Whirlpool Risk Analysis

Whirlpool Corporation -- USA Stock  

USD 176.79  5.67  3.11%

Macroaxis considers Whirlpool not too risky given 1 month investment horizon. Whirlpool shows Sharpe Ratio of 0.2333 which attests that Whirlpool had 0.2333% of return per unit of risk over the last 1 month. Our philosophy towards determining volatility of a stock is to use all available market data together with company specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Whirlpool which you can use to evaluate future volatility of the organization. Please utilize Whirlpool Market Risk Adjusted Performance of (0.54), Mean Deviation of 0.8464 and Downside Deviation of 0.9589 to validate if our risk estimates are consistent with your expectations.
Investment Horizon     30 Days    Login   to change

Whirlpool Market Sensitivity

As returns on market increase, returns on owning Whirlpool are expected to decrease at a much smaller rate. During bear market, Whirlpool is likely to outperform the market.
One Month Beta |Analyze Whirlpool Demand Trend
Check current 30 days Whirlpool correlation with market (DOW)
β = -0.4462
Whirlpool Almost negative betaWhirlpool Beta Legend

Projected Return Density Against Market

Considering 30-days investment horizon, Whirlpool Corporation has beta of -0.4462 . This means as returns on benchmark increase, returns on holding Whirlpool are expected to decrease at a much smaller rate. During bear market, however, Whirlpool Corporation is likely to outperform the market. Moreover, Whirlpool Corporation has an alpha of 0.328 implying that it can potentially generate 0.328% excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 
Considering 30-days investment horizon, the coefficient of variation of Whirlpool is 428.62. The daily returns are destributed with a variance of 1.21 and standard deviation of 1.1. The mean deviation of Whirlpool Corporation is currently at 0.85. For similar time horizon, the selected benchmark (DOW) has volatility of 0.27
α
Alpha over DOW
= 0.33 
βBeta against DOW=(0.45) 
σ
Overall volatility
= 1.1 
 IrInformation ratio = 0.0571 

Actual Return Volatility

Whirlpool Corporation has volatility of 1.0981% on return distribution over 30 days investment horizon. DOW inherits 0.2475% risk (volatility on return distribution) over the 30 days horizon.
 Performance (%) 
      Timeline 

Market Risk Breakdown

Whirlpool Volatility Factors

30 Days Market Risk

Not too risky

Chance of Distress in 24 months

Below average

30 Days Economic Sensitivity

Totally opposite to market

Total Debt

Whirlpool Total Debt History

Total Debt

Largest Trends

Whirlpool Largest Period Trend
 176.67 
  
 176.34 
0.33  0.19%
Lowest period price (30 days)
 185.12 
  
 185.82 
0.7  0.38%
Highest period price (30 days)

Investment Outlook

Whirlpool Investment Opportunity
Whirlpool Corporation has a volatility of 1.1 and is 4.4 times more volatile than DOW. 10% of all equities and portfolios are less risky than Whirlpool. Compared to the overall equity markets, volatility of historical daily returns of Whirlpool Corporation is lower than 10 (%) of all global equities and portfolios over the last 30 days. Use Whirlpool Corporation to protect against small markets fluctuations. The stock experiences unexpected downward movement. The market is reacting to new fundamentals. Check odds of Whirlpool to be traded at $169.72 in 30 days. As returns on market increase, returns on owning Whirlpool are expected to decrease at a much smaller rate. During bear market, Whirlpool is likely to outperform the market.

Whirlpool correlation with market

Good diversification
Overlapping area represents the amount of risk that can be diversified away by holding Whirlpool Corp. and equity matching DJI index in the same portfolio.