Greenfire Resources Stock Volatility
| GFR Stock | 7.83 0.07 0.90% |
Greenfire Resources appears to be slightly risky, given 3 months investment horizon. Greenfire Resources holds Efficiency (Sharpe) Ratio of 0.0855, which attests that the entity had a 0.0855 % return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Greenfire Resources, which you can use to evaluate the volatility of the firm. Please utilize Greenfire Resources' Downside Deviation of 3.13, market risk adjusted performance of (4.71), and Risk Adjusted Performance of 0.0859 to validate if our risk estimates are consistent with your expectations.
Sharpe Ratio = 0.0855
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| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
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Estimated Market Risk
| 3.01 actual daily | 27 73% of assets are more volatile |
Expected Return
| 0.26 actual daily | 5 95% of assets have higher returns |
Risk-Adjusted Return
| 0.09 actual daily | 6 94% of assets perform better |
Based on monthly moving average Greenfire Resources is performing at about 6% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Greenfire Resources by adding it to a well-diversified portfolio.
Key indicators related to Greenfire Resources' volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Greenfire Resources 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 Greenfire daily returns, and it is calculated using variance and standard deviation. We also use Greenfire's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Greenfire Resources volatility.
Greenfire |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Greenfire Resources 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 Greenfire Resources at lower prices. For example, an investor can purchase Greenfire 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 Greenfire Resources' 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. Main indicators related to Greenfire Resources' market risk premium analysis include:
Beta (0.06) | Alpha 0.31 | Risk 3.01 | Sharpe Ratio 0.0855 | Expected Return 0.26 |
Moving together with Greenfire Stock
| 0.89 | CNQ | Canadian Natural Res | PairCorr |
| 0.85 | OXY | Occidental Petroleum Earnings Call Tomorrow | PairCorr |
| 0.82 | OXY | Occidental Petroleum CDR | PairCorr |
| 0.79 | OVV | Ovintiv | PairCorr |
| 0.77 | WCP | Whitecap Resources | PairCorr |
| 0.77 | PSK | PrairieSky Royalty | PairCorr |
| 0.71 | CU | Canadian Utilities | PairCorr |
| 0.88 | IPO | InPlay Oil Corp | PairCorr |
| 0.71 | TVE | Tamarack Valley Energy | PairCorr |
| 0.61 | DOS | Dios Exploration | PairCorr |
| 0.75 | PWF-PA | Power Financial Corp | PairCorr |
| 0.78 | ONAU | OnGold Resources | PairCorr |
Moving against Greenfire Stock
| 0.59 | FFH | Fairfax Financial | PairCorr |
| 0.33 | PYR | PyroGenesis Canada | PairCorr |
| 0.32 | ELF-PH | E L Financial | PairCorr |
Greenfire Resources Market Sensitivity And Downside Risk
Greenfire Resources' beta coefficient measures the volatility of Greenfire 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 Greenfire stock's returns against your selected market. In other words, Greenfire Resources's beta of -0.0642 provides an investor with an approximation of how much risk Greenfire Resources stock can potentially add to one of your existing portfolios. Greenfire Resources shows above-average downside volatility for the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Greenfire Resources' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Greenfire Resources' 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.
| α | 0.31 | β | -0.06 | Check current 90 days Greenfire Resources correlation with market (Dow Jones Industrial)
Greenfire Resources Volatility and Downside Risk
Greenfire 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.
Greenfire Resources Stock Volatility Analysis
Volatility refers to the frequency at which Greenfire Resources stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Greenfire Resources' price changes. Investors will then calculate the volatility of Greenfire Resources' 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 Greenfire Resources' volatility:
Historical Volatility
This type of stock volatility measures Greenfire Resources' fluctuations based on previous trends. It's commonly used to predict Greenfire Resources' 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 Greenfire Resources' 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 Greenfire Resources' 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. Greenfire Resources 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.
Greenfire Resources Projected Return Density Against Market
Assuming the 90 days trading horizon Greenfire Resources has a beta of -0.0642 . This usually indicates as returns on the benchmark increase, returns on holding Greenfire Resources are expected to decrease at a much lower rate. During a bear market, however, Greenfire Resources 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 Greenfire Resources or Energy 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 Greenfire Resources' 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 Greenfire 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.
Predicted Return Density |
| Returns |
What Drives a Greenfire Resources 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.Greenfire Resources Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Greenfire Resources is 1169.32. The daily returns are distributed with a variance of 9.04 and standard deviation of 3.01. The mean deviation of Greenfire Resources is currently at 2.36. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.81
α | Alpha over Dow Jones | 0.31 | |
β | Beta against Dow Jones | -0.06 | |
σ | Overall volatility | 3.01 | |
Ir | Information ratio | 0.08 |
Greenfire Resources Stock Return Volatility
Greenfire Resources historical daily return volatility represents how much of Greenfire Resources stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm assumes 3.0071% volatility of returns over the 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.764% volatility on return distribution over the 90 days horizon. Performance |
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Related Correlations Analysis
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
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Risk-Adjusted Indicators
There is a big difference between Greenfire Stock performing well and Greenfire Resources Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Greenfire Resources' multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| SOIL | 2.25 | 0.35 | 0.09 | 2.15 | 2.77 | 5.17 | 12.79 | |||
| LGN | 1.33 | (0.21) | 0.00 | 1.69 | 0.00 | 2.53 | 8.51 | |||
| CEI | 1.16 | (0.08) | 0.00 | (0.42) | 0.00 | 2.47 | 6.35 | |||
| ESI | 2.43 | 0.58 | 0.18 | 0.99 | 2.69 | 5.77 | 14.02 | |||
| FEC | 2.41 | 1.15 | 0.63 | (1.23) | 0.68 | 6.16 | 45.09 | |||
| TAL | 3.01 | (0.70) | 0.00 | (1.28) | 0.00 | 5.26 | 32.84 | |||
| TOT | 1.46 | 0.22 | 0.07 | 3.03 | 2.12 | 2.84 | 9.40 | |||
| OBE | 2.16 | 0.27 | 0.08 | 1.64 | 2.62 | 4.47 | 12.88 | |||
| IPO | 1.44 | 0.25 | 0.12 | 0.97 | 1.46 | 3.25 | 7.16 |
About Greenfire Resources Volatility
Volatility is a rate at which the price of Greenfire Resources 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 Greenfire Resources may increase or decrease. In other words, similar to Greenfire's beta indicator, it measures the risk of Greenfire Resources and helps estimate the fluctuations that may happen in a short period of time. So if prices of Greenfire Resources 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 | 60.7 M | 55.1 M | |
| Market Cap | 833.9 M | 712.2 M |
Greenfire Resources' 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 Greenfire Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Greenfire Resources' price varies over time.
3 ways to utilize Greenfire Resources' volatility to invest better
Higher Greenfire Resources' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Greenfire Resources 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. Greenfire Resources 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 Greenfire Resources investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Greenfire Resources' 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 Greenfire Resources' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Greenfire Resources Investment Opportunity
Greenfire Resources has a volatility of 3.01 and is 3.96 times more volatile than Dow Jones Industrial. 27 percent of all equities and portfolios are less risky than Greenfire Resources. You can use Greenfire Resources to enhance the returns of your portfolios. The stock experiences a moderate upward volatility. Check odds of Greenfire Resources to be traded at 8.61 in 90 days.Weak diversification
The correlation between Greenfire Resources and DJI is 0.31 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Greenfire Resources and DJI in the same portfolio, assuming nothing else is changed.
Greenfire Resources Additional Risk Indicators
The analysis of Greenfire Resources' 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 Greenfire Resources' investment and either accepting that risk or mitigating it. Along with some common measures of Greenfire Resources 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 | 0.0859 | |||
| Market Risk Adjusted Performance | (4.71) | |||
| Mean Deviation | 2.56 | |||
| Semi Deviation | 2.84 | |||
| Downside Deviation | 3.13 | |||
| Coefficient Of Variation | 1029.75 | |||
| Standard Deviation | 3.22 |
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.
Greenfire Resources 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 Greenfire Resources 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. Greenfire Resources' 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, Greenfire Resources' 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 Greenfire Resources.
When determining whether Greenfire Resources is a strong investment it is important to analyze Greenfire Resources' 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 Greenfire Resources' future performance. For an informed investment choice regarding Greenfire Stock, refer to the following important reports: Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Greenfire Resources. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. To learn how to invest in Greenfire Stock, please use our How to Invest in Greenfire Resources guide.You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.