Whitemud Resources Stock Volatility
| WMK Stock | CAD 0.24 0.02 9.09% |
Whitemud Resources appears to be out of control, given 3 months investment horizon. Whitemud Resources shows Sharpe Ratio of 0.0667, which attests that the company had a 0.0667% return per unit of risk over the last 3 months. By examining Whitemud Resources' technical indicators, you can evaluate if the expected return of 0.53% is justified by implied risk. Please utilize Whitemud Resources' Downside Deviation of 10.1, mean deviation of 5.54, and Market Risk Adjusted Performance of (1.38) to validate if our risk estimates are consistent with your expectations. Key indicators related to Whitemud Resources' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Whitemud Resources 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 Whitemud daily returns, and it is calculated using variance and standard deviation. We also use Whitemud's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Whitemud Resources volatility.
Whitemud |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Whitemud Resources 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 Whitemud Resources at lower prices. For example, an investor can purchase Whitemud 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 Whitemud Resources' 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 against Whitemud Stock
Whitemud Resources Market Sensitivity And Downside Risk
Whitemud Resources' beta coefficient measures the volatility of Whitemud 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 Whitemud stock's returns against your selected market. In other words, Whitemud Resources's beta of -0.49 provides an investor with an approximation of how much risk Whitemud Resources stock can potentially add to one of your existing portfolios. Whitemud Resources is showing large volatility of returns over the selected time horizon. Whitemud Resources is a potential penny stock. Although Whitemud Resources 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 Whitemud Resources. 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 Whitemud 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 Whitemud Resources Demand TrendCheck current 90 days Whitemud Resources correlation with market (NYSE Composite)Whitemud Beta |
Whitemud 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 | 8.0 |
It is essential to understand the difference between upside risk (as represented by Whitemud Resources's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Whitemud Resources' daily returns or price. Since the actual investment returns on holding a position in whitemud 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 Whitemud Resources.
Whitemud Resources Stock Volatility Analysis
Volatility refers to the frequency at which Whitemud Resources stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Whitemud Resources' price changes. Investors will then calculate the volatility of Whitemud Resources' 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 Whitemud Resources' volatility:
Historical Volatility
This type of stock volatility measures Whitemud Resources' fluctuations based on previous trends. It's commonly used to predict Whitemud Resources' 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 Whitemud Resources' 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 Whitemud Resources' 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. Whitemud Resources 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.
Whitemud Resources Projected Return Density Against Market
Assuming the 90 days horizon Whitemud Resources has a beta of -0.49 . This entails as returns on the benchmark increase, returns on holding Whitemud Resources are expected to decrease at a much lower rate. During a bear market, however, Whitemud Resources 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 Whitemud Resources 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 Whitemud Resources' 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 Whitemud 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.
Whitemud Resources has an alpha of 0.7193, implying that it can generate a 0.72 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Whitemud Resources 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.Whitemud Resources Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of Whitemud Resources is 1498.87. The daily returns are distributed with a variance of 64.07 and standard deviation of 8.0. The mean deviation of Whitemud Resources is currently at 5.27. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 0.72 | |
β | Beta against NYSE Composite | -0.49 | |
σ | Overall volatility | 8.00 | |
Ir | Information ratio | 0.07 |
Whitemud Resources Stock Return Volatility
Whitemud Resources historical daily return volatility represents how much of Whitemud Resources stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The venture shows 8.0044% volatility of returns over 90 . By contrast, NYSE Composite accepts 0.637% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Whitemud Resources Volatility
Volatility is a rate at which the price of Whitemud Resources 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 Whitemud Resources may increase or decrease. In other words, similar to Whitemud's beta indicator, it measures the risk of Whitemud Resources and helps estimate the fluctuations that may happen in a short period of time. So if prices of Whitemud Resources 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.Whitemud Resources Inc. engages in the management and marketing of commodities. The company was incorporated in 2005 and is headquartered in Calgary, Canada. WHITEMUD RESOURCES operates under Other Industrial Metals Mining classification in Exotistan and is traded on Commodity Exchange.
Whitemud Resources' 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 Whitemud Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Whitemud Resources' price varies over time.
3 ways to utilize Whitemud Resources' volatility to invest better
Higher Whitemud Resources' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Whitemud Resources 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. Whitemud Resources 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 Whitemud Resources investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Whitemud Resources' 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 Whitemud Resources' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Whitemud Resources Investment Opportunity
Whitemud Resources has a volatility of 8.0 and is 12.5 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Whitemud Resources is higher than 70 percent of all global equities and portfolios over the last 90 days. You can use Whitemud Resources to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Whitemud Resources to be traded at C$0.3 in 90 days.Good diversification
The correlation between Whitemud Resources and NYA is -0.04 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Whitemud Resources and NYA in the same portfolio, assuming nothing else is changed.
Whitemud Resources Additional Risk Indicators
The analysis of Whitemud Resources' 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 Whitemud Resources' investment and either accepting that risk or mitigating it. Along with some common measures of Whitemud Resources 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 | 0.0611 | |||
| Market Risk Adjusted Performance | (1.38) | |||
| Mean Deviation | 5.54 | |||
| Semi Deviation | 7.0 | |||
| Downside Deviation | 10.1 | |||
| Coefficient Of Variation | 1186.67 | |||
| Standard Deviation | 8.19 |
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.
Whitemud Resources 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 Whitemud Resources 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. Whitemud Resources' 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, Whitemud Resources' 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 Whitemud Resources.
Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Whitemud Resources. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors. You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Complementary Tools for Whitemud Stock analysis
When running Whitemud Resources' price analysis, check to measure Whitemud Resources' 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 Whitemud Resources is operating at the current time. Most of Whitemud Resources' value examination focuses on studying past and present price action to predict the probability of Whitemud Resources' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Whitemud Resources' price. Additionally, you may evaluate how the addition of Whitemud Resources to your portfolios can decrease your overall portfolio volatility.
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