Fortuna Silver Mines Stock Volatility
| FVI Stock | CAD 7.07 0.11 1.53% |
Fortuna Silver appears to be slightly risky, given 3 months investment horizon. Fortuna Silver Mines secures Sharpe Ratio (or Efficiency) of 0.0627, which denotes the company had a 0.0627% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Fortuna Silver Mines, which you can use to evaluate the volatility of the firm. Please utilize Fortuna Silver's Downside Deviation of 3.22, coefficient of variation of 900.33, and Mean Deviation of 2.58 to check if our risk estimates are consistent with your expectations. Key indicators related to Fortuna Silver's volatility include:
720 Days Market Risk | Chance Of Distress | 720 Days Economic Sensitivity |
Fortuna Silver 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 Fortuna daily returns, and it is calculated using variance and standard deviation. We also use Fortuna's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Fortuna Silver volatility.
Fortuna |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Fortuna Silver 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 Fortuna Silver at lower prices. For example, an investor can purchase Fortuna 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 Fortuna Silver'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.
Moving together with Fortuna Stock
Moving against Fortuna Stock
Fortuna Silver Market Sensitivity And Downside Risk
Fortuna Silver's beta coefficient measures the volatility of Fortuna 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 Fortuna stock's returns against your selected market. In other words, Fortuna Silver's beta of 0.76 provides an investor with an approximation of how much risk Fortuna Silver stock can potentially add to one of your existing portfolios. Fortuna Silver Mines shows above-average downside volatility for the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Fortuna Silver's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Fortuna Silver's 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 Fortuna Silver Mines Demand TrendCheck current 90 days Fortuna Silver correlation with market (Dow Jones Industrial)Fortuna Beta |
Fortuna 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 | 3.44 |
It is essential to understand the difference between upside risk (as represented by Fortuna Silver's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Fortuna Silver's daily returns or price. Since the actual investment returns on holding a position in fortuna 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 Fortuna Silver.
Fortuna Silver Mines Stock Volatility Analysis
Volatility refers to the frequency at which Fortuna Silver stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Fortuna Silver's price changes. Investors will then calculate the volatility of Fortuna Silver'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 Fortuna Silver's volatility:
Historical Volatility
This type of stock volatility measures Fortuna Silver's fluctuations based on previous trends. It's commonly used to predict Fortuna Silver'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 Fortuna Silver'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 Fortuna Silver'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. Fortuna Silver Mines 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.
Fortuna Silver Projected Return Density Against Market
Assuming the 90 days trading horizon Fortuna Silver has a beta of 0.7576 . This usually indicates as returns on the market go up, Fortuna Silver average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Fortuna Silver Mines 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 Fortuna Silver 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 Fortuna Silver'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 Fortuna 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.
Fortuna Silver Mines has an alpha of 0.2964, implying that it can generate a 0.3 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Fortuna Silver 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.Fortuna Silver Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Fortuna Silver is 1593.66. The daily returns are distributed with a variance of 11.81 and standard deviation of 3.44. The mean deviation of Fortuna Silver Mines is currently at 2.51. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.72
α | Alpha over Dow Jones | 0.30 | |
β | Beta against Dow Jones | 0.76 | |
σ | Overall volatility | 3.44 | |
Ir | Information ratio | 0.08 |
Fortuna Silver Stock Return Volatility
Fortuna Silver historical daily return volatility represents how much of Fortuna Silver stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm assumes 3.4368% volatility of returns over the 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7357% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Fortuna Silver Volatility
Volatility is a rate at which the price of Fortuna Silver 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 Fortuna Silver may increase or decrease. In other words, similar to Fortuna's beta indicator, it measures the risk of Fortuna Silver and helps estimate the fluctuations that may happen in a short period of time. So if prices of Fortuna Silver 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 Reported | Projected for Next Year | ||
| Market Cap | 519.2 M | 545.2 M |
Fortuna Silver'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 Fortuna Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Fortuna Silver's price varies over time.
3 ways to utilize Fortuna Silver's volatility to invest better
Higher Fortuna Silver's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Fortuna Silver Mines 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. Fortuna Silver Mines 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 Fortuna Silver Mines investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Fortuna Silver'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 Fortuna Silver's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Fortuna Silver Investment Opportunity
Fortuna Silver Mines has a volatility of 3.44 and is 4.65 times more volatile than Dow Jones Industrial. 30 percent of all equities and portfolios are less risky than Fortuna Silver. You can use Fortuna Silver Mines to protect your portfolios against small market fluctuations. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of Fortuna Silver to be traded at C$6.86 in 90 days.Average diversification
The correlation between Fortuna Silver Mines 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 Fortuna Silver Mines and DJI in the same portfolio, assuming nothing else is changed.
Fortuna Silver Additional Risk Indicators
The analysis of Fortuna Silver'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 Fortuna Silver's investment and either accepting that risk or mitigating it. Along with some common measures of Fortuna Silver 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 | 0.0882 | |||
| Market Risk Adjusted Performance | 0.5156 | |||
| Mean Deviation | 2.58 | |||
| Semi Deviation | 2.9 | |||
| Downside Deviation | 3.22 | |||
| Coefficient Of Variation | 900.33 | |||
| Standard Deviation | 3.54 |
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.
Fortuna Silver 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 Fortuna Silver 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. Fortuna Silver'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, Fortuna Silver'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 Fortuna Silver Mines.
When determining whether Fortuna Silver Mines is a strong investment it is important to analyze Fortuna Silver'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 Fortuna Silver's future performance. For an informed investment choice regarding Fortuna Stock, refer to the following important reports: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Fortuna Silver Mines. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.