Tor Minerals OTC Stock Volatility

TORM
 Stock
  

USD 2.35  0.05  2.08%   

Tor Minerals Intl owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0557, which indicates the firm had -0.0557% of return per unit of risk over the last 2 months. Macroaxis standpoint towards measuring 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. Tor Minerals Intl exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to validate Tor Minerals risk adjusted performance of (0.045015), and Coefficient Of Variation of (2,840) to confirm the risk estimate we provide.
  
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Tor Minerals 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 Tor Minerals daily returns, and it is calculated using variance and standard deviation. We also use Tor Minerals's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Tor Minerals volatility.

90 Days Market Risk

Dangerous

Chance of Distress

Below Average

90 Days Economic Sensitivity

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

Tor Minerals Market Sensitivity And Downside Risk

Tor Minerals' beta coefficient measures the volatility of Tor Minerals otc 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 Tor Minerals otc stock's returns against your selected market. In other words, Tor Minerals's beta of -0.13 provides an investor with an approximation of how much risk Tor Minerals otc stock can potentially add to one of your existing portfolios.
Let's try to break down what Tor Minerals's beta means in this case. As returns on the market increase, returns on owning Tor Minerals are expected to decrease at a much lower rate. During the bear market, Tor Minerals is likely to outperform the market.
2 Months Beta |Analyze Tor Minerals Intl Demand Trend
Check current 90 days Tor Minerals correlation with market (DOW)

Tor Minerals Beta

    
  -0.13  
Tor Minerals 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

    
  7.58  
It is essential to understand the difference between upside risk (as represented by Tor Minerals's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Tor Minerals stock's daily returns or price. Since the actual investment returns on holding a position in Tor Minerals 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 Tor Minerals.

Tor Minerals Intl OTC Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Tor Minerals' fluctuations based on previous trends. It's commonly used to predict Tor Minerals' 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 Tor Minerals' 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 thirty-nine. Tor Minerals Intl 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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Tor Minerals Projected Return Density Against Market

Given the investment horizon of 90 days Tor Minerals Intl has a beta of -0.1295 . This usually implies as returns on benchmark increase, returns on holding Tor Minerals are expected to decrease at a much lower rate. During the bear market, however, Tor Minerals Intl 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 Tor Minerals or Basic Materials 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 Tor Minerals 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 Tor Minerals 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. Tor Minerals Intl is significantly underperforming DOW.
 Predicted Return Density 
      Returns 
Tor Minerals' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Tor Minerals 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.

Tor Minerals 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 Tor Minerals or Basic Materials 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 Tor Minerals 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 Tor Minerals 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 Tor Minerals is -1794.58. The daily returns are distributed with a variance of 57.41 and standard deviation of 7.58. The mean deviation of Tor Minerals Intl is currently at 4.43. For similar time horizon, the selected benchmark (DOW) has volatility of 1.5
α
Alpha over DOW
-0.28
β
Beta against DOW-0.13
σ
Overall volatility
7.58
Ir
Information ratio -0.02

Tor Minerals OTC Stock Return Volatility

Tor Minerals historical daily return volatility represents how much Tor Minerals stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The company inherits 7.5766% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 1.3951% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Tor Minerals Volatility

Volatility is a rate at which the price of Tor Minerals 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 Tor Minerals may increase or decrease. In other words, similar to Tor Minerals's beta indicator, it measures the risk of Tor Minerals and helps estimate the fluctuations that may happen in a short period of time. So if prices of Tor Minerals 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.
TOR Minerals International, Inc. produces and sells specialty mineral products in the United States, Europe, and Asia. The company was founded in 1973 and is headquartered in Corpus Christi, Texas. Tor Minerals operates under Specialty Chemicals classification in the United States and is traded on OTC Exchange. It employs 125 people.

Tor Minerals Investment Opportunity

Tor Minerals Intl has a volatility of 7.58 and is 5.41 times more volatile than DOW. 65  of all equities and portfolios are less risky than Tor Minerals. Compared to the overall equity markets, volatility of historical daily returns of Tor Minerals Intl is higher than 65 () of all global equities and portfolios over the last 90 days. Use Tor Minerals Intl to protect your portfolios against small market fluctuations. The otc stock experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of Tor Minerals to be traded at $2.26 in 90 days. . Let's try to break down what Tor Minerals's beta means in this case. As returns on the market increase, returns on owning Tor Minerals are expected to decrease at a much lower rate. During the bear market, Tor Minerals is likely to outperform the market.

Good diversification

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

Tor Minerals Additional Risk Indicators

The analysis of Tor Minerals' 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 Tor Minerals' investment and either accepting that risk or mitigating it. Along with some common measures of Tor Minerals 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(0.045015)
Market Risk Adjusted Performance2.03
Mean Deviation3.9
Coefficient Of Variation(2,840)
Standard Deviation7.14
Variance50.94
Information Ratio(0.015949)
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.

Tor Minerals 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 Tor Minerals 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. Tor Minerals' 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, Tor Minerals' 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 Tor Minerals Intl.
Additionally, take a look at World Market Map. Note that the Tor Minerals Intl information on this page should be used as a complementary analysis to other Tor Minerals' 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

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Is Tor Minerals' 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 Tor Minerals. If investors know Tor Minerals 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 Tor Minerals listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
8.5 M
Quarterly Revenue Growth YOY
-0.1
Return On Assets
0.003
Return On Equity
-0.03
The market value of Tor Minerals Intl is measured differently than its book value, which is the value of Tor Minerals that is recorded on the company's balance sheet. Investors also form their own opinion of Tor Minerals' value that differs from its market value or its book value, called intrinsic value, which is Tor Minerals' 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 Tor Minerals' market value can be influenced by many factors that don't directly affect Tor Minerals' 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 Tor Minerals' value and its price as these two are different measures arrived at by different means. Investors typically determine Tor Minerals value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Tor Minerals' 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.