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8point3 Energy Partners LP Stock Volatility Hits A Plunging Low




8point3 Energy Partners LP (NASDAQ:CAFD) Stock Volatility Hits A Plunging Low

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PREFACE
This is a proprietary realized volatility rating created by Capital Market Laboratories (CMLviz) based on a large number of data interactions for 8point3 Energy Partners LP (NASDAQ:CAFD) . We examine the little used gem of daily stock volatility over a 20-day and 30-day trading period, as well as comparisons to the last year and the actual stock returns over the last three- and six-months and the S&P 500 and Nasdaq 100 indices.

As a heads up, in the "Why This Matters" section at the end of this article on 8point3 Energy Partners LP (NASDAQ:CAFD) , we're going to take a step back and show really clearly that there is actually a lot less "luck" in successful option trading than most people are aware of. This idea of an "option trading expert" is vastly over complicated so those with the information advantage can continue to profit at the expense of the rest.

But before that, let's turn back to CAFD. This is a four step process for computing the realized volatility risk. Here we go.

CAFD Recent Stock Volatility


Rating
Stock volatility using proprietary measures has hit a plunging low level. While stocks with CAFD's profile see a short-term quiet period, this is also one of those times when a shake out volatility move could be on the horizon. To that point, we do note that CAFD is showing unusally low volatility in the last month relative to its past. Let's take a deep dive into some institutional level volatility measures for 8point3 Energy Partners LP (NASDAQ:CAFD) .

8point3 Energy Partners LP Stock Performance
CAFD is down -4.9% over the last three months and down -15.1% over the last six months. The stock has returned -18.8% over the last year. The current stock price is $13.42.

CAFD Step 1: Stock Returns
The one-year stock return does not impact the volatility rating since we are looking at a shorter time horizon. However, the rating does examine the 3-month returns and the absolute difference between the 3-month and 6-month returns.

  The 3-month stock return of -4.9% is too small to impact the stock volatility rating for CAFD.
  The greater than 10% difference between the 3-month and 6-month stock returns has an impact on the stock volatility rating for CAFD.

CAFD Step 2: Daily Stock Volatility Level
The HV30® takes the stock's day to day historical volatility over the last 30-days and then annualizes it. The HV20 looks back over just 20-days -- a shorter time period. Here is the breakdown for 8point3 Energy Partners LP (NASDAQ:CAFD) and how the day-by-day stock historical volatilities have impacted the rating:

  The HV20 of 22.5% is low enough that it has a downward impact on CAFD's volatility rating.


CAFD Step 3: 8point3 Energy Partners LP HV20 Compared to Indices
* The HV20 for CAFD is substantially larger than that for both the S&P 500 and the NASDAQ 100 which raises the volatility rating.

* The HV20 for CAFD is substantially larger than that for the Industrials ETF (XLI) which raises the volatility rating.

Here is summary data in tabular and chart format.

           CAFD
           HV20    
   S&P 500
HV20
   NASDAQ 100
HV20   
   XLI
HV20   
           22.5%    7.31%    9.39%    8.3%

CAFD Step 4: Daily Volatility Percentiles and Highs

We also examine the annual high of the HV30 in our rating.
  The 52 week high in HV30 for CAFD is 56.3%, which is just high enough to have a small impact on the stock volatility rating.

Here is summary data in tabular and chart format.

           CAFD
           HV20    
   CAFD
HV30
   CAFD
HV30 High   
           22.5%    26.2%    56.3%

Final Stock Volatility Percentile Level: CAFD
The final evolution of the volatility rating for 8point3 Energy Partners LP is a comparison of the HV30 value relative to its past, which is neatly summarized in the percentile -- a scoring mechanism that goes from a low of 1 to a high of 100.

  The HV30 percentile for 8point3 Energy Partners LP is 19%, which means the stock has seen very low volatility in its price movement relative to its own past and that has a dampening impact on the stock volatility rating.

8point3 Energy Partners LP Realized Volatility Percentiles