Emerita Resources Corp Stock Volatility
| EMOTF Stock | USD 0.47 0.04 9.30% |
At this point, Emerita Resources is out of control. Emerita Resources Corp secures Sharpe Ratio (or Efficiency) of 0.0267, which denotes the company had a 0.0267% return per unit of risk over the last 3 months. We have found twenty-seven technical indicators for Emerita Resources Corp, which you can use to evaluate the volatility of the firm. Please confirm Emerita Resources' Coefficient Of Variation of 2789.71, mean deviation of 2.52, and Downside Deviation of 3.78 to check if the risk estimate we provide is consistent with the expected return of 0.094%. Key indicators related to Emerita Resources' volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Emerita Resources OTC 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 Emerita daily returns, and it is calculated using variance and standard deviation. We also use Emerita's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Emerita Resources volatility.
Emerita |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Emerita Resources 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 Emerita Resources at lower prices to lower their average cost per share. Similarly, when the prices of Emerita Resources' stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Emerita Resources Market Sensitivity And Downside Risk
Emerita Resources' beta coefficient measures the volatility of Emerita otc 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 Emerita otc stock's returns against your selected market. In other words, Emerita Resources's beta of 0.56 provides an investor with an approximation of how much risk Emerita Resources otc stock can potentially add to one of your existing portfolios. Emerita Resources Corp shows above-average downside volatility for the selected time horizon. Emerita Resources Corp is a potential penny stock. Although Emerita Resources may be in fact a good instrument to invest, many penny otc 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 Emerita Resources Corp. 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 Emerita instrument if you perfectly time your entry and exit. However, remember that penny otcs 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 Emerita Resources Corp Demand TrendCheck current 90 days Emerita Resources correlation with market (Dow Jones Industrial)Emerita Beta |
Emerita 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 | 3.52 |
It is essential to understand the difference between upside risk (as represented by Emerita Resources's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Emerita Resources' daily returns or price. Since the actual investment returns on holding a position in emerita otc 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 Emerita Resources.
Emerita Resources Corp OTC Stock Volatility Analysis
Volatility refers to the frequency at which Emerita Resources otc price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Emerita Resources' price changes. Investors will then calculate the volatility of Emerita Resources' otc stock to predict their future moves. A otc that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A otc stock with relatively stable price changes has low volatility. A highly volatile otc 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 Emerita Resources' volatility:
Historical Volatility
This type of otc volatility measures Emerita Resources' fluctuations based on previous trends. It's commonly used to predict Emerita Resources' future behavior based on its past. However, it cannot conclusively determine the future direction of the otc stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Emerita Resources' current market price. This means that the otc will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Emerita 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. Emerita Resources Corp 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.
Emerita Resources Projected Return Density Against Market
Assuming the 90 days horizon Emerita Resources has a beta of 0.5608 suggesting as returns on the market go up, Emerita Resources average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Emerita Resources Corp 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 Emerita Resources 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 Emerita Resources' price will be affected by overall otc 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 Emerita otc'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.
Emerita Resources Corp has an alpha of 0.0464, implying that it can generate a 0.0464 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Emerita Resources Price Volatility?
Several factors can influence a otc'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.Emerita Resources OTC Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of Emerita Resources is 3748.96. The daily returns are distributed with a variance of 12.42 and standard deviation of 3.52. The mean deviation of Emerita Resources Corp is currently at 2.41. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.05 | |
β | Beta against Dow Jones | 0.56 | |
σ | Overall volatility | 3.52 | |
Ir | Information ratio | -0.0027 |
Emerita Resources OTC Stock Return Volatility
Emerita Resources historical daily return volatility represents how much of Emerita Resources otc's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 3.5245% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7444% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Emerita Resources Volatility
Volatility is a rate at which the price of Emerita 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 Emerita Resources may increase or decrease. In other words, similar to Emerita's beta indicator, it measures the risk of Emerita Resources and helps estimate the fluctuations that may happen in a short period of time. So if prices of Emerita 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.Emerita Resources Corp., a natural resource company, engages in the acquisition, exploration, and development of mineral properties primarily in Spain. The company has interests in three exploration properties comprising Iberia Belt West project, which is located in Huelva Province in southwestern Spain Plaza Norte project that is located in the Reocin Mining Camp in Cantabria, northern Spain and Sierra Alta project, which is located in the Asturias region in northwestern Spain. EMERITA RESOURCES is traded on OTC Exchange in the United States.
Emerita 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 Emerita OTC Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Emerita Resources' price varies over time.
3 ways to utilize Emerita Resources' volatility to invest better
Higher Emerita Resources' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Emerita Resources Corp 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. Emerita Resources Corp 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 Emerita Resources Corp investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Emerita 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 Emerita Resources' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Emerita Resources Investment Opportunity
Emerita Resources Corp has a volatility of 3.52 and is 4.76 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Emerita Resources Corp is lower than 31 percent of all global equities and portfolios over the last 90 days. You can use Emerita Resources Corp to enhance the returns of your portfolios. The otc stock experiences a very speculative upward sentiment. The trend is possibly hyped up. Check odds of Emerita Resources to be traded at $0.5875 in 90 days.Average diversification
The correlation between Emerita Resources Corp and DJI is 0.12 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Emerita Resources Corp and DJI in the same portfolio, assuming nothing else is changed.
Emerita Resources Additional Risk Indicators
The analysis of Emerita 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 Emerita Resources' investment and either accepting that risk or mitigating it. Along with some common measures of Emerita Resources otc 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 | 0.0353 | |||
| Market Risk Adjusted Performance | 0.2204 | |||
| Mean Deviation | 2.52 | |||
| Semi Deviation | 2.67 | |||
| Downside Deviation | 3.78 | |||
| Coefficient Of Variation | 2789.71 | |||
| Standard Deviation | 3.57 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential otc stocks, we recommend comparing similar otcs with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Emerita 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 Emerita 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. Emerita 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, Emerita 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 Emerita Resources Corp.
Complementary Tools for Emerita OTC Stock analysis
When running Emerita Resources' price analysis, check to measure Emerita 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 Emerita Resources is operating at the current time. Most of Emerita Resources' value examination focuses on studying past and present price action to predict the probability of Emerita Resources' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Emerita Resources' price. Additionally, you may evaluate how the addition of Emerita Resources to your portfolios can decrease your overall portfolio volatility.
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