EOG Resources (Brazil) Volatility
| E1OG34 Stock | BRL 378.86 8.02 2.07% |
At this point, EOG Resources is very steady. EOG Resources secures Sharpe Ratio (or Efficiency) of 0.0905, which denotes the company had a 0.0905% return per unit of return volatility over the last 3 months. We have found twenty-eight technical indicators for EOG Resources, which you can use to evaluate the volatility of the firm. Please confirm EOG Resources' mean deviation of 0.7689, and Downside Deviation of 2.01 to check if the risk estimate we provide is consistent with the expected return of 0.18%. Key indicators related to EOG Resources' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
EOG Resources 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 EOG daily returns, and it is calculated using variance and standard deviation. We also use EOG's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of EOG Resources volatility.
EOG |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as EOG 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 EOG Resources at lower prices to lower their average cost per share. Similarly, when the prices of EOG Resources' stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with EOG Stock
Moving against EOG Stock
| 0.8 | ITUB3 | Ita Unibanco Holding | PairCorr |
| 0.78 | ITUB4 | Ita Unibanco Holding | PairCorr |
| 0.69 | PRIO3 | Petro Rio SA | PairCorr |
| 0.69 | HOND34 | Honda Motor | PairCorr |
| 0.46 | BABA34 | Alibaba Group Holding | PairCorr |
EOG Resources Market Sensitivity And Downside Risk
EOG Resources' beta coefficient measures the volatility of EOG 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 EOG stock's returns against your selected market. In other words, EOG Resources's beta of 0.57 provides an investor with an approximation of how much risk EOG Resources stock can potentially add to one of your existing portfolios. EOG Resources currently demonstrates below-average downside deviation. It has Information Ratio of 0.07 and Jensen Alpha of 0.15. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure EOG Resources' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact EOG Resources' 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 EOG Resources Demand TrendCheck current 90 days EOG Resources correlation with market (Dow Jones Industrial)EOG Beta |
EOG 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 | 2.01 |
It is essential to understand the difference between upside risk (as represented by EOG Resources's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of EOG Resources' daily returns or price. Since the actual investment returns on holding a position in eog 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 EOG Resources.
EOG Resources Stock Volatility Analysis
Volatility refers to the frequency at which EOG Resources stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with EOG Resources' price changes. Investors will then calculate the volatility of EOG Resources' 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 EOG Resources' volatility:
Historical Volatility
This type of stock volatility measures EOG Resources' fluctuations based on previous trends. It's commonly used to predict EOG Resources' 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 EOG Resources' 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 EOG 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. EOG Resources 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.
EOG Resources Projected Return Density Against Market
Assuming the 90 days trading horizon EOG Resources has a beta of 0.5711 suggesting as returns on the market go up, EOG Resources average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding EOG Resources 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 EOG Resources or Energy 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 EOG Resources' 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 EOG 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.
EOG Resources has an alpha of 0.1537, implying that it can generate a 0.15 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an EOG Resources 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.EOG Resources Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of EOG Resources is 1105.27. The daily returns are distributed with a variance of 4.04 and standard deviation of 2.01. The mean deviation of EOG Resources is currently at 0.79. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.79
α | Alpha over Dow Jones | 0.15 | |
β | Beta against Dow Jones | 0.57 | |
σ | Overall volatility | 2.01 | |
Ir | Information ratio | 0.07 |
EOG Resources Stock Return Volatility
EOG Resources historical daily return volatility represents how much of EOG Resources stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 2.0108% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7982% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About EOG Resources Volatility
Volatility is a rate at which the price of EOG 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 EOG Resources may increase or decrease. In other words, similar to EOG's beta indicator, it measures the risk of EOG Resources and helps estimate the fluctuations that may happen in a short period of time. So if prices of EOG 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.EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil, and natural gas and natural gas liquids. EOG Resources, Inc. was incorporated in 1985 and is headquartered in Houston, Texas. EOG RESOURCEDRN operates under Oil Gas EP classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 2900 people.
EOG 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 EOG Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much EOG Resources' price varies over time.
3 ways to utilize EOG Resources' volatility to invest better
Higher EOG Resources' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of EOG Resources 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. EOG Resources 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 EOG Resources investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in EOG 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 EOG Resources' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
EOG Resources Investment Opportunity
EOG Resources has a volatility of 2.01 and is 2.51 times more volatile than Dow Jones Industrial. 17 percent of all equities and portfolios are less risky than EOG Resources. You can use EOG Resources 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 EOG Resources to be traded at R$363.71 in 90 days.Modest diversification
The correlation between EOG Resources and DJI is 0.23 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding EOG Resources and DJI in the same portfolio, assuming nothing else is changed.
EOG Resources Additional Risk Indicators
The analysis of EOG 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 EOG Resources' investment and either accepting that risk or mitigating it. Along with some common measures of EOG Resources 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 | 0.0766 | |||
| Market Risk Adjusted Performance | 0.3014 | |||
| Mean Deviation | 0.7689 | |||
| Semi Deviation | 0.5986 | |||
| Downside Deviation | 2.01 | |||
| Coefficient Of Variation | 1122.28 | |||
| Standard Deviation | 1.98 |
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.
EOG 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 EOG 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. EOG 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, EOG 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 EOG Resources.
Complementary Tools for EOG Stock analysis
When running EOG Resources' price analysis, check to measure EOG 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 EOG Resources is operating at the current time. Most of EOG Resources' value examination focuses on studying past and present price action to predict the probability of EOG Resources' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move EOG Resources' price. Additionally, you may evaluate how the addition of EOG Resources to your portfolios can decrease your overall portfolio volatility.
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |