Amerigo Resources secures Sharpe Ratio (or Efficiency) of -0.0784, which signifies that the company had -0.0784% of return per unit of standard deviation over the last 3 months. Macroaxis philosophy in foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Amerigo Resources exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Amerigo Resources risk adjusted performance of 0.0315, and Mean Deviation of 3.4 to double-check the risk estimate we provide.
Should you take up Amerigo Resources after the latest volatility surge?
 | By Ellen Johnson | Macroaxis Story |
Lets try to digest the odds of Amerigo Resources to fully recover from the latest dip as its shares went up 2.00%. The company current daily volatility is 3.88 percent, with a beta of 0.07 and an alpha of 0.12 over DOW. As many investors are getting excited about current market swings, it is fair to digest Amerigo Resources. We will evaluate if Amerigo Resources shares are reasonably priced going into September.
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Reviewed by Raphi Shpitalnik
This firm classifies itself under Basic Materials sector and is part of Copper industry.
We provide trade advice to complement the prevailing expert consensus on Amerigo Resources. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
Investing in Amerigo Resources, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Amerigo Resources along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Amerigo Resources' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Watch out for price decline
Please consider monitoring Amerigo Resources on a daily basis if you are holding a position in it. Amerigo Resources is trading at a penny-stock level, and the possibility of delisting is much higher compared to other otcs. However, just because the otc stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Amerigo Resources stock to be traded above the $1 level to remain listed. If Amerigo Resources otc stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How important is Amerigo Resources's Liquidity
Amerigo Resources financial leverage refers to using borrowed capital as a funding source to finance Amerigo Resources ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Amerigo Resources financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Amerigo Resources' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Amerigo Resources' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Amerigo Resources's total debt and its cash.
Amerigo Resources Correlation with Peers
Investors in Amerigo can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Amerigo Resources. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Amerigo Resources and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Amerigo is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Amerigo for more details
What is driving Amerigo Resources Investor Appetite?
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