RTNTF OTC Stock Volatility

RTNTF -  USA Stock  

USD 72.26  5.63  7.23%

Rio Tinto maintains Sharpe Ratio (i.e., Efficiency) of -0.0907, which implies the firm had -0.0907% of return per unit of risk over the last 3 months. Macroaxis standpoint towards forecasting the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Rio Tinto exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to check Rio Tinto coefficient of variation of (893.96), and Risk Adjusted Performance of (0.07) to confirm the risk estimate we provide.

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

330 Days Market Risk

Very steady

Chance of Distress

330 Days Economic Sensitivity

Barely shadows the market

Rio Tinto Market Sensitivity And Downside Risk

Rio Tinto's beta coefficient measures the volatility of RTNTF otc 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 RTNTF otc stock's returns against your selected market. In other words, Rio Tinto's beta of 0.24 provides an investor with an approximation of how much risk Rio Tinto otc stock can potentially add to one of your existing portfolios.
Let's try to break down what RTNTF's beta means in this case. As returns on the market increase, Rio Tinto returns are expected to increase less than the market. However, during the bear market, the loss on holding Rio Tinto will be expected to be smaller as well.
3 Months Beta |Analyze Rio Tinto Demand Trend
Check current 90 days Rio Tinto correlation with market (DOW)

RTNTF Beta

    
  0.24  
RTNTF 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

    
  3.22  
It is essential to understand the difference between upside risk (as represented by Rio Tinto's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Rio Tinto stock's daily returns or price. Since the actual investment returns on holding a position in Rio Tinto 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 Rio Tinto.

Rio Tinto OTC Stock Volatility Analysis

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 Rio Tinto 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 Rio Tinto closing price as input. View also all equity analysis or get more info about weighted close price price transform indicator.

Rio Tinto Projected Return Density Against Market

Assuming the 90 days horizon Rio Tinto has a beta of 0.2368 indicating as returns on the market go up, Rio Tinto average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Rio Tinto will be expected to be much smaller as well.
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 Rio Tinto 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 Rio Tinto stock'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 RTNTF 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 a negative alpha, implying that the risk taken by holding this instrument is not justified. Rio Tinto is significantly underperforming DOW.
 Predicted Return Density 
      Returns 

Rio Tinto OTC 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 Rio Tinto 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 Rio Tinto stock'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 RTNTF 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.
Assuming the 90 days horizon the coefficient of variation of Rio Tinto is -1102.84. The daily returns are distributed with a variance of 10.39 and standard deviation of 3.22. The mean deviation of Rio Tinto is currently at 1.8. For similar time horizon, the selected benchmark (DOW) has volatility of 0.69
α
Alpha over DOW
-0.37
β
Beta against DOW0.24
σ
Overall volatility
3.22
Ir
Information ratio -0.12

Rio Tinto OTC Stock Return Volatility

Rio Tinto historical daily return volatility represents how much Rio Tinto stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The firm shows 3.2234% volatility of returns over 90 . By contrast, DOW inherits 0.6351% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Rio Tinto Volatility

Volatility is a rate at which the price of Rio Tinto 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 Rio Tinto may increase or decrease. In other words, similar to RTNTF's beta indicator, it measures the risk of Rio Tinto and helps estimate the fluctuations that may happen in a short period of time. So if prices of Rio Tinto 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.
Rio Tinto Group engages in exploring, mining, and processing mineral resources worldwide. The company was founded in 1873 and is headquartered in London, the United Kingdom. Rio Tinto is traded on OTC Exchange in the United States.

Rio Tinto Investment Opportunity

Rio Tinto has a volatility of 3.22 and is 5.03 times more volatile than DOW. 27  of all equities and portfolios are less risky than Rio Tinto. Compared to the overall equity markets, volatility of historical daily returns of Rio Tinto is lower than 27 () of all global equities and portfolios over the last 90 days. Use Rio Tinto to protect your portfolios against small market fluctuations. The otc stock experiences a very speculative downward sentiment. The market maybe over-reacting. Check odds of Rio Tinto to be traded at $68.65 in 90 days. . Let's try to break down what RTNTF's beta means in this case. As returns on the market increase, Rio Tinto returns are expected to increase less than the market. However, during the bear market, the loss on holding Rio Tinto will be expected to be smaller as well.

Significant diversification

The correlation between Rio Tinto Ltd and DJI is Significant diversification for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Rio Tinto Ltd and DJI in the same portfolio assuming nothing else is changed.

Rio Tinto Additional Risk Indicators

The analysis of Rio Tinto'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 Rio Tinto's investment and either accepting that risk or mitigating it. Along with some common measures of Rio Tinto stock 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(1.54)
Mean Deviation1.82
Coefficient Of Variation(893.96)
Standard Deviation3.19
Variance10.15
Information Ratio(0.12)
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stock investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Rio Tinto 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.
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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 Rio Tinto 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. Rio Tinto'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, Rio Tinto'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 Rio Tinto.
Additionally, take a look at Your Equity Center. Note that the Rio Tinto information on this page should be used as a complementary analysis to other Rio Tinto's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Bond Directory module to find actively traded corporate debentures issued by US companies.

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When running Rio Tinto price analysis, check to measure Rio Tinto'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 Rio Tinto is operating at the current time. Most of Rio Tinto's value examination focuses on studying past and present price action to predict the probability of Rio Tinto's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Rio Tinto's price. Additionally, you may evaluate how the addition of Rio Tinto to your portfolios can decrease your overall portfolio volatility.
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The market value of Rio Tinto is measured differently than its book value, which is the value of RTNTF that is recorded on the company's balance sheet. Investors also form their own opinion of Rio Tinto's value that differs from its market value or its book value, called intrinsic value, which is Rio Tinto'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 Rio Tinto's market value can be influenced by many factors that don't directly affect Rio Tinto underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Rio Tinto's value and its price as these two are different measures arrived at by different means. Investors typically determine Rio Tinto value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Rio Tinto'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.