Evaluate Stock’s Volatility Before Making Any Investment Decision – IntelliPharmaCeutics International Inc (NASDAQ: IPCI)

Stocks fell on Thursday after President Donald Trump indicated trade talks between the U.S. and China may not be fruitful.

The Dow Jones industrial average closed 54.95 points lower at 24,713.98, with Cisco Systems and Walmart dropping 3 percent and 1 percent, respectively. The S&P 500 declined 0.09 percent to 2,720.13 as tech declined 0.5 percent. The Nasdaq composite slipped 0.21 percent to 7,382.47 with Amazon, Netflix, Apple and Alphabet all falling.

“Will that be successful? I tend to doubt it,” Trump said Thursday afternoon as the U.S. and China kicked off the second round of trade talks. “The reason I doubt it is because China has become very spoiled. The European Union has become very spoiled. Other countries have become very spoiled, because they always got 100 percent of whatever they wanted from the United States.”

Tensions between the U.S. and China have raised in recent months as both countries have hit each other with tariffs targeting some of their exports. The U.S. also banned companies from exporting goods to Chinese tech companies ZTE. Those tensions have sparked concerns that the two leading world economies could engage each other in a trade war.

Tech shares hit their session lows after Trump made his remarks Thursday. The Technology Select Sector SPDR ETF (XLK) closed 0.52 percent lower.

Higher interest rates also assisted push stocks lower. The benchmark 10-year Treasury note yield broke above 3.1 percent for the first time since 2011, while the two-year yield hovered around its highest levels in a decade.

Shareholders have been selling Treasurys amid fears that rising inflation could lead the Federal Reserve to tighten monetary policy faster than the market is expecting. (Source: CNBC)

Hot Stock Analysis: IntelliPharmaCeutics International Inc (IPCI)

Investors rushed to trade on IntelliPharmaCeutics International Inc (NASDAQ: IPCI) Thursday, soon after a drastic change of -0.93% in the share price was observed and the stock become able to close its trade at $0.43. The stock becomes active when traders or investors changed hands with 481,299 shares contrast to the three-month volume average of 250.88K shares. The ratio between current volume and 3-month average value, also known as Relative volume was observed at 1.92, validating the stock’s In Play state.

Stock Technical’s & Performances to Explore:

Based on a recent bid, this stock (IPCI) was trading at a distance of -85.41% from 52-week high and 33.13% away from its 52-week low price. We observed 6.63% rate of return for a stock for the last 5-trading days, which was maintained for the month at -20.94%. Likewise, the performance for the quarter was recorded as -44.68% and for the year was -79.22%. The comparison of these above mentioned historical values gives an idea to investor whether the stock is ready to shift trend (up to down or down to up) or how the stock has recovered the losses or shed gains during its historical phase. For example, if stock’s weekly and monthly performances are positive as compared to year and YTD performance percentage also seems to decrease in comparison to the previous year performance, then one can say that the stock is bouncing back and may able to gain more and more in near future and vice versa. Although stock’s historical performances are key to consider, don’t invest (or not invest) based solely on it. It’s just one measure of value. As a serious shareholder, you need to look at plentiful factors that can assist you determine whether any given stock is a good investment.

Do SMAs Signal a Trend Reversal?

Based on a recent bid, this stock (IPCI) was trading at a distance of 5.56% from 20 days simple moving average, and its distance from 50 days simple moving average is -18.17% while it has a distance of -46.71% from the 200 days simple moving average. A moving average’s greatest strength is its ability to assist a trader identifies a current trend or spots a possible trend reversal. Moving averages can also identify a level of support or resistance for the security, or act as a simple entry or exit signal.

What about IPCI Stock’s Volatility?

According to finviz data, IPCI stock’s volatility for the week is measured at 6.95%, while for the month it is maintained at 10.48%.

An Eye on Beta Factor:

One gauge of the relative volatility of a specific stock to the market is its beta. A beta approximates the overall volatility of a security’s returns against the returns of a relevant benchmark (usually the S&P 500 is used). Presently, Beta factor for IPCI stock stands at 1.39. A beta of 1 indicates that the security’s price moves with the market. A beta of less than 1 means that the security is theoretically less volatile than the market. A beta of greater than 1 indicates that the security’s price is theoretically more volatile than the market. For example, if a stock’s beta is 1.2, it’s theoretically 20% more volatile than the market. Conversely, if an ETF’s beta is 0.65, it is theoretically 35% less volatile than the market. Therefore, the fund’s excess return is predictable to underperform the benchmark by 35% in up markets and outperform by 35% during down markets.

What Do Analysts’ Recommend?

Analysts mean recommendation for the stock is 2.30, (where 1 is Strong Buy and 5 is Strong Sell).

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Adler Smith

Adler Smith

I am Adler Smith and I’m passionate about business and finance news with over 5 years in the industry starting as a writer working my way up into senior positions. I am the driving force behind “Stocks Pen” with a vision to broaden the company’s readership throughout 2016. I am an editor and reporter of news about “Healthcare” Sector Companies.