Rio Tinto (Germany) Market Value
| CRA1 Stock | EUR 68.18 0.86 1.25% |
| Symbol | Rio |
Rio Tinto 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Rio Tinto's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Rio Tinto.
| 12/16/2024 |
| 03/16/2025 |
If you would invest 0.00 in Rio Tinto on December 16, 2024 and sell it all today you would earn a total of 0.00 from holding Rio Tinto Group or generate 0.0% return on investment in Rio Tinto over 90 days. Rio Tinto is related to or competes with AGF Management, Brockhaus Capital, Waste Management, and Sims Metal. Rio Tinto Group engages in exploring, mining, and processing mineral resources worldwide More
Rio Tinto Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Rio Tinto's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Rio Tinto Group upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | 0.0394 | |||
| Maximum Drawdown | 6.34 | |||
| Value At Risk | (1.51) | |||
| Potential Upside | 2.03 |
Rio Tinto Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Rio Tinto's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Rio Tinto's standard deviation. In reality, there are many statistical measures that can use Rio Tinto historical prices to predict the future Rio Tinto's volatility.| Risk Adjusted Performance | (0.03) | |||
| Jensen Alpha | (0.09) | |||
| Total Risk Alpha | 0.0977 | |||
| Treynor Ratio | 0.2434 |
Rio Tinto Group Backtested Returns
Rio Tinto Group maintains Sharpe Ratio (i.e., Efficiency) of -0.0414, which implies the firm had a -0.0414 % return per unit of risk over the last 3 months. Rio Tinto Group exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check Rio Tinto's Risk Adjusted Performance of (0.03), variance of 1.58, and Coefficient Of Variation of (2,532) to confirm the risk estimate we provide. The company holds a Beta of -0.24, which implies not very significant fluctuations relative to the market. As returns on the market increase, returns on owning Rio Tinto are expected to decrease at a much lower rate. During the bear market, Rio Tinto is likely to outperform the market. At this point, Rio Tinto Group has a negative expected return of -0.0484%. Please make sure to check Rio Tinto's total risk alpha, maximum drawdown, potential upside, as well as the relationship between the treynor ratio and value at risk , to decide if Rio Tinto Group performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.13 |
Insignificant reverse predictability
Rio Tinto Group has insignificant reverse predictability. Overlapping area represents the amount of predictability between Rio Tinto time series from 16th of December 2024 to 30th of January 2025 and 30th of January 2025 to 16th of March 2025. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Rio Tinto Group price movement. The serial correlation of -0.13 indicates that less than 13.0% of current Rio Tinto price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.13 | |
| Spearman Rank Test | 0.04 | |
| Residual Average | 0.0 | |
| Price Variance | 1.65 |
Rio Tinto Group lagged returns against current returns
Autocorrelation, which is Rio Tinto stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Rio Tinto's stock expected returns. We can calculate the autocorrelation of Rio Tinto returns to help us make a trade decision. For example, suppose you find that Rio Tinto has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Rio Tinto regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Rio Tinto stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Rio Tinto stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Rio Tinto stock over time.
Current vs Lagged Prices |
| Timeline |
Rio Tinto Lagged Returns
When evaluating Rio Tinto's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Rio Tinto stock have on its future price. Rio Tinto autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Rio Tinto autocorrelation shows the relationship between Rio Tinto stock current value and its past values and can show if there is a momentum factor associated with investing in Rio Tinto Group.
Regressed Prices |
| Timeline |
Currently Active Assets on Macroaxis
Other Information on Investing in Rio Stock
Rio Tinto financial ratios help investors to determine whether Rio Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Rio with respect to the benefits of owning Rio Tinto security.