Topaz Energy Corp Stock Volatility
| TPZ Stock | CAD 28.63 0.09 0.32% |
As of now, Topaz Stock is very steady. Topaz Energy Corp owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.11, which indicates the firm had a 0.11 % return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Topaz Energy Corp, which you can use to evaluate the volatility of the company. Please validate Topaz Energy Corp's Semi Deviation of 1.09, coefficient of variation of 813.69, and Risk Adjusted Performance of 0.1028 to confirm if the risk estimate we provide is consistent with the expected return of 0.14%.
Sharpe Ratio = 0.1107
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Estimated Market Risk
| 1.27 actual daily | 11 89% of assets are more volatile |
Expected Return
| 0.14 actual daily | 2 98% of assets have higher returns |
Risk-Adjusted Return
| 0.11 actual daily | 8 92% of assets perform better |
Based on monthly moving average Topaz Energy Corp is performing at about 8% 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 Topaz Energy Corp by adding it to a well-diversified portfolio.
Key indicators related to Topaz Energy Corp's volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Topaz Energy Corp 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 Topaz daily returns, and it is calculated using variance and standard deviation. We also use Topaz's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Topaz Energy Corp volatility.
Topaz |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Topaz Energy Corp 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 Topaz Energy Corp at lower prices. For example, an investor can purchase Topaz 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 Topaz Energy Corp's 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 Topaz Energy Corp's market risk premium analysis include:
Beta 0.0845 | Alpha 0.14 | Risk 1.27 | Sharpe Ratio 0.11 | Expected Return 0.14 |
Moving together with Topaz Stock
| 0.72 | DAN | Arianne Phosphate | PairCorr |
| 0.75 | ATH | Athabasca Oil Corp | PairCorr |
| 0.7 | IPO | InPlay Oil Corp | PairCorr |
| 0.83 | TVE | Tamarack Valley Energy | PairCorr |
| 0.69 | EXE | Extendicare | PairCorr |
| 0.64 | RKR | ROKMASTER Resources Corp | PairCorr |
Moving against Topaz Stock
Topaz Energy Corp Market Sensitivity And Downside Risk
Topaz Energy Corp's beta coefficient measures the volatility of Topaz 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 Topaz stock's returns against your selected market. In other words, Topaz Energy Corp's beta of 0.0845 provides an investor with an approximation of how much risk Topaz Energy Corp stock can potentially add to one of your existing portfolios. Topaz Energy Corp has relatively low volatility with skewness of -0.01 and kurtosis of 0.51. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Topaz Energy Corp'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 Topaz Energy Corp'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 Topaz Energy Corp Demand TrendCheck current 90 days Topaz Energy Corp correlation with market (Dow Jones Industrial)Topaz Energy Corp Volatility and Downside Risk
Topaz 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.
Topaz Energy Corp Stock Volatility Analysis
Volatility refers to the frequency at which Topaz Energy Corp stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Topaz Energy Corp's price changes. Investors will then calculate the volatility of Topaz Energy Corp'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 Topaz Energy Corp's volatility:
Historical Volatility
This type of stock volatility measures Topaz Energy Corp's fluctuations based on previous trends. It's commonly used to predict Topaz Energy Corp'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 Topaz Energy Corp'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 Topaz Energy Corp'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. Topaz Energy Corp 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.
Topaz Energy Corp Projected Return Density Against Market
Assuming the 90 days trading horizon Topaz Energy Corp has a beta of 0.0845 . This usually implies as returns on the market go up, Topaz Energy Corp average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Topaz Energy Corp 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 Topaz Energy Corp or Oil, Gas & Consumable Fuels 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 Topaz Energy Corp'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 Topaz 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 |
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What Drives a Topaz Energy Corp 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.Topaz Energy Corp Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Topaz Energy Corp is 903.17. The daily returns are distributed with a variance of 1.61 and standard deviation of 1.27. The mean deviation of Topaz Energy Corp is currently at 0.96. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.81
α | Alpha over Dow Jones | 0.14 | |
β | Beta against Dow Jones | 0.08 | |
σ | Overall volatility | 1.27 | |
Ir | Information ratio | 0.07 |
Topaz Energy Corp Stock Return Volatility
Topaz Energy Corp historical daily return volatility represents how much of Topaz Energy Corp stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm assumes 1.2703% volatility of returns over the 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7702% 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 Topaz Stock performing well and Topaz Energy Corp 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 Topaz Energy Corp's 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| GEI | 0.96 | 0.29 | 0.17 | (1.29) | 0.92 | 2.19 | 5.70 | |||
| PEY | 1.55 | 0.33 | 0.16 | 1.58 | 1.48 | 3.52 | 10.43 | |||
| ATH | 1.83 | 0.25 | 0.09 | 0.79 | 2.15 | 4.40 | 11.96 | |||
| NVA | 0.87 | 0.16 | 0.09 | 24.50 | 0.91 | 1.94 | 6.79 | |||
| POU | 1.49 | 0.12 | 0.02 | (0.67) | 1.98 | 2.63 | 7.94 | |||
| DML | 3.20 | 0.55 | 0.16 | 0.67 | 3.15 | 7.34 | 23.59 | |||
| TWM | 2.34 | 0.15 | 0.03 | (4.37) | 2.69 | 5.42 | 11.28 | |||
| TVK | 2.34 | 0.15 | 0.06 | 0.15 | 2.60 | 3.61 | 31.53 | |||
| TVE | 1.77 | 0.50 | 0.19 | 2.22 | 2.00 | 3.79 | 10.49 | |||
| FRU | 1.01 | 0.25 | 0.14 | 3.23 | 1.02 | 2.24 | 6.39 |
About Topaz Energy Corp Volatility
Volatility is a rate at which the price of Topaz Energy Corp 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 Topaz Energy Corp may increase or decrease. In other words, similar to Topaz's beta indicator, it measures the risk of Topaz Energy Corp and helps estimate the fluctuations that may happen in a short period of time. So if prices of Topaz Energy Corp 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 | 1.6 M | 1.3 M | |
| Market Cap | 3.7 B | 2 B |
Topaz Energy Corp'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 Topaz Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Topaz Energy Corp's price varies over time.
3 ways to utilize Topaz Energy Corp's volatility to invest better
Higher Topaz Energy Corp's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Topaz Energy Corp 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. Topaz Energy Corp 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 Topaz Energy Corp investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Topaz Energy Corp'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 Topaz Energy Corp's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Topaz Energy Corp Investment Opportunity
Topaz Energy Corp has a volatility of 1.27 and is 1.65 times more volatile than Dow Jones Industrial. 11 percent of all equities and portfolios are less risky than Topaz Energy Corp. You can use Topaz Energy Corp to enhance the returns of your portfolios. The stock experiences a normal upward fluctuation. Check odds of Topaz Energy Corp to be traded at C$30.06 in 90 days.Weak diversification
The correlation between Topaz Energy Corp and DJI is 0.35 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Topaz Energy Corp and DJI in the same portfolio, assuming nothing else is changed.
Topaz Energy Corp Additional Risk Indicators
The analysis of Topaz Energy Corp'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 Topaz Energy Corp's investment and either accepting that risk or mitigating it. Along with some common measures of Topaz Energy Corp 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 | 0.1028 | |||
| Market Risk Adjusted Performance | 1.72 | |||
| Mean Deviation | 0.9546 | |||
| Semi Deviation | 1.09 | |||
| Downside Deviation | 1.29 | |||
| Coefficient Of Variation | 813.69 | |||
| Standard Deviation | 1.26 |
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.
Topaz Energy Corp 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 Topaz Energy Corp 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. Topaz Energy Corp'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, Topaz Energy Corp'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 Topaz Energy Corp.
Other Information on Investing in Topaz Stock
Topaz Energy Corp financial ratios help investors to determine whether Topaz Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Topaz with respect to the benefits of owning Topaz Energy Corp security.