Critical Metals Corp Stock Volatility
| CRML Stock | 6.20 0.34 5.80% |
Critical Metals Corp secures Sharpe Ratio (or Efficiency) of -0.11, which signifies that the company had a -0.11% return per unit of risk over the last 3 months. Critical Metals Corp exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Critical Metals' Standard Deviation of 4.04, risk adjusted performance of (0.1), and Mean Deviation of 3.19 to double-check the risk estimate we provide. Key indicators related to Critical Metals' volatility include:
720 Days Market Risk | Chance Of Distress | 720 Days Economic Sensitivity |
Critical Metals 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 Critical daily returns, and it is calculated using variance and standard deviation. We also use Critical's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Critical Metals volatility.
Critical |
ESG Sustainability
While most ESG disclosures are voluntary, Critical Metals' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Critical Metals' managers and investors.Environmental | Governance | Social |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Critical Metals at lower prices. For example, an investor can purchase Critical 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 together with Critical Stock
Moving against Critical Stock
| 0.74 | MP | MP Materials Corp | PairCorr |
| 0.72 | IPX | IperionX Limited American | PairCorr |
| 0.68 | CMP | Compass Minerals Int | PairCorr |
| 0.53 | LAC | Lithium Americas Corp | PairCorr |
| 0.53 | PLL | Piedmont Lithium | PairCorr |
| 0.48 | NAK | Northern Dynasty Minerals | PairCorr |
| 0.47 | SKE | Skeena Resources | PairCorr |
| 0.34 | LZM | Lifezone Metals | PairCorr |
| 0.32 | FURY | Fury Gold Mines | PairCorr |
Critical Metals Market Sensitivity And Downside Risk
Critical Metals' beta coefficient measures the volatility of Critical 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 Critical stock's returns against your selected market. In other words, Critical Metals's beta of 2.76 provides an investor with an approximation of how much risk Critical Metals stock can potentially add to one of your existing portfolios. Critical Metals Corp exhibits very low volatility with skewness of 0.18 and kurtosis of -0.01. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Critical Metals' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Critical Metals' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Critical Metals Corp Demand TrendCheck current 90 days Critical Metals correlation with market (Dow Jones Industrial)Critical Beta |
Critical 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 | 4.03 |
It is essential to understand the difference between upside risk (as represented by Critical Metals's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Critical Metals' daily returns or price. Since the actual investment returns on holding a position in critical 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 Critical Metals.
Critical Metals Corp Stock Volatility Analysis
Volatility refers to the frequency at which Critical Metals stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Critical Metals' price changes. Investors will then calculate the volatility of Critical Metals' 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 Critical Metals' volatility:
Historical Volatility
This type of stock volatility measures Critical Metals' fluctuations based on previous trends. It's commonly used to predict Critical Metals' 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 Critical Metals' 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 Critical Metals' 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. Critical Metals Corp 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.
Critical Metals Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 2.762 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, Critical Metals will likely underperform.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 Critical Metals 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 Critical Metals' 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 Critical 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.
Critical Metals 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 a Critical Metals 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.Critical Metals Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Critical Metals is -880.23. The daily returns are distributed with a variance of 16.2 and standard deviation of 4.03. The mean deviation of Critical Metals Corp is currently at 3.14. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | -0.91 | |
β | Beta against Dow Jones | 2.76 | |
σ | Overall volatility | 4.03 | |
Ir | Information ratio | -0.17 |
Critical Metals Stock Return Volatility
Critical Metals historical daily return volatility represents how much of Critical Metals stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 4.0251% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7685% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Critical Metals Volatility
Volatility is a rate at which the price of Critical Metals 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 Critical Metals may increase or decrease. In other words, similar to Critical's beta indicator, it measures the risk of Critical Metals and helps estimate the fluctuations that may happen in a short period of time. So if prices of Critical Metals 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.| Last Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 1.8 M | 952.5 K | |
| Market Cap | 757.4 M | 673.2 M |
Critical Metals' 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 Critical Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Critical Metals' price varies over time.
3 ways to utilize Critical Metals' volatility to invest better
Higher Critical Metals' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Critical Metals 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. Critical Metals 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 Critical Metals Corp investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Critical Metals' 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 Critical Metals' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Critical Metals Investment Opportunity
Critical Metals Corp has a volatility of 4.03 and is 5.23 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Critical Metals Corp is lower than 35 percent of all global equities and portfolios over the last 90 days. You can use Critical Metals Corp to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Critical Metals to be traded at 7.75 in 90 days.Very weak diversification
The correlation between Critical Metals Corp and DJI is 0.52 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Critical Metals Corp and DJI in the same portfolio, assuming nothing else is changed.
Critical Metals Additional Risk Indicators
The analysis of Critical Metals' 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 Critical Metals' investment and either accepting that risk or mitigating it. Along with some common measures of Critical Metals 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 | (0.1) | |||
| Market Risk Adjusted Performance | (0.20) | |||
| Mean Deviation | 3.19 | |||
| Coefficient Of Variation | (710.11) | |||
| Standard Deviation | 4.04 | |||
| Variance | 16.31 | |||
| Information Ratio | (0.17) |
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.
Critical Metals 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 Critical Metals 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. Critical Metals' 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, Critical Metals' 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 Critical Metals Corp.
When determining whether Critical Metals Corp is a strong investment it is important to analyze Critical Metals' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Critical Metals' future performance. For an informed investment choice regarding Critical Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Critical Metals 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 population. You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Is Diversified Metals & Mining space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Critical Metals. If investors know Critical will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Critical Metals listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.08) | Return On Assets (0.01) | Return On Equity (0.21) |
The market value of Critical Metals Corp is measured differently than its book value, which is the value of Critical that is recorded on the company's balance sheet. Investors also form their own opinion of Critical Metals' value that differs from its market value or its book value, called intrinsic value, which is Critical Metals' 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 Critical Metals' market value can be influenced by many factors that don't directly affect Critical Metals' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Critical Metals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Critical Metals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Critical Metals' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.