Floor Decor Holdings Stock Volatility

FND Stock  USD 129.62  0.03  0.02%   
Floor Decor appears to be very steady, given 3 months investment horizon. Floor Decor Holdings secures Sharpe Ratio (or Efficiency) of 0.12, which denotes the company had a 0.12% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Floor Decor Holdings, which you can use to evaluate the volatility of the firm. Please utilize Floor Decor's Mean Deviation of 1.86, downside deviation of 2.37, and Coefficient Of Variation of 1065.23 to check if our risk estimates are consistent with your expectations. Key indicators related to Floor Decor's volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
Floor Decor 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 Floor daily returns, and it is calculated using variance and standard deviation. We also use Floor's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Floor Decor volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Floor Decor 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 Floor Decor at lower prices. For example, an investor can purchase Floor 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 Floor Decor'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.

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Floor Decor Market Sensitivity And Downside Risk

Floor Decor's beta coefficient measures the volatility of Floor 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 Floor stock's returns against your selected market. In other words, Floor Decor's beta of 2.87 provides an investor with an approximation of how much risk Floor Decor stock can potentially add to one of your existing portfolios. Floor Decor Holdings currently demonstrates below-average downside deviation. It has Information Ratio of 0.04 and Jensen Alpha of -0.14. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Floor Decor'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 Floor Decor'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 Floor Decor Holdings Demand Trend
Check current 90 days Floor Decor correlation with market (NYSE Composite)

Floor Beta

    
  2.87  
Floor 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

    
  2.48  
It is essential to understand the difference between upside risk (as represented by Floor Decor's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Floor Decor's daily returns or price. Since the actual investment returns on holding a position in floor 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 Floor Decor.

Using Floor Put Option to Manage Risk

Put options written on Floor Decor grant holders of the option the right to sell a specified amount of Floor Decor 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 Floor Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Floor Decor'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 Floor Decor will be realized, the loss incurred will be offset by the profits made with the option trade.

Floor Decor's PUT expiring on 2024-04-19

   Profit   
       Floor Decor Price At Expiration  

Current Floor Decor Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2024-04-19 PUT at $140.0-0.83420.051412024-04-1910.5 - 11.519.3View
Put
2024-04-19 PUT at $135.0-0.67220.03512172024-04-197.1 - 7.47.75View
Put
2024-04-19 PUT at $130.0-0.48710.037925852024-04-194.1 - 4.44.0View
Put
2024-04-19 PUT at $125.0-0.30470.032829852024-04-192.1 - 2.251.97View
Put
2024-04-19 PUT at $120.0-0.16010.022412692024-04-190.95 - 1.850.95View
Put
2024-04-19 PUT at $115.0-0.07550.012625282024-04-190.35 - 0.550.4View
Put
2024-04-19 PUT at $110.0-0.05050.007617762024-04-190.1 - 0.50.32View
Put
2024-04-19 PUT at $105.0-0.02890.004416912024-04-190.05 - 0.30.15View
View All Floor Decor Options

Floor Decor Holdings Stock Volatility Analysis

Volatility refers to the frequency at which Floor Decor stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Floor Decor's price changes. Investors will then calculate the volatility of Floor Decor'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 Floor Decor's volatility:

Historical Volatility

This type of stock volatility measures Floor Decor's fluctuations based on previous trends. It's commonly used to predict Floor Decor'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 Floor Decor'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 Floor Decor'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. Floor Decor Holdings 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.

Floor Decor Projected Return Density Against Market

Considering the 90-day investment horizon the stock has the beta coefficient of 2.8687 . This usually 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, Floor Decor 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 Floor Decor or Specialty Retail 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 Floor Decor'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 Floor 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.
Floor Decor Holdings 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  
Floor Decor's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how floor 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 Floor Decor 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.

Floor Decor Stock Risk Measures

Considering the 90-day investment horizon the coefficient of variation of Floor Decor is 831.93. The daily returns are distributed with a variance of 6.13 and standard deviation of 2.48. The mean deviation of Floor Decor Holdings is currently at 1.88. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
-0.14
β
Beta against NYSE Composite2.87
σ
Overall volatility
2.48
Ir
Information ratio 0.04

Floor Decor Stock Return Volatility

Floor Decor historical daily return volatility represents how much of Floor Decor stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 2.4764% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.573% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Floor Decor Volatility

Volatility is a rate at which the price of Floor Decor 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 Floor Decor may increase or decrease. In other words, similar to Floor's beta indicator, it measures the risk of Floor Decor and helps estimate the fluctuations that may happen in a short period of time. So if prices of Floor Decor 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 Expenses1.2 B1.3 B
Floor Decor'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 Floor Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Floor Decor's price varies over time.

3 ways to utilize Floor Decor's volatility to invest better

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

Floor Decor Investment Opportunity

Floor Decor Holdings has a volatility of 2.48 and is 4.35 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Floor Decor Holdings is lower than 21 percent of all global equities and portfolios over the last 90 days. You can use Floor Decor Holdings to protect your portfolios against small market fluctuations. The stock experiences a normal downward trend and little activity. Check odds of Floor Decor to be traded at $128.32 in 90 days.

Poor diversification

The correlation between Floor Decor Holdings and NYA is 0.66 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Floor Decor Holdings and NYA in the same portfolio, assuming nothing else is changed.

Floor Decor Additional Risk Indicators

The analysis of Floor Decor'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 Floor Decor's investment and either accepting that risk or mitigating it. Along with some common measures of Floor Decor 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.

Floor Decor 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 Floor Decor 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. Floor Decor'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, Floor Decor'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 Floor Decor Holdings.
When determining whether Floor Decor Holdings is a strong investment it is important to analyze Floor Decor'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 Floor Decor's future performance. For an informed investment choice regarding Floor Stock, refer to the following important reports:
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Floor Decor Holdings. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors.
You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

Complementary Tools for Floor Stock analysis

When running Floor Decor's price analysis, check to measure Floor Decor'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 Floor Decor is operating at the current time. Most of Floor Decor's value examination focuses on studying past and present price action to predict the probability of Floor Decor's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Floor Decor's price. Additionally, you may evaluate how the addition of Floor Decor to your portfolios can decrease your overall portfolio volatility.
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Is Floor Decor'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 Floor Decor. If investors know Floor 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 Floor Decor 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
(0.48)
Earnings Share
2.28
Revenue Per Share
41.537
Return On Assets
0.0451
Return On Equity
0.1371
The market value of Floor Decor Holdings is measured differently than its book value, which is the value of Floor that is recorded on the company's balance sheet. Investors also form their own opinion of Floor Decor's value that differs from its market value or its book value, called intrinsic value, which is Floor Decor'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 Floor Decor's market value can be influenced by many factors that don't directly affect Floor Decor'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 Floor Decor's value and its price as these two are different measures arrived at by different means. Investors typically determine if Floor Decor is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Floor Decor'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.