Battalion Oil Corp Stock Volatility

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Battalion Oil Market Sensitivity And Downside Risk

3 Months Beta |Analyze Battalion Oil Corp Demand TrendCheck current 90 days Battalion Oil correlation with market (Dow Jones Industrial)

Battalion Oil Volatility and Downside Risk

Battalion Oil Corp Stock Volatility Analysis

Battalion Oil Projected Return Density Against Market

Given the investment horizon of 90 days the stock has the beta coefficient of 3.8186 suggesting as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Battalion Oil will likely underperform. Battalion Oil Corp has an alpha of 2.765, implying that it can generate a 2.77 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Battalion Oil's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how battalion stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Battalion Oil 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 investor attention to the company. This positive attention may impact the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

Battalion Oil Stock Risk Measures

Battalion Oil Stock Return Volatility

Battalion Oil historical daily return volatility represents how much of Battalion Oil stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 28.2065% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7551% volatility on return distribution over the 90 days horizon.

Related Correlations Analysis

Volatility is a rate at which the price of Battalion Oil 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 Battalion Oil may increase or decrease. In other words, similar to Battalion's beta indicator, it measures the risk of Battalion Oil and helps estimate the fluctuations that may happen in a short period of time. So if prices of Battalion Oil 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.

Battalion Oil's 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 Battalion Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Battalion Oil's price varies over time.

The analysis of Battalion Oil'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 Battalion Oil's investment and either accepting that risk or mitigating it. Along with some common measures of Battalion Oil 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.

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.

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 Battalion Oil 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. Battalion Oil'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, Battalion Oil'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 Battalion Oil Corp.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Battalion Oil Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons. You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

The market value of Battalion Oil Corp is measured differently than its book value, which is the value of Battalion that is recorded on the company's balance sheet. Investors also form their own opinion of Battalion Oil's value that differs from its market value or its book value, called intrinsic value, which is Battalion Oil's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Battalion Oil's market value can be influenced by many factors that don't directly affect Battalion Oil's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.

It's important to distinguish between Battalion Oil's intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Battalion Oil should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. Meanwhile, Battalion Oil's quoted price indicates the marketplace figure where supply meets demand through bilateral consent.