Standard Lithium Stock Volatility
| SLI Stock | USD 1.13 0.04 3.67% |
Standard Lithium owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0781, which indicates the firm had a -0.0781% return per unit of risk over the last 12 months. Standard Lithium exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Standard Lithium's Risk Adjusted Performance of (0.05), coefficient of variation of (1,220), and Variance of 18.86 to confirm the risk estimate we provide. Key indicators related to Standard Lithium's volatility include:
360 Days Market Risk | Chance Of Distress | 360 Days Economic Sensitivity |
Standard Lithium 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 Standard daily returns, and it is calculated using variance and standard deviation. We also use Standard's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Standard Lithium volatility.
Standard |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Standard Lithium 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 Standard Lithium at lower prices. For example, an investor can purchase Standard 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 Standard Lithium'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 Standard Stock
| 0.86 | MP | MP Materials Corp Earnings Call This Week | PairCorr |
| 0.79 | NB | NioCorp Developments | PairCorr |
| 0.68 | ELBM | Electra Battery Materials Financial Report 8th of May 2024 | PairCorr |
| 0.81 | BYU | BAIYU Holdings Symbol Change | PairCorr |
| 0.93 | CMP | Compass Minerals Int Financial Report 14th of May 2024 | PairCorr |
Moving against Standard Stock
Standard Lithium Market Sensitivity And Downside Risk
Standard Lithium's beta coefficient measures the volatility of Standard 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 Standard stock's returns against your selected market. In other words, Standard Lithium's beta of -0.12 provides an investor with an approximation of how much risk Standard Lithium stock can potentially add to one of your existing portfolios. Standard Lithium exhibits very low volatility with skewness of 0.39 and kurtosis of 0.64. Standard Lithium is a potential penny stock. Although Standard Lithium 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 Standard Lithium. 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 Standard 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.
12 Months Beta |Analyze Standard Lithium Demand TrendCheck current 90 days Standard Lithium correlation with market (NYSE Composite)Standard Beta |
Standard 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 | 4.38 |
It is essential to understand the difference between upside risk (as represented by Standard Lithium's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Standard Lithium's daily returns or price. Since the actual investment returns on holding a position in standard 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 Standard Lithium.
Using Standard Put Option to Manage Risk
Put options written on Standard Lithium grant holders of the option the right to sell a specified amount of Standard Lithium 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 Standard Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Standard Lithium'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 Standard Lithium will be realized, the loss incurred will be offset by the profits made with the option trade.
Standard Lithium's PUT expiring on 2024-05-17
Profit |
| Standard Lithium Price At Expiration |
Current Standard Lithium Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | 2024-05-17 PUT at $1.5 | -0.7701 | 0.8044 | 7 | 2024-05-17 | 0.35 - 0.55 | 0.35 | View |
Put | 2024-05-17 PUT at $1.0 | -0.3005 | 1.4943 | 29 | 2024-05-17 | 0.05 - 0.1 | 0.05 | View |
Standard Lithium Stock Volatility Analysis
Volatility refers to the frequency at which Standard Lithium stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Standard Lithium's price changes. Investors will then calculate the volatility of Standard Lithium'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 Standard Lithium's volatility:
Historical Volatility
This type of stock volatility measures Standard Lithium's fluctuations based on previous trends. It's commonly used to predict Standard Lithium'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 Standard Lithium'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 Standard Lithium'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 two hundred fifty-nine. Standard Lithium 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.
Standard Lithium Projected Return Density Against Market
Considering the 90-day investment horizon Standard Lithium has a beta of -0.1161 . This usually implies as returns on the benchmark increase, returns on holding Standard Lithium are expected to decrease at a much lower rate. During a bear market, however, Standard Lithium 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 Standard Lithium 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 Standard Lithium'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 Standard 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.
Standard Lithium 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 Standard Lithium 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.Standard Lithium Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Standard Lithium is -1280.04. The daily returns are distributed with a variance of 19.18 and standard deviation of 4.38. The mean deviation of Standard Lithium is currently at 3.33. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.69
α | Alpha over NYSE Composite | -0.36 | |
β | Beta against NYSE Composite | -0.12 | |
σ | Overall volatility | 4.38 | |
Ir | Information ratio | -0.1 |
Standard Lithium Stock Return Volatility
Standard Lithium historical daily return volatility represents how much of Standard Lithium stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 4.38% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.6931% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Standard Lithium Volatility
Volatility is a rate at which the price of Standard Lithium 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 Standard Lithium may increase or decrease. In other words, similar to Standard's beta indicator, it measures the risk of Standard Lithium and helps estimate the fluctuations that may happen in a short period of time. So if prices of Standard Lithium 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 | 490.5 K | 613 K | |
| Market Cap | 117.8 M | 101.9 M |
Standard Lithium'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 Standard Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Standard Lithium's price varies over time.
3 ways to utilize Standard Lithium's volatility to invest better
Higher Standard Lithium's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Standard Lithium 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. Standard Lithium 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 Standard Lithium investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Standard Lithium'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 Standard Lithium's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Standard Lithium Investment Opportunity
Standard Lithium has a volatility of 4.38 and is 6.35 times more volatile than NYSE Composite. 38 percent of all equities and portfolios are less risky than Standard Lithium. You can use Standard Lithium to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Standard Lithium to be traded at $1.356 in 90 days.Good diversification
The correlation between Standard Lithium and NYA is -0.02 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Standard Lithium and NYA in the same portfolio, assuming nothing else is changed.
Standard Lithium Additional Risk Indicators
The analysis of Standard Lithium'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 Standard Lithium's investment and either accepting that risk or mitigating it. Along with some common measures of Standard Lithium 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 | (0.05) | |||
| Market Risk Adjusted Performance | 3.16 | |||
| Mean Deviation | 3.33 | |||
| Coefficient Of Variation | (1,220) | |||
| Standard Deviation | 4.34 | |||
| Variance | 18.86 | |||
| Information Ratio | (0.1) |
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.
Standard Lithium 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 Standard Lithium 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. Standard Lithium'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, Standard Lithium'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 Standard Lithium.
When determining whether Standard Lithium offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Standard Lithium'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 Standard Lithium Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Standard Lithium Stock: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Standard Lithium. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of economic analysis. For more detail on how to invest in Standard Stock please use our How to Invest in Standard Lithium guide.You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Complementary Tools for Standard Stock analysis
When running Standard Lithium's price analysis, check to measure Standard Lithium'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 Standard Lithium is operating at the current time. Most of Standard Lithium's value examination focuses on studying past and present price action to predict the probability of Standard Lithium's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Standard Lithium's price. Additionally, you may evaluate how the addition of Standard Lithium to your portfolios can decrease your overall portfolio volatility.
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Is Standard Lithium'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 Standard Lithium. If investors know Standard 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 Standard Lithium listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.23) | Return On Assets (0.20) | Return On Equity (0.33) |
The market value of Standard Lithium is measured differently than its book value, which is the value of Standard that is recorded on the company's balance sheet. Investors also form their own opinion of Standard Lithium's value that differs from its market value or its book value, called intrinsic value, which is Standard Lithium'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 Standard Lithium's market value can be influenced by many factors that don't directly affect Standard Lithium'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 Standard Lithium's value and its price as these two are different measures arrived at by different means. Investors typically determine if Standard Lithium is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Standard Lithium'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.