Netcapital Stock Volatility
| NCPLW Stock | USD 0.03 0.01 14.73% |
Netcapital is out of control given 3 months investment horizon. Netcapital has Sharpe Ratio of 0.14, which conveys that the firm had a 0.14 % return per unit of risk over the last 3 months. We were able to break down and interpolate twenty-eight different technical indicators, which can help you to evaluate if expected returns of 4.35% are justified by taking the suggested risk. Use Netcapital Mean Deviation of 21.39, risk adjusted performance of 0.1378, and Downside Deviation of 22.89 to evaluate company specific risk that cannot be diversified away. Key indicators related to Netcapital's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Netcapital 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 Netcapital daily returns, and it is calculated using variance and standard deviation. We also use Netcapital's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Netcapital volatility.
Netcapital | Build AI portfolio with Netcapital Stock |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Netcapital 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 Netcapital at lower prices. For example, an investor can purchase Netcapital 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 Netcapital'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.
Moving against Netcapital Stock
Netcapital Market Sensitivity And Downside Risk
Netcapital's beta coefficient measures the volatility of Netcapital 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 Netcapital stock's returns against your selected market. In other words, Netcapital's beta of 0.75 provides an investor with an approximation of how much risk Netcapital stock can potentially add to one of your existing portfolios. Netcapital is showing large volatility of returns over the selected time horizon. Netcapital is a penny stock. Although Netcapital may be in fact a good investment, many penny stocks are subject to artificial price hype. Make sure you completely understand the upside potential and downside risk of investing in Netcapital. We encourage investors to look for signals such as message board hypes, claims of breakthroughs, email spams, sudden volume upswings, and other similar hype indicators. We also encourage traders to check biographies and work history of company officers before investing in instruments with high volatility. You can indeed make money on Netcapital instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.
3 Months Beta |Analyze Netcapital Demand TrendCheck current 90 days Netcapital correlation with market (Dow Jones Industrial)Netcapital Beta |
Netcapital 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 | 31.76 |
It is essential to understand the difference between upside risk (as represented by Netcapital's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Netcapital's daily returns or price. Since the actual investment returns on holding a position in netcapital 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 Netcapital.
Netcapital Stock Volatility Analysis
Volatility refers to the frequency at which Netcapital stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Netcapital's price changes. Investors will then calculate the volatility of Netcapital'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 Netcapital's volatility:
Historical Volatility
This type of stock volatility measures Netcapital's fluctuations based on previous trends. It's commonly used to predict Netcapital'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 Netcapital'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 Netcapital'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. Netcapital 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.
Netcapital Projected Return Density Against Market
Assuming the 90 days horizon Netcapital has a beta of 0.7524 . This indicates as returns on the market go up, Netcapital average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Netcapital 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 Netcapital or Capital Markets 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 Netcapital'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 Netcapital 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.
Netcapital has an alpha of 4.2458, implying that it can generate a 4.25 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Netcapital 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.Netcapital Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of Netcapital is 729.37. The daily returns are distributed with a variance of 1008.62 and standard deviation of 31.76. The mean deviation of Netcapital is currently at 21.39. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.93
α | Alpha over Dow Jones | 4.25 | |
β | Beta against Dow Jones | 0.75 | |
σ | Overall volatility | 31.76 | |
Ir | Information ratio | 0.13 |
Netcapital Stock Return Volatility
Netcapital historical daily return volatility represents how much of Netcapital stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The venture shows 31.7587% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.8415% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Netcapital Volatility
Volatility is a rate at which the price of Netcapital 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 Netcapital may increase or decrease. In other words, similar to Netcapital's beta indicator, it measures the risk of Netcapital and helps estimate the fluctuations that may happen in a short period of time. So if prices of Netcapital 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.It offers a scalable technology platform that allows private companies to raise capital online from accredited and non-accredited investors. Netcapital Inc. operates as a subsidiary of NetCapital Systems LLC Netcapital Inc operates under Capital Markets classification in the United States and is traded on NASDAQ Exchange.
Netcapital'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 Netcapital Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Netcapital's price varies over time.
3 ways to utilize Netcapital's volatility to invest better
Higher Netcapital's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Netcapital 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. Netcapital 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 Netcapital investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Netcapital'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 Netcapital's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Netcapital Investment Opportunity
Netcapital has a volatility of 31.76 and is 37.81 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Netcapital is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use Netcapital to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of Netcapital to be traded at $0.0314 in 90 days.Significant diversification
The correlation between Netcapital and DJI is 0.02 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Netcapital and DJI in the same portfolio, assuming nothing else is changed.
Netcapital Additional Risk Indicators
The analysis of Netcapital'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 Netcapital's investment and either accepting that risk or mitigating it. Along with some common measures of Netcapital 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 | 0.1378 | |||
| Market Risk Adjusted Performance | 5.78 | |||
| Mean Deviation | 21.39 | |||
| Semi Deviation | 15.85 | |||
| Downside Deviation | 22.89 | |||
| Coefficient Of Variation | 729.37 | |||
| Standard Deviation | 31.76 |
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.
Netcapital 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 Netcapital 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. Netcapital'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, Netcapital'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 Netcapital.
Additional Tools for Netcapital Stock Analysis
When running Netcapital's price analysis, check to measure Netcapital'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 Netcapital is operating at the current time. Most of Netcapital's value examination focuses on studying past and present price action to predict the probability of Netcapital's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Netcapital's price. Additionally, you may evaluate how the addition of Netcapital to your portfolios can decrease your overall portfolio volatility.