Namib Minerals Ordinary Stock Volatility
| NAMM Stock | 2.63 0.39 17.41% |
Namib Minerals is abnormally volatile given 3 months investment horizon. Namib Minerals Ordinary has Sharpe Ratio of 0.11, which conveys that the firm had a 0.11 % return per unit of risk over the last 3 months. We have collected data for twenty-nine different technical indicators, which can help you to evaluate if expected returns of 2.54% are justified by taking the suggested risk. Use Namib Minerals Ordinary Risk Adjusted Performance of 0.0952, downside deviation of 9.94, and Mean Deviation of 10.67 to evaluate company specific risk that cannot be diversified away.
Sharpe Ratio = 0.114
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Based on monthly moving average Namib Minerals is performing at about 9% 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 Namib Minerals by adding it to a well-diversified portfolio.
Key indicators related to Namib Minerals' volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Namib Minerals 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 Namib daily returns, and it is calculated using variance and standard deviation. We also use Namib's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Namib Minerals volatility.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Namib Minerals 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 Namib Minerals at lower prices. For example, an investor can purchase Namib 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 Namib Minerals' 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 Namib Minerals' market risk premium analysis include:
Beta 5.77 | Alpha 1.96 | Risk 22.29 | Sharpe Ratio 0.11 | Expected Return 2.54 |
Moving together with Namib Stock
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| 0.63 | MT | ArcelorMittal SA ADR Sell-off Trend | PairCorr |
| 0.65 | OR | Osisko Gold Ro | PairCorr |
| 0.75 | TG | Tredegar | PairCorr |
| 0.62 | TX | Ternium SA ADR | PairCorr |
| 0.69 | VALE | Vale SA ADR Aggressive Push | PairCorr |
| 0.64 | SRK | Strike Resources | PairCorr |
Moving against Namib Stock
Namib Minerals Market Sensitivity And Downside Risk
Namib Minerals' beta coefficient measures the volatility of Namib 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 Namib stock's returns against your selected market. In other words, Namib Minerals's beta of 5.77 provides an investor with an approximation of how much risk Namib Minerals stock can potentially add to one of your existing portfolios. Namib Minerals Ordinary is showing large volatility of returns over the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Namib Minerals' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Namib Minerals' 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 Namib Minerals Ordinary Demand TrendCheck current 90 days Namib Minerals correlation with market (Dow Jones Industrial)Namib Minerals Volatility and Downside Risk
Namib 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.
Namib Minerals Ordinary Stock Volatility Analysis
Volatility refers to the frequency at which Namib Minerals stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Namib Minerals' price changes. Investors will then calculate the volatility of Namib Minerals' 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 Namib Minerals' volatility:
Historical Volatility
This type of stock volatility measures Namib Minerals' fluctuations based on previous trends. It's commonly used to predict Namib Minerals' 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 Namib Minerals' 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 Namib Minerals' 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. Namib Minerals Ordinary 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.
Namib Minerals Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 5.7677 . 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, Namib Minerals 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 Namib Minerals 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 Namib Minerals' 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 Namib 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 Namib Minerals 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.Namib Minerals Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Namib Minerals is 876.83. The daily returns are distributed with a variance of 496.98 and standard deviation of 22.29. The mean deviation of Namib Minerals Ordinary is currently at 10.79. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.81
α | Alpha over Dow Jones | 1.96 | |
β | Beta against Dow Jones | 5.77 | |
σ | Overall volatility | 22.29 | |
Ir | Information ratio | 0.10 |
Namib Minerals Stock Return Volatility
Namib Minerals historical daily return volatility represents how much of Namib Minerals stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 22.293% risk (volatility on return distribution) over the 90 days 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 Namib Stock performing well and Namib Minerals 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 Namib Minerals' 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| GORO | 5.32 | 1.48 | 0.23 | (23.30) | 4.96 | 15.83 | 45.64 | |||
| PZG | 4.16 | 1.22 | 0.24 | (2.54) | 3.44 | 13.11 | 33.96 | |||
| FEAM | 4.30 | (1.02) | 0.00 | (1.45) | 0.00 | 8.01 | 41.39 | |||
| FURY | 4.22 | 0.39 | 0.08 | 0.30 | 4.83 | 9.72 | 35.30 | |||
| ATLX | 4.68 | 0.10 | 0.03 | 0.12 | 5.64 | 8.01 | 27.79 | |||
| GRO | 3.99 | 0.41 | 0.10 | 0.26 | 4.31 | 8.81 | 22.72 | |||
| WWR | 4.94 | (0.17) | 0.00 | (0.06) | 0.00 | 11.76 | 28.86 | |||
| NEXM | 3.50 | (0.16) | 0.00 | (0.10) | 0.00 | 8.60 | 21.46 | |||
| LOOP | 3.00 | (0.11) | (0.01) | 0.01 | 4.27 | 6.74 | 18.15 | |||
| ORGN | 4.44 | (1.99) | 0.00 | (0.71) | 0.00 | 6.82 | 30.08 |
About Namib Minerals Volatility
Volatility is a rate at which the price of Namib Minerals 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 Namib Minerals may increase or decrease. In other words, similar to Namib's beta indicator, it measures the risk of Namib Minerals and helps estimate the fluctuations that may happen in a short period of time. So if prices of Namib Minerals 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.3 ways to utilize Namib Minerals' volatility to invest better
Higher Namib Minerals' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Namib Minerals Ordinary 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. Namib Minerals Ordinary 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 Namib Minerals Ordinary investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Namib Minerals' 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 Namib Minerals' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Namib Minerals Investment Opportunity
Namib Minerals Ordinary has a volatility of 22.29 and is 29.33 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Namib Minerals Ordinary is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use Namib Minerals Ordinary to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Namib Minerals to be traded at 3.29 in 90 days.Weak diversification
The correlation between Namib Minerals Ordinary and DJI is 0.34 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Namib Minerals Ordinary and DJI in the same portfolio, assuming nothing else is changed.
Namib Minerals Additional Risk Indicators
The analysis of Namib Minerals' 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 Namib Minerals' investment and either accepting that risk or mitigating it. Along with some common measures of Namib Minerals 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 | 0.0952 | |||
| Market Risk Adjusted Performance | 0.409 | |||
| Mean Deviation | 10.67 | |||
| Semi Deviation | 8.79 | |||
| Downside Deviation | 9.94 | |||
| Coefficient Of Variation | 942.57 | |||
| Standard Deviation | 21.78 |
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.
Namib Minerals 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 Namib Minerals 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. Namib Minerals' 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, Namib Minerals' 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 Namib Minerals Ordinary.
When determining whether Namib Minerals Ordinary is a strong investment it is important to analyze Namib Minerals' 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 Namib Minerals' future performance. For an informed investment choice regarding Namib Stock, refer to the following important reports: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Namib Minerals Ordinary. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state. You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Will Metals & Mining sector continue expanding? Could Namib diversify its offerings? Factors like these will boost the valuation of Namib Minerals. Anticipated expansion of Namib directly elevates investor willingness to pay premium valuations. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Namib Minerals data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Namib Minerals Ordinary's market price often diverges from its book value, the accounting figure shown on Namib's balance sheet. Smart investors calculate Namib Minerals' intrinsic value - its true economic worth - which may differ significantly from both market price and book value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. Since Namib Minerals' trading price responds to investor sentiment, macroeconomic conditions, and market psychology, it can swing far from fundamental value.
It's important to distinguish between Namib Minerals' intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Namib Minerals should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. However, Namib Minerals' 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.