Park City Stock Volatility

PCYG
 Stock
  

USD 4.40  0.29  6.18%   

Park City Group maintains Sharpe Ratio (i.e., Efficiency) of -0.0744, which implies the firm had -0.0744% of return per unit of risk over the last 3 months. Macroaxis standpoint towards forecasting the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Park City Group exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to check Park City Group risk adjusted performance of (0.1), and Coefficient Of Variation of (1,362) to confirm the risk estimate we provide.
  
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Park City 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 Park City daily returns, and it is calculated using variance and standard deviation. We also use Park City's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Park City volatility.

30 Days Market Risk

Moderately volatile

Chance of Distress

Very Low

30 Days Economic Sensitivity

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

Park City Market Sensitivity And Downside Risk

Park City's beta coefficient measures the volatility of Park City 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 Park City stock's returns against your selected market. In other words, Park City's beta of 0.63 provides an investor with an approximation of how much risk Park City stock can potentially add to one of your existing portfolios.
Let's try to break down what Park City's beta means in this case. As returns on the market increase, Park City returns are expected to increase less than the market. However, during the bear market, the loss on holding Park City will be expected to be smaller as well.
3 Months Beta |Analyze Park City Group Demand Trend
Check current 90 days Park City correlation with market (DOW)

Park City Beta

    
  0.63  
Park City 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

    
  3.64  
It is essential to understand the difference between upside risk (as represented by Park City's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Park City stock's daily returns or price. Since the actual investment returns on holding a position in Park City 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 Park City.

Park City Implied Volatility

    
  266.09  
Park City's implied volatility exposes the market's sentiment of Park City Group stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Park City'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 Park City stock will not fluctuate a lot when Park City's options are near their expiration.

Park City Group Stock Volatility Analysis

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

Historical Volatility

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

Given the investment horizon of 90 days Park City has a beta of 0.6338 indicating as returns on the market go up, Park City average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Park City Group 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 Park City or Technology 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 Park City 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 Park City 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. Park City Group is significantly underperforming DOW.
 Predicted Return Density 
      Returns 
Park City's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Park City 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.

Park City 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 Park City or Technology 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 Park City 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 Park City 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 Park City is -1344.63. The daily returns are distributed with a variance of 13.25 and standard deviation of 3.64. The mean deviation of Park City Group is currently at 2.91. For similar time horizon, the selected benchmark (DOW) has volatility of 1.42
α
Alpha over DOW
-0.15
β
Beta against DOW0.63
σ
Overall volatility
3.64
Ir
Information ratio -0.02

Park City Stock Return Volatility

Park City historical daily return volatility represents how much Park City stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The firm inherits 3.64% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 1.4427% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Park City Volatility

Volatility is a rate at which the price of Park City 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 Park City may increase or decrease. In other words, similar to Park City's beta indicator, it measures the risk of Park City and helps estimate the fluctuations that may happen in a short period of time. So if prices of Park City 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 Capitalization122.5 M135.9 M
Park City Group, Inc., a software-as-a-service provider, designs, develops, and markets proprietary software products in North America. It primarily serves multi-store retail chains, wholesalers and distributors, and their suppliers. Park City operates under SoftwareApplication classification in the United States and is traded on NASDAQ Exchange. It employs 70 people.

Park City Investment Opportunity

Park City Group has a volatility of 3.64 and is 2.53 times more volatile than DOW. 31  of all equities and portfolios are less risky than Park City. Compared to the overall equity markets, volatility of historical daily returns of Park City Group is lower than 31 () of all global equities and portfolios over the last 90 days. Use Park City Group to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of Park City to be traded at $4.18 in 90 days. . Let's try to break down what Park City's beta means in this case. As returns on the market increase, Park City returns are expected to increase less than the market. However, during the bear market, the loss on holding Park City will be expected to be smaller as well.

Modest diversification

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

Park City Additional Risk Indicators

The analysis of Park City'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 Park City's investment and either accepting that risk or mitigating it. Along with some common measures of Park City 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 Performance(0.1)
Market Risk Adjusted Performance(0.42)
Mean Deviation2.89
Coefficient Of Variation(1,362)
Standard Deviation3.59
Variance12.86
Information Ratio(0.022443)
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.

Park City 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 Park City 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. Park City'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, Park City'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 Park City Group.
Please check Your Equity Center. Note that the Park City Group information on this page should be used as a complementary analysis to other Park City'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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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When running Park City Group price analysis, check to measure Park City'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 Park City is operating at the current time. Most of Park City's value examination focuses on studying past and present price action to predict the probability of Park City's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Park City's price. Additionally, you may evaluate how the addition of Park City to your portfolios can decrease your overall portfolio volatility.
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Is Park City'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 Park City. If investors know Park City 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 Park City 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
0.65
Market Capitalization
81.8 M
Quarterly Revenue Growth YOY
-0.24
Return On Assets
0.0526
Return On Equity
0.0929
The market value of Park City Group is measured differently than its book value, which is the value of Park City that is recorded on the company's balance sheet. Investors also form their own opinion of Park City's value that differs from its market value or its book value, called intrinsic value, which is Park City'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 Park City's market value can be influenced by many factors that don't directly affect Park City'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 Park City's value and its price as these two are different measures arrived at by different means. Investors typically determine Park City value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Park City'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.