American Lithium Corp Stock Volatility
| AMLI Stock | 0.38 0.00 0.00% |
American Lithium Corp secures Sharpe Ratio (or Efficiency) of -0.19, which signifies that the company had a -0.19% return per unit of standard deviation over the last 3 months. American Lithium Corp exposes eighteen different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm American Lithium's mean deviation of 3.82, and Risk Adjusted Performance of (0.15) to double-check the risk estimate we provide. Key indicators related to American Lithium's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
American Lithium 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 American daily returns, and it is calculated using variance and standard deviation. We also use American's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of American Lithium volatility.
American |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of American Lithium at lower prices. For example, an investor can purchase American stock that has halved in price over a short period. This will lower their average cost per share, thereby improving the overall portfolio performance when market normalizes.
Moving against American Stock
| 0.7 | GRFX | Graphex Group Limited | PairCorr |
| 0.68 | NMG | Nouveau Monde Graphite | PairCorr |
| 0.66 | NB | NioCorp Developments | PairCorr |
| 0.62 | NVA | Nova Minerals Limited Downward Rally | PairCorr |
| 0.58 | TMC | TMC the metals | PairCorr |
| 0.56 | WWR | Westwater Resources | PairCorr |
| 0.55 | SKE | Skeena Resources | PairCorr |
| 0.5 | VZLA | Vizsla Resources Corp | PairCorr |
| 0.44 | NAK | Northern Dynasty Minerals | PairCorr |
American Lithium Market Sensitivity And Downside Risk
American Lithium's beta coefficient measures the volatility of American 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 American stock's returns against your selected market. In other words, American Lithium's beta of 1.09 provides an investor with an approximation of how much risk American Lithium stock can potentially add to one of your existing portfolios. American Lithium Corp is displaying above-average volatility over the selected time horizon. American Lithium Corp is a potential penny stock. Although American Lithium may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in American Lithium Corp. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on American 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 American Lithium Corp Demand TrendCheck current 90 days American Lithium correlation with market (Dow Jones Industrial)American Beta |
American 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 | 6.08 |
It is essential to understand the difference between upside risk (as represented by American Lithium's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of American Lithium's daily returns or price. Since the actual investment returns on holding a position in american 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 American Lithium.
American Lithium Corp Stock Volatility Analysis
Volatility refers to the frequency at which American Lithium stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with American Lithium's price changes. Investors will then calculate the volatility of American Lithium'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 American Lithium's volatility:
Historical Volatility
This type of stock volatility measures American Lithium's fluctuations based on previous trends. It's commonly used to predict American Lithium'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 American Lithium'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 American Lithium's to be redeemed at a future date.Transformation |
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American Lithium Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 1.0942 . This suggests American Lithium Corp market returns are responsive to returns on the market. As the market goes up or down, American Lithium is expected to follow.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 American Lithium or Metals & Mining 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 American Lithium'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 American 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.
American Lithium Corp has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives an American Lithium 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.American Lithium Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of American Lithium is -522.52. The daily returns are distributed with a variance of 36.95 and standard deviation of 6.08. The mean deviation of American Lithium Corp is currently at 3.82. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.84
α | Alpha over Dow Jones | -1.19 | |
β | Beta against Dow Jones | 1.09 | |
σ | Overall volatility | 6.08 | |
Ir | Information ratio | -0.2 |
American Lithium Stock Return Volatility
American Lithium historical daily return volatility represents how much of American Lithium stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 6.0783% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8496% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About American Lithium Volatility
Volatility is a rate at which the price of American Lithium 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 American Lithium may increase or decrease. In other words, similar to American's beta indicator, it measures the risk of American Lithium and helps estimate the fluctuations that may happen in a short period of time. So if prices of American Lithium 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.3 ways to utilize American Lithium's volatility to invest better
Higher American Lithium's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of American Lithium Corp 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. American Lithium Corp 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 American Lithium Corp investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in American Lithium'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 American Lithium's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
American Lithium Investment Opportunity
American Lithium Corp has a volatility of 6.08 and is 7.15 times more volatile than Dow Jones Industrial. 54 percent of all equities and portfolios are less risky than American Lithium. You can use American Lithium Corp 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 American Lithium to be traded at 0.3762 in 90 days.Average diversification
The correlation between American Lithium Corp and DJI is 0.17 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American Lithium Corp and DJI in the same portfolio, assuming nothing else is changed.
American Lithium Additional Risk Indicators
The analysis of American Lithium'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 American Lithium's investment and either accepting that risk or mitigating it. Along with some common measures of American Lithium 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 | (0.15) | |||
| Market Risk Adjusted Performance | (1.06) | |||
| Mean Deviation | 3.82 | |||
| Coefficient Of Variation | (522.52) | |||
| Standard Deviation | 6.08 | |||
| Variance | 36.95 | |||
| Information Ratio | (0.20) |
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.
American Lithium 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 American Lithium 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. American Lithium'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, American Lithium'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 American Lithium Corp.
Complementary Tools for American Stock analysis
When running American Lithium's price analysis, check to measure American Lithium'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 American Lithium is operating at the current time. Most of American Lithium's value examination focuses on studying past and present price action to predict the probability of American Lithium's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American Lithium's price. Additionally, you may evaluate how the addition of American Lithium to your portfolios can decrease your overall portfolio volatility.
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