STELMINE CANADA (Germany) Volatility
| SS5 Stock | 0.0005 0.01 95.00% |
STELMINE CANADA is out of control given 3 months investment horizon. STELMINE CANADA LTD owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.34, which indicates the firm had a 0.34% return per unit of volatility over the last 3 months. We were able to interpolate twenty-eight different technical indicators, which can help you to evaluate if expected returns of 93.62% are justified by taking the suggested risk. Use STELMINE CANADA LTD risk adjusted performance of 0.2512, and Coefficient Of Variation of 317.99 to evaluate company specific risk that cannot be diversified away.
STELMINE |
STELMINE CANADA 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 STELMINE daily returns, and it is calculated using variance and standard deviation. We also use STELMINE's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of STELMINE CANADA volatility.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as STELMINE CANADA 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 STELMINE CANADA at lower prices to lower their average cost per share. Similarly, when the prices of STELMINE CANADA's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
STELMINE CANADA Market Sensitivity And Downside Risk
STELMINE CANADA's beta coefficient measures the volatility of STELMINE 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 STELMINE stock's returns against your selected market. In other words, STELMINE CANADA's beta of 6.08 provides an investor with an approximation of how much risk STELMINE CANADA stock can potentially add to one of your existing portfolios. STELMINE CANADA LTD is showing large volatility of returns over the selected time horizon. STELMINE CANADA LTD appears to be a penny stock. Although STELMINE CANADA LTD may be, in fact, a solid short-term or long term investment, many penny stocks are speculative investment instruments that are often subject to artificial stock promotion and campaigns of hype which may lead to misinformation and misrepresentation. Please make sure you fully understand upside potential and downside risks of investing in STELMINE CANADA LTD or similar risky assets. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswing without any event/news,and sudden news releases. We also encourage traders to check biographies and work history of company President, CEO or other officers before investing in high-volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on STELMINE 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 STELMINE CANADA LTD Demand TrendCheck current 90 days STELMINE CANADA correlation with market (Dow Jones Industrial)STELMINE Beta |
STELMINE 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 | 273.58 |
It is essential to understand the difference between upside risk (as represented by STELMINE CANADA's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of STELMINE CANADA's daily returns or price. Since the actual investment returns on holding a position in stelmine 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 STELMINE CANADA.
STELMINE CANADA LTD Stock Volatility Analysis
Volatility refers to the frequency at which STELMINE CANADA stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with STELMINE CANADA's price changes. Investors will then calculate the volatility of STELMINE CANADA'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 STELMINE CANADA's volatility:
Historical Volatility
This type of stock volatility measures STELMINE CANADA's fluctuations based on previous trends. It's commonly used to predict STELMINE CANADA'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 STELMINE CANADA'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 STELMINE CANADA'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. STELMINE CANADA LTD 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.
STELMINE CANADA Projected Return Density Against Market
Assuming the 90 days horizon the stock has the beta coefficient of 6.0781 . This usually implies as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, STELMINE CANADA 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 STELMINE CANADA or STELMINE 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 STELMINE CANADA'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 STELMINE 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.
STELMINE CANADA LTD has an alpha of 134.3877, implying that it can generate a 134.39 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a STELMINE CANADA 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.STELMINE CANADA Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of STELMINE CANADA is 292.22. The daily returns are distributed with a variance of 74844.3 and standard deviation of 273.58. The mean deviation of STELMINE CANADA LTD is currently at 179.43. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 134.39 | |
β | Beta against Dow Jones | 6.08 | |
σ | Overall volatility | 273.58 | |
Ir | Information ratio | 0.31 |
STELMINE CANADA Stock Return Volatility
STELMINE CANADA historical daily return volatility represents how much of STELMINE CANADA stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 273.5769% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7685% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About STELMINE CANADA Volatility
Volatility is a rate at which the price of STELMINE CANADA 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 STELMINE CANADA may increase or decrease. In other words, similar to STELMINE's beta indicator, it measures the risk of STELMINE CANADA and helps estimate the fluctuations that may happen in a short period of time. So if prices of STELMINE CANADA 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 STELMINE CANADA's volatility to invest better
Higher STELMINE CANADA's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of STELMINE CANADA LTD 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. STELMINE CANADA LTD 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 STELMINE CANADA LTD investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in STELMINE CANADA'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 STELMINE CANADA's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
STELMINE CANADA Investment Opportunity
STELMINE CANADA LTD has a volatility of 273.58 and is 355.3 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of STELMINE CANADA LTD is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use STELMINE CANADA LTD to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of STELMINE CANADA to be traded at 5.0E-4 in 90 days.Significant diversification
The correlation between STELMINE CANADA LTD and DJI is 0.01 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding STELMINE CANADA LTD and DJI in the same portfolio, assuming nothing else is changed.
STELMINE CANADA Additional Risk Indicators
The analysis of STELMINE CANADA'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 STELMINE CANADA's investment and either accepting that risk or mitigating it. Along with some common measures of STELMINE CANADA 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 | 0.2512 | |||
| Market Risk Adjusted Performance | 22.24 | |||
| Mean Deviation | 241.79 | |||
| Semi Deviation | 51.59 | |||
| Downside Deviation | 74.26 | |||
| Coefficient Of Variation | 317.99 | |||
| Standard Deviation | 429.71 |
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.
STELMINE CANADA 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 STELMINE CANADA 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. STELMINE CANADA'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, STELMINE CANADA'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 STELMINE CANADA LTD.
Complementary Tools for STELMINE Stock analysis
When running STELMINE CANADA's price analysis, check to measure STELMINE CANADA'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 STELMINE CANADA is operating at the current time. Most of STELMINE CANADA's value examination focuses on studying past and present price action to predict the probability of STELMINE CANADA's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move STELMINE CANADA's price. Additionally, you may evaluate how the addition of STELMINE CANADA to your portfolios can decrease your overall portfolio volatility.
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