Mgm Resorts International Stock Volatility
| MGM Stock | USD 37.80 0.21 0.55% |
As of now, MGM Stock is very steady. MGM Resorts International has Sharpe Ratio of 0.007, which conveys that the firm had a 0.007% return per unit of volatility over the last 3 months. We have found twenty-four technical indicators for MGM Resorts, which you can use to evaluate the volatility of the firm. Please verify MGM Resorts' risk adjusted performance of 0.0015, and Mean Deviation of 1.49 to check out if the risk estimate we provide is consistent with the expected return of 0.015%. Key indicators related to MGM Resorts' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
MGM Resorts 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 MGM daily returns, and it is calculated using variance and standard deviation. We also use MGM's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of MGM Resorts volatility.
MGM |
ESG Sustainability
While most ESG disclosures are voluntary, MGM Resorts' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to MGM Resorts' managers and investors.Environmental | Governance | Social |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as MGM Resorts 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 MGM Resorts at lower prices. For example, an investor can purchase MGM 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 MGM Resorts' 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 MGM Stock
MGM Resorts Market Sensitivity And Downside Risk
MGM Resorts' beta coefficient measures the volatility of MGM 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 MGM stock's returns against your selected market. In other words, MGM Resorts's beta of 1.32 provides an investor with an approximation of how much risk MGM Resorts stock can potentially add to one of your existing portfolios. MGM Resorts International exhibits very low volatility with skewness of -1.96 and kurtosis of 9.24. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure MGM Resorts' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact MGM Resorts' 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 MGM Resorts International Demand TrendCheck current 90 days MGM Resorts correlation with market (Dow Jones Industrial)MGM Beta |
MGM 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 | 2.16 |
It is essential to understand the difference between upside risk (as represented by MGM Resorts's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of MGM Resorts' daily returns or price. Since the actual investment returns on holding a position in mgm 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 MGM Resorts.
MGM Resorts International Stock Volatility Analysis
Volatility refers to the frequency at which MGM Resorts stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with MGM Resorts' price changes. Investors will then calculate the volatility of MGM Resorts' 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 MGM Resorts' volatility:
Historical Volatility
This type of stock volatility measures MGM Resorts' fluctuations based on previous trends. It's commonly used to predict MGM Resorts' 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 MGM Resorts' 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 MGM Resorts' 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. MGM Resorts International 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.
MGM Resorts Projected Return Density Against Market
Considering the 90-day investment horizon the stock has the beta coefficient of 1.3188 . This indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, MGM Resorts 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 MGM Resorts or Hotels, Restaurants & Leisure 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 MGM Resorts' 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 MGM 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.
MGM Resorts International 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 MGM Resorts 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.MGM Resorts Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of MGM Resorts is 14369.06. The daily returns are distributed with a variance of 4.67 and standard deviation of 2.16. The mean deviation of MGM Resorts International is currently at 1.49. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | -0.18 | |
β | Beta against Dow Jones | 1.32 | |
σ | Overall volatility | 2.16 | |
Ir | Information ratio | -0.07 |
MGM Resorts Stock Return Volatility
MGM Resorts historical daily return volatility represents how much of MGM Resorts stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 2.1614% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7685% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About MGM Resorts Volatility
Volatility is a rate at which the price of MGM Resorts 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 MGM Resorts may increase or decrease. In other words, similar to MGM's beta indicator, it measures the risk of MGM Resorts and helps estimate the fluctuations that may happen in a short period of time. So if prices of MGM Resorts 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 | 512.8 M | 390.3 M | |
| Market Cap | 14.7 B | 15.5 B |
MGM Resorts' 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 MGM Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much MGM Resorts' price varies over time.
3 ways to utilize MGM Resorts' volatility to invest better
Higher MGM Resorts' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of MGM Resorts International 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. MGM Resorts International 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 MGM Resorts International investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in MGM Resorts' 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 MGM Resorts' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
MGM Resorts Investment Opportunity
MGM Resorts International has a volatility of 2.16 and is 2.81 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of MGM Resorts International is lower than 19 percent of all global equities and portfolios over the last 90 days. You can use MGM Resorts International to protect your portfolios against small market fluctuations. The stock experiences a moderate downward daily trend and can be a good diversifier. Check odds of MGM Resorts to be traded at $37.04 in 90 days.Very weak diversification
The correlation between MGM Resorts International and DJI is 0.47 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding MGM Resorts International and DJI in the same portfolio, assuming nothing else is changed.
MGM Resorts Additional Risk Indicators
The analysis of MGM Resorts' 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 MGM Resorts' investment and either accepting that risk or mitigating it. Along with some common measures of MGM Resorts 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 | 0.0015 | |||
| Market Risk Adjusted Performance | (0.01) | |||
| Mean Deviation | 1.49 | |||
| Coefficient Of Variation | (15,545) | |||
| Standard Deviation | 2.15 | |||
| Variance | 4.61 | |||
| Information Ratio | (0.07) |
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.
MGM Resorts 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 MGM Resorts 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. MGM Resorts' 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, MGM Resorts' 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 MGM Resorts International.
When determining whether MGM Resorts International is a strong investment it is important to analyze MGM Resorts' 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 MGM Resorts' future performance. For an informed investment choice regarding MGM Stock, refer to the following important reports: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in MGM Resorts International. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price. You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Is Hotels, Restaurants & Leisure 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 MGM Resorts. If investors know MGM 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 MGM Resorts listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.326 | Earnings Share 2.79 | Revenue Per Share 54.26 | Quarterly Revenue Growth 0.053 | Return On Assets 0.0254 |
The market value of MGM Resorts International is measured differently than its book value, which is the value of MGM that is recorded on the company's balance sheet. Investors also form their own opinion of MGM Resorts' value that differs from its market value or its book value, called intrinsic value, which is MGM Resorts' 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 MGM Resorts' market value can be influenced by many factors that don't directly affect MGM Resorts' 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 MGM Resorts' value and its price as these two are different measures arrived at by different means. Investors typically determine if MGM Resorts is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, MGM Resorts' 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.