Sitio Stock Volatility

STR
 Stock
  

USD 22.11  0.29  1.29%   

Sitio Royalties Corp owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0294, which indicates the firm had -0.0294% of return per unit of risk over the last 3 months. Macroaxis standpoint towards measuring 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. Sitio Royalties Corp exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to validate Sitio Royalties coefficient of variation of (6,580), and Risk Adjusted Performance of (0.011277) to confirm the risk estimate we provide.
  
Sitio Royalties 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 Sitio daily returns, and it is calculated using variance and standard deviation. We also use Sitio's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Sitio Royalties volatility.

720 Days Market Risk

Not too volatile

Chance of Distress

Very Low

720 Days Economic Sensitivity

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

+0.69AAPLApple Inc Fiscal Year End 27th of October 2022 PairCorr
+0.79MSFTMicrosoft CorpPairCorr
+0.71GOOGAlphabet Cl CPairCorr

Moving against Sitio Royalties

-0.58BMYMPBristol Myer SquiPairCorr

Sitio Royalties Market Sensitivity And Downside Risk

Sitio Royalties' beta coefficient measures the volatility of Sitio 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 Sitio stock's returns against your selected market. In other words, Sitio Royalties's beta of 0.63 provides an investor with an approximation of how much risk Sitio Royalties stock can potentially add to one of your existing portfolios.
Sitio Royalties Corp exhibits very low volatility with skewness of 0.05 and kurtosis of -0.21. However, we advise investors to further study Sitio Royalties Corp 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 Sitio Royalties' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Sitio Royalties' 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 Sitio Royalties Corp Demand Trend
Check current 90 days Sitio Royalties correlation with market (DOW)

Sitio Beta

    
  0.63  
Sitio 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

    
  2.84  
It is essential to understand the difference between upside risk (as represented by Sitio Royalties's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Sitio Royalties' daily returns or price. Since the actual investment returns on holding a position in sitio 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 Sitio Royalties.

Sitio Royalties Corp Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Sitio Royalties' fluctuations based on previous trends. It's commonly used to predict Sitio Royalties' 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 Sitio Royalties' 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 Sitio Royalties' 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. The Median Price line plots median indexes of Sitio Royalties Corp price series.
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Sitio Royalties Projected Return Density Against Market

Considering the 90-day investment horizon Sitio Royalties has a beta of 0.6264 . This usually implies as returns on the market go up, Sitio Royalties average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Sitio Royalties Corp 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 Sitio Royalties or Sitio Royalties Corp 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 Sitio Royalties' 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 Sitio 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 0.0217, implying that it can generate a 0.0217 percent excess return over DOW after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Sitio Royalties' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how sitio 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 Sitio Royalties 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.

Sitio Royalties 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 Sitio Royalties or Sitio Royalties Corp 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 Sitio Royalties' 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 Sitio 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 Sitio Royalties is -3397.82. The daily returns are distributed with a variance of 8.08 and standard deviation of 2.84. The mean deviation of Sitio Royalties Corp is currently at 2.23. For similar time horizon, the selected benchmark (DOW) has volatility of 1.14
α
Alpha over DOW
0.0217
β
Beta against DOW0.63
σ
Overall volatility
2.84
Ir
Information ratio 0.0231

Sitio Royalties Stock Return Volatility

Sitio Royalties historical daily return volatility represents how much of Sitio Royalties stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The enterprise has volatility of 2.8432% on return distribution over 90 days investment horizon. By contrast, DOW inherits 1.1442% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About Sitio Royalties Volatility

Volatility is a rate at which the price of Sitio Royalties 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 Sitio Royalties may increase or decrease. In other words, similar to Sitio's beta indicator, it measures the risk of Sitio Royalties and helps estimate the fluctuations that may happen in a short period of time. So if prices of Sitio Royalties 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.
Sitio Royalties Corp. operates as oil and gas mineral and royalty company. The company was founded in 2016 and is headquartered in Denver, Colorado. Sitio Royalties operates under Oil Gas EP classification in the United States and is traded on New York Stock Exchange.

Sitio Royalties Investment Opportunity

Sitio Royalties Corp has a volatility of 2.84 and is 2.49 times more volatile than DOW. 24  of all equities and portfolios are less risky than Sitio Royalties. Compared to the overall equity markets, volatility of historical daily returns of Sitio Royalties Corp is lower than 24 () of all global equities and portfolios over the last 90 days. Use Sitio Royalties Corp to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of Sitio Royalties to be traded at $21.45 in 90 days.

Modest diversification

The correlation between Sitio Royalties Corp and DJI is 0.25 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Sitio Royalties Corp and DJI in the same portfolio, assuming nothing else is changed.

Sitio Royalties Additional Risk Indicators

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

Sitio Royalties 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 Sitio Royalties 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. Sitio Royalties' 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, Sitio Royalties' 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 Sitio Royalties Corp.
Additionally, take a look at World Market Map. You can also try Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

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