您的当前位置:首页 > Exploration > 【tooth abscess surgery recovery time】Vector Resources Limited (ASX:VEC): What Does Its Beta Value Mean For Your Portfolio? 正文
时间:2024-09-29 08:19:40 来源:网络整理 编辑:Exploration
If you’re interested in Vector Resources Limited (ASX:VEC), then you might want to consider its beta tooth abscess surgery recovery time
If you’re interested in Vector Resources Limited (
ASX:VEC
),tooth abscess surgery recovery time then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. The first type is company specific volatility. Investors use diversification across uncorrelated stocks to reduce this kind of price volatility across the portfolio. The second sort is caused by the natural volatility of markets, overall. For example, certain macroeconomic events will impact (virtually) all stocks on the market.
Some stocks mimic the volatility of the market quite closely, while others demonstrate muted, exagerrated or uncorrelated price movements. Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). However, Warren Buffett said ‘volatility is far from synonymous with risk’ in his 2014 letter to investors. So, while useful, beta is not the only metric to consider. To use beta as an investor, you must first understand that the overall market has a beta of one. A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.
Check out our latest analysis for Vector Resources
What does VEC’s beta value mean to investors?
Looking at the last five years, Vector Resources has a beta of 1.8. The fact that this is well above 1 indicates that its share price movements have shown sensitivity to overall market volatility. If this beta value holds true in the future, Vector Resources shares are likely to rise more than the market when the market is going up, but fall faster when the market is going down. Beta is worth considering, but it’s also important to consider whether Vector Resources is growing earnings and revenue. You can take a look for yourself, below.
ASX:VEC Income Statement Export January 1st 19
How does VEC’s size impact its beta?
Vector Resources is a rather small company. It has a market capitalisation of AU$27m, which means it is probably under the radar of most investors. It takes less money to influence the share price of a very small company. This may explain the excess volatility implied by this beta value.
What this means for you:
Since Vector Resources tends to moves up when the market is going up, and down when it’s going down, potential investors may wish to reflect on the overall market, when considering the stock. In order to fully understand whether VEC is a good investment for you, we also need to consider important company-specific fundamentals such as Vector Resources’s financial health and performance track record. I urge you to continue your research by taking a look at the following:
Story continues
Financial Health
: Are VEC’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our
financial health checks here
.
Past Track Record
: Has VEC been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look at
the free visual representations of VEC’s historicals
for more clarity.
Other High-Performing Stocks
: Are there other stocks that provide better prospects with proven track records? Explore our
free list of these great stocks here
.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at
.
View comments
Pfizer-BioNTech seeks full marketing approval from UK for COVID-19 vaccine2024-09-29 08:03
What To Know Before Buying Flow Traders N.V. (AMS:FLOW) For Its Dividend2024-09-29 07:49
BRIEF-Luye Pharma Announces Clinical Trial Application Of Biological Antibody LY09004 Accepted By NMPA In China2024-09-29 07:43
German finance minister pledges tax relief from 2023 - Bild2024-09-29 07:41
Is Masco (MAS) Outperforming Other Construction Stocks This Year?2024-09-29 07:36
BRIEF-Guangdong Tecsun Science & Technology Scraps Asset Restructuring2024-09-29 07:20
Does The Madras Fertilizers Limited (NSE:MADRASFERT) Share Price Tend To Follow The Market?2024-09-29 07:15
Amazon's Virginia HQ2 opposition is about affordability, than a joblessness crisis: Delegate Lee Carter2024-09-29 07:09
India's gross market borrowing seen at 7.04 trillion rupees in 2019-20: traders citing report2024-09-29 05:38
Were Hedge Funds Right About Dumping Retail Value Inc. (RVI)?2024-09-29 08:01
BRIEF-Hebei Yangyuan ZhiHui Beverage, Units Receive Government Supporting Fund Of 239.5 Mln Yuan2024-09-29 07:57
Read This Before Judging Boardwalk Real Estate Investment Trust's (TSE:BEI.UN) ROE2024-09-29 07:39
BRIEF-Poly Property Group Says Zhang Bingnan Appointed As Executive Director Of Co & Chairman Of Board2024-09-29 07:35
Exclusive: Germany ready to nationalise airline Condor - sources2024-09-29 07:24
Financial Metrics For Triumph Bancorp, Inc. (NASDAQ:TBK)2024-09-29 07:20
Facebook Rises 3%2024-09-29 06:37
Is BankUnited, Inc.'s (NYSE:BKU) High P/E Ratio A Problem For Investors?2024-09-29 06:17
ProPetro Holding (PUMP) Reports Q3 Loss, Lags Revenue Estimates2024-09-29 05:56
Do You Know What Trio Industrial Electronics Group Limited’s (HKG:1710) P/E Ratio Means?2024-09-29 05:35