Almaden Minerals Stock Volatility
Almaden Minerals secures Sharpe Ratio (or Efficiency) of -0.13, which signifies that the company had a -0.13% return per unit of risk over the last 3 months. Almaden Minerals exposes thirteen different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Almaden Minerals' Risk Adjusted Performance of 0.0519, mean deviation of 0.4425, and Standard Deviation of 1.57 to double-check the risk estimate we provide. Key indicators related to Almaden Minerals' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Almaden 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 Almaden daily returns, and it is calculated using variance and standard deviation. We also use Almaden's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Almaden Minerals volatility.
Almaden |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Almaden 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 Almaden Minerals at lower prices. For example, an investor can purchase Almaden 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 Almaden 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.
Moving against Almaden Stock
| 0.43 | WLKP | Westlake Chemical Financial Report 2nd of May 2024 | PairCorr |
Almaden Minerals Market Sensitivity And Downside Risk
Almaden Minerals' beta coefficient measures the volatility of Almaden 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 Almaden stock's returns against your selected market. In other words, Almaden Minerals's beta of -0.34 provides an investor with an approximation of how much risk Almaden Minerals stock can potentially add to one of your existing portfolios. Almaden Minerals exhibits very low volatility with skewness of 1.63 and kurtosis of 20.46. You can indeed make money on Almaden 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 Almaden Minerals Demand TrendCheck current 90 days Almaden Minerals correlation with market (NYSE Composite)Almaden Beta |
Almaden 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 | 13.66 |
It is essential to understand the difference between upside risk (as represented by Almaden Minerals's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Almaden Minerals' daily returns or price. Since the actual investment returns on holding a position in almaden 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 Almaden Minerals.
Using Almaden Put Option to Manage Risk
Put options written on Almaden Minerals grant holders of the option the right to sell a specified amount of Almaden Minerals at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Almaden Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Almaden Minerals' position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Almaden Minerals will be realized, the loss incurred will be offset by the profits made with the option trade.
Almaden Minerals' PUT expiring on 2024-04-19
Profit |
| Almaden Minerals Price At Expiration |
Current Almaden Minerals Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | 2024-04-19 PUT at $7.5 | -0.4995 | 0.9618 | 1 | 2024-04-19 | 7.0 - 7.4 | 7.33 | View |
Almaden Minerals Stock Volatility Analysis
Volatility refers to the frequency at which Almaden Minerals stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Almaden Minerals' price changes. Investors will then calculate the volatility of Almaden 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 Almaden Minerals' volatility:
Historical Volatility
This type of stock volatility measures Almaden Minerals' fluctuations based on previous trends. It's commonly used to predict Almaden 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 Almaden 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 Almaden Minerals' to be redeemed at a future date.Transformation |
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Almaden Minerals Projected Return Density Against Market
Considering the 90-day investment horizon Almaden Minerals has a beta of -0.3403 . This suggests as returns on the benchmark increase, returns on holding Almaden Minerals are expected to decrease at a much lower rate. During a bear market, however, Almaden Minerals is likely to outperform the market.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 Almaden 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 Almaden 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 Almaden 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.
Almaden Minerals has an alpha of 0.1265, implying that it can generate a 0.13 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Almaden 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 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.Almaden Minerals Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Almaden Minerals is -794.45. The daily returns are distributed with a variance of 186.63 and standard deviation of 13.66. The mean deviation of Almaden Minerals is currently at 3.64. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 0.13 | |
β | Beta against NYSE Composite | -0.34 | |
σ | Overall volatility | 13.66 | |
Ir | Information ratio | 0.03 |
Almaden Minerals Stock Return Volatility
Almaden Minerals historical daily return volatility represents how much of Almaden Minerals stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 13.6612% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.6214% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Almaden Minerals Volatility
Volatility is a rate at which the price of Almaden 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 Almaden Minerals may increase or decrease. In other words, similar to Almaden's beta indicator, it measures the risk of Almaden Minerals and helps estimate the fluctuations that may happen in a short period of time. So if prices of Almaden 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.| Last Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 97.1 K | 188.6 K | |
| Market Cap | 26.3 M | 25 M |
Almaden Minerals' 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 Almaden Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Almaden Minerals' price varies over time.
3 ways to utilize Almaden Minerals' volatility to invest better
Higher Almaden Minerals' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Almaden Minerals 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. Almaden Minerals 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 Almaden Minerals investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Almaden 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 Almaden Minerals' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Almaden Minerals Investment Opportunity
Almaden Minerals has a volatility of 13.66 and is 22.03 times more volatile than NYSE Composite. 96 percent of all equities and portfolios are less risky than Almaden Minerals. You can use Almaden Minerals to protect your portfolios against small market fluctuations. The stock experiences a normal downward trend, but the immediate impact on correlations cannot be determined at the moment . Check odds of Almaden Minerals to be traded at $0.0 in 90 days.Good diversification
The correlation between Almaden Minerals and NYA is -0.13 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Almaden Minerals and NYA in the same portfolio, assuming nothing else is changed.
Almaden Minerals Additional Risk Indicators
The analysis of Almaden 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 Almaden Minerals' investment and either accepting that risk or mitigating it. Along with some common measures of Almaden 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 | 0.0519 | |||
| Market Risk Adjusted Performance | (0.30) | |||
| Mean Deviation | 0.4425 | |||
| Coefficient Of Variation | 1347.47 | |||
| Standard Deviation | 1.57 | |||
| Variance | 2.47 | |||
| Information Ratio | 0.0305 |
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.
Almaden 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.
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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 Almaden 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. Almaden 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, Almaden 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 Almaden Minerals.
When determining whether Almaden Minerals is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Almaden Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Almaden Minerals Stock. Highlighted below are key reports to facilitate an investment decision about Almaden Minerals Stock: Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation. Note that the Almaden Minerals information on this page should be used as a complementary analysis to other Almaden Minerals' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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When running Almaden Minerals' price analysis, check to measure Almaden Minerals' 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 Almaden Minerals is operating at the current time. Most of Almaden Minerals' value examination focuses on studying past and present price action to predict the probability of Almaden Minerals' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Almaden Minerals' price. Additionally, you may evaluate how the addition of Almaden Minerals to your portfolios can decrease your overall portfolio volatility.
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Is Almaden Minerals' industry 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 Almaden Minerals. If investors know Almaden 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 Almaden Minerals listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.07) | Return On Assets (0.94) | Return On Equity (1.66) |
The market value of Almaden Minerals is measured differently than its book value, which is the value of Almaden that is recorded on the company's balance sheet. Investors also form their own opinion of Almaden Minerals' value that differs from its market value or its book value, called intrinsic value, which is Almaden Minerals' 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 Almaden Minerals' market value can be influenced by many factors that don't directly affect Almaden Minerals' 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 Almaden Minerals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Almaden Minerals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Almaden 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.