Citic Resources Holdings Stock Volatility
| CTJHY Stock | USD 12.06 0.23 1.87% |
CITIC Resources appears to be not too volatile, given 3 months investment horizon. CITIC Resources Holdings secures Sharpe Ratio (or Efficiency) of 0.17, which signifies that the company had a 0.17% return per unit of volatility over the last 3 months. By reviewing CITIC Resources' technical indicators, you can evaluate if the expected return of 0.51% is justified by implied risk. Please makes use of CITIC Resources' risk adjusted performance of 0.1066, and Mean Deviation of 1.11 to double-check if our risk estimates are consistent with your expectations. Key indicators related to CITIC Resources' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
CITIC Resources Pink Sheet 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 CITIC daily returns, and it is calculated using variance and standard deviation. We also use CITIC's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of CITIC Resources volatility.
CITIC |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as CITIC Resources 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 CITIC Resources at lower prices. For example, an investor can purchase CITIC 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 CITIC Resources' 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 together with CITIC Pink Sheet
| 0.82 | GLCNF | Glencore PLC Earnings Call This Week | PairCorr |
| 0.82 | GLNCY | Glencore PLC ADR Earnings Call This Week | PairCorr |
| 0.79 | AAUKF | Anglo American plc | PairCorr |
Moving against CITIC Pink Sheet
| 0.63 | PKX | POSCO Holdings Financial Report 25th of April 2024 | PairCorr |
| 0.51 | PIFMY | Indofood Sukses Makmur | PairCorr |
CITIC Resources Market Sensitivity And Downside Risk
CITIC Resources' beta coefficient measures the volatility of CITIC pink sheet 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 CITIC pink sheet's returns against your selected market. In other words, CITIC Resources's beta of 0.33 provides an investor with an approximation of how much risk CITIC Resources pink sheet can potentially add to one of your existing portfolios. CITIC Resources Holdings exhibits very low volatility with skewness of 5.23 and kurtosis of 28.42. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure CITIC Resources' pink sheet risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact CITIC Resources' pink sheet 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 CITIC Resources Holdings Demand TrendCheck current 90 days CITIC Resources correlation with market (NYSE Composite)CITIC Beta |
CITIC 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 | 3.09 |
It is essential to understand the difference between upside risk (as represented by CITIC Resources's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of CITIC Resources' daily returns or price. Since the actual investment returns on holding a position in citic pink sheet 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 CITIC Resources.
CITIC Resources Holdings Pink Sheet Volatility Analysis
Volatility refers to the frequency at which CITIC Resources pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with CITIC Resources' price changes. Investors will then calculate the volatility of CITIC Resources' pink sheet to predict their future moves. A pink sheet that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A pink sheet with relatively stable price changes has low volatility. A highly volatile pink sheet 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 CITIC Resources' volatility:
Historical Volatility
This type of pink sheet volatility measures CITIC Resources' fluctuations based on previous trends. It's commonly used to predict CITIC Resources' future behavior based on its past. However, it cannot conclusively determine the future direction of the pink sheet.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for CITIC Resources' current market price. This means that the pink sheet will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on CITIC Resources' 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. CITIC Resources Holdings 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.
CITIC Resources Projected Return Density Against Market
Assuming the 90 days horizon CITIC Resources has a beta of 0.3318 suggesting as returns on the market go up, CITIC Resources average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding CITIC Resources Holdings 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 CITIC Resources or Basic Materials 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 CITIC Resources' price will be affected by overall pink sheet 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 CITIC pink sheet'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.
CITIC Resources Holdings has an alpha of 0.443, implying that it can generate a 0.44 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a CITIC Resources Price Volatility?
Several factors can influence a pink sheet'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.CITIC Resources Pink Sheet Risk Measures
Assuming the 90 days horizon the coefficient of variation of CITIC Resources is 604.88. The daily returns are distributed with a variance of 9.53 and standard deviation of 3.09. The mean deviation of CITIC Resources Holdings is currently at 1.18. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 0.44 | |
β | Beta against NYSE Composite | 0.33 | |
σ | Overall volatility | 3.09 | |
Ir | Information ratio | 0.13 |
CITIC Resources Pink Sheet Return Volatility
CITIC Resources historical daily return volatility represents how much of CITIC Resources pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 3.0863% volatility of returns over 90 . By contrast, NYSE Composite accepts 0.6371% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About CITIC Resources Volatility
Volatility is a rate at which the price of CITIC Resources 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 CITIC Resources may increase or decrease. In other words, similar to CITIC's beta indicator, it measures the risk of CITIC Resources and helps estimate the fluctuations that may happen in a short period of time. So if prices of CITIC Resources 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.CITIC Resources Holdings Limited, an investment holding company, engages in the exploration, development, and production of oil and coal. CITIC Resources Holdings Limited is a subsidiary of CITIC Group Corporation. Citic Resources operates under Other Industrial Metals Mining classification in the United States and is traded on OTC Exchange. It employs 187 people.
CITIC Resources' 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 CITIC Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much CITIC Resources' price varies over time.
3 ways to utilize CITIC Resources' volatility to invest better
Higher CITIC Resources' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of CITIC Resources Holdings 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. CITIC Resources Holdings 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 CITIC Resources Holdings investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in CITIC Resources' 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 CITIC Resources' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
CITIC Resources Investment Opportunity
CITIC Resources Holdings has a volatility of 3.09 and is 4.83 times more volatile than NYSE Composite. 27 percent of all equities and portfolios are less risky than CITIC Resources. You can use CITIC Resources Holdings to protect your portfolios against small market fluctuations. The pink sheet experiences a bearish sentiment with high volatility. Check odds of CITIC Resources to be traded at $11.7 in 90 days.Significant diversification
The correlation between CITIC Resources Holdings and NYA is 0.07 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Resources Holdings and NYA in the same portfolio, assuming nothing else is changed.
CITIC Resources Additional Risk Indicators
The analysis of CITIC Resources' 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 CITIC Resources' investment and either accepting that risk or mitigating it. Along with some common measures of CITIC Resources pink sheet'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 | 0.1066 | |||
| Market Risk Adjusted Performance | 1.42 | |||
| Mean Deviation | 1.11 | |||
| Coefficient Of Variation | 624.31 | |||
| Standard Deviation | 2.99 | |||
| Variance | 8.95 | |||
| Information Ratio | 0.1304 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential pink sheets, we recommend comparing similar pink sheets with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
CITIC Resources 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 CITIC Resources 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. CITIC Resources' 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, CITIC Resources' 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 CITIC Resources Holdings.
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in CITIC Resources Holdings. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in rate. Note that the CITIC Resources Holdings information on this page should be used as a complementary analysis to other CITIC Resources' 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Complementary Tools for CITIC Pink Sheet analysis
When running CITIC Resources' price analysis, check to measure CITIC Resources' 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 CITIC Resources is operating at the current time. Most of CITIC Resources' value examination focuses on studying past and present price action to predict the probability of CITIC Resources' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CITIC Resources' price. Additionally, you may evaluate how the addition of CITIC Resources to your portfolios can decrease your overall portfolio volatility.
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