Lake Resources Nl Stock Volatility
| LLKKF Stock | USD 0.04 0 5.88% |
Lake Resources NL has Sharpe Ratio of -0.0888, which conveys that the firm had a -0.0888% return per unit of risk over the last 3 months. Lake Resources exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify Lake Resources' Risk Adjusted Performance of (0.07), standard deviation of 6.69, and Mean Deviation of 4.83 to check out the risk estimate we provide. Key indicators related to Lake Resources' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Lake Resources OTC 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 Lake daily returns, and it is calculated using variance and standard deviation. We also use Lake's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Lake Resources volatility.
Lake |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Lake 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 Lake Resources at lower prices. For example, an investor can purchase Lake 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 Lake 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 against Lake OTC Stock
| 0.87 | GLNCY | Glencore PLC ADR Earnings Call This Week | PairCorr |
| 0.86 | GLCNF | Glencore PLC Earnings Call This Week | PairCorr |
| 0.76 | AAUKF | Anglo American plc | PairCorr |
Lake Resources Market Sensitivity And Downside Risk
Lake Resources' beta coefficient measures the volatility of Lake otc 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 Lake otc stock's returns against your selected market. In other words, Lake Resources's beta of -0.27 provides an investor with an approximation of how much risk Lake Resources otc stock can potentially add to one of your existing portfolios. Lake Resources NL is displaying above-average volatility over the selected time horizon. Lake Resources NL is a penny stock. Although Lake Resources may be in fact a good investment, many penny otc stocks are subject to artificial price hype. Make sure you completely understand the upside potential and downside risk of investing in Lake Resources NL. We encourage investors to look for signals such as message board hypes, claims of breakthroughs, email spams, sudden volume upswings, and other similar hype indicators. We also encourage traders to check biographies and work history of company officers before investing in instruments with high volatility. You can indeed make money on Lake instrument if you perfectly time your entry and exit. However, remember that penny otcs 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 Lake Resources NL Demand TrendCheck current 90 days Lake Resources correlation with market (NYSE Composite)Lake Beta |
Lake 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 | 6.85 |
It is essential to understand the difference between upside risk (as represented by Lake Resources's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Lake Resources' daily returns or price. Since the actual investment returns on holding a position in lake otc 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 Lake Resources.
Lake Resources NL OTC Stock Volatility Analysis
Volatility refers to the frequency at which Lake Resources otc price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Lake Resources' price changes. Investors will then calculate the volatility of Lake Resources' otc stock to predict their future moves. A otc that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A otc stock with relatively stable price changes has low volatility. A highly volatile otc 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 Lake Resources' volatility:
Historical Volatility
This type of otc volatility measures Lake Resources' fluctuations based on previous trends. It's commonly used to predict Lake Resources' future behavior based on its past. However, it cannot conclusively determine the future direction of the otc stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Lake Resources' current market price. This means that the otc will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Lake 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. Lake Resources NL 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.
Lake Resources Projected Return Density Against Market
Assuming the 90 days horizon Lake Resources NL has a beta of -0.2713 . This indicates as returns on the benchmark increase, returns on holding Lake Resources are expected to decrease at a much lower rate. During a bear market, however, Lake Resources NL 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 Lake 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 Lake Resources' price will be affected by overall otc 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 Lake otc'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.
Lake Resources NL has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the NYSE Composite. Predicted Return Density |
| Returns |
What Drives a Lake Resources Price Volatility?
Several factors can influence a otc'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.Lake Resources OTC Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of Lake Resources is -1126.66. The daily returns are distributed with a variance of 46.98 and standard deviation of 6.85. The mean deviation of Lake Resources NL is currently at 4.99. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | -0.81 | |
β | Beta against NYSE Composite | -0.27 | |
σ | Overall volatility | 6.85 | |
Ir | Information ratio | -0.14 |
Lake Resources OTC Stock Return Volatility
Lake Resources historical daily return volatility represents how much of Lake Resources otc's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 6.8545% volatility of returns over 90 . By contrast, NYSE Composite accepts 0.633% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Lake Resources Volatility
Volatility is a rate at which the price of Lake 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 Lake Resources may increase or decrease. In other words, similar to Lake's beta indicator, it measures the risk of Lake Resources and helps estimate the fluctuations that may happen in a short period of time. So if prices of Lake 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.Lake Resources NL explores for and develops lithium brine projects in Argentina. Lake Resources NL was incorporated in 1997 and is based in Sydney, Australia. LAKE RESOURCES operates under Other Industrial Metals Mining classification in the United States and is traded on OTC Exchange.
Lake 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 Lake OTC Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Lake Resources' price varies over time.
3 ways to utilize Lake Resources' volatility to invest better
Higher Lake Resources' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Lake Resources NL 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. Lake Resources NL 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 Lake Resources NL investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Lake 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 Lake Resources' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Lake Resources Investment Opportunity
Lake Resources NL has a volatility of 6.85 and is 10.87 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Lake Resources NL is higher than 60 percent of all global equities and portfolios over the last 90 days. You can use Lake Resources NL to enhance the returns of your portfolios. The otc stock experiences a very speculative upward sentiment. The trend is possibly hyped up. Check odds of Lake Resources to be traded at $0.045 in 90 days.Good diversification
The correlation between Lake Resources NL and NYA is -0.03 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Lake Resources NL and NYA in the same portfolio, assuming nothing else is changed.
Lake Resources Additional Risk Indicators
The analysis of Lake 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 Lake Resources' investment and either accepting that risk or mitigating it. Along with some common measures of Lake Resources otc 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 | (0.07) | |||
| Market Risk Adjusted Performance | 3.08 | |||
| Mean Deviation | 4.83 | |||
| Coefficient Of Variation | (813.59) | |||
| Standard Deviation | 6.69 | |||
| Variance | 44.8 | |||
| Information Ratio | (0.14) |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential otc stocks, we recommend comparing similar otcs with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Lake 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 Lake 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. Lake 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, Lake 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 Lake Resources NL.
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Lake Resources NL. Also, note that the market value of any otc stock could be tightly coupled with the direction of predictive economic indicators such as signals in industry. You can also try the Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Complementary Tools for Lake OTC Stock analysis
When running Lake Resources' price analysis, check to measure Lake 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 Lake Resources is operating at the current time. Most of Lake Resources' value examination focuses on studying past and present price action to predict the probability of Lake Resources' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Lake Resources' price. Additionally, you may evaluate how the addition of Lake Resources to your portfolios can decrease your overall portfolio volatility.
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