Laurentian Bank Stock Volatility
| LB Stock | CAD 25.97 0.24 0.92% |
Laurentian Bank has Sharpe Ratio of -0.0207, which conveys that the firm had a -0.0207% return per unit of risk over the last 3 months. Laurentian Bank exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify Laurentian Bank's Risk Adjusted Performance of 0.0033, standard deviation of 1.41, and Mean Deviation of 1.08 to check out the risk estimate we provide. Key indicators related to Laurentian Bank's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Laurentian Bank 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 Laurentian daily returns, and it is calculated using variance and standard deviation. We also use Laurentian's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Laurentian Bank volatility.
Laurentian |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Laurentian Bank 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 Laurentian Bank at lower prices. For example, an investor can purchase Laurentian 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 Laurentian Bank'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.
Laurentian Bank Market Sensitivity And Downside Risk
Laurentian Bank's beta coefficient measures the volatility of Laurentian 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 Laurentian stock's returns against your selected market. In other words, Laurentian Bank's beta of 1.16 provides an investor with an approximation of how much risk Laurentian Bank stock can potentially add to one of your existing portfolios. Laurentian Bank exhibits very low volatility with skewness of 0.0 and kurtosis of 0.5. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Laurentian Bank'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 Laurentian Bank'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 Laurentian Bank Demand TrendCheck current 90 days Laurentian Bank correlation with market (NYSE Composite)Laurentian Beta |
Laurentian 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 Laurentian Bank's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Laurentian Bank's daily returns or price. Since the actual investment returns on holding a position in laurentian 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 Laurentian Bank.
Laurentian Bank Stock Volatility Analysis
Volatility refers to the frequency at which Laurentian Bank stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Laurentian Bank's price changes. Investors will then calculate the volatility of Laurentian Bank'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 Laurentian Bank's volatility:
Historical Volatility
This type of stock volatility measures Laurentian Bank's fluctuations based on previous trends. It's commonly used to predict Laurentian Bank'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 Laurentian Bank'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 Laurentian Bank'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. Laurentian Bank 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.
Laurentian Bank Projected Return Density Against Market
Assuming the 90 days horizon the stock has the beta coefficient of 1.1572 . This indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Laurentian Bank will likely underperform.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 Laurentian Bank or Banks 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 Laurentian Bank'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 Laurentian 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.
Laurentian Bank has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the NYSE Composite. Predicted Return Density |
| Returns |
What Drives a Laurentian Bank 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.Laurentian Bank Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of Laurentian Bank is -4836.77. The daily returns are distributed with a variance of 2.11 and standard deviation of 1.45. The mean deviation of Laurentian Bank is currently at 1.15. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | -0.11 | |
β | Beta against NYSE Composite | 1.16 | |
σ | Overall volatility | 1.45 | |
Ir | Information ratio | -0.07 |
Laurentian Bank Stock Return Volatility
Laurentian Bank historical daily return volatility represents how much of Laurentian Bank stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm shows 1.4542% volatility of returns over 90 . By contrast, NYSE Composite accepts 0.6372% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Laurentian Bank Volatility
Volatility is a rate at which the price of Laurentian Bank 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 Laurentian Bank may increase or decrease. In other words, similar to Laurentian's beta indicator, it measures the risk of Laurentian Bank and helps estimate the fluctuations that may happen in a short period of time. So if prices of Laurentian Bank 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 Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 33.4 M | 29.2 M | |
| Market Cap | 1.7 B | 1.8 B |
Laurentian Bank'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 Laurentian Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Laurentian Bank's price varies over time.
3 ways to utilize Laurentian Bank's volatility to invest better
Higher Laurentian Bank's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Laurentian Bank 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. Laurentian Bank 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 Laurentian Bank investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Laurentian Bank'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 Laurentian Bank's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Laurentian Bank Investment Opportunity
Laurentian Bank has a volatility of 1.45 and is 2.27 times more volatile than NYSE Composite. 12 percent of all equities and portfolios are less risky than Laurentian Bank. You can use Laurentian Bank to protect your portfolios against small market fluctuations. The stock experiences a moderate downward daily trend and can be a good diversifier. Check odds of Laurentian Bank to be traded at C$25.45 in 90 days.Very weak diversification
The correlation between Laurentian Bank and NYA is 0.51 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Laurentian Bank and NYA in the same portfolio, assuming nothing else is changed.
Laurentian Bank Additional Risk Indicators
The analysis of Laurentian Bank'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 Laurentian Bank's investment and either accepting that risk or mitigating it. Along with some common measures of Laurentian Bank 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.
| Risk Adjusted Performance | 0.0033 | |||
| Market Risk Adjusted Performance | (0) | |||
| Mean Deviation | 1.08 | |||
| Coefficient Of Variation | (27,010) | |||
| Standard Deviation | 1.41 | |||
| Variance | 1.98 | |||
| Information Ratio | (0.07) |
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.
Laurentian Bank 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 Laurentian Bank 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. Laurentian Bank'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, Laurentian Bank'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 Laurentian Bank.
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Laurentian Bank. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate. You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Complementary Tools for Laurentian Stock analysis
When running Laurentian Bank's price analysis, check to measure Laurentian Bank'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 Laurentian Bank is operating at the current time. Most of Laurentian Bank's value examination focuses on studying past and present price action to predict the probability of Laurentian Bank's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Laurentian Bank's price. Additionally, you may evaluate how the addition of Laurentian Bank to your portfolios can decrease your overall portfolio volatility.
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