Starcore International Mines Stock Volatility

SAM Stock  CAD 0.15  0.01  7.14%   
Starcore International appears to be out of control, given 3 months investment horizon. Starcore International owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.1, which indicates the firm had a 0.1% return per unit of risk over the last 3 months. By inspecting Starcore International's technical indicators, you can evaluate if the expected return of 0.78% is justified by implied risk. Please review Starcore International's Coefficient Of Variation of 1245.67, risk adjusted performance of 0.0678, and Semi Deviation of 5.06 to confirm if our risk estimates are consistent with your expectations. Key indicators related to Starcore International's volatility include:
90 Days Market Risk
Chance Of Distress
90 Days Economic Sensitivity
Starcore International 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 Starcore daily returns, and it is calculated using variance and standard deviation. We also use Starcore's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Starcore International volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Starcore International 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 Starcore International at lower prices. For example, an investor can purchase Starcore 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 Starcore International's 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.

Starcore International Market Sensitivity And Downside Risk

Starcore International's beta coefficient measures the volatility of Starcore 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 Starcore stock's returns against your selected market. In other words, Starcore International's beta of -1.35 provides an investor with an approximation of how much risk Starcore International stock can potentially add to one of your existing portfolios. Starcore International Mines is showing large volatility of returns over the selected time horizon. Starcore International Mines is a potential penny stock. Although Starcore International may be in fact a good instrument to invest, many penny 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 Starcore International Mines. 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 Starcore 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 Starcore International Demand Trend
Check current 90 days Starcore International correlation with market (Dow Jones Industrial)

Starcore Beta

    
  -1.35  
Starcore 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

    
  7.81  
It is essential to understand the difference between upside risk (as represented by Starcore International's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Starcore International's daily returns or price. Since the actual investment returns on holding a position in starcore 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 Starcore International.

Starcore International Stock Volatility Analysis

Volatility refers to the frequency at which Starcore International stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Starcore International's price changes. Investors will then calculate the volatility of Starcore International'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 Starcore International's volatility:

Historical Volatility

This type of stock volatility measures Starcore International's fluctuations based on previous trends. It's commonly used to predict Starcore International'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 Starcore International'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 Starcore International'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. Starcore International 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.

Starcore International Projected Return Density Against Market

Assuming the 90 days trading horizon Starcore International Mines has a beta of -1.3451 . This usually implies as returns on its benchmark rise, returns on holding Starcore International Mines are expected to decrease by similarly larger amounts. On the other hand, during market turmoils, Starcore International is expected to outperform its benchmark.
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 Starcore International or Metals & Mining 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 Starcore International'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 Starcore 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.
Starcore International Mines has an alpha of 0.7946, implying that it can generate a 0.79 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Starcore International's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how starcore stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Starcore International 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.

Starcore International Stock Risk Measures

Assuming the 90 days trading horizon the coefficient of variation of Starcore International is 1000.41. The daily returns are distributed with a variance of 61.03 and standard deviation of 7.81. The mean deviation of Starcore International Mines is currently at 5.22. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.73
α
Alpha over Dow Jones
0.79
β
Beta against Dow Jones-1.35
σ
Overall volatility
7.81
Ir
Information ratio 0.06

Starcore International Stock Return Volatility

Starcore International historical daily return volatility represents how much of Starcore International stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm assumes 7.8124% volatility of returns over the 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7354% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Starcore International Volatility

Volatility is a rate at which the price of Starcore International 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 Starcore International may increase or decrease. In other words, similar to Starcore's beta indicator, it measures the risk of Starcore International and helps estimate the fluctuations that may happen in a short period of time. So if prices of Starcore International 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 ReportedProjected for Next Year
Selling And Marketing Expenses1.3 M1.3 M
Market Cap8.4 M18 M
Starcore International'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 Starcore Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Starcore International's price varies over time.

3 ways to utilize Starcore International's volatility to invest better

Higher Starcore International's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Starcore International 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. Starcore International 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 Starcore International investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Starcore International'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 Starcore International's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Starcore International Investment Opportunity

Starcore International Mines has a volatility of 7.81 and is 10.55 times more volatile than Dow Jones Industrial. 69 percent of all equities and portfolios are less risky than Starcore International. You can use Starcore International Mines to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Starcore International to be traded at C$0.1875 in 90 days.

Good diversification

The correlation between Starcore International Mines and DJI is -0.13 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Starcore International Mines and DJI in the same portfolio, assuming nothing else is changed.

Starcore International Additional Risk Indicators

The analysis of Starcore International'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 Starcore International's investment and either accepting that risk or mitigating it. Along with some common measures of Starcore International 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.
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.

Starcore International 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 Starcore International 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. Starcore International'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, Starcore International'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 Starcore International Mines.

Other Information on Investing in Starcore Stock

Starcore International financial ratios help investors to determine whether Starcore 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 Starcore with respect to the benefits of owning Starcore International security.