Gold Resource Stock Volatility
| GORO Stock | USD 0.50 0.04 8.70% |
Gold Resource is abnormally volatile given 3 months investment horizon. Gold Resource holds Efficiency (Sharpe) Ratio of 0.15, which attests that the entity had a 0.15% return per unit of risk over the last 3 months. We were able to interpolate data for twenty-eight different technical indicators, which can help you to evaluate if expected returns of 1.23% are justified by taking the suggested risk. Use Gold Resource Risk Adjusted Performance of 0.0866, downside deviation of 7.18, and Market Risk Adjusted Performance of 30.11 to evaluate company specific risk that cannot be diversified away. Key indicators related to Gold Resource's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Gold Resource 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 Gold daily returns, and it is calculated using variance and standard deviation. We also use Gold's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Gold Resource volatility.
Gold |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Gold Resource 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 Gold Resource at lower prices. For example, an investor can purchase Gold 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 Gold Resource'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.
Moving together with Gold Stock
| 0.92 | AA | Alcoa Corp Financial Report 17th of July 2024 | PairCorr |
| 0.84 | TX | Ternium SA ADR | PairCorr |
| 0.78 | WS | Worthington Steel | PairCorr |
| 0.7 | CMC | Commercial Metals Financial Report 27th of June 2024 | PairCorr |
| 0.81 | DOW | Dow Inc Earnings Call Tomorrow | PairCorr |
| 0.9 | EGO | Eldorado Gold Corp Earnings Call This Week | PairCorr |
| 0.61 | GGB | Gerdau SA ADR Financial Report 1st of May 2024 | PairCorr |
Moving against Gold Stock
| 0.87 | SID | Companhia Siderurgica Financial Report 1st of May 2024 | PairCorr |
| 0.72 | X | United States Steel Earnings Call Tomorrow | PairCorr |
| 0.67 | ZKIN | ZK International | PairCorr |
| 0.64 | PKX | POSCO Holdings Financial Report 25th of April 2024 | PairCorr |
Gold Resource Market Sensitivity And Downside Risk
Gold Resource's beta coefficient measures the volatility of Gold 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 Gold stock's returns against your selected market. In other words, Gold Resource's beta of 0.0327 provides an investor with an approximation of how much risk Gold Resource stock can potentially add to one of your existing portfolios. Gold Resource is displaying above-average volatility over the selected time horizon. Gold Resource is a potential penny stock. Although Gold Resource 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 Gold Resource. 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 Gold 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 Gold Resource Demand TrendCheck current 90 days Gold Resource correlation with market (NYSE Composite)Gold Beta |
Gold 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 | 8.09 |
It is essential to understand the difference between upside risk (as represented by Gold Resource's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Gold Resource's daily returns or price. Since the actual investment returns on holding a position in gold 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 Gold Resource.
Using Gold Put Option to Manage Risk
Put options written on Gold Resource grant holders of the option the right to sell a specified amount of Gold Resource 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 Gold Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Gold Resource's 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 Gold Resource will be realized, the loss incurred will be offset by the profits made with the option trade.
Gold Resource's PUT expiring on 2024-05-17
Profit |
| Gold Resource Price At Expiration |
Current Gold Resource Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | 2024-05-17 PUT at $2.5 | -0.2597 | 0.2607 | 1 | 2024-05-17 | 1.7 - 2.3 | 2.05 | View |
Gold Resource Stock Volatility Analysis
Volatility refers to the frequency at which Gold Resource stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Gold Resource's price changes. Investors will then calculate the volatility of Gold Resource'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 Gold Resource's volatility:
Historical Volatility
This type of stock volatility measures Gold Resource's fluctuations based on previous trends. It's commonly used to predict Gold Resource'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 Gold Resource'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 Gold Resource'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. Gold Resource 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.
Gold Resource Projected Return Density Against Market
Given the investment horizon of 90 days Gold Resource has a beta of 0.0327 . This usually indicates as returns on the market go up, Gold Resource average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Gold Resource 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 Gold Resource 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 Gold Resource'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 Gold 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.
Gold Resource has an alpha of 0.9817, implying that it can generate a 0.98 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Gold Resource 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.Gold Resource Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Gold Resource is 657.4. The daily returns are distributed with a variance of 65.46 and standard deviation of 8.09. The mean deviation of Gold Resource is currently at 5.93. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 0.98 | |
β | Beta against NYSE Composite | 0.03 | |
σ | Overall volatility | 8.09 | |
Ir | Information ratio | 0.11 |
Gold Resource Stock Return Volatility
Gold Resource historical daily return volatility represents how much of Gold Resource stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 8.0906% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.6371% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Gold Resource Volatility
Volatility is a rate at which the price of Gold Resource 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 Gold Resource may increase or decrease. In other words, similar to Gold's beta indicator, it measures the risk of Gold Resource and helps estimate the fluctuations that may happen in a short period of time. So if prices of Gold Resource 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 | 783.1 K | 489.5 K | |
| Market Cap | 33.3 M | 31.6 M |
Gold Resource'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 Gold Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Gold Resource's price varies over time.
3 ways to utilize Gold Resource's volatility to invest better
Higher Gold Resource's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Gold Resource 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. Gold Resource 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 Gold Resource investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Gold Resource'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 Gold Resource's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Gold Resource Investment Opportunity
Gold Resource has a volatility of 8.09 and is 12.64 times more volatile than NYSE Composite. 71 percent of all equities and portfolios are less risky than Gold Resource. You can use Gold Resource to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Gold Resource to be traded at $0.625 in 90 days.Gold Resource Additional Risk Indicators
The analysis of Gold Resource'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 Gold Resource's investment and either accepting that risk or mitigating it. Along with some common measures of Gold Resource 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 | 0.0866 | |||
| Market Risk Adjusted Performance | 30.11 | |||
| Mean Deviation | 5.69 | |||
| Semi Deviation | 5.42 | |||
| Downside Deviation | 7.18 | |||
| Coefficient Of Variation | 795.8 | |||
| Standard Deviation | 7.91 |
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.
Gold Resource 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 Gold Resource 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. Gold Resource'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, Gold Resource'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 Gold Resource.
When determining whether Gold Resource offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Gold Resource's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Gold Resource Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Gold Resource Stock: Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Gold Resource. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in metropolitan statistical area. To learn how to invest in Gold Stock, please use our How to Invest in Gold Resource guide.You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Complementary Tools for Gold Stock analysis
When running Gold Resource's price analysis, check to measure Gold Resource'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 Gold Resource is operating at the current time. Most of Gold Resource's value examination focuses on studying past and present price action to predict the probability of Gold Resource's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Gold Resource's price. Additionally, you may evaluate how the addition of Gold Resource to your portfolios can decrease your overall portfolio volatility.
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Is Gold Resource's 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 Gold Resource. If investors know Gold 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 Gold Resource listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.742 | Earnings Share (0.18) | Revenue Per Share 1.104 | Quarterly Revenue Growth (0.35) | Return On Assets (0.06) |
The market value of Gold Resource is measured differently than its book value, which is the value of Gold that is recorded on the company's balance sheet. Investors also form their own opinion of Gold Resource's value that differs from its market value or its book value, called intrinsic value, which is Gold Resource's 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 Gold Resource's market value can be influenced by many factors that don't directly affect Gold Resource's 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 Gold Resource's value and its price as these two are different measures arrived at by different means. Investors typically determine if Gold Resource is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Gold Resource's 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.