Volatility is a statistical measure of the dispersion of returns for a given security or market index, it shows how the price swings around its mean. The volatility here is measured as the annualized standard deviation between monthly returns from the security over the past year. In most cases, the higher the volatility, the riskier the security.
Competitive Comparison of Renewable Energy Group's Volatility
For the Oil & Gas Refining & Marketing subindustry, Renewable Energy Group's Volatility, along with its competitors' market caps and Volatility data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Renewable Energy Group's Volatility Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Renewable Energy Group's Volatility distribution charts can be found below:
* The bar in red indicates where Renewable Energy Group's Volatility falls into.
Renewable Energy Group (NAS:REGI) Volatility Calculation
The annualized volatility is calculated as following:
σA
=
σM
*
√12
=
√ 1/(n-1) ∑(Ri - R')^2
*
√12
Where: σM is the monthly volatility, n is the number of months in the period, Ri is the security's historical monthly returns and R' is the arithmetic mean of monthly returns.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Renewable Energy Group (NAS:REGI) Volatility Explanation
Volatility is a statistical measure of the dispersion of returns for a given security or market index. It’s often measured as standard deviation or variance of historical returns over a certain period. The volatility here is measured as the annualized standard deviation between monthly returns from the security over the past year.
Volatility reflects the uncertainty or risk of a security’s value. Generally speaking, a higher volatility suggests a higher risk, because it implies a wider fluctuation around average price. This means the price of the security can change dramatically in either direction within a short period. Conversely, a lower volatility means that the security's price is more steady, which suggests a lower risk.
Another measurement of relative volatility is Beta. Beta is a measure of systematic risk of a security or a portfolio in comparison to the market as a whole. Beta is usually compared to 1. A beta of greater than 1 indicates that the security's price will be more volatile than the market.
Renewable Energy Group Volatility Related Terms
Thank you for viewing the detailed overview of Renewable Energy Group's Volatility provided by GuruFocus.com. Please click on the following links to see related term pages.
Renewable Energy Group (Renewable Energy Group) Business Description
Renewable Energy Group Inc is a producer and refiner of biofuels in the oil and gas industry. The company's operations include acquiring feedstock, operating biorefineries, and marketing and distributing renewable fuels. Its operating segments include Biomass-based Diesel, Services, and Corporate and other. The majority of the company's revenue comes from the sale of biomass-based diesel. Geographically, it operates in the United States, Germany and Other Foreign countries of which the United States derived maximum revenue. At its biorefineries, natural fats, oils, and greases are converted into biofuels and renewable chemicals.
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