Quad Graphics Stock Volatility
| QUAD Stock | USD 4.79 0.17 3.68% |
Quad Graphics maintains Sharpe Ratio (i.e., Efficiency) of -0.0406, which implies the firm had a -0.0406% return per unit of risk over the last 3 months. Quad Graphics exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check Quad Graphics' Coefficient Of Variation of (14,807), risk adjusted performance of 0.0043, and Variance of 17.77 to confirm the risk estimate we provide. Key indicators related to Quad Graphics' volatility include:
330 Days Market Risk | Chance Of Distress | 330 Days Economic Sensitivity |
Quad Graphics 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 Quad daily returns, and it is calculated using variance and standard deviation. We also use Quad's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Quad Graphics volatility.
Quad |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Quad Graphics 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 Quad Graphics at lower prices. For example, an investor can purchase Quad 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 Quad Graphics' 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 against Quad Stock
| 0.63 | NL | NL Industries Earnings Call This Week | PairCorr |
| 0.55 | WLDN | Willdan Group Financial Report 2nd of May 2024 | PairCorr |
Quad Graphics Market Sensitivity And Downside Risk
Quad Graphics' beta coefficient measures the volatility of Quad 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 Quad stock's returns against your selected market. In other words, Quad Graphics's beta of 1.24 provides an investor with an approximation of how much risk Quad Graphics stock can potentially add to one of your existing portfolios. Quad Graphics exhibits very low volatility with skewness of 1.64 and kurtosis of 6.43. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Quad Graphics' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Quad Graphics' 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 Quad Graphics Demand TrendCheck current 90 days Quad Graphics correlation with market (NYSE Composite)Quad Beta |
Quad 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 | 4.26 |
It is essential to understand the difference between upside risk (as represented by Quad Graphics's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Quad Graphics' daily returns or price. Since the actual investment returns on holding a position in quad 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 Quad Graphics.
Using Quad Put Option to Manage Risk
Put options written on Quad Graphics grant holders of the option the right to sell a specified amount of Quad Graphics 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 Quad Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Quad Graphics' 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 Quad Graphics will be realized, the loss incurred will be offset by the profits made with the option trade.
Quad Graphics' PUT expiring on 2024-05-17
Profit |
| Quad Graphics Price At Expiration |
Current Quad Graphics Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | 2024-05-17 PUT at $5.0 | -0.5618 | 0.4749 | 27 | 2024-05-17 | 0.4 - 0.5 | 0.53 | View |
Quad Graphics Stock Volatility Analysis
Volatility refers to the frequency at which Quad Graphics stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Quad Graphics' price changes. Investors will then calculate the volatility of Quad Graphics' 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 Quad Graphics' volatility:
Historical Volatility
This type of stock volatility measures Quad Graphics' fluctuations based on previous trends. It's commonly used to predict Quad Graphics' 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 Quad Graphics' 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 Quad Graphics' 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. Quad Graphics 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.
Quad Graphics Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 1.2416 indicating as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Quad Graphics 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 Quad Graphics or Commercial Services & Supplies 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 Quad Graphics' 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 Quad 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.
Quad Graphics 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 Quad Graphics 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.Quad Graphics Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Quad Graphics is -2464.32. The daily returns are distributed with a variance of 18.18 and standard deviation of 4.26. The mean deviation of Quad Graphics is currently at 2.84. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | -0.14 | |
β | Beta against NYSE Composite | 1.24 | |
σ | Overall volatility | 4.26 | |
Ir | Information ratio | -0.03 |
Quad Graphics Stock Return Volatility
Quad Graphics historical daily return volatility represents how much of Quad Graphics stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 4.2642% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.6321% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Quad Graphics Volatility
Volatility is a rate at which the price of Quad Graphics 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 Quad Graphics may increase or decrease. In other words, similar to Quad's beta indicator, it measures the risk of Quad Graphics and helps estimate the fluctuations that may happen in a short period of time. So if prices of Quad Graphics 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 | ||
| Market Cap | 400.9 M | 356.4 M |
Quad Graphics' 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 Quad Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Quad Graphics' price varies over time.
3 ways to utilize Quad Graphics' volatility to invest better
Higher Quad Graphics' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Quad Graphics 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. Quad Graphics 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 Quad Graphics investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Quad Graphics' 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 Quad Graphics' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Quad Graphics Investment Opportunity
Quad Graphics has a volatility of 4.26 and is 6.76 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Quad Graphics is lower than 37 percent of all global equities and portfolios over the last 90 days. You can use Quad Graphics to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Quad Graphics to be traded at $5.75 in 90 days.Average diversification
The correlation between Quad Graphics and NYA is 0.18 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Quad Graphics and NYA in the same portfolio, assuming nothing else is changed.
Quad Graphics Additional Risk Indicators
The analysis of Quad Graphics' 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 Quad Graphics' investment and either accepting that risk or mitigating it. Along with some common measures of Quad Graphics 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 | 0.0043 | |||
| Market Risk Adjusted Performance | (0.02) | |||
| Mean Deviation | 2.86 | |||
| Coefficient Of Variation | (14,807) | |||
| Standard Deviation | 4.22 | |||
| Variance | 17.77 | |||
| Information Ratio | (0.03) |
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.
Quad Graphics 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 Quad Graphics 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. Quad Graphics' 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, Quad Graphics' 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 Quad Graphics.
When determining whether Quad Graphics is a strong investment it is important to analyze Quad Graphics' 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 Quad Graphics' future performance. For an informed investment choice regarding Quad Stock, refer to the following important reports: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Quad Graphics. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation. For information on how to trade Quad Stock refer to our How to Trade Quad Stock guide.Note that the Quad Graphics information on this page should be used as a complementary analysis to other Quad Graphics' 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Complementary Tools for Quad Stock analysis
When running Quad Graphics' price analysis, check to measure Quad Graphics' 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 Quad Graphics is operating at the current time. Most of Quad Graphics' value examination focuses on studying past and present price action to predict the probability of Quad Graphics' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Quad Graphics' price. Additionally, you may evaluate how the addition of Quad Graphics to your portfolios can decrease your overall portfolio volatility.
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Is Quad Graphics' 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 Quad Graphics. If investors know Quad 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 Quad Graphics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (1.14) | Revenue Per Share 61.11 | Quarterly Revenue Growth (0.11) | Return On Assets 0.0408 | Return On Equity (0.38) |
The market value of Quad Graphics is measured differently than its book value, which is the value of Quad that is recorded on the company's balance sheet. Investors also form their own opinion of Quad Graphics' value that differs from its market value or its book value, called intrinsic value, which is Quad Graphics' 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 Quad Graphics' market value can be influenced by many factors that don't directly affect Quad Graphics' 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 Quad Graphics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Quad Graphics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Quad Graphics' 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.