Expeditors International Stock Volatility

EXPD Stock  USD 121.57  0.33  0.27%   
Expeditors International secures Sharpe Ratio (or Efficiency) of -0.0428, which denotes the company had a -0.0428% return per unit of risk over the last 3 months. Expeditors International exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Expeditors International's Standard Deviation of 1.4, mean deviation of 0.9514, and Variance of 1.95 to check the risk estimate we provide. Key indicators related to Expeditors International's volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
Expeditors International Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Expeditors daily returns, and it is calculated using variance and standard deviation. We also use Expeditors's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Expeditors International volatility.
  

ESG Sustainability

While most ESG disclosures are voluntary, Expeditors International's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Expeditors International's managers and investors.
Environment Score
Governance Score
Social Score
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Expeditors International can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Expeditors International at lower prices. For example, an investor can purchase Expeditors stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Expeditors International's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.

Moving together with Expeditors Stock

  0.78GXO GXO Logistics Financial Report 14th of May 2024 PairCorr
  0.74FWRD Forward Air Financial Report 6th of May 2024 PairCorr

Moving against Expeditors Stock

  0.76J Jacobs Solutions Financial Report 14th of May 2024 PairCorr
  0.73B Barnes Group Financial Report 25th of April 2024 PairCorr
  0.7PBI-PB Pitney Bowes NT Downward RallyPairCorr
  0.53ZTO ZTO Express Financial Report 15th of May 2024 PairCorr
  0.51AIRT Air T IncPairCorr
  0.51CYRX Cryoport Financial Report 2nd of May 2024 PairCorr
  0.5CRGOW Freightos LimitedPairCorr
  0.44SORT Incjet HoldingPairCorr

Expeditors International Market Sensitivity And Downside Risk

Expeditors International's beta coefficient measures the volatility of Expeditors stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Expeditors stock's returns against your selected market. In other words, Expeditors International's beta of 0.98 provides an investor with an approximation of how much risk Expeditors International stock can potentially add to one of your existing portfolios. Expeditors International exhibits very low volatility with skewness of -1.77 and kurtosis of 7.79. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Expeditors International's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Expeditors International's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Expeditors International Demand Trend
Check current 90 days Expeditors International correlation with market (NYSE Composite)

Expeditors Beta

    
  0.98  
Expeditors standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  1.45  
It is essential to understand the difference between upside risk (as represented by Expeditors International's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Expeditors International's daily returns or price. Since the actual investment returns on holding a position in expeditors stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Expeditors International.

Using Expeditors Put Option to Manage Risk

Put options written on Expeditors International grant holders of the option the right to sell a specified amount of Expeditors International at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Expeditors Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Expeditors International's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Expeditors International will be realized, the loss incurred will be offset by the profits made with the option trade.

Expeditors International's PUT expiring on 2024-04-19

   Profit   
       Expeditors International Price At Expiration  

Current Expeditors International Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2024-04-19 PUT at $125.0-0.65210.049872024-04-191.1 - 5.04.4View
Put
2024-04-19 PUT at $120.0-0.35320.07563452024-04-191.05 - 1.352.05View
Put
2024-04-19 PUT at $115.0-0.15360.03391542024-04-190.15 - 1.00.5View
View All Expeditors International Options

Expeditors International Stock Volatility Analysis

Volatility refers to the frequency at which Expeditors International stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Expeditors International's price changes. Investors will then calculate the volatility of Expeditors International's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Expeditors International's volatility:

Historical Volatility

This type of stock volatility measures Expeditors International's fluctuations based on previous trends. It's commonly used to predict Expeditors International's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Expeditors International's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Expeditors International's to be redeemed at a future date.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Expeditors International Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.

Expeditors International Projected Return Density Against Market

Given the investment horizon of 90 days Expeditors International has a beta of 0.9825 suggesting Expeditors International market returns are highly-sensitive to returns on the market. As the market goes up or down, Expeditors International is expected to follow.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Expeditors International or Air Freight & Logistics sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Expeditors International's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Expeditors stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Expeditors International has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming NYSE Composite.
   Predicted Return Density   
       Returns  
Expeditors International's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how expeditors stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives an Expeditors International Price Volatility?

Several factors can influence a stock's market volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

Expeditors International Stock Risk Measures

Given the investment horizon of 90 days the coefficient of variation of Expeditors International is -2338.94. The daily returns are distributed with a variance of 2.11 and standard deviation of 1.45. The mean deviation of Expeditors International is currently at 1.01. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
-0.21
β
Beta against NYSE Composite0.98
σ
Overall volatility
1.45
Ir
Information ratio -0.15

Expeditors International Stock Return Volatility

Expeditors International historical daily return volatility represents how much of Expeditors International stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 1.4521% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.573% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Expeditors International Volatility

Volatility is a rate at which the price of Expeditors International or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Expeditors International may increase or decrease. In other words, similar to Expeditors's beta indicator, it measures the risk of Expeditors International and helps estimate the fluctuations that may happen in a short period of time. So if prices of Expeditors International fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
Last ReportedProjected for 2024
Selling And Marketing Expenses27.9 M31.2 M
Expeditors International's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Expeditors Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Expeditors International's price varies over time.

3 ways to utilize Expeditors International's volatility to invest better

Higher Expeditors International's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Expeditors International stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Expeditors International stock volatility can provide helpful information for making investment decisions in the following ways:
  • Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Expeditors International investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Expeditors International's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
  • Diversification: Understanding how the volatility of Expeditors International's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Expeditors International Investment Opportunity

Expeditors International has a volatility of 1.45 and is 2.54 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Expeditors International is lower than 12 percent of all global equities and portfolios over the last 90 days. You can use Expeditors International to enhance the returns of your portfolios. The stock experiences a normal upward fluctuation. Check odds of Expeditors International to be traded at $127.65 in 90 days.

Weak diversification

The correlation between Expeditors International Of and NYA is 0.39 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Expeditors International Of and NYA in the same portfolio, assuming nothing else is changed.

Expeditors International Additional Risk Indicators

The analysis of Expeditors International's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Expeditors International's investment and either accepting that risk or mitigating it. Along with some common measures of Expeditors International stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Expeditors International Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Expeditors International as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Expeditors International's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Expeditors International's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Expeditors International.
When determining whether Expeditors International is a strong investment it is important to analyze Expeditors International's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Expeditors International's future performance. For an informed investment choice regarding Expeditors Stock, refer to the following important reports:
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Expeditors International. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in american community survey.
For information on how to trade Expeditors Stock refer to our How to Trade Expeditors Stock guide.
You can also try the CEOs Directory module to screen CEOs from public companies around the world.

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Is Expeditors International's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Expeditors International. If investors know Expeditors will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Expeditors International listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.22)
Dividend Share
1.38
Earnings Share
5.01
Revenue Per Share
62.358
Quarterly Revenue Growth
(0.34)
The market value of Expeditors International is measured differently than its book value, which is the value of Expeditors that is recorded on the company's balance sheet. Investors also form their own opinion of Expeditors International's value that differs from its market value or its book value, called intrinsic value, which is Expeditors International's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Expeditors International's market value can be influenced by many factors that don't directly affect Expeditors International's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Expeditors International's value and its price as these two are different measures arrived at by different means. Investors typically determine if Expeditors International is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Expeditors International's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.