Golden Ocean (Norway) Volatility
| GOGL Stock | NOK 123.00 0.20 0.16% |
Golden Ocean Group holds Efficiency (Sharpe) Ratio of -0.0157, which attests that the entity had a -0.0157% return per unit of risk over the last 3 months. Golden Ocean Group exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check out Golden Ocean's Market Risk Adjusted Performance of (0.21), standard deviation of 2.04, and Risk Adjusted Performance of (0.01) to validate the risk estimate we provide. Key indicators related to Golden Ocean's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Golden Ocean 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 Golden daily returns, and it is calculated using variance and standard deviation. We also use Golden's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Golden Ocean volatility.
Golden |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Golden Ocean at lower prices. For example, an investor can purchase Golden 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.
Golden Ocean Market Sensitivity And Downside Risk
Golden Ocean's beta coefficient measures the volatility of Golden 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 Golden stock's returns against your selected market. In other words, Golden Ocean's beta of 0.19 provides an investor with an approximation of how much risk Golden Ocean stock can potentially add to one of your existing portfolios. Golden Ocean Group exhibits very low volatility with skewness of -0.25 and kurtosis of 0.67. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Golden Ocean's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Golden Ocean's 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 Golden Ocean Group Demand TrendCheck current 90 days Golden Ocean correlation with market (Dow Jones Industrial)Golden Beta |
Golden 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 | 2.03 |
It is essential to understand the difference between upside risk (as represented by Golden Ocean's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Golden Ocean's daily returns or price. Since the actual investment returns on holding a position in golden 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 Golden Ocean.
Golden Ocean Group Stock Volatility Analysis
Volatility refers to the frequency at which Golden Ocean stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Golden Ocean's price changes. Investors will then calculate the volatility of Golden Ocean'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 Golden Ocean's volatility:
Historical Volatility
This type of stock volatility measures Golden Ocean's fluctuations based on previous trends. It's commonly used to predict Golden Ocean'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 Golden Ocean'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 Golden Ocean'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. Golden Ocean Group 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.
Golden Ocean Projected Return Density Against Market
Assuming the 90 days trading horizon Golden Ocean has a beta of 0.1901 . This usually indicates as returns on the market go up, Golden Ocean average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Golden Ocean Group 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 Golden Ocean or Industrials 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 Golden Ocean'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 Golden 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.
Golden Ocean Group 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 Golden Ocean 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.Golden Ocean Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Golden Ocean is -6366.91. The daily returns are distributed with a variance of 4.11 and standard deviation of 2.03. The mean deviation of Golden Ocean Group is currently at 1.53. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | -0.07 | |
β | Beta against Dow Jones | 0.19 | |
σ | Overall volatility | 2.03 | |
Ir | Information ratio | -0.08 |
Golden Ocean Stock Return Volatility
Golden Ocean historical daily return volatility represents how much of Golden Ocean stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 2.0274% 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 Golden Ocean Volatility
Volatility is a rate at which the price of Golden Ocean 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 Golden Ocean may increase or decrease. In other words, similar to Golden's beta indicator, it measures the risk of Golden Ocean and helps estimate the fluctuations that may happen in a short period of time. So if prices of Golden Ocean 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.Golden Ocean Group Limited, a shipping company, engages in the transportation of bulk commodities worldwide. As of March 31, 2019, it owned a fleet of 77 vessels comprising 38 Capesize, 27 Panamax, and 2 Ultramax vessels 8 Capesize vessels under operating leases 1 Panamax vessel under a capital lease and 1 Supramax vessel under an operating lease. GOLDEN OCEAN operates under Shipping Ports classification in Norway and is traded on Oslo Stock Exchange. It employs 32 people.
Golden Ocean'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 Golden Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Golden Ocean's price varies over time.
3 ways to utilize Golden Ocean's volatility to invest better
Higher Golden Ocean's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Golden Ocean Group 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. Golden Ocean Group 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 Golden Ocean Group investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Golden Ocean'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 Golden Ocean's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Golden Ocean Investment Opportunity
Golden Ocean Group has a volatility of 2.03 and is 2.64 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Golden Ocean Group is lower than 18 percent of all global equities and portfolios over the last 90 days. You can use Golden Ocean Group to protect your portfolios against small market fluctuations. The stock experiences a normal downward trend and little activity. Check odds of Golden Ocean to be traded at 121.77 in 90 days.Significant diversification
The correlation between Golden Ocean Group and DJI is 0.07 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Golden Ocean Group and DJI in the same portfolio, assuming nothing else is changed.
Golden Ocean Additional Risk Indicators
The analysis of Golden Ocean'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 Golden Ocean's investment and either accepting that risk or mitigating it. Along with some common measures of Golden Ocean 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 | (0.01) | |||
| Market Risk Adjusted Performance | (0.21) | |||
| Mean Deviation | 1.56 | |||
| Coefficient Of Variation | (6,319) | |||
| Standard Deviation | 2.04 | |||
| Variance | 4.17 | |||
| Information Ratio | (0.08) |
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.
Golden Ocean 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 Golden Ocean 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. Golden Ocean'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, Golden Ocean'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 Golden Ocean Group.
Additional Information and Resources on Investing in Golden Stock
When determining whether Golden Ocean Group is a strong investment it is important to analyze Golden Ocean'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 Golden Ocean's future performance. For an informed investment choice regarding Golden 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 Golden Ocean Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. You can also try the Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.