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 Alpha Natural Resources's Volatility
For the Coking Coal subindustry, Alpha Natural Resources'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.
Alpha Natural Resources's Volatility Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, Alpha Natural Resources's Volatility distribution charts can be found below:
* The bar in red indicates where Alpha Natural Resources's Volatility falls into.
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.
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.
Alpha Natural Resources Volatility Related Terms
Thank you for viewing the detailed overview of Alpha Natural Resources's Volatility provided by GuruFocus.com. Please click on the following links to see related term pages.
Alpha Natural Resources (Alpha Natural Resources) Business Description
Alpha Natural Resources Inc was formed under the laws of the State of Delaware on November 29, 2004. The Company is a supplier and exporter of metallurgical coal for use in the steel-making process and a supplier of thermal coal to electric utilities and manufacturing industries throughout the country. As of December 31, 2013, it operated 81 mines and 25 coal preparation plants in Northern and Central Appalachia and the Powder River Basin. The Company has two reportable segments: Eastern Coal Operations and Western Coal Operations. Eastern Coal Operations consists of the mines in Northern and Central Appalachia and its coal brokerage activities. Western Coal Operations consists of two Powder River Basin mines in Wyoming. Its All Other segment includes an idled underground mine in Illinois; expenses associated with certain closed mines; Dry Systems Technologies; revenues and royalties from the sale of natural gas; equipment sales and repair operations; terminal services; the leasing of mineral rights; general corporate overhead and corporate assets and liabilities. The Company's active operations are located in Central and Northern Appalachia and the Powder River Basin, which include the states of Kentucky, Pennsylvania, Virginia, West Virginia and Wyoming. With respect to its U.S. customers, the Company competes with various coal producers in the Appalachian region and Illinois basin and with a large number of western coal producers. In the export metallurgical market the Company competes with producers from Australia, Canada, and other international producers of metallurgical coal on many of the same factors as in the U.S. market. The Company and its customers are subject to various federal, state and local laws relating to the extraction, processing and use of coal, oil and natural gas.
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