Tamboran Resources Stock Volatility
| TBN Stock | 17.39 0.61 3.39% |
Tamboran Resources owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0907, which indicates the firm had a -0.0907% return per unit of risk over the last 3 months. Tamboran Resources exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Tamboran Resources' Variance of 5.54, coefficient of variation of (2,201), and Risk Adjusted Performance of (0.03) to confirm the risk estimate we provide. Key indicators related to Tamboran Resources' volatility include:
240 Days Market Risk | Chance Of Distress | 240 Days Economic Sensitivity |
Tamboran 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 Tamboran daily returns, and it is calculated using variance and standard deviation. We also use Tamboran's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Tamboran Resources volatility.
Tamboran |
ESG Sustainability
While most ESG disclosures are voluntary, Tamboran Resources' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Tamboran Resources' managers and investors.Environmental | Governance | Social |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Tamboran Resources 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 Tamboran Resources at lower prices. For example, an investor can purchase Tamboran 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 Tamboran Resources' 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 against Tamboran Stock
| 0.67 | VIST | Vista Oil Gas | PairCorr |
| 0.66 | DMLP | Dorchester Minerals | PairCorr |
| 0.57 | CNX | CNX Resources Corp Fiscal Year End 23rd of January 2025 | PairCorr |
| 0.5 | PR | Permian Resources | PairCorr |
| 0.41 | BSM | Black Stone Minerals | PairCorr |
| 0.4 | AR | Antero Resources Corp Potential Growth | PairCorr |
| 0.36 | SM | SM Energy | PairCorr |
| 0.33 | EPSN | Epsilon Energy | PairCorr |
| 0.31 | EP | Empire Petroleum Corp | PairCorr |
Tamboran Resources Market Sensitivity And Downside Risk
Tamboran Resources' beta coefficient measures the volatility of Tamboran 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 Tamboran stock's returns against your selected market. In other words, Tamboran Resources's beta of 0.71 provides an investor with an approximation of how much risk Tamboran Resources stock can potentially add to one of your existing portfolios. Tamboran Resources exhibits very low volatility with skewness of 0.43 and kurtosis of 2.11. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Tamboran 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 Tamboran 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 Tamboran Resources Demand TrendCheck current 90 days Tamboran Resources correlation with market (Dow Jones Industrial)Tamboran Beta |
Tamboran 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 | 2.13 |
It is essential to understand the difference between upside risk (as represented by Tamboran Resources's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Tamboran Resources' daily returns or price. Since the actual investment returns on holding a position in tamboran 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 Tamboran Resources.
Tamboran Resources Stock Volatility Analysis
Volatility refers to the frequency at which Tamboran Resources stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Tamboran Resources' price changes. Investors will then calculate the volatility of Tamboran 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 Tamboran Resources' volatility:
Historical Volatility
This type of stock volatility measures Tamboran Resources' fluctuations based on previous trends. It's commonly used to predict Tamboran 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 Tamboran 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 Tamboran 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. Tamboran 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.
Tamboran Resources Projected Return Density Against Market
Considering the 90-day investment horizon Tamboran Resources has a beta of 0.7135 . This usually implies as returns on the market go up, Tamboran Resources average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Tamboran 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 Tamboran Resources or Oil, Gas & Consumable Fuels 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 Tamboran 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 Tamboran 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.
Tamboran Resources has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives a Tamboran 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.Tamboran Resources Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Tamboran Resources is -1102.7. The daily returns are distributed with a variance of 4.55 and standard deviation of 2.13. The mean deviation of Tamboran Resources is currently at 1.63. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | -0.21 | |
β | Beta against Dow Jones | 0.71 | |
σ | Overall volatility | 2.13 | |
Ir | Information ratio | -0.1 |
Tamboran Resources Stock Return Volatility
Tamboran Resources historical daily return volatility represents how much of Tamboran Resources stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 2.1327% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7444% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Tamboran Resources Volatility
Volatility is a rate at which the price of Tamboran 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 Tamboran Resources may increase or decrease. In other words, similar to Tamboran's beta indicator, it measures the risk of Tamboran Resources and helps estimate the fluctuations that may happen in a short period of time. So if prices of Tamboran 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.| Last Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 3.2 M | 4.3 M | |
| Market Cap | 300.6 M | 315.6 M |
Tamboran 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 Tamboran Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Tamboran Resources' price varies over time.
3 ways to utilize Tamboran Resources' volatility to invest better
Higher Tamboran Resources' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Tamboran 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. Tamboran 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 Tamboran Resources investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Tamboran 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 Tamboran Resources' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Tamboran Resources Investment Opportunity
Tamboran Resources has a volatility of 2.13 and is 2.88 times more volatile than Dow Jones Industrial. 18 percent of all equities and portfolios are less risky than Tamboran Resources. You can use Tamboran 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 Tamboran Resources to be traded at 16.69 in 90 days.Modest diversification
The correlation between Tamboran 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 Tamboran Resources and DJI in the same portfolio, assuming nothing else is changed.
Tamboran Resources Additional Risk Indicators
The analysis of Tamboran 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 Tamboran Resources' investment and either accepting that risk or mitigating it. Along with some common measures of Tamboran 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 | (0.03) | |||
| Market Risk Adjusted Performance | (0.15) | |||
| Mean Deviation | 1.74 | |||
| Coefficient Of Variation | (2,201) | |||
| Standard Deviation | 2.35 | |||
| Variance | 5.54 | |||
| Information Ratio | (0.10) |
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.
Tamboran 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 Tamboran 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. Tamboran 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, Tamboran 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 Tamboran Resources.
When determining whether Tamboran Resources offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Tamboran Resources' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Tamboran Resources Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Tamboran Resources Stock: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Tamboran Resources. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics. To learn how to invest in Tamboran Stock, please use our How to Invest in Tamboran Resources guide.You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Is Oil, Gas & Consumable Fuels 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 Tamboran Resources. If investors know Tamboran 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 Tamboran Resources listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.02) | Return On Assets (0.04) | Return On Equity (0.14) |
The market value of Tamboran Resources is measured differently than its book value, which is the value of Tamboran that is recorded on the company's balance sheet. Investors also form their own opinion of Tamboran Resources' value that differs from its market value or its book value, called intrinsic value, which is Tamboran Resources' 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 Tamboran Resources' market value can be influenced by many factors that don't directly affect Tamboran Resources' 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 Tamboran Resources' value and its price as these two are different measures arrived at by different means. Investors typically determine if Tamboran Resources is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Tamboran Resources' 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.