Hycroft Mining Holding Stock Volatility
| HYMCL Stock | USD 0.02 0 7.52% |
Hycroft Mining is out of control given 3 months investment horizon. Hycroft Mining Holding holds Efficiency (Sharpe) Ratio of 0.1, which attests that the entity had a 0.1% return per unit of risk over the last 3 months. We were able to break down twenty-eight different technical indicators, which can help you to evaluate if expected returns of 1.56% are justified by taking the suggested risk. Use Hycroft Mining Holding Risk Adjusted Performance of 0.0765, market risk adjusted performance of 0.3827, and Downside Deviation of 14.89 to evaluate company specific risk that cannot be diversified away. Key indicators related to Hycroft Mining's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Hycroft Mining 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 Hycroft daily returns, and it is calculated using variance and standard deviation. We also use Hycroft's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Hycroft Mining volatility.
Hycroft |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Hycroft Mining 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 Hycroft Mining at lower prices. For example, an investor can purchase Hycroft 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 Hycroft Mining'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.
Hycroft Mining Market Sensitivity And Downside Risk
Hycroft Mining's beta coefficient measures the volatility of Hycroft 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 Hycroft stock's returns against your selected market. In other words, Hycroft Mining's beta of 4.56 provides an investor with an approximation of how much risk Hycroft Mining stock can potentially add to one of your existing portfolios. Hycroft Mining Holding is showing large volatility of returns over the selected time horizon. Hycroft Mining Holding is a penny stock. Although Hycroft Mining 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 Hycroft Mining Holding. 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 Hycroft 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 Hycroft Mining Holding Demand TrendCheck current 90 days Hycroft Mining correlation with market (NYSE Composite)Hycroft Beta |
Hycroft 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 | 14.87 |
It is essential to understand the difference between upside risk (as represented by Hycroft Mining's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Hycroft Mining's daily returns or price. Since the actual investment returns on holding a position in hycroft 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 Hycroft Mining.
Hycroft Mining Holding Stock Volatility Analysis
Volatility refers to the frequency at which Hycroft Mining stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Hycroft Mining's price changes. Investors will then calculate the volatility of Hycroft Mining'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 Hycroft Mining's volatility:
Historical Volatility
This type of stock volatility measures Hycroft Mining's fluctuations based on previous trends. It's commonly used to predict Hycroft Mining'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 Hycroft Mining'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 Hycroft Mining'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. Hycroft Mining Holding 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.
Hycroft Mining Projected Return Density Against Market
Assuming the 90 days horizon the stock has the beta coefficient of 4.5583 . This usually indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Hycroft Mining will likely underperform.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 Hycroft Mining 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 Hycroft Mining'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 Hycroft 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.
Hycroft Mining Holding has an alpha of 1.3915, implying that it can generate a 1.39 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Hycroft Mining 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.Hycroft Mining Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of Hycroft Mining is 955.43. The daily returns are distributed with a variance of 221.21 and standard deviation of 14.87. The mean deviation of Hycroft Mining Holding is currently at 11.56. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 1.39 | |
β | Beta against NYSE Composite | 4.56 | |
σ | Overall volatility | 14.87 | |
Ir | Information ratio | 0.10 |
Hycroft Mining Stock Return Volatility
Hycroft Mining historical daily return volatility represents how much of Hycroft Mining stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 14.8732% volatility of returns over 90 . By contrast, NYSE Composite accepts 0.5908% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Hycroft Mining Volatility
Volatility is a rate at which the price of Hycroft Mining 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 Hycroft Mining may increase or decrease. In other words, similar to Hycroft's beta indicator, it measures the risk of Hycroft Mining and helps estimate the fluctuations that may happen in a short period of time. So if prices of Hycroft Mining 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.Hycroft Mining Holding Corporation, together with its subsidiaries, operates as a gold and silver development company in the United States. Hycroft Mining Holding Corporation is headquartered in Winnemucca, Nevada. Hycroft Mining operates under Gold classification in the United States and is traded on NASDAQ Exchange. It employs 102 people.
Hycroft Mining'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 Hycroft Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Hycroft Mining's price varies over time.
3 ways to utilize Hycroft Mining's volatility to invest better
Higher Hycroft Mining's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Hycroft Mining Holding 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. Hycroft Mining Holding 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 Hycroft Mining Holding investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Hycroft Mining'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 Hycroft Mining's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Hycroft Mining Investment Opportunity
Hycroft Mining Holding has a volatility of 14.87 and is 25.2 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Hycroft Mining Holding is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use Hycroft Mining Holding to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Hycroft Mining to be traded at $0.0304 in 90 days.Average diversification
The correlation between Hycroft Mining Holding and NYA 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 Hycroft Mining Holding and NYA in the same portfolio, assuming nothing else is changed.
Hycroft Mining Additional Risk Indicators
The analysis of Hycroft Mining'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 Hycroft Mining's investment and either accepting that risk or mitigating it. Along with some common measures of Hycroft Mining 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 | 0.0765 | |||
| Market Risk Adjusted Performance | 0.3827 | |||
| Mean Deviation | 12.09 | |||
| Semi Deviation | 12.41 | |||
| Downside Deviation | 14.89 | |||
| Coefficient Of Variation | 922.86 | |||
| Standard Deviation | 15.77 |
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.
Hycroft Mining 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 Hycroft Mining 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. Hycroft Mining'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, Hycroft Mining'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 Hycroft Mining Holding.
When determining whether Hycroft Mining Holding is a strong investment it is important to analyze Hycroft Mining's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Hycroft Mining's future performance. For an informed investment choice regarding Hycroft Stock, refer to the following important reports: Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Hycroft Mining Holding. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in main economic indicators. Note that the Hycroft Mining Holding information on this page should be used as a complementary analysis to other Hycroft Mining's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Complementary Tools for Hycroft Stock analysis
When running Hycroft Mining's price analysis, check to measure Hycroft Mining'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 Hycroft Mining is operating at the current time. Most of Hycroft Mining's value examination focuses on studying past and present price action to predict the probability of Hycroft Mining's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Hycroft Mining's price. Additionally, you may evaluate how the addition of Hycroft Mining to your portfolios can decrease your overall portfolio volatility.
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Is Hycroft Mining's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Hycroft Mining. If investors know Hycroft will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Hycroft Mining listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Hycroft Mining Holding is measured differently than its book value, which is the value of Hycroft that is recorded on the company's balance sheet. Investors also form their own opinion of Hycroft Mining's value that differs from its market value or its book value, called intrinsic value, which is Hycroft Mining's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Hycroft Mining's market value can be influenced by many factors that don't directly affect Hycroft Mining's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Hycroft Mining's value and its price as these two are different measures arrived at by different means. Investors typically determine if Hycroft Mining is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hycroft Mining's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.