Barrick Stock Volatility


USD 16.86  0.03  0.18%   

We consider Barrick Gold not too volatile. Barrick Gold Corp secures Sharpe Ratio (or Efficiency) of 0.0507, which signifies that the company had 0.0507% of return per unit of risk over the last 3 months. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-seven technical indicators for Barrick Gold Corp, which you can use to evaluate the future volatility of the firm. Please confirm Barrick Gold Corp Risk Adjusted Performance of 0.1322, mean deviation of 2.3, and Downside Deviation of 2.84 to double-check if the risk estimate we provide is consistent with the expected return of 0.15%.
Barrick Gold 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 Barrick daily returns, and it is calculated using variance and standard deviation. We also use Barrick's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Barrick Gold volatility.

720 Days Market Risk

Not too volatile

Chance of Distress

720 Days Economic Sensitivity

Responds to the market
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Barrick Gold 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 Barrick Gold at lower prices. For example, an investor can purchase Barrick 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 Barrick Gold'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 Barrick Gold

+0.69SLFSun Life FinancialPairCorr

Barrick Gold Market Sensitivity And Downside Risk

Barrick Gold's beta coefficient measures the volatility of Barrick stock compared to the systematic risk of the entire stock 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 Barrick stock's returns against your selected market. In other words, Barrick Gold's beta of 1.22 provides an investor with an approximation of how much risk Barrick Gold stock can potentially add to one of your existing portfolios.
Barrick Gold Corp currently demonstrates below-average downside deviation. It has Information Ratio of 0.06 and Jensen Alpha of 0.16. However, we advise investors to further question Barrick Gold Corp expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Barrick Gold'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 Barrick Gold'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 stocks as prices fall.
3 Months Beta |Analyze Barrick Gold Corp Demand Trend
Check current 90 days Barrick Gold correlation with market (NYSE Composite)

Barrick Beta

Barrick standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity 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

It is essential to understand the difference between upside risk (as represented by Barrick Gold's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Barrick Gold's daily returns or price. Since the actual investment returns on holding a position in barrick 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 Barrick Gold.

Using Barrick Put Option to Manage Risk

Put options written on Barrick Gold grant holders of the option the right to sell a specified amount of Barrick Gold at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Barrick Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Barrick Gold's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Barrick Gold will be realized, the loss incurred will be offset by the profits made with the option trade.

Barrick Gold's PUT expiring on 2022-12-09

       Barrick Gold Price At Expiration  

Current Barrick Gold Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
2022-12-09 PUT at $19.5-0.93260.0723132022-12-093.0 - 3.12.33View
2022-12-09 PUT at $18.5-0.91530.1138192022-12-091.98 - 2.122.1View
2022-12-09 PUT at $18.0-0.96530.121322022-12-091.47 - 1.61.56View
2022-12-09 PUT at $17.5-0.91880.2099932022-12-091.04 - 1.110.98View
2022-12-09 PUT at $17.0-0.80390.45327782022-12-090.6 - 0.630.58View
2022-12-09 PUT at $16.5-0.52780.70779482022-12-090.25 - 0.280.25View
2022-12-09 PUT at $16.0-0.22240.48558272022-12-090.08 - 0.090.08View
2022-12-09 PUT at $15.5-0.08720.216212912022-12-090.03 - 0.040.03View
2022-12-09 PUT at $15.0-0.04990.109610262022-12-090.01 - 0.020.02View
2022-12-09 PUT at $14.5-0.03980.07095802022-12-090.0 - 0.020.02View
View All Barrick Gold Options

Barrick Gold Corp Stock Volatility Analysis

Volatility refers to the frequency at which Barrick Gold stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Barrick Gold's price changes. Investors will then calculate the volatility of Barrick Gold'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 Barrick Gold's volatility:

Historical Volatility

This type of stock volatility measures Barrick Gold's fluctuations based on previous trends. It's commonly used to predict Barrick Gold'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 Barrick Gold'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 Barrick Gold's to be redeemed at a future date.
The output start index for this execution was zero with a total number of output elements of sixty-one. Developed by Larry Williams, the Weighted Close is the average of Barrick Gold Corp high, low and close of a chart with the close values weighted twice. It can be used to smooth an indicator that normally takes only Barrick Gold closing price as input.

Barrick Gold Projected Return Density Against Market

Given the investment horizon of 90 days the stock has the beta coefficient of 1.223 . 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, Barrick Gold 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 Barrick Gold 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 Barrick Gold'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 Barrick 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.
The company has an alpha of 0.1607, implying that it can generate a 0.16 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
Barrick Gold's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how barrick stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Barrick Gold Price Volatility?

Several factors can influence a stock's market volatility:


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.

Barrick Gold Stock Risk Measures

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 Barrick Gold 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 Barrick Gold'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 Barrick 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. Given the investment horizon of 90 days the coefficient of variation of Barrick Gold is 1973.03. The daily returns are distributed with a variance of 9.27 and standard deviation of 3.04. The mean deviation of Barrick Gold Corp is currently at 2.3. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 1.5
Alpha over NYSE Composite
Beta against NYSE Composite1.22
Overall volatility
Information ratio 0.06

Barrick Gold Stock Return Volatility

Barrick Gold historical daily return volatility represents how much of Barrick Gold stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 3.0439% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 1.5075% volatility on return distribution over the 90 days horizon.
 Performance (%) 

About Barrick Gold Volatility

Volatility is a rate at which the price of Barrick Gold 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 Barrick Gold may increase or decrease. In other words, similar to Barrick's beta indicator, it measures the risk of Barrick Gold and helps estimate the fluctuations that may happen in a short period of time. So if prices of Barrick Gold 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 ReportedProjected for 2022
Market Capitalization33.8 B32.4 B

Barrick Gold Investment Opportunity

Barrick Gold Corp has a volatility of 3.04 and is 2.01 times more volatile than NYSE Composite. 26  of all equities and portfolios are less risky than Barrick Gold. Compared to the overall equity markets, volatility of historical daily returns of Barrick Gold Corp is lower than 26 () of all global equities and portfolios over the last 90 days. Use Barrick Gold Corp to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a normal downward trend and little activity. Check odds of Barrick Gold to be traded at $16.69 in 90 days.

Poor diversification

The correlation between Barrick Gold Corp and NYA is 0.61 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Barrick Gold Corp and NYA in the same portfolio, assuming nothing else is changed.

Barrick Gold Additional Risk Indicators

The analysis of Barrick Gold'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 Barrick Gold's investment and either accepting that risk or mitigating it. Along with some common measures of Barrick Gold 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.
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.

Barrick Gold 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 Barrick Gold 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. Barrick Gold'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, Barrick Gold'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 Barrick Gold Corp.
Please check Risk vs Return Analysis. You can also try Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

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When running Barrick Gold Corp price analysis, check to measure Barrick Gold'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 Barrick Gold is operating at the current time. Most of Barrick Gold's value examination focuses on studying past and present price action to predict the probability of Barrick Gold's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Barrick Gold's price. Additionally, you may evaluate how the addition of Barrick Gold to your portfolios can decrease your overall portfolio volatility.
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Is Barrick Gold'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 Barrick Gold. If investors know Barrick 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 Barrick Gold 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 Barrick Gold Corp is measured differently than its book value, which is the value of Barrick that is recorded on the company's balance sheet. Investors also form their own opinion of Barrick Gold's value that differs from its market value or its book value, called intrinsic value, which is Barrick Gold'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 Barrick Gold's market value can be influenced by many factors that don't directly affect Barrick Gold'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 Barrick Gold's value and its price as these two are different measures arrived at by different means. Investors typically determine Barrick Gold value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Barrick Gold'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.