Servotronics Volatility
| SVTDelisted Stock | USD 46.94 0.00 0.00% |
Servotronics is unstable given 3 months investment horizon. Servotronics owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.15, which indicates the firm had a 0.15 % return per unit of risk over the last 3 months. We were able to interpolate and analyze data for twenty-four different technical indicators, which can help you to evaluate if expected returns of 5.54% are justified by taking the suggested risk. Use Servotronics Standard Deviation of 32.95, risk adjusted performance of 0.1342, and Downside Deviation of 1.79 to evaluate company specific risk that cannot be diversified away. Key indicators related to Servotronics' volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Servotronics 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 Servotronics daily returns, and it is calculated using variance and standard deviation. We also use Servotronics's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Servotronics volatility.
Servotronics |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Servotronics 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 Servotronics at lower prices. For example, an investor can purchase Servotronics 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 Servotronics' 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 together with Servotronics Stock
| 0.87 | BE | Bloom Energy Corp | PairCorr |
| 0.81 | ELVA | Electrovaya Common Shares | PairCorr |
| 0.74 | ENVX | Enovix Corp | PairCorr |
| 0.73 | FCEL | FuelCell Energy | PairCorr |
Moving against Servotronics Stock
| 0.73 | GWH | ESS Tech | PairCorr |
| 0.47 | EOSE | Eos Energy Enterprises Buyout Trend | PairCorr |
| 0.44 | EPOW | Sunrise New Energy | PairCorr |
| 0.43 | ADN | Advent Technologies | PairCorr |
Servotronics Market Sensitivity And Downside Risk
Servotronics' beta coefficient measures the volatility of Servotronics 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 Servotronics stock's returns against your selected market. In other words, Servotronics's beta of -2.76 provides an investor with an approximation of how much risk Servotronics stock can potentially add to one of your existing portfolios. Servotronics is displaying above-average volatility 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 Servotronics' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Servotronics' 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 Servotronics Demand TrendCheck current 90 days Servotronics correlation with market (Dow Jones Industrial)Servotronics Beta |
Servotronics 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 | 37.1 |
It is essential to understand the difference between upside risk (as represented by Servotronics's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Servotronics' daily returns or price. Since the actual investment returns on holding a position in servotronics 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 Servotronics.
Servotronics Stock Volatility Analysis
Volatility refers to the frequency at which Servotronics delisted stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Servotronics' price changes. Investors will then calculate the volatility of Servotronics' stock to predict their future moves. A delisted 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 delisted 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 Servotronics' volatility:
Historical Volatility
This type of delisted stock volatility measures Servotronics' fluctuations based on previous trends. It's commonly used to predict Servotronics' 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 Servotronics' current market price. This means that the delisted stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Servotronics' to be redeemed at a future date.Transformation |
We are not able to run technical analysis function on this symbol. We either do not have that equity or its historical data is not available at this time. Please try again later.
Servotronics Projected Return Density Against Market
Considering the 90-day investment horizon Servotronics has a beta of -2.7635 . This usually implies as returns on its benchmark rise, returns on holding Servotronics are expected to decrease by similarly larger amounts. On the other hand, during market turmoils, Servotronics is expected to outperform its benchmark.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 Servotronics or Electrical Equipment 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 Servotronics' 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 Servotronics delisted 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.
Servotronics has an alpha of 4.7441, implying that it can generate a 4.74 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Servotronics Price Volatility?
Several factors can influence a delisted 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.Servotronics Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Servotronics is 670.23. The daily returns are distributed with a variance of 1376.39 and standard deviation of 37.1. The mean deviation of Servotronics is currently at 10.71. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.93
α | Alpha over Dow Jones | 4.74 | |
β | Beta against Dow Jones | -2.76 | |
σ | Overall volatility | 37.10 | |
Ir | Information ratio | 0.13 |
Servotronics Stock Return Volatility
Servotronics historical daily return volatility represents how much of Servotronics delisted stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 37.0998% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.8352% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Servotronics Volatility
Volatility is a rate at which the price of Servotronics 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 Servotronics may increase or decrease. In other words, similar to Servotronics's beta indicator, it measures the risk of Servotronics and helps estimate the fluctuations that may happen in a short period of time. So if prices of Servotronics 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.Servotronics, Inc. designs, manufactures, and markets control components and consumer products in the United States and internationally. The company was incorporated in 1959 and is headquartered in Elma, New York. Servotronics operates under Electrical Equipment Parts classification in the United States and is traded on AMEX Exchange. It employs 268 people.
Servotronics' 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 Servotronics Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Servotronics' price varies over time.
3 ways to utilize Servotronics' volatility to invest better
Higher Servotronics' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Servotronics 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. Servotronics 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 Servotronics investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Servotronics' 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 Servotronics' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Servotronics Investment Opportunity
Servotronics has a volatility of 37.1 and is 44.17 times more volatile than Dow Jones Industrial. 96 percent of all equities and portfolios are less risky than Servotronics. You can use Servotronics to protect your portfolios against small market fluctuations. The stock experiences a normal downward trend, but the immediate impact on correlations cannot be determined at the moment . Check odds of Servotronics to be traded at $46.47 in 90 days.Good diversification
The correlation between Servotronics and DJI is -0.08 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Servotronics and DJI in the same portfolio, assuming nothing else is changed.
Servotronics Additional Risk Indicators
The analysis of Servotronics' 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 Servotronics' investment and either accepting that risk or mitigating it. Along with some common measures of Servotronics 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 | 0.1342 | |||
| Market Risk Adjusted Performance | (1.58) | |||
| Mean Deviation | 8.51 | |||
| Downside Deviation | 1.79 | |||
| Coefficient Of Variation | 750.11 | |||
| Standard Deviation | 32.95 | |||
| Variance | 1085.71 |
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 delisted stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Servotronics 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 Servotronics 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. Servotronics' 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, Servotronics' 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 Servotronics.
Check out World Market Map to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in real. You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Consideration for investing in Servotronics Stock
If you are still planning to invest in Servotronics check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Servotronics' history and understand the potential risks before investing.
| CEOs Directory Screen CEOs from public companies around the world | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |