# ArcelorMittal Stock Volatility

MT Stock | USD 30.43 0.66 2.12% |

ArcelorMittal appears to be very steady, given 3 months investment horizon. ArcelorMittal SA ADR secures Sharpe Ratio (or Efficiency) of 0.19, which signifies that the company had 0.19% of return per unit of standard deviation over the last 3 months. Our philosophy in foreseeing the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for ArcelorMittal SA ADR, which you can use to evaluate the future volatility of the firm. Please makes use of ArcelorMittal's risk adjusted performance of 0.2259, and Mean Deviation of 1.83 to double-check if our risk estimates are consistent with your expectations.

ArcelorMittal |

ArcelorMittal 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 ArcelorMittal daily returns, and it is calculated using variance and standard deviation. We also use ArcelorMittal's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of ArcelorMittal volatility.

### 720 Days Market Risk

### Chance of Distress

### 720 Days Economic Sensitivity

Since volatility provides investors with entry points to take advantage of stock prices, companies, such as ArcelorMittal 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 ArcelorMittal at lower prices. For example, an investor can purchase ArcelorMittal 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 ArcelorMittal'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 ArcelorMittal

+ | 0.91 | AA | Alcoa Corp | PairCorr | |||

+ | 0.89 | AEM | Agnico Eagle Mines | PairCorr | |||

+ | 0.97 | CLF | Cleveland-Cliffs | Sell-off Trend | PairCorr | ||

+ | 0.97 | DOW | Dow Inc | PairCorr | |||

+ | 0.97 | FCX | Freeport-McMoran Copper | PairCorr | |||

+ | 0.9 | GOLD | Barrick Gold Corp | PairCorr | |||

+ | 0.82 | NUE | Nucor Corp | Sell-off Trend | PairCorr |

## ArcelorMittal Market Sensitivity And Downside Risk

ArcelorMittal's beta coefficient measures the volatility of ArcelorMittal stock compared to the systematic risk of the entire stock 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 ArcelorMittal stock's returns against your selected market. In other words, ArcelorMittal's beta of 1.54 provides an investor with an approximation of how much risk ArcelorMittal stock can potentially add to one of your existing portfolios.

ArcelorMittal SA ADR has relatively low volatility with skewness of 1.28 and kurtosis of 3.49. However, we advise all investors to independently investigate ArcelorMittal SA ADR to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure ArcelorMittal's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact ArcelorMittal's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall. 3 Months Beta |Analyze ArcelorMittal SA ADR Demand TrendCheck current 90 days ArcelorMittal correlation with market (NYSE Composite)## ArcelorMittal Beta |

ArcelorMittal standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity 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 | 2.15 |

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

## Using ArcelorMittal Put Option to Manage Risk

Put options written on ArcelorMittal grant holders of the option the right to sell a specified amount of ArcelorMittal 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 ArcelorMittal Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge ArcelorMittal'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 ArcelorMittal will be realized, the loss incurred will be offset by the profits made with the option trade.

### ArcelorMittal's PUT expiring on 2023-02-10

Profit |

ArcelorMittal Price At Expiration |

### Current ArcelorMittal Insurance Chain

Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||

Put | 2023-02-10 PUT at $27.0 | -0.0691 | 0.0523 | 6 | 2023-02-10 | 0.05 - 0.11 | 0.55 | View |

Put | 2023-02-10 PUT at $28.0 | -0.1309 | 0.0903 | 73 | 2023-02-10 | 0.14 - 0.16 | 0.16 | View |

Put | 2023-02-10 PUT at $29.0 | -0.2387 | 0.141 | 31 | 2023-02-10 | 0.3 - 0.34 | 0.32 | View |

Put | 2023-02-10 PUT at $30.0 | -0.4028 | 0.1815 | 375 | 2023-02-10 | 0.6 - 0.66 | 0.64 | View |

Put | 2023-02-10 PUT at $31.0 | -0.5941 | 0.1921 | 195 | 2023-02-10 | 1.1 - 1.15 | 1.12 | View |

Put | 2023-02-10 PUT at $32.0 | -0.774 | 0.1558 | 9 | 2023-02-10 | 1.75 - 1.85 | 1.05 | View |

## ArcelorMittal SA ADR Stock Volatility Analysis

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

### Historical Volatility

This type of stock volatility measures ArcelorMittal's fluctuations based on previous trends. It's commonly used to predict ArcelorMittal'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 ArcelorMittal'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 ArcelorMittal'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. Developed by Larry Williams, the Weighted Close is the average of ArcelorMittal SA ADR high, low and close of a chart with the close values weighted twice. It can be used to smooth an indicator that normally takes only ArcelorMittal closing price as input..

## ArcelorMittal Projected Return Density Against Market

Allowing for the 90-day total investment horizon the stock has the beta coefficient of 1.5399 . This indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, ArcelorMittal 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 ArcelorMittal 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 ArcelorMittal'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 ArcelorMittal 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.

The company has an alpha of 0.2971, implying that it can generate a 0.3 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |

Returns |

## What Drives an ArcelorMittal 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.## ArcelorMittal Stock Risk Measures

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 ArcelorMittal 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 ArcelorMittal'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 ArcelorMittal 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. Allowing for the 90-day total investment horizon the coefficient of variation of ArcelorMittal is 524.28. The daily returns are distributed with a variance of 4.61 and standard deviation of 2.15. The mean deviation of ArcelorMittal SA ADR is currently at 1.67. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 1.11

α | Alpha over NYSE Composite | 0.30 | |

β | Beta against NYSE Composite | 1.54 | |

σ | Overall volatility | 2.15 | |

Ir | Information ratio | 0.15 |

## ArcelorMittal Stock Return Volatility

ArcelorMittal historical daily return volatility represents how much of ArcelorMittal stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm accepts 2.1468% volatility on return distribution over the 90 days horizon. By contrast, NYSE Composite accepts 1.1002% volatility on return distribution over the 90 days horizon. Performance (%) |

Timeline |

## About ArcelorMittal Volatility

Volatility is a rate at which the price of ArcelorMittal 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 ArcelorMittal may increase or decrease. In other words, similar to ArcelorMittal's beta indicator, it measures the risk of ArcelorMittal and helps estimate the fluctuations that may happen in a short period of time. So if prices of ArcelorMittal 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 2023 | ||

Market Capitalization | 39.6 B | 34 B |

ArcelorMittal'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 ArcelorMittal Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much ArcelorMittal's price varies over time.

## 3 ways to utilize ArcelorMittal's volatility to invest better

Higher ArcelorMittal's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of ArcelorMittal SA ADR 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. ArcelorMittal SA ADR 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 ArcelorMittal SA ADR investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in ArcelorMittal'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 ArcelorMittal's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.

## ArcelorMittal Investment Opportunity

ArcelorMittal SA ADR has a volatility of 2.15 and is 1.95 times more volatile than NYSE Composite.**18**of all equities and portfolios are less risky than ArcelorMittal. Compared to the overall equity markets, volatility of historical daily returns of ArcelorMittal SA ADR is lower than

**18 ()**of all global equities and portfolios over the last 90 days. Use ArcelorMittal SA ADR to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of ArcelorMittal to be traded at $29.21 in 90 days.

### Poor diversification

The correlation between ArcelorMittal SA ADR and NYA is

**0.69**(i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding ArcelorMittal SA ADR and NYA in the same portfolio, assuming nothing else is changed.## ArcelorMittal Additional Risk Indicators

The analysis of ArcelorMittal'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 ArcelorMittal's investment and either accepting that risk or mitigating it. Along with some common measures of ArcelorMittal 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 | 0.2259 | |||

Market Risk Adjusted Performance | 0.3226 | |||

Mean Deviation | 1.83 | |||

Semi Deviation | 1.55 | |||

Downside Deviation | 1.85 | |||

Coefficient Of Variation | 503.69 | |||

Standard Deviation | 2.47 |

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.

## ArcelorMittal 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 ArcelorMittal 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. ArcelorMittal'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, ArcelorMittal'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 ArcelorMittal SA ADR.

Additionally, see Correlation Analysis. You can also try Price Transformation module to use Price Transformation models to analyze depth of different equity instruments across global markets.

## Complementary Tools for analysis

When running ArcelorMittal SA ADR price analysis, check to measure ArcelorMittal'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 ArcelorMittal is operating at the current time. Most of ArcelorMittal's value examination focuses on studying past and present price action to predict the probability of ArcelorMittal's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move ArcelorMittal's price. Additionally, you may evaluate how the addition of ArcelorMittal to your portfolios can decrease your overall portfolio volatility.

Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |

Fundamental Analysis View fundamental data based on most recent published financial statements | |

Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |

Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |

Commodity Channel Index Use Commodity Channel Index to analyze current equity momentum | |

Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |

Is ArcelorMittal'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 ArcelorMittal. If investors know ArcelorMittal 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 ArcelorMittal 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(0.73) | Market Capitalization25 B | Quarterly Revenue Growth(0.06) | Return On Assets0.1037 | Return On Equity0.2608 |

The market value of ArcelorMittal SA ADR is measured differently than its book value, which is the value of ArcelorMittal that is recorded on the company's balance sheet. Investors also form their own opinion of ArcelorMittal's value that differs from its market value or its book value, called intrinsic value, which is ArcelorMittal'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 ArcelorMittal's market value can be influenced by many factors that don't directly affect ArcelorMittal'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 ArcelorMittal's value and its price as these two are different measures arrived at by different means. Investors typically determine ArcelorMittal value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ArcelorMittal'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.