Golden Minerals Stock Volatility

AUMN Stock  USD 0.31  0.01  3.33%   
Golden Minerals holds Efficiency (Sharpe) Ratio of -0.0768, which attests that the entity had a -0.0768% return per unit of risk over the last 3 months. Golden Minerals exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check out Golden Minerals' Standard Deviation of 6.93, market risk adjusted performance of (0.20), and Risk Adjusted Performance of (0.03) to validate the risk estimate we provide. Key indicators related to Golden Minerals' volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
Golden 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 Golden daily returns, and it is calculated using variance and standard deviation. We also use Golden's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Golden Minerals volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Golden 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 Golden Minerals at lower prices. For example, an investor can purchase Golden 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 Golden 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.

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Golden Minerals Market Sensitivity And Downside Risk

Golden Minerals' beta coefficient measures the volatility of Golden 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 Golden stock's returns against your selected market. In other words, Golden Minerals's beta of 2.34 provides an investor with an approximation of how much risk Golden Minerals stock can potentially add to one of your existing portfolios. Golden Minerals is displaying above-average volatility over the selected time horizon. Golden Minerals is a potential penny stock. Although Golden Minerals 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 Golden Minerals. 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 Golden 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 Golden Minerals Demand Trend
Check current 90 days Golden Minerals correlation with market (NYSE Composite)

Golden Beta

    
  2.34  
Golden 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

    
  7.15  
It is essential to understand the difference between upside risk (as represented by Golden Minerals's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Golden Minerals' daily returns or price. Since the actual investment returns on holding a position in golden 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 Golden Minerals.

Golden Minerals Stock Volatility Analysis

Volatility refers to the frequency at which Golden Minerals stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Golden Minerals' price changes. Investors will then calculate the volatility of Golden 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 Golden Minerals' volatility:

Historical Volatility

This type of stock volatility measures Golden Minerals' fluctuations based on previous trends. It's commonly used to predict Golden 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 Golden 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 Golden Minerals' 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. Golden Minerals 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.

Golden Minerals Projected Return Density Against Market

Given the investment horizon of 90 days the stock has the beta coefficient of 2.3416 . This suggests as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Golden Minerals will likely underperform.
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 Golden 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 Golden 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 Golden 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.
Golden Minerals has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming NYSE Composite.
   Predicted Return Density   
       Returns  
Golden Minerals' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how golden stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Golden 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.

Golden Minerals Stock Risk Measures

Given the investment horizon of 90 days the coefficient of variation of Golden Minerals is -1302.19. The daily returns are distributed with a variance of 51.13 and standard deviation of 7.15. The mean deviation of Golden Minerals is currently at 4.01. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
-0.78
β
Beta against NYSE Composite2.34
σ
Overall volatility
7.15
Ir
Information ratio -0.09

Golden Minerals Stock Return Volatility

Golden Minerals historical daily return volatility represents how much of Golden Minerals stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 7.1508% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.5731% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Golden Minerals Volatility

Volatility is a rate at which the price of Golden 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 Golden Minerals may increase or decrease. In other words, similar to Golden's beta indicator, it measures the risk of Golden Minerals and helps estimate the fluctuations that may happen in a short period of time. So if prices of Golden 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.
Golden Minerals Company, a precious metals exploration company, mines, constructs, and explores for mineral properties containing precious metals. Golden Minerals Company was founded in 1996 and is headquartered in Golden, Colorado. Golden Minerals operates under Other Precious Metals Mining classification in the United States and is traded on AMEX Exchange. It employs 248 people.
Golden 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 Golden Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Golden Minerals' price varies over time.

3 ways to utilize Golden Minerals' volatility to invest better

Higher Golden Minerals' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Golden 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. Golden 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 Golden Minerals investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Golden 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 Golden Minerals' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Golden Minerals Investment Opportunity

Golden Minerals has a volatility of 7.15 and is 12.54 times more volatile than NYSE Composite. 63 percent of all equities and portfolios are less risky than Golden Minerals. You can use Golden Minerals to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Golden Minerals to be traded at $0.372 in 90 days.

Average diversification

The correlation between Golden Minerals and NYA is 0.19 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Golden Minerals and NYA in the same portfolio, assuming nothing else is changed.

Golden Minerals Additional Risk Indicators

The analysis of Golden 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 Golden Minerals' investment and either accepting that risk or mitigating it. Along with some common measures of Golden 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.
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.

Golden 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.
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 Golden 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. Golden 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, Golden 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 Golden Minerals.
When determining whether Golden Minerals offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Golden Minerals' 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 Golden Minerals Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Golden Minerals Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Golden Minerals. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population.
To learn how to invest in Golden Stock, please use our How to Invest in Golden Minerals guide.
You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

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When running Golden Minerals' price analysis, check to measure Golden 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 Golden Minerals is operating at the current time. Most of Golden Minerals' value examination focuses on studying past and present price action to predict the probability of Golden Minerals' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Golden Minerals' price. Additionally, you may evaluate how the addition of Golden Minerals to your portfolios can decrease your overall portfolio volatility.
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Is Golden 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 Golden Minerals. If investors know Golden 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 Golden 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
(1.08)
Revenue Per Share
1.405
Quarterly Revenue Growth
(0.94)
Return On Assets
(0.33)
Return On Equity
(1.59)
The market value of Golden Minerals is measured differently than its book value, which is the value of Golden that is recorded on the company's balance sheet. Investors also form their own opinion of Golden Minerals' value that differs from its market value or its book value, called intrinsic value, which is Golden 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 Golden Minerals' market value can be influenced by many factors that don't directly affect Golden 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 Golden Minerals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Golden Minerals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Golden 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.