Brookmount Explorations Stock Volatility
| BMXI Stock | USD 0.05 0 3.64% |
Brookmount Explorations appears to be out of control, given 3 months investment horizon. Brookmount Explorations secures Sharpe Ratio (or Efficiency) of 0.0252, which signifies that the company had a 0.0252% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Brookmount Explorations, which you can use to evaluate the volatility of the firm. Please makes use of Brookmount Explorations' Risk Adjusted Performance of 0.0306, downside deviation of 7.76, and Mean Deviation of 7.5 to double-check if our risk estimates are consistent with your expectations. Key indicators related to Brookmount Explorations' volatility include:
180 Days Market Risk | Chance Of Distress | 180 Days Economic Sensitivity |
Brookmount Explorations Pink Sheet 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 Brookmount daily returns, and it is calculated using variance and standard deviation. We also use Brookmount's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Brookmount Explorations volatility.
Brookmount |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Brookmount Explorations at lower prices. For example, an investor can purchase Brookmount 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 Brookmount Pink Sheet
Brookmount Explorations Market Sensitivity And Downside Risk
Brookmount Explorations' beta coefficient measures the volatility of Brookmount pink sheet 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 Brookmount pink sheet's returns against your selected market. In other words, Brookmount Explorations's beta of -0.3 provides an investor with an approximation of how much risk Brookmount Explorations pink sheet can potentially add to one of your existing portfolios. Brookmount Explorations is displaying above-average volatility over the selected time horizon. Brookmount Explorations is a penny stock. Although Brookmount Explorations may be in fact a good investment, many penny pink sheets are subject to artificial price hype. Make sure you completely understand the upside potential and downside risk of investing in Brookmount Explorations. We encourage investors to look for signals such as message board hypes, claims of breakthroughs, email spams, sudden volume upswings, and other similar hype indicators. We also encourage traders to check biographies and work history of company officers before investing in instruments with high volatility. You can indeed make money on Brookmount instrument if you perfectly time your entry and exit. However, remember that penny pink sheets 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 Brookmount Explorations Demand TrendCheck current 90 days Brookmount Explorations correlation with market (Dow Jones Industrial)Brookmount Beta |
Brookmount 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 | 11.52 |
It is essential to understand the difference between upside risk (as represented by Brookmount Explorations's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Brookmount Explorations' daily returns or price. Since the actual investment returns on holding a position in brookmount pink sheet 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 Brookmount Explorations.
Brookmount Explorations Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Brookmount Explorations pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Brookmount Explorations' price changes. Investors will then calculate the volatility of Brookmount Explorations' pink sheet to predict their future moves. A pink sheet that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A pink sheet with relatively stable price changes has low volatility. A highly volatile pink sheet 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 Brookmount Explorations' volatility:
Historical Volatility
This type of pink sheet volatility measures Brookmount Explorations' fluctuations based on previous trends. It's commonly used to predict Brookmount Explorations' future behavior based on its past. However, it cannot conclusively determine the future direction of the pink sheet.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Brookmount Explorations' current market price. This means that the pink sheet will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Brookmount Explorations' to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Brookmount Explorations Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Brookmount Explorations Projected Return Density Against Market
Given the investment horizon of 90 days Brookmount Explorations has a beta of -0.2986 suggesting as returns on the benchmark increase, returns on holding Brookmount Explorations are expected to decrease at a much lower rate. During a bear market, however, Brookmount Explorations is likely to outperform the market.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 Brookmount Explorations or Basic Materials 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 Brookmount Explorations' price will be affected by overall pink sheet 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 Brookmount pink sheet'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.
Brookmount Explorations has an alpha of 0.3422, implying that it can generate a 0.34 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Brookmount Explorations Price Volatility?
Several factors can influence a pink sheet'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.Brookmount Explorations Pink Sheet Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Brookmount Explorations is 3970.66. The daily returns are distributed with a variance of 132.71 and standard deviation of 11.52. The mean deviation of Brookmount Explorations is currently at 7.61. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.34 | |
β | Beta against Dow Jones | -0.3 | |
σ | Overall volatility | 11.52 | |
Ir | Information ratio | 0.02 |
Brookmount Explorations Pink Sheet Return Volatility
Brookmount Explorations historical daily return volatility represents how much of Brookmount Explorations pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 11.5201% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7734% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Brookmount Explorations Volatility
Volatility is a rate at which the price of Brookmount Explorations 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 Brookmount Explorations may increase or decrease. In other words, similar to Brookmount's beta indicator, it measures the risk of Brookmount Explorations and helps estimate the fluctuations that may happen in a short period of time. So if prices of Brookmount Explorations 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.Brookmount Explorations Inc. operates gold properties in the Republic of Indonesia. Brookmount Explorations operates under Gold classification in the United States and is traded on OTC Exchange. It employs 30 people.
Brookmount Explorations' 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 Brookmount Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Brookmount Explorations' price varies over time.
3 ways to utilize Brookmount Explorations' volatility to invest better
Higher Brookmount Explorations' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Brookmount Explorations 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. Brookmount Explorations 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 Brookmount Explorations investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Brookmount Explorations' 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 Brookmount Explorations' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Brookmount Explorations Investment Opportunity
Brookmount Explorations has a volatility of 11.52 and is 14.96 times more volatile than Dow Jones Industrial. 96 percent of all equities and portfolios are less risky than Brookmount Explorations. You can use Brookmount Explorations to protect your portfolios against small market fluctuations. The pink sheet experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of Brookmount Explorations to be traded at $0.0509 in 90 days.Good diversification
The correlation between Brookmount Explorations and DJI is -0.02 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Brookmount Explorations and DJI in the same portfolio, assuming nothing else is changed.
Brookmount Explorations Additional Risk Indicators
The analysis of Brookmount Explorations' 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 Brookmount Explorations' investment and either accepting that risk or mitigating it. Along with some common measures of Brookmount Explorations pink sheet'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 | 0.0306 | |||
| Market Risk Adjusted Performance | (1.02) | |||
| Mean Deviation | 7.5 | |||
| Semi Deviation | 7.13 | |||
| Downside Deviation | 7.76 | |||
| Coefficient Of Variation | 3593.5 | |||
| Standard Deviation | 11.36 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential pink sheets, we recommend comparing similar pink sheets with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Brookmount Explorations 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 Brookmount Explorations 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. Brookmount Explorations' 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, Brookmount Explorations' 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 Brookmount Explorations.
Complementary Tools for Brookmount Pink Sheet analysis
When running Brookmount Explorations' price analysis, check to measure Brookmount Explorations' 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 Brookmount Explorations is operating at the current time. Most of Brookmount Explorations' value examination focuses on studying past and present price action to predict the probability of Brookmount Explorations' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Brookmount Explorations' price. Additionally, you may evaluate how the addition of Brookmount Explorations to your portfolios can decrease your overall portfolio volatility.
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