Hudbay Stock Volatility

HBM
 Stock
  

USD 4.18  0.22  5.00%   

Hudbay Minerals holds Efficiency (Sharpe) Ratio of -0.0915, which attests that the entity had -0.0915% of return per unit of risk over the last 3 months. Macroaxis standpoint towards determining the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Hudbay Minerals exposes twenty-seven different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to check out Hudbay Minerals market risk adjusted performance of (0.09), and Risk Adjusted Performance of (0.046262) to validate the risk estimate we provide.
  
Hudbay Minerals 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 Hudbay daily returns, and it is calculated using variance and standard deviation. We also use Hudbay's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Hudbay Minerals volatility.

90 Days Market Risk

Relatively risky

Chance of Distress

Average

90 Days Economic Sensitivity

Hyperactively responds to market trends
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Hudbay Minerals 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 Hudbay Minerals at lower prices. For example, an investor can purchase Hudbay 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 Hudbay Minerals' 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 Hudbay Minerals

0.91EROEro Copper CorpPairCorr
0.95FCXFreeport-Mcmoran Potential GrowthPairCorr
0.92AAAlcoa CorpPairCorr
0.78AAUAlmaden MineralsPairCorr
0.89ACHAluminum CorpPairCorr

Moving against Hudbay Minerals

0.85AEHLAntelope Enterprise HldgPairCorr

Hudbay Minerals Market Sensitivity And Downside Risk

Hudbay Minerals' beta coefficient measures the volatility of Hudbay 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 Hudbay stock's returns against your selected market. In other words, Hudbay Minerals's beta of 2.11 provides an investor with an approximation of how much risk Hudbay Minerals stock can potentially add to one of your existing portfolios.
Hudbay Minerals exhibits very low volatility with skewness of 0.17 and kurtosis of -0.35. However, we advise investors to further study Hudbay Minerals technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Hudbay Minerals' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Hudbay Minerals' 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 Hudbay Minerals Demand Trend
Check current 90 days Hudbay Minerals correlation with market (DOW)

Hudbay Beta

    
  2.11  
Hudbay 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

    
  4.68  
It is essential to understand the difference between upside risk (as represented by Hudbay Minerals's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Hudbay Minerals' daily returns or price. Since the actual investment returns on holding a position in hudbay 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 Hudbay Minerals.

Using Hudbay Put Option to Manage Risk

Put options written on Hudbay Minerals grant holders of the option the right to sell a specified amount of Hudbay Minerals 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 Hudbay Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Hudbay Minerals' 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 Hudbay Minerals will be realized, the loss incurred will be offset by the profits made with the option trade.

Hudbay Minerals' PUT expiring on 2022-08-19

   Profit   
Share
       Hudbay Minerals Price At Expiration  

Current Hudbay Minerals Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2022-08-19 PUT at $5.0-0.99980.82473412022-08-190.55 - 0.650.7View
View All Hudbay Minerals Options

Hudbay Minerals Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Hudbay Minerals' fluctuations based on previous trends. It's commonly used to predict Hudbay Minerals' 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 Hudbay Minerals' 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 Hudbay Minerals' 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. Hudbay Minerals 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.
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Hudbay Minerals Projected Return Density Against Market

Considering the 90-day investment horizon the stock has the beta coefficient of 2.1127 . 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, Hudbay Minerals 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 Hudbay Minerals or Basic Materials 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 Hudbay Minerals' 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 Hudbay 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 a negative alpha, implying that the risk taken by holding this instrument is not justified. Hudbay Minerals is significantly underperforming DOW.
   Predicted Return Density   
       Returns  
Hudbay Minerals' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how hudbay 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 Hudbay Minerals Price Volatility?

Several factors can influence a Stock's stock 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.

Hudbay Minerals 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 Hudbay Minerals or Basic Materials 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 Hudbay Minerals' 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 Hudbay 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. Considering the 90-day investment horizon the coefficient of variation of Hudbay Minerals is -1093.15. The daily returns are distributed with a variance of 21.86 and standard deviation of 4.68. The mean deviation of Hudbay Minerals is currently at 3.72. For similar time horizon, the selected benchmark (DOW) has volatility of 1.24
α
Alpha over DOW
-0.38
β
Beta against DOW2.11
σ
Overall volatility
4.68
Ir
Information ratio -0.06

Hudbay Minerals Stock Return Volatility

Hudbay Minerals historical daily return volatility represents how much of Hudbay Minerals stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company has volatility of 4.6759% on return distribution over 90 days investment horizon. By contrast, DOW inherits 1.1539% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About Hudbay Minerals Volatility

Volatility is a rate at which the price of Hudbay Minerals 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 Hudbay Minerals may increase or decrease. In other words, similar to Hudbay's beta indicator, it measures the risk of Hudbay Minerals and helps estimate the fluctuations that may happen in a short period of time. So if prices of Hudbay Minerals 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 Capitalization1.9 B1.9 B

Hudbay Minerals Investment Opportunity

Hudbay Minerals has a volatility of 4.68 and is 4.07 times more volatile than DOW. 40  of all equities and portfolios are less risky than Hudbay Minerals. Compared to the overall equity markets, volatility of historical daily returns of Hudbay Minerals is lower than 40 () of all global equities and portfolios over the last 90 days. Use Hudbay Minerals to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a very speculative upward sentiment. Check odds of Hudbay Minerals to be traded at $3.97 in 90 days.

Very weak diversification

The correlation between Hudbay Minerals and DJI is 0.56 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Hudbay Minerals and DJI in the same portfolio, assuming nothing else is changed.

Hudbay Minerals Additional Risk Indicators

The analysis of Hudbay Minerals' 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 Hudbay Minerals' investment and either accepting that risk or mitigating it. Along with some common measures of Hudbay Minerals 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.

Hudbay Minerals 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 Hudbay Minerals 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. Hudbay Minerals' 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, Hudbay Minerals' 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 Hudbay Minerals.
Please check Risk vs Return Analysis. Note that the Hudbay Minerals information on this page should be used as a complementary analysis to other Hudbay Minerals' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

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When running Hudbay Minerals price analysis, check to measure Hudbay Minerals' 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 Hudbay Minerals is operating at the current time. Most of Hudbay Minerals' value examination focuses on studying past and present price action to predict the probability of Hudbay Minerals' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Hudbay Minerals' price. Additionally, you may evaluate how the addition of Hudbay Minerals to your portfolios can decrease your overall portfolio volatility.
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Is Hudbay Minerals' 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 Hudbay Minerals. If investors know Hudbay 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 Hudbay Minerals listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
1.2 B
Quarterly Revenue Growth YOY
0.028
Return On Assets
0.0266
Return On Equity
-0.0521
The market value of Hudbay Minerals is measured differently than its book value, which is the value of Hudbay that is recorded on the company's balance sheet. Investors also form their own opinion of Hudbay Minerals' value that differs from its market value or its book value, called intrinsic value, which is Hudbay Minerals' 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 Hudbay Minerals' market value can be influenced by many factors that don't directly affect Hudbay Minerals' 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 Hudbay Minerals' value and its price as these two are different measures arrived at by different means. Investors typically determine Hudbay Minerals value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hudbay Minerals' 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.