Element Global Stock Volatility
| ELGL Stock | USD 0.0001 0.00 0.00% |
Element Global is out of control given 3 months investment horizon. Element Global secures Sharpe Ratio (or Efficiency) of 0.11, which denotes the company had a 0.11 % return per unit of risk over the last 3 months. We were able to analyze and collect data for seventeen different technical indicators, which can help you to evaluate if expected returns of 12.66% are justified by taking the suggested risk. Use Element Global Variance of 12822.99, mean deviation of 27.73, and Standard Deviation of 113.24 to evaluate company specific risk that cannot be diversified away. Key indicators related to Element Global's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Element Global 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 Element daily returns, and it is calculated using variance and standard deviation. We also use Element's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Element Global volatility.
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Element Global at lower prices. For example, an investor can purchase Element stock that has halved in price over a short period. This will lower their average cost per share, thereby improving the overall portfolio performance when market normalizes.
Moving against Element Stock
| 0.44 | CP | Canadian Pacific Railway | PairCorr |
| 0.39 | TOYO | TOYO Co, | PairCorr |
| 0.39 | AL | Air Lease | PairCorr |
| 0.39 | AP | Ampco Pittsburgh | PairCorr |
| 0.38 | FIP | FTAI Infrastructure | PairCorr |
| 0.38 | AZ | A2Z Smart Technologies | PairCorr |
| 0.38 | BV | BrightView Holdings | PairCorr |
| 0.37 | HON | Honeywell International Earnings Call This Week | PairCorr |
| 0.37 | CR | Crane Company | PairCorr |
Element Global Market Sensitivity And Downside Risk
Element Global's beta coefficient measures the volatility of Element 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 Element stock's returns against your selected market. In other words, Element Global's beta of 18.0 provides an investor with an approximation of how much risk Element Global stock can potentially add to one of your existing portfolios. Element Global is displaying above-average volatility over the selected time horizon. Element Global appears to be a penny stock. Although Element Global may be, in fact, a solid short-term or long term investment, many penny stocks are speculative investment instruments that are often subject to artificial stock promotion and campaigns of hype which may lead to misinformation and misrepresentation. Please make sure you fully understand upside potential and downside risks of investing in Element Global or similar risky assets. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswing without any event/news,and sudden news releases. We also encourage traders to check biographies and work history of company President, CEO or other officers before investing in high-volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Element 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 Element Global Demand TrendCheck current 90 days Element Global correlation with market (Dow Jones Industrial)Element Beta |
Element 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 | 113.24 |
It is essential to understand the difference between upside risk (as represented by Element Global's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Element Global's daily returns or price. Since the actual investment returns on holding a position in element 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 Element Global.
Element Global Stock Volatility Analysis
Volatility refers to the frequency at which Element Global stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Element Global's price changes. Investors will then calculate the volatility of Element Global'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 Element Global's volatility:
Historical Volatility
This type of stock volatility measures Element Global's fluctuations based on previous trends. It's commonly used to predict Element Global'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 Element Global'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 Element Global'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. Element Global 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.
Element Global Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 18.0015 suggesting as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Element Global 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 Element Global or Industrial Conglomerates 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 Element Global'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 Element 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.
Element Global has an alpha of 10.292, implying that it can generate a 10.29 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Element Global 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.Element Global Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Element Global is 894.73. The daily returns are distributed with a variance of 12822.99 and standard deviation of 113.24. The mean deviation of Element Global is currently at 27.73. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.93
α | Alpha over Dow Jones | 10.29 | |
β | Beta against Dow Jones | 18.00 | |
σ | Overall volatility | 113.24 | |
Ir | Information ratio | 0.11 |
Element Global Stock Return Volatility
Element Global historical daily return volatility represents how much of Element Global stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 113.2386% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8415% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Element Global Volatility
Volatility is a rate at which the price of Element Global 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 Element Global may increase or decrease. In other words, similar to Element's beta indicator, it measures the risk of Element Global and helps estimate the fluctuations that may happen in a short period of time. So if prices of Element Global 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.Element Global, Inc. operates in mining, renewable energy, technology, sports, media, and finance businesses. Element Global, Inc. is headquartered in Los Angeles, California. Element Global operates under Conglomerates classification in the United States and is traded on OTC Exchange.
Element Global'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 Element Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Element Global's price varies over time.
3 ways to utilize Element Global's volatility to invest better
Higher Element Global's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Element Global 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. Element Global 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 Element Global investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Element Global'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 Element Global's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Element Global Investment Opportunity
Element Global has a volatility of 113.24 and is 134.81 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Element Global is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use Element Global to protect your portfolios against small market fluctuations. The stock experiences a normal downward trend, but the immediate impact on correlations cannot be determined at the moment . Check odds of Element Global to be traded at $1.0E-4 in 90 days.Average diversification
The correlation between Element Global and DJI is 0.15 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Element Global and DJI in the same portfolio, assuming nothing else is changed.
Element Global Additional Risk Indicators
The analysis of Element Global'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 Element Global's investment and either accepting that risk or mitigating it. Along with some common measures of Element Global 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 | 0.1143 | |||
| Market Risk Adjusted Performance | 0.7125 | |||
| Mean Deviation | 27.73 | |||
| Coefficient Of Variation | 894.73 | |||
| Standard Deviation | 113.24 | |||
| Variance | 12822.99 | |||
| Information Ratio | 0.1105 |
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.
Element Global 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 Element Global 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. Element Global'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, Element Global'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 Element Global.
When determining whether Element Global is a strong investment it is important to analyze Element Global'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 Element Global's future performance. For an informed investment choice regarding Element Stock, refer to the following important reports: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Element Global. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price. For more information on how to buy Element Stock please use our How to buy in Element Stock guide.You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Is Industrial Conglomerates space 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 Element Global. If investors know Element 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 Element Global 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 Element Global is measured differently than its book value, which is the value of Element that is recorded on the company's balance sheet. Investors also form their own opinion of Element Global's value that differs from its market value or its book value, called intrinsic value, which is Element Global'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 Element Global's market value can be influenced by many factors that don't directly affect Element Global'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 Element Global's value and its price as these two are different measures arrived at by different means. Investors typically determine if Element Global is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Element Global'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.