International Business Machines Stock Volatility

IBM Stock  USD 190.80  2.30  1.22%   
International Business appears to be very steady, given 3 months investment horizon. International Business holds Efficiency (Sharpe) Ratio of 0.16, which attests that the entity had a 0.16% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for International Business, which you can use to evaluate the volatility of the firm. Please utilize International Business' Downside Deviation of 1.14, market risk adjusted performance of 0.1884, and Risk Adjusted Performance of 0.1015 to validate if our risk estimates are consistent with your expectations. Key indicators related to International Business' volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
International Business 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 International daily returns, and it is calculated using variance and standard deviation. We also use International's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of International Business volatility.
  

ESG Sustainability

While most ESG disclosures are voluntary, International Business' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to International Business' managers and investors.
Environment Score
Governance Score
Social Score
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as International Business 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 International Business at lower prices. For example, an investor can purchase International 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 International Business' 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 International Stock

  0.9FI Fiserv Inc Symbol ChangePairCorr
  0.76IT Gartner Financial Report 7th of May 2024 PairCorr
  0.73KD Kyndryl Holdings Financial Report 21st of May 2024 PairCorr
  0.74MGIC Magic Software Enter Financial Report 16th of May 2024 PairCorr
  0.77DTST Data Storage Corp Earnings Call TodayPairCorr

Moving against International Stock

  0.84VNET VNET Group DRC Financial Report 22nd of May 2024 PairCorr
  0.64CLVT-PA Clarivate PlcPairCorr

International Business Market Sensitivity And Downside Risk

International Business' beta coefficient measures the volatility of International 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 International stock's returns against your selected market. In other words, International Business's beta of 1.55 provides an investor with an approximation of how much risk International Business stock can potentially add to one of your existing portfolios. International Business Machines has relatively low volatility with skewness of 2.55 and kurtosis of 12.83. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure International Business' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact International Business' 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 International Business Demand Trend
Check current 90 days International Business correlation with market (NYSE Composite)

International Beta

    
  1.55  
International 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

    
  1.75  
It is essential to understand the difference between upside risk (as represented by International Business's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of International Business' daily returns or price. Since the actual investment returns on holding a position in international 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 International Business.

Using International Put Option to Manage Risk

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

International Business' PUT expiring on 2024-03-28

   Profit   
       International Business Price At Expiration  

Current International Business Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2024-03-28 PUT at $202.5-0.87230.0214142024-03-2810.55 - 12.36.05View
Put
2024-03-28 PUT at $200.0-0.94410.0202482024-03-288.15 - 10.511.23View
Put
2024-03-28 PUT at $197.5-0.87260.0366232024-03-285.5 - 7.058.23View
Put
2024-03-28 PUT at $195.0-0.91980.05082402024-03-283.6 - 4.554.3View
Put
2024-03-28 PUT at $192.5-0.78350.13769262024-03-281.79 - 2.123.5View
Put
2024-03-28 PUT at $190.0-0.3320.19255642024-03-280.39 - 0.440.47View
Put
2024-03-28 PUT at $187.5-0.05560.053425402024-03-280.03 - 0.070.05View
Put
2024-03-28 PUT at $185.0-0.01120.01133842024-03-280.01 - 0.10.01View
Put
2024-03-28 PUT at $182.5-0.01440.00942722024-03-280.01 - 0.030.02View
Put
2024-03-28 PUT at $180.0-0.01590.00768912024-03-280.0 - 0.110.03View
Put
2024-03-28 PUT at $177.5-0.00980.0044332024-03-280.0 - 0.40.02View
View All International Business Options

International Business Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures International Business' fluctuations based on previous trends. It's commonly used to predict International Business' 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 International Business' 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 International Business' 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. International Business 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.

International Business Projected Return Density Against Market

Considering the 90-day investment horizon the stock has the beta coefficient of 1.553 . 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, International Business 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 International Business or IT 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 International Business' 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 International 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.
International Business Machines has an alpha of 0.084, implying that it can generate a 0.084 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
International Business' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how international 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 an International Business 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.

International Business Stock Risk Measures

Considering the 90-day investment horizon the coefficient of variation of International Business is 618.67. The daily returns are distributed with a variance of 3.05 and standard deviation of 1.75. The mean deviation of International Business Machines is currently at 1.15. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
0.08
β
Beta against NYSE Composite1.55
σ
Overall volatility
1.75
Ir
Information ratio 0.09

International Business Stock Return Volatility

International Business historical daily return volatility represents how much of International Business stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 1.7477% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.5731% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About International Business Volatility

Volatility is a rate at which the price of International Business 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 International Business may increase or decrease. In other words, similar to International's beta indicator, it measures the risk of International Business and helps estimate the fluctuations that may happen in a short period of time. So if prices of International Business 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 B1.5 B
International Business' 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 International Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much International Business' price varies over time.

3 ways to utilize International Business' volatility to invest better

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

International Business Investment Opportunity

International Business Machines has a volatility of 1.75 and is 3.07 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of International Business Machines is lower than 15 percent of all global equities and portfolios over the last 90 days. You can use International Business Machines to enhance the returns of your portfolios. The stock experiences a large bullish trend. Check odds of International Business to be traded at $209.88 in 90 days.

Very weak diversification

The correlation between International Business Machine 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 International Business Machine and NYA in the same portfolio, assuming nothing else is changed.

International Business Additional Risk Indicators

The analysis of International Business' 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 International Business' investment and either accepting that risk or mitigating it. Along with some common measures of International Business 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.

International Business 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 International Business 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. International Business' 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, International Business' 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 International Business Machines.
When determining whether International Business is a strong investment it is important to analyze International Business' 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 International Business' future performance. For an informed investment choice regarding International Stock, refer to the following important reports:
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in International Business Machines. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of labor statistics.
Note that the International Business information on this page should be used as a complementary analysis to other International Business' 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

Complementary Tools for International Stock analysis

When running International Business' price analysis, check to measure International Business' 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 International Business is operating at the current time. Most of International Business' value examination focuses on studying past and present price action to predict the probability of International Business' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move International Business' price. Additionally, you may evaluate how the addition of International Business to your portfolios can decrease your overall portfolio volatility.
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Is International Business' 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 International Business. If investors know International 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 International Business 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
0.2
Dividend Share
6.63
Earnings Share
8.14
Revenue Per Share
67.888
Quarterly Revenue Growth
0.041
The market value of International Business is measured differently than its book value, which is the value of International that is recorded on the company's balance sheet. Investors also form their own opinion of International Business' value that differs from its market value or its book value, called intrinsic value, which is International Business' 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 International Business' market value can be influenced by many factors that don't directly affect International Business' 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 International Business' value and its price as these two are different measures arrived at by different means. Investors typically determine if International Business is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, International Business' 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.