Riot Blockchain Stock Volatility
| RIOT Stock | USD 7.97 0.09 1.12% |
Riot Blockchain maintains Sharpe Ratio (i.e., Efficiency) of -0.039, which implies the firm had a -0.039% return per unit of risk over the last 3 months. Riot Blockchain exposes twenty-one different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check Riot Blockchain's Coefficient Of Variation of (1,417), variance of 34.95, and Risk Adjusted Performance of (0.04) to confirm the risk estimate we provide. Key indicators related to Riot Blockchain's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Riot Blockchain 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 Riot daily returns, and it is calculated using variance and standard deviation. We also use Riot's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Riot Blockchain volatility.
Riot |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Riot Blockchain 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 Riot Blockchain at lower prices. For example, an investor can purchase Riot 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 Riot Blockchain'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 Riot Stock
| 0.74 | MFH | Mercurity Fintech Holding Report 23rd of April 2024 | PairCorr |
| 0.93 | MARA | Marathon Digital Holdings Financial Report 8th of May 2024 | PairCorr |
Moving against Riot Stock
Riot Blockchain Market Sensitivity And Downside Risk
Riot Blockchain's beta coefficient measures the volatility of Riot 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 Riot stock's returns against your selected market. In other words, Riot Blockchain's beta of 3.51 provides an investor with an approximation of how much risk Riot Blockchain stock can potentially add to one of your existing portfolios. Riot Blockchain exhibits very low volatility with skewness of 1.09 and kurtosis of 0.97. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Riot Blockchain'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 Riot Blockchain'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 financial instruments as prices fall.
3 Months Beta |Analyze Riot Blockchain Demand TrendCheck current 90 days Riot Blockchain correlation with market (NYSE Composite)Riot Beta |
Riot 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 | 5.99 |
It is essential to understand the difference between upside risk (as represented by Riot Blockchain's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Riot Blockchain's daily returns or price. Since the actual investment returns on holding a position in riot 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 Riot Blockchain.
Using Riot Put Option to Manage Risk
Put options written on Riot Blockchain grant holders of the option the right to sell a specified amount of Riot Blockchain 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 Riot Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Riot Blockchain'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 Riot Blockchain will be realized, the loss incurred will be offset by the profits made with the option trade.
Riot Blockchain's PUT expiring on 2024-04-19
Profit |
| Riot Blockchain Price At Expiration |
Current Riot Blockchain Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | 2024-04-19 PUT at $29.0 | -0.9568 | 0.0181 | 2 | 2024-04-19 | 20.95 - 21.1 | 17.25 | View |
Put | 2024-04-19 PUT at $24.0 | -0.953 | 0.0219 | 15 | 2024-04-19 | 15.95 - 16.1 | 12.35 | View |
Put | 2024-04-19 PUT at $22.0 | -0.9509 | 0.0241 | 142 | 2024-04-19 | 13.95 - 14.1 | 14.0 | View |
Put | 2024-04-19 PUT at $21.0 | -0.9497 | 0.0255 | 38 | 2024-04-19 | 12.25 - 13.1 | 10.64 | View |
Put | 2024-04-19 PUT at $20.0 | -0.9483 | 0.0271 | 100 | 2024-04-19 | 11.95 - 12.1 | 11.18 | View |
Put | 2024-04-19 PUT at $19.0 | -0.9466 | 0.029 | 109 | 2024-04-19 | 10.9 - 11.1 | 8.87 | View |
Put | 2024-04-19 PUT at $18.0 | -0.9447 | 0.0313 | 757 | 2024-04-19 | 9.95 - 10.1 | 8.22 | View |
Put | 2024-04-19 PUT at $17.0 | -0.9424 | 0.0342 | 212 | 2024-04-19 | 8.95 - 9.1 | 9.0 | View |
Put | 2024-04-19 PUT at $16.0 | -0.9759 | 0.0219 | 328 | 2024-04-19 | 7.95 - 8.15 | 7.9 | View |
Put | 2024-04-19 PUT at $15.5 | -0.8449 | 0.0574 | 49 | 2024-04-19 | 7.25 - 7.8 | 6.91 | View |
Put | 2024-04-19 PUT at $15.0 | -0.9363 | 0.0424 | 748 | 2024-04-19 | 6.95 - 7.1 | 7.0 | View |
Riot Blockchain Stock Volatility Analysis
Volatility refers to the frequency at which Riot Blockchain stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Riot Blockchain's price changes. Investors will then calculate the volatility of Riot Blockchain'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 Riot Blockchain's volatility:
Historical Volatility
This type of stock volatility measures Riot Blockchain's fluctuations based on previous trends. It's commonly used to predict Riot Blockchain'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 Riot Blockchain'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 Riot Blockchain'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. Riot Blockchain 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.
Riot Blockchain Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 3.514 indicating as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Riot Blockchain 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 Riot Blockchain or Software 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 Riot Blockchain'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 Riot 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.
Riot Blockchain 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 Riot Blockchain 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.Riot Blockchain Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Riot Blockchain is -2565.52. The daily returns are distributed with a variance of 35.92 and standard deviation of 5.99. The mean deviation of Riot Blockchain is currently at 4.52. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.63
α | Alpha over NYSE Composite | -0.59 | |
β | Beta against NYSE Composite | 3.51 | |
σ | Overall volatility | 5.99 | |
Ir | Information ratio | -0.08 |
Riot Blockchain Stock Return Volatility
Riot Blockchain historical daily return volatility represents how much of Riot Blockchain stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 5.9933% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.6219% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Riot Blockchain Volatility
Volatility is a rate at which the price of Riot Blockchain 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 Riot Blockchain may increase or decrease. In other words, similar to Riot's beta indicator, it measures the risk of Riot Blockchain and helps estimate the fluctuations that may happen in a short period of time. So if prices of Riot Blockchain 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 | ||
| Market Cap | 2.7 B | 2.8 B |
Riot Blockchain'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 Riot Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Riot Blockchain's price varies over time.
3 ways to utilize Riot Blockchain's volatility to invest better
Higher Riot Blockchain's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Riot Blockchain 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. Riot Blockchain 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 Riot Blockchain investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Riot Blockchain'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 Riot Blockchain's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Riot Blockchain Investment Opportunity
Riot Blockchain has a volatility of 5.99 and is 9.66 times more volatile than NYSE Composite. 52 percent of all equities and portfolios are less risky than Riot Blockchain. You can use Riot Blockchain to protect your portfolios against small market fluctuations. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of Riot Blockchain to be traded at $7.73 in 90 days.Weak diversification
The correlation between Riot Blockchain and NYA is 0.37 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Riot Blockchain and NYA in the same portfolio, assuming nothing else is changed.
Riot Blockchain Additional Risk Indicators
The analysis of Riot Blockchain'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 Riot Blockchain's investment and either accepting that risk or mitigating it. Along with some common measures of Riot Blockchain 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 | (0.04) | |||
| Market Risk Adjusted Performance | (0.11) | |||
| Mean Deviation | 4.43 | |||
| Coefficient Of Variation | (1,417) | |||
| Standard Deviation | 5.91 | |||
| Variance | 34.95 | |||
| Information Ratio | (0.08) |
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.
Riot Blockchain 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 Riot Blockchain 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. Riot Blockchain'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, Riot Blockchain'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 Riot Blockchain.
When determining whether Riot Blockchain is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Riot Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Riot Blockchain Stock. Highlighted below are key reports to facilitate an investment decision about Riot Blockchain Stock: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Riot Blockchain. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in persons. For more information on how to buy Riot Stock please use our How to Invest in Riot Blockchain guide.You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.
Complementary Tools for Riot Stock analysis
When running Riot Blockchain's price analysis, check to measure Riot Blockchain'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 Riot Blockchain is operating at the current time. Most of Riot Blockchain's value examination focuses on studying past and present price action to predict the probability of Riot Blockchain's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Riot Blockchain's price. Additionally, you may evaluate how the addition of Riot Blockchain to your portfolios can decrease your overall portfolio volatility.
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Is Riot Blockchain'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 Riot Blockchain. If investors know Riot 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 Riot Blockchain 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 2.333 | Earnings Share (0.28) | Revenue Per Share 1.604 | Quarterly Revenue Growth 0.31 | Return On Assets (0.05) |
The market value of Riot Blockchain is measured differently than its book value, which is the value of Riot that is recorded on the company's balance sheet. Investors also form their own opinion of Riot Blockchain's value that differs from its market value or its book value, called intrinsic value, which is Riot Blockchain'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 Riot Blockchain's market value can be influenced by many factors that don't directly affect Riot Blockchain'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 Riot Blockchain's value and its price as these two are different measures arrived at by different means. Investors typically determine if Riot Blockchain is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Riot Blockchain'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.