Pioneer Natural (Germany) Volatility
| PNK Stock | EUR 0.40 0.07 14.89% |
Pioneer Natural is out of control given 3 months investment horizon. Pioneer Natural Resources maintains Sharpe Ratio (i.e., Efficiency) of 0.0796, which implies the firm had a 0.0796% return per unit of risk over the last 3 months. We were able to interpolate twenty-nine different technical indicators, which can help you to evaluate if expected returns of 1.32% are justified by taking the suggested risk. Use Pioneer Natural Coefficient Of Variation of 1709.8, semi deviation of 9.28, and Risk Adjusted Performance of 0.0543 to evaluate company specific risk that cannot be diversified away. Key indicators related to Pioneer Natural's volatility include:
60 Days Market Risk | Chance Of Distress | 60 Days Economic Sensitivity |
Pioneer Natural 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 Pioneer daily returns, and it is calculated using variance and standard deviation. We also use Pioneer's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Pioneer Natural volatility.
Pioneer |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Pioneer Natural can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game as hey may decide to buy additional stocks of Pioneer Natural at lower prices to lower their average cost per share. Similarly, when the prices of Pioneer Natural's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving against Pioneer Stock
Pioneer Natural Market Sensitivity And Downside Risk
Pioneer Natural's beta coefficient measures the volatility of Pioneer 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 Pioneer stock's returns against your selected market. In other words, Pioneer Natural's beta of -1.41 provides an investor with an approximation of how much risk Pioneer Natural stock can potentially add to one of your existing portfolios. Pioneer Natural Resources is showing large volatility of returns over the selected time horizon. Pioneer Natural Resources is a potential penny stock. Although Pioneer Natural 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 Pioneer Natural Resources. 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 Pioneer 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 Pioneer Natural Resources Demand TrendCheck current 90 days Pioneer Natural correlation with market (Dow Jones Industrial)Pioneer Beta |
Pioneer 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 | 16.59 |
It is essential to understand the difference between upside risk (as represented by Pioneer Natural's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Pioneer Natural's daily returns or price. Since the actual investment returns on holding a position in pioneer 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 Pioneer Natural.
Pioneer Natural Resources Stock Volatility Analysis
Volatility refers to the frequency at which Pioneer Natural stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Pioneer Natural's price changes. Investors will then calculate the volatility of Pioneer Natural'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 Pioneer Natural's volatility:
Historical Volatility
This type of stock volatility measures Pioneer Natural's fluctuations based on previous trends. It's commonly used to predict Pioneer Natural'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 Pioneer Natural'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 Pioneer Natural'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. Pioneer Natural 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.
Pioneer Natural Projected Return Density Against Market
Assuming the 90 days horizon Pioneer Natural Resources has a beta of -1.409 indicating as returns on its benchmark rise, returns on holding Pioneer Natural Resources are expected to decrease by similarly larger amounts. On the other hand, during market turmoils, Pioneer Natural is expected to outperform its benchmark.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 Pioneer Natural 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 Pioneer Natural'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 Pioneer 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.
Pioneer Natural Resources has an alpha of 1.0724, implying that it can generate a 1.07 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Pioneer Natural 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.Pioneer Natural Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of Pioneer Natural is 1256.63. The daily returns are distributed with a variance of 275.09 and standard deviation of 16.59. The mean deviation of Pioneer Natural Resources is currently at 7.57. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 1.07 | |
β | Beta against Dow Jones | -1.41 | |
σ | Overall volatility | 16.59 | |
Ir | Information ratio | 0.05 |
Pioneer Natural Stock Return Volatility
Pioneer Natural historical daily return volatility represents how much of Pioneer Natural stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 16.5859% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7777% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Pioneer Natural Volatility
Volatility is a rate at which the price of Pioneer Natural 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 Pioneer Natural may increase or decrease. In other words, similar to Pioneer's beta indicator, it measures the risk of Pioneer Natural and helps estimate the fluctuations that may happen in a short period of time. So if prices of Pioneer Natural 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.Pioneer Natural Resources Company operates as an independent oil and gas exploration and production company in the United States. Pioneer Natural Resources Company is headquartered in Irving, Texas. PIONEER NATURAL operates under Oil Gas EP classification in Germany and is traded on Frankfurt Stock Exchange. It employs 3177 people.
Pioneer Natural'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 Pioneer Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Pioneer Natural's price varies over time.
3 ways to utilize Pioneer Natural's volatility to invest better
Higher Pioneer Natural's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Pioneer Natural 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. Pioneer Natural 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 Pioneer Natural Resources investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Pioneer Natural'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 Pioneer Natural's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Pioneer Natural Investment Opportunity
Pioneer Natural Resources has a volatility of 16.59 and is 21.27 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Pioneer Natural Resources is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use Pioneer Natural Resources to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of Pioneer Natural to be traded at €0.38 in 90 days.Good diversification
The correlation between Pioneer Natural Resources and DJI is -0.07 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Pioneer Natural Resources and DJI in the same portfolio, assuming nothing else is changed.
Pioneer Natural Additional Risk Indicators
The analysis of Pioneer Natural'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 Pioneer Natural's investment and either accepting that risk or mitigating it. Along with some common measures of Pioneer Natural 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 | 0.0543 | |||
| Market Risk Adjusted Performance | (0.64) | |||
| Mean Deviation | 7.41 | |||
| Semi Deviation | 9.28 | |||
| Downside Deviation | 13.34 | |||
| Coefficient Of Variation | 1709.8 | |||
| Standard Deviation | 15.73 |
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.
Pioneer Natural 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 Pioneer Natural 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. Pioneer Natural'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, Pioneer Natural'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 Pioneer Natural Resources.
Complementary Tools for Pioneer Stock analysis
When running Pioneer Natural's price analysis, check to measure Pioneer Natural's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Pioneer Natural is operating at the current time. Most of Pioneer Natural's value examination focuses on studying past and present price action to predict the probability of Pioneer Natural's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Pioneer Natural's price. Additionally, you may evaluate how the addition of Pioneer Natural to your portfolios can decrease your overall portfolio volatility.
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