Federal National Mortgage Stock Volatility

FNMAG Stock  USD 5.95  0.30  4.80%   
Federal National appears to be moderately volatile, given 3 months investment horizon. Federal National Mortgage secures Sharpe Ratio (or Efficiency) of 0.15, which denotes the company had a 0.15% return per unit of risk over the last 3 months. By reviewing Federal National's technical indicators, you can evaluate if the expected return of 0.51% is justified by implied risk. Please utilize Federal National's Downside Deviation of 3.53, coefficient of variation of 653.61, and Mean Deviation of 2.24 to check if our risk estimates are consistent with your expectations. Key indicators related to Federal National's volatility include:
720 Days Market Risk
Chance Of Distress
720 Days Economic Sensitivity
Federal National OTC 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 Federal daily returns, and it is calculated using variance and standard deviation. We also use Federal's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Federal National volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Federal National 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 Federal National at lower prices. For example, an investor can purchase Federal 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 Federal National'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 Federal OTC Stock

  0.75FMCCT Federal Home LoanPairCorr
  0.84FNMAS Federal National MortgagePairCorr
  0.77FNMAT Federal National MortgagePairCorr
  0.7FNMFN Federal National MortgagePairCorr
  0.7FNMAN Federal National MortgagePairCorr

Moving against Federal OTC Stock

  0.65AMPH Amphastar P Financial Report 14th of May 2024 PairCorr

Federal National Market Sensitivity And Downside Risk

Federal National's beta coefficient measures the volatility of Federal otc 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 Federal otc stock's returns against your selected market. In other words, Federal National's beta of -0.57 provides an investor with an approximation of how much risk Federal National otc stock can potentially add to one of your existing portfolios. Federal National Mortgage shows above-average downside volatility for the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Federal National's otc stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Federal National's otc 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 Federal National Mortgage Demand Trend
Check current 90 days Federal National correlation with market (NYSE Composite)

Federal Beta

    
  -0.57  
Federal 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

    
  3.32  
It is essential to understand the difference between upside risk (as represented by Federal National's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Federal National's daily returns or price. Since the actual investment returns on holding a position in federal otc 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 Federal National.

Federal National Mortgage OTC Stock Volatility Analysis

Volatility refers to the frequency at which Federal National otc price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Federal National's price changes. Investors will then calculate the volatility of Federal National's otc stock to predict their future moves. A otc that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A otc stock with relatively stable price changes has low volatility. A highly volatile otc 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 Federal National's volatility:

Historical Volatility

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

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Federal National's current market price. This means that the otc will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Federal National'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. Federal National Mortgage 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.

Federal National Projected Return Density Against Market

Assuming the 90 days horizon Federal National Mortgage has a beta of -0.5729 . This usually indicates as returns on benchmark increase, returns on holding Federal National are expected to decrease at a much lower rate. During the bear market, however, Federal National Mortgage is likely to outperform the market.
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 Federal National or Financial Services 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 Federal National's price will be affected by overall otc 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 Federal otc'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.
Federal National Mortgage has an alpha of 0.5696, implying that it can generate a 0.57 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Federal National's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how federal otc 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 a Federal National Price Volatility?

Several factors can influence a otc'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.

Federal National OTC Stock Risk Measures

Assuming the 90 days horizon the coefficient of variation of Federal National is 653.61. The daily returns are distributed with a variance of 11.02 and standard deviation of 3.32. The mean deviation of Federal National Mortgage is currently at 2.24. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
0.57
β
Beta against NYSE Composite-0.57
σ
Overall volatility
3.32
Ir
Information ratio 0.11

Federal National OTC Stock Return Volatility

Federal National historical daily return volatility represents how much of Federal National otc's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 3.3204% volatility of returns over 90 . By contrast, NYSE Composite accepts 0.573% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Federal National Volatility

Volatility is a rate at which the price of Federal National 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 Federal National may increase or decrease. In other words, similar to Federal's beta indicator, it measures the risk of Federal National and helps estimate the fluctuations that may happen in a short period of time. So if prices of Federal National 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.
Federal National Mortgage Association provides a source of financing for mortgages in the United States. Federal National Mortgage Association was founded in 1938 and is headquartered in Washington, the District of Columbia. Fannie Mae operates under Mortgage Finance classification in the United States and is traded on OTC Exchange. It employs 7400 people.
Federal National'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 Federal OTC Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Federal National's price varies over time.

3 ways to utilize Federal National's volatility to invest better

Higher Federal National's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Federal National Mortgage 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. Federal National Mortgage 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 Federal National Mortgage investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Federal National'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 Federal National'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.

Federal National Investment Opportunity

Federal National Mortgage has a volatility of 3.32 and is 5.82 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Federal National Mortgage is lower than 29 percent of all global equities and portfolios over the last 90 days. You can use Federal National Mortgage to protect your portfolios against small market fluctuations. The otc stock experiences a very speculative downward sentiment. The market maybe over-reacting. Check odds of Federal National to be traded at $5.65 in 90 days.

Good diversification

The correlation between Federal National Mortgage and NYA is -0.09 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Federal National Mortgage and NYA in the same portfolio, assuming nothing else is changed.

Federal National Additional Risk Indicators

The analysis of Federal National'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 Federal National's investment and either accepting that risk or mitigating it. Along with some common measures of Federal National otc 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 otc stocks, we recommend comparing similar otcs with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Federal National 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 Federal National 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. Federal National'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, Federal National'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 Federal National Mortgage.
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Federal National Mortgage. Also, note that the market value of any otc stock could be tightly coupled with the direction of predictive economic indicators such as signals in nation.
Note that the Federal National Mortgage information on this page should be used as a complementary analysis to other Federal National's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.

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When running Federal National's price analysis, check to measure Federal National's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Federal National is operating at the current time. Most of Federal National's value examination focuses on studying past and present price action to predict the probability of Federal National's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Federal National's price. Additionally, you may evaluate how the addition of Federal National to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between Federal National's value and its price as these two are different measures arrived at by different means. Investors typically determine if Federal National is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Federal National'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.