Electra Battery Materials Stock Volatility
| ELBM Stock | USD 0.50 0.01 2.04% |
Electra Battery Materials secures Sharpe Ratio (or Efficiency) of -0.0392, which denotes the company had a -0.0392% return per unit of risk over the last 3 months. Electra Battery Materials exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Electra Battery's Mean Deviation of 3.39, standard deviation of 4.62, and Variance of 21.3 to check the risk estimate we provide. Key indicators related to Electra Battery's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Electra Battery 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 Electra daily returns, and it is calculated using variance and standard deviation. We also use Electra's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Electra Battery volatility.
Electra |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Electra Battery can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Electra Battery at lower prices. For example, an investor can purchase Electra stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Electra Battery's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Moving against Electra Stock
| 0.71 | LAC | Lithium Americas Corp | PairCorr |
| 0.65 | NAK | Northern Dynasty Minerals | PairCorr |
| 0.52 | MP | MP Materials Corp | PairCorr |
| 0.5 | CMP | Compass Minerals Int | PairCorr |
| 0.45 | LGO | Largo Resources | PairCorr |
| 0.44 | PLL | Piedmont Lithium | PairCorr |
| 0.41 | IPX | IperionX Limited American | PairCorr |
Electra Battery Market Sensitivity And Downside Risk
Electra Battery's beta coefficient measures the volatility of Electra 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 Electra stock's returns against your selected market. In other words, Electra Battery's beta of 0.69 provides an investor with an approximation of how much risk Electra Battery stock can potentially add to one of your existing portfolios. Electra Battery Materials exhibits very low volatility with skewness of 0.33 and kurtosis of 1.72. Electra Battery Materials is a potential penny stock. Although Electra Battery 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 Electra Battery Materials. 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 Electra 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 Electra Battery Materials Demand TrendCheck current 90 days Electra Battery correlation with market (Dow Jones Industrial)Electra Beta |
Electra 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 | 4.66 |
It is essential to understand the difference between upside risk (as represented by Electra Battery's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Electra Battery's daily returns or price. Since the actual investment returns on holding a position in electra 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 Electra Battery.
Electra Battery Materials Stock Volatility Analysis
Volatility refers to the frequency at which Electra Battery stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Electra Battery's price changes. Investors will then calculate the volatility of Electra Battery'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 Electra Battery's volatility:
Historical Volatility
This type of stock volatility measures Electra Battery's fluctuations based on previous trends. It's commonly used to predict Electra Battery'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 Electra Battery'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 Electra Battery's 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. Electra Battery Materials 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.
Electra Battery Projected Return Density Against Market
Given the investment horizon of 90 days Electra Battery has a beta of 0.6918 suggesting as returns on the market go up, Electra Battery average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Electra Battery Materials will be expected to be much smaller as well.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 Electra Battery 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 Electra Battery'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 Electra 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.
Electra Battery Materials 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 Electra Battery 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.Electra Battery Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Electra Battery is -2553.54. The daily returns are distributed with a variance of 21.75 and standard deviation of 4.66. The mean deviation of Electra Battery Materials is currently at 3.42. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | -0.14 | |
β | Beta against Dow Jones | 0.69 | |
σ | Overall volatility | 4.66 | |
Ir | Information ratio | -0.04 |
Electra Battery Stock Return Volatility
Electra Battery historical daily return volatility represents how much of Electra Battery stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 4.6636% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7796% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Electra Battery Volatility
Volatility is a rate at which the price of Electra Battery 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 Electra Battery may increase or decrease. In other words, similar to Electra's beta indicator, it measures the risk of Electra Battery and helps estimate the fluctuations that may happen in a short period of time. So if prices of Electra Battery 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 | 7.2 M | 7.6 M | |
| Market Cap | 22.1 M | 21 M |
Electra Battery'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 Electra Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Electra Battery's price varies over time.
3 ways to utilize Electra Battery's volatility to invest better
Higher Electra Battery's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Electra Battery Materials 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. Electra Battery Materials 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 Electra Battery Materials investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Electra Battery'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 Electra Battery's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Electra Battery Investment Opportunity
Electra Battery Materials has a volatility of 4.66 and is 5.97 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Electra Battery Materials is lower than 41 percent of all global equities and portfolios over the last 90 days. You can use Electra Battery Materials to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Electra Battery to be traded at $0.6 in 90 days.Average diversification
The correlation between Electra Battery Materials and DJI is 0.11 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Electra Battery Materials and DJI in the same portfolio, assuming nothing else is changed.
Electra Battery Additional Risk Indicators
The analysis of Electra Battery'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 Electra Battery's investment and either accepting that risk or mitigating it. Along with some common measures of Electra Battery 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 | 0.0012 | |||
| Market Risk Adjusted Performance | (0.07) | |||
| Mean Deviation | 3.39 | |||
| Coefficient Of Variation | (10,790) | |||
| Standard Deviation | 4.62 | |||
| Variance | 21.3 | |||
| Information Ratio | (0.04) |
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.
Electra Battery 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 Electra Battery 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. Electra Battery'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, Electra Battery'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 Electra Battery Materials.
When determining whether Electra Battery Materials is a strong investment it is important to analyze Electra Battery's 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 Electra Battery's future performance. For an informed investment choice regarding Electra Stock, refer to the following important reports: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Electra Battery Materials. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics. You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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 Electra Battery. If investors know Electra 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 Electra Battery listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (1.01) | Return On Assets (0.04) | Return On Equity (0.78) |
The market value of Electra Battery Materials is measured differently than its book value, which is the value of Electra that is recorded on the company's balance sheet. Investors also form their own opinion of Electra Battery's value that differs from its market value or its book value, called intrinsic value, which is Electra Battery'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 Electra Battery's market value can be influenced by many factors that don't directly affect Electra Battery's 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 Electra Battery's value and its price as these two are different measures arrived at by different means. Investors typically determine if Electra Battery is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Electra Battery's 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.