If you are thinking about investing in the Zion Oil and Gas Company, then you should know about the contributions over the reward profile of your portfolio as well as the risk. You have to know about the fact that it involves two types of risk while you are considering investing in the zn stock at https://www.webull.com/quote/nasdaq-zn. These two risks will be affecting the market value of the ZN. Do you need to know more information about this? Then you have to keep on reading the upcoming section.
1. The first risk you have to consider is company-specific. And it can be expanded when you are investing in other companies which are present in the same industry.
2. The second risk will be market risk, and it cannot be diversified away. Every stock available in the market will be having specific risk, and it may arise from macroeconomic factors.
It is the fact that not every stock will be affected by the same level of market risk. The metric which is used to measure the market risk of the stock is called as Beta. If any stock has the Beta, which is greater than one and it is considered to be more volatile. The ability of the Zion is on the growing concern and to have the common stock, continues to be listed on the capital market. The stock with the Beta less than one is considered to be less volatile.
In the recent press release about the zn stock, they are looking forward to taking planned operations in the present year. ZN is planning to import the rig which is purchased into Israel in a timely manner, and their ability to raise the fund which is needed in order to undertake the planned operations. The ability of the Zion is on the growing concern and to have the common stock continue to be listed on the capital market. The timing, as well as the completion of the process and the timing to import the purchased drilling rig, is all on the ongoing efforts.
How the company’s asset could affect the Beta
During the low demand and economic downturn will cause the company to readapt the production of its services and goods. It will be difficult for companies to lower down their costs when these costs are generated by fixed assets. Hence it is considered to be the risk that is related to the higher Beta. ZN is the company which invests a large amount of capital in their assets which are hard to scale down. And hence, people can expect ZN to be more volatile in market movements. You can also check dbx stock at https://www.webull.com/quote/nasdaq-dbx .