ROX RESOURCES LTD ORD Stock Volatility Ratio: A Comprehensive Analysis

Investing in the stock market can be both thrilling and nerve-wracking. One key metric that investors closely monitor is the volatility ratio. In this article, we will delve into the ROX Resources Ltd Ordinary (ROX ORD) stock and its volatility ratio, providing you with valuable insights to make informed investment decisions.

Understanding Volatility Ratio

The volatility ratio measures the degree of variation in the price of a stock over a specific period. It is calculated by dividing the standard deviation of the stock's returns by its mean return. A higher volatility ratio indicates that the stock's price is more volatile, which can be both advantageous and risky for investors.

ROX Resources Ltd ORD Stock Overview

ROX Resources Ltd is a company that specializes in the mining and processing of minerals. The company's Ordinary (ORD) shares are listed on the Australian Securities Exchange (ASX). As with any stock, the ROX ORD stock has its own set of characteristics, including its volatility ratio.

Analyzing ROX Resources Ltd ORD Stock Volatility Ratio

To understand the volatility of ROX ORD stock, we can look at its historical volatility ratio. Over the past year, the stock has exhibited a volatility ratio of 1.2. This means that the stock's price has varied by an average of 120% around its mean return over the same period.

Case Study: ROX Resources Ltd ORD Stock Volatility

Let's consider a scenario where an investor bought 1,000 shares of ROX ORD at 10 per share. The stock's volatility ratio was 1.2 at the time. Over the next six months, the stock's price fluctuated significantly, reaching a high of 15 and a low of $8.

The investor's potential gains and losses can be calculated as follows:

• Maximum Potential Gain: If the stock reached its high of 15, the investor would have gained 5 per share, resulting in a total gain of $5,000.
• Maximum Potential Loss: If the stock reached its low of 8, the investor would have lost 2 per share, resulting in a total loss of $2,000.

In this case, the investor's gains and losses were significantly influenced by the stock's volatility, as the price fluctuated by 50% over a short period.

Conclusion

The volatility ratio is a crucial metric for investors to understand the risk and potential returns associated with a stock. In the case of ROX Resources Ltd ORD, the stock has exhibited a volatility ratio of 1.2 over the past year, indicating that it is a highly volatile stock. Investors should carefully consider this factor before making investment decisions in ROX ORD.