Energy Fuels Stock Volatility
| EFR Stock | CAD 8.51 0.26 2.96% |
Energy Fuels appears to be slightly risky, given 3 months investment horizon. Energy Fuels secures Sharpe Ratio (or Efficiency) of 0.15, which denotes the company had a 0.15% return per unit of risk over the last 3 months. By reviewing Energy Fuels' technical indicators, you can evaluate if the expected return of 0.57% is justified by implied risk. Please utilize Energy Fuels' Downside Deviation of 3.21, coefficient of variation of 847.83, and Mean Deviation of 2.81 to check if our risk estimates are consistent with your expectations. Key indicators related to Energy Fuels' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Energy Fuels 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 Energy daily returns, and it is calculated using variance and standard deviation. We also use Energy's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Energy Fuels volatility.
Energy |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Energy Fuels 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 Energy Fuels at lower prices. For example, an investor can purchase Energy 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 Energy Fuels' 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 together with Energy Stock
Moving against Energy Stock
| 0.8 | MFC-PC | Manulife Finl Srs | PairCorr |
| 0.67 | SLF-PC | Sun Life Financial | PairCorr |
| 0.66 | SLF-PD | Sun Life Financial | PairCorr |
| 0.58 | SAGE | Sage Potash Corp | PairCorr |
| 0.45 | SLF-PG | Sun Life Non | PairCorr |
Energy Fuels Market Sensitivity And Downside Risk
Energy Fuels' beta coefficient measures the volatility of Energy 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 Energy stock's returns against your selected market. In other words, Energy Fuels's beta of 0.95 provides an investor with an approximation of how much risk Energy Fuels stock can potentially add to one of your existing portfolios. Energy Fuels shows above-average downside volatility for the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Energy Fuels' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Energy Fuels' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Energy Fuels Demand TrendCheck current 90 days Energy Fuels correlation with market (Dow Jones Industrial)Energy Beta |
Energy 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 | 3.76 |
It is essential to understand the difference between upside risk (as represented by Energy Fuels's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Energy Fuels' daily returns or price. Since the actual investment returns on holding a position in energy 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 Energy Fuels.
Energy Fuels Stock Volatility Analysis
Volatility refers to the frequency at which Energy Fuels stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Energy Fuels' price changes. Investors will then calculate the volatility of Energy Fuels' 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 Energy Fuels' volatility:
Historical Volatility
This type of stock volatility measures Energy Fuels' fluctuations based on previous trends. It's commonly used to predict Energy Fuels' 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 Energy Fuels' 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 Energy Fuels' 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. Energy Fuels 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.
Energy Fuels Projected Return Density Against Market
Assuming the 90 days trading horizon Energy Fuels has a beta of 0.9485 suggesting Energy Fuels market returns are highly reactive to returns on the market. As the market goes up or down, Energy Fuels is expected to follow.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 Energy Fuels or Oil, Gas & Consumable Fuels 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 Energy Fuels' 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 Energy 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.
Energy Fuels has an alpha of 0.3529, implying that it can generate a 0.35 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Energy Fuels 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.Energy Fuels Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Energy Fuels is 660.38. The daily returns are distributed with a variance of 14.1 and standard deviation of 3.76. The mean deviation of Energy Fuels is currently at 2.79. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.73
α | Alpha over Dow Jones | 0.35 | |
β | Beta against Dow Jones | 0.95 | |
σ | Overall volatility | 3.76 | |
Ir | Information ratio | 0.09 |
Energy Fuels Stock Return Volatility
Energy Fuels historical daily return volatility represents how much of Energy Fuels stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm assumes 3.7553% volatility of returns over the 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7298% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Energy Fuels Volatility
Volatility is a rate at which the price of Energy Fuels 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 Energy Fuels may increase or decrease. In other words, similar to Energy's beta indicator, it measures the risk of Energy Fuels and helps estimate the fluctuations that may happen in a short period of time. So if prices of Energy Fuels 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.| Last Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 39.6 K | 37.6 K | |
| Market Cap | 1.1 B | 1.2 B |
Energy Fuels' 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 Energy Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Energy Fuels' price varies over time.
3 ways to utilize Energy Fuels' volatility to invest better
Higher Energy Fuels' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Energy Fuels 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. Energy Fuels 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 Energy Fuels investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Energy Fuels' 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 Energy Fuels' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Energy Fuels Investment Opportunity
Energy Fuels has a volatility of 3.76 and is 5.15 times more volatile than Dow Jones Industrial. 33 percent of all equities and portfolios are less risky than Energy Fuels. You can use Energy Fuels to protect your portfolios against small market fluctuations. The stock experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of Energy Fuels to be traded at C$8.17 in 90 days.Average diversification
The correlation between Energy Fuels and DJI is 0.18 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Energy Fuels and DJI in the same portfolio, assuming nothing else is changed.
Energy Fuels Additional Risk Indicators
The analysis of Energy Fuels' 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 Energy Fuels' investment and either accepting that risk or mitigating it. Along with some common measures of Energy Fuels 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 | 0.0936 | |||
| Market Risk Adjusted Performance | 0.4722 | |||
| Mean Deviation | 2.81 | |||
| Semi Deviation | 2.76 | |||
| Downside Deviation | 3.21 | |||
| Coefficient Of Variation | 847.83 | |||
| Standard Deviation | 3.8 |
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.
Energy Fuels 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 Energy Fuels 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. Energy Fuels' 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, Energy Fuels' 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 Energy Fuels.
When determining whether Energy Fuels is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Energy Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Energy Fuels Stock. Highlighted below are key reports to facilitate an investment decision about Energy Fuels Stock: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Energy Fuels. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. To learn how to invest in Energy Stock, please use our How to Invest in Energy Fuels guide.You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.