Biomea Fusion Stock Volatility
| BMEA Stock | USD 1.85 0.03 1.60% |
Biomea Fusion appears to be very risky, given 3 months investment horizon. Biomea Fusion secures Sharpe Ratio (or Efficiency) of 0.0604, which signifies that the company had a 0.0604 % return per unit of risk over the last 3 months. By analyzing Biomea Fusion's technical indicators, you can evaluate if the expected return of 0.67% is justified by implied risk. Please makes use of Biomea Fusion's Downside Deviation of 9.03, mean deviation of 6.85, and Risk Adjusted Performance of 0.0725 to double-check if our risk estimates are consistent with your expectations. Key indicators related to Biomea Fusion's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Biomea Fusion 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 Biomea daily returns, and it is calculated using variance and standard deviation. We also use Biomea's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Biomea Fusion volatility.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Biomea Fusion can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game as hey may decide to buy additional stocks of Biomea Fusion at lower prices to lower their average cost per share. Similarly, when the prices of Biomea Fusion's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with Biomea Stock
Biomea Fusion Market Sensitivity And Downside Risk
Biomea Fusion's beta coefficient measures the volatility of Biomea stock compared to the systematic risk of the entire 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 Biomea stock's returns against your selected market. In other words, Biomea Fusion's beta of 3.12 provides an investor with an approximation of how much risk Biomea Fusion stock can potentially add to one of your existing portfolios. Biomea Fusion is showing large volatility of returns over the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Biomea Fusion'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 Biomea Fusion'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 financial instruments as prices fall.
3 Months Beta |Analyze Biomea Fusion Demand TrendCheck current 90 days Biomea Fusion correlation with market (Dow Jones Industrial)Biomea Beta |
Biomea standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity 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 | 11.09 |
It is essential to understand the difference between upside risk (as represented by Biomea Fusion's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Biomea Fusion's daily returns or price. Since the actual investment returns on holding a position in biomea 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 Biomea Fusion.
Using Biomea Put Option to Manage Risk
Put options written on Biomea Fusion grant holders of the option the right to sell a specified amount of Biomea Fusion at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Biomea Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Biomea Fusion's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Biomea Fusion will be realized, the loss incurred will be offset by the profits made with the option trade.
Biomea Fusion's PUT expiring on 2025-10-17
Profit |
| Biomea Fusion Price At Expiration |
Current Biomea Fusion Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | BMEA251017P00001500 | -0.253997 | 0.278777 | 1 | 2025-10-17 | 0.0 - 0.5 | 0.0 | View |
Put | BMEA251017P00002000 | -0.478548 | 0.498989 | 78 | 2025-10-17 | 0.0 - 0.8 | 0.0 | View |
Put | BMEA251017P00002500 | -0.601757 | 0.379954 | 1914 | 2025-10-17 | 0.7 - 1.0 | 0.0 | View |
Put | BMEA251017P00003000 | -0.507628 | 0.226026 | 2 | 2025-10-17 | 0.0 - 1.55 | 0.0 | View |
Put | BMEA251017P00004000 | -0.751401 | 0.234759 | 250 | 2025-10-17 | 2.0 - 2.55 | 0.0 | View |
Biomea Fusion Stock Volatility Analysis
Volatility refers to the frequency at which Biomea Fusion stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Biomea Fusion's price changes. Investors will then calculate the volatility of Biomea Fusion'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 Biomea Fusion's volatility:
Historical Volatility
This type of stock volatility measures Biomea Fusion's fluctuations based on previous trends. It's commonly used to predict Biomea Fusion'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 Biomea Fusion'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 Biomea Fusion'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. Biomea Fusion 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.
Biomea Fusion Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 3.1195 suggesting as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Biomea Fusion will likely underperform.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 Biomea Fusion or Biotechnology 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 Biomea Fusion'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 Biomea 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.
Biomea Fusion has an alpha of 0.3241, implying that it can generate a 0.32 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Biomea Fusion Price Volatility?
Several factors can influence a stock's market 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.Biomea Fusion Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Biomea Fusion is 1654.76. The daily returns are distributed with a variance of 122.95 and standard deviation of 11.09. The mean deviation of Biomea Fusion is currently at 6.84. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.93
α | Alpha over Dow Jones | 0.32 | |
β | Beta against Dow Jones | 3.12 | |
σ | Overall volatility | 11.09 | |
Ir | Information ratio | 0.06 |
Biomea Fusion Stock Return Volatility
Biomea Fusion historical daily return volatility represents how much of Biomea Fusion stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 11.0884% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8352% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Biomea Fusion Volatility
Volatility is a rate at which the price of Biomea Fusion 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 Biomea Fusion may increase or decrease. In other words, similar to Biomea's beta indicator, it measures the risk of Biomea Fusion and helps estimate the fluctuations that may happen in a short period of time. So if prices of Biomea Fusion 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 Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 3.8 M | 3.4 M | |
| Market Cap | 161.1 M | 207 M |
Biomea Fusion's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Biomea Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Biomea Fusion's price varies over time.
3 ways to utilize Biomea Fusion's volatility to invest better
Higher Biomea Fusion's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Biomea Fusion stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Biomea Fusion stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Biomea Fusion investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Biomea Fusion's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Biomea Fusion's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Biomea Fusion Investment Opportunity
Biomea Fusion has a volatility of 11.09 and is 13.2 times more volatile than Dow Jones Industrial. 96 percent of all equities and portfolios are less risky than Biomea Fusion. You can use Biomea Fusion to protect your portfolios against small market fluctuations. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of Biomea Fusion to be traded at $1.7945 in 90 days.Modest diversification
The correlation between Biomea Fusion and DJI is 0.27 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Biomea Fusion and DJI in the same portfolio, assuming nothing else is changed.
Biomea Fusion Additional Risk Indicators
The analysis of Biomea Fusion'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 Biomea Fusion's investment and either accepting that risk or mitigating it. Along with some common measures of Biomea Fusion 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.
| Risk Adjusted Performance | 0.0725 | |||
| Market Risk Adjusted Performance | 0.2447 | |||
| Mean Deviation | 6.85 | |||
| Semi Deviation | 8.58 | |||
| Downside Deviation | 9.03 | |||
| Coefficient Of Variation | 1473.27 | |||
| Standard Deviation | 10.93 |
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.
Biomea Fusion 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 Biomea Fusion 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. Biomea Fusion'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, Biomea Fusion'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 Biomea Fusion.
Complementary Tools for Biomea Stock analysis
When running Biomea Fusion's price analysis, check to measure Biomea Fusion'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 Biomea Fusion is operating at the current time. Most of Biomea Fusion's value examination focuses on studying past and present price action to predict the probability of Biomea Fusion's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Biomea Fusion's price. Additionally, you may evaluate how the addition of Biomea Fusion to your portfolios can decrease your overall portfolio volatility.
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