD 10.05  0.01  0.1%   

We consider OCA Acquisition very steady. OCA Acquisition Corp retains Efficiency (Sharpe Ratio) of 0.0262, which implies the company had 0.0262% of return per unit of risk over the last 3 months. Our approach 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-six technical indicators for OCA Acquisition, which you can use to evaluate the future volatility of the entity. Please check OCA Acquisition Corp market risk adjusted performance of 0.3586, and Semi Deviation of 0.0788 to confirm if the risk estimate we provide is consistent with the expected return of 0.0032%.
  
OCA Acquisition 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 OCA Acquisition daily returns, and it is calculated using variance and standard deviation. We also use OCA Acquisition's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of OCA Acquisition volatility.

30 Days Market Risk

Very steady

Chance of Distress

High

30 Days Economic Sensitivity

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

OCA Acquisition Market Sensitivity And Downside Risk

OCA Acquisition's beta coefficient measures the volatility of OCA Acquisition 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 OCA Acquisition stock's returns against your selected market. In other words, OCA Acquisition's beta of -0.0155 provides an investor with an approximation of how much risk OCA Acquisition stock can potentially add to one of your existing portfolios.
OCA Acquisition Corp exhibits very low volatility with skewness of -0.73 and kurtosis of 2.84. However, we advise investors to further study OCA Acquisition Corp technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure OCA Acquisition'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 OCA Acquisition'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 OCA Acquisition Corp Demand Trend
Check current 90 days OCA Acquisition correlation with market (DOW)

OCA Acquisition Beta

    
  -0.0155  
OCA Acquisition 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

    
  0.12  
It is essential to understand the difference between upside risk (as represented by OCA Acquisition's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of OCA Acquisition's daily returns or price. Since the actual investment returns on holding a position in oca acquisition 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 OCA Acquisition.

OCA Acquisition Corp Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures OCA Acquisition's fluctuations based on previous trends. It's commonly used to predict OCA Acquisition'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 OCA Acquisition'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 OCA Acquisition'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 OCA Acquisition Corp price series.
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OCA Acquisition Projected Return Density Against Market

Given the investment horizon of 90 days OCA Acquisition Corp has a beta of -0.0155 . This indicates as returns on benchmark increase, returns on holding OCA Acquisition are expected to decrease at a much lower rate. During the bear market, however, OCA Acquisition Corp 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 OCA Acquisition or Financial Services 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 OCA Acquisition'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 OCA Acquisition 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. OCA Acquisition Corp is significantly underperforming DOW.
   Predicted Return Density   
       Returns  
OCA Acquisition's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how oca acquisition 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 OCA Acquisition 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.

OCA Acquisition 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 OCA Acquisition or Financial Services 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 OCA Acquisition'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 OCA Acquisition 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 OCA Acquisition is 3810.89. The daily returns are distributed with a variance of 0.01 and standard deviation of 0.12. The mean deviation of OCA Acquisition Corp is currently at 0.07. For similar time horizon, the selected benchmark (DOW) has volatility of 1.14
α
Alpha over DOW
-0.0073
β
Beta against DOW-0.02
σ
Overall volatility
0.12
Ir
Information ratio 0.96

OCA Acquisition Stock Return Volatility

OCA Acquisition historical daily return volatility represents how much of OCA Acquisition stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 0.1214% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 1.1533% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About OCA Acquisition Volatility

Volatility is a rate at which the price of OCA Acquisition 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 OCA Acquisition may increase or decrease. In other words, similar to OCA Acquisition's beta indicator, it measures the risk of OCA Acquisition and helps estimate the fluctuations that may happen in a short period of time. So if prices of OCA Acquisition 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.
The company focuses on effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. OCA Acquisition Corp. was incorporated in 2020 and is based in New York, New York. OCA Acquisition operates under Shell Companies classification in the United States and is traded on NASDAQ Exchange.

OCA Acquisition Investment Opportunity

DOW has a standard deviation of returns of 1.15 and is 9.58 times more volatile than OCA Acquisition Corp. of all equities and portfolios are less risky than OCA Acquisition. Compared to the overall equity markets, volatility of historical daily returns of OCA Acquisition Corp is lower than 1 () of all global equities and portfolios over the last 90 days. Use OCA Acquisition Corp to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a normal downward trend and little activity. Check odds of OCA Acquisition to be traded at $9.95 in 90 days.

Good diversification

The correlation between OCA Acquisition Corp and DJI is -0.15 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding OCA Acquisition Corp and DJI in the same portfolio, assuming nothing else is changed.

OCA Acquisition Additional Risk Indicators

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

OCA Acquisition 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 OCA Acquisition 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. OCA Acquisition'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, OCA Acquisition'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 OCA Acquisition Corp.
Please check Your Equity Center. Note that the OCA Acquisition Corp information on this page should be used as a complementary analysis to other OCA Acquisition'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 Commodity Channel Index module to use Commodity Channel Index to analyze current equity momentum.

Complementary Tools for OCA Acquisition Stock analysis

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