Gemfields Group (Germany) Volatility
| 5PH Stock | EUR 0.06 0.01 9.93% |
Gemfields Group holds Efficiency (Sharpe) Ratio of -0.19, which attests that the entity had a -0.19% return per unit of risk over the last 3 months. Gemfields Group exposes twenty-one different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check out Gemfields Group's Market Risk Adjusted Performance of (2.12), standard deviation of 5.11, and Risk Adjusted Performance of (0.12) to validate the risk estimate we provide. Key indicators related to Gemfields Group's volatility include:
150 Days Market Risk | Chance Of Distress | 150 Days Economic Sensitivity |
Gemfields Group 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 Gemfields daily returns, and it is calculated using variance and standard deviation. We also use Gemfields's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Gemfields Group volatility.
Gemfields |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Gemfields Group can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game as hey may decide to buy additional stocks of Gemfields Group at lower prices to lower their average cost per share. Similarly, when the prices of Gemfields Group's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with Gemfields Stock
Moving against Gemfields Stock
| 0.91 | 28X | ALLIANZ TECHNOTRLS 025 | PairCorr |
| 0.64 | E908 | Lyxor 1 | PairCorr |
| 0.56 | DBPE | Xtrackers LevDAX | PairCorr |
| 0.55 | GSR | Gossan Resources | PairCorr |
| 0.36 | BAC | Verizon Communications | PairCorr |
Gemfields Group Market Sensitivity And Downside Risk
Gemfields Group's beta coefficient measures the volatility of Gemfields 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 Gemfields stock's returns against your selected market. In other words, Gemfields Group's beta of 0.39 provides an investor with an approximation of how much risk Gemfields Group stock can potentially add to one of your existing portfolios. Gemfields Group Limited exhibits very low volatility with skewness of -0.69 and kurtosis of 1.55. Gemfields Group Limited is a penny stock. Although Gemfields Group may be in fact a good investment, many penny stocks are subject to artificial price hype. Make sure you completely understand the upside potential and downside risk of investing in Gemfields Group Limited. We encourage investors to look for signals such as message board hypes, claims of breakthroughs, email spams, sudden volume upswings, and other similar hype indicators. We also encourage traders to check biographies and work history of company officers before investing in instruments with high volatility. You can indeed make money on Gemfields 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 Gemfields Group Demand TrendCheck current 90 days Gemfields Group correlation with market (Dow Jones Industrial)Gemfields Beta |
Gemfields 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 | 5.02 |
It is essential to understand the difference between upside risk (as represented by Gemfields Group's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Gemfields Group's daily returns or price. Since the actual investment returns on holding a position in gemfields 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 Gemfields Group.
Gemfields Group Stock Volatility Analysis
Volatility refers to the frequency at which Gemfields Group stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Gemfields Group's price changes. Investors will then calculate the volatility of Gemfields Group'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 Gemfields Group's volatility:
Historical Volatility
This type of stock volatility measures Gemfields Group's fluctuations based on previous trends. It's commonly used to predict Gemfields Group'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 Gemfields Group'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 Gemfields Group'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. Gemfields Group 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.
Gemfields Group Projected Return Density Against Market
Assuming the 90 days horizon Gemfields Group has a beta of 0.3925 . This suggests as returns on the market go up, Gemfields Group average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Gemfields Group Limited 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 Gemfields Group 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 Gemfields Group'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 Gemfields 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.
Gemfields Group Limited has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives a Gemfields Group 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.Gemfields Group Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of Gemfields Group is -518.85. The daily returns are distributed with a variance of 25.19 and standard deviation of 5.02. The mean deviation of Gemfields Group Limited is currently at 3.4. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.79
α | Alpha over Dow Jones | -0.85 | |
β | Beta against Dow Jones | 0.39 | |
σ | Overall volatility | 5.02 | |
Ir | Information ratio | -0.17 |
Gemfields Group Stock Return Volatility
Gemfields Group historical daily return volatility represents how much of Gemfields Group stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 5.0187% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7976% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Gemfields Group Volatility
Volatility is a rate at which the price of Gemfields Group 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 Gemfields Group may increase or decrease. In other words, similar to Gemfields's beta indicator, it measures the risk of Gemfields Group and helps estimate the fluctuations that may happen in a short period of time. So if prices of Gemfields Group 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.Gemfields Group Limited, together with its subsidiaries, operates as a mining company. Gemfields Group Limited was founded in 2007 and is based in Saint Peter Port, Guernsey. GEMFIELDS GROUP operates under Other Precious Metals Mining classification in Germany and is traded on Frankfurt Stock Exchange.
Gemfields Group'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 Gemfields Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Gemfields Group's price varies over time.
3 ways to utilize Gemfields Group's volatility to invest better
Higher Gemfields Group's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Gemfields Group 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. Gemfields Group 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 Gemfields Group investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Gemfields Group'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 Gemfields Group's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Gemfields Group Investment Opportunity
Gemfields Group Limited has a volatility of 5.02 and is 6.28 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Gemfields Group Limited is lower than 44 percent of all global equities and portfolios over the last 90 days. You can use Gemfields Group Limited to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of Gemfields Group to be traded at €0.0603 in 90 days.Significant diversification
The correlation between Gemfields Group Limited and DJI is 0.06 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Gemfields Group Limited and DJI in the same portfolio, assuming nothing else is changed.
Gemfields Group Additional Risk Indicators
The analysis of Gemfields Group'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 Gemfields Group's investment and either accepting that risk or mitigating it. Along with some common measures of Gemfields Group 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 | (0.12) | |||
| Market Risk Adjusted Performance | (2.12) | |||
| Mean Deviation | 3.42 | |||
| Coefficient Of Variation | (618.36) | |||
| Standard Deviation | 5.11 | |||
| Variance | 26.11 | |||
| Information Ratio | (0.17) |
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.
Gemfields Group 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 Gemfields Group 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. Gemfields Group'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, Gemfields Group'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 Gemfields Group Limited.
Complementary Tools for Gemfields Stock analysis
When running Gemfields Group's price analysis, check to measure Gemfields Group'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 Gemfields Group is operating at the current time. Most of Gemfields Group's value examination focuses on studying past and present price action to predict the probability of Gemfields Group's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Gemfields Group's price. Additionally, you may evaluate how the addition of Gemfields Group to your portfolios can decrease your overall portfolio volatility.
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