Why is this ASX mining stock crashing 27 percent today - The Motley Fool Australia
| RHI Stock | 4.12 0.15 3.51% |
Slightly above 62% of Red Hill's investor base is looking to short. The current sentiment regarding investing in Red Hill Iron stock implies that many traders are alarmed. Red Hill's investing sentiment can be driven by a variety of factors including economic data, Red Hill's earnings reports, geopolitical events, and overall market trends.
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Why is this ASX mining stock crashing 27 percent today The Motley Fool Australia
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Red Hill Fundamental Analysis
We analyze Red Hill's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Red Hill using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Red Hill based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Beta
Beta Comparative Analysis
Red Hill is currently under evaluation in beta category among its peers. Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Red Hill Iron Potential Pair-trading
One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with Red Hill stock to make a market-neutral strategy. Peer analysis of Red Hill could also be used in its relative valuation, which is a method of valuing Red Hill by comparing valuation metrics with similar companies.
Peers
Red Hill Related Equities
| MAQ | Macquarie Technology | 0.72 | ||||
| DBF | Duxton Broadacre | 1.44 | ||||
| PRU | Perseus Mining | 1.89 | ||||
| AGI | Ainsworth Game | 3.57 | ||||
| AKM | Aspire Mining | 3.57 | ||||
| PEX | Peel Mining | 7.69 |
Additional Tools for Red Stock Analysis
When running Red Hill's price analysis, check to measure Red Hill'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 Red Hill is operating at the current time. Most of Red Hill's value examination focuses on studying past and present price action to predict the probability of Red Hill's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Red Hill's price. Additionally, you may evaluate how the addition of Red Hill to your portfolios can decrease your overall portfolio volatility.