Icahn Enterprises Lp Stock Volatility

IEP Stock  USD 17.16  0.31  1.77%   
Icahn Enterprises appears to be not too volatile, given 3 months investment horizon. Icahn Enterprises holds Efficiency (Sharpe) Ratio of 0.11, which attests that the entity had 0.11% return per unit of risk over the last 3 months. Our standpoint towards determining the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Icahn Enterprises, which you can use to evaluate the future volatility of the firm. Please utilize Icahn Enterprises' Market Risk Adjusted Performance of 0.5904, risk adjusted performance of 0.0626, and Downside Deviation of 2.42 to validate if our risk estimates are consistent with your expectations. Key indicators related to Icahn Enterprises' volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
Icahn Enterprises 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 Icahn daily returns, and it is calculated using variance and standard deviation. We also use Icahn's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Icahn Enterprises volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Icahn Enterprises 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 Icahn Enterprises at lower prices. For example, an investor can purchase Icahn 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 Icahn Enterprises' 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 Icahn Stock

  0.67CVI CVR Energy Financial Report 6th of May 2024 PairCorr
  0.66MPC Marathon Petroleum Corp Sell-off TrendPairCorr

Moving against Icahn Stock

  0.78SGU Star Gas PartnersPairCorr
  0.7VTNR Vertex Energy Financial Report 14th of May 2024 PairCorr

Icahn Enterprises Market Sensitivity And Downside Risk

Icahn Enterprises' beta coefficient measures the volatility of Icahn stock compared to the systematic risk of the entire stock 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 Icahn stock's returns against your selected market. In other words, Icahn Enterprises's beta of 0.35 provides an investor with an approximation of how much risk Icahn Enterprises stock can potentially add to one of your existing portfolios.
Icahn Enterprises LP currently demonstrates below-average downside deviation. It has Information Ratio of 0.03 and Jensen Alpha of 0.16. However, we advise investors to further question Icahn Enterprises LP expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Icahn Enterprises' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Icahn Enterprises' 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 stocks as prices fall.
3 Months Beta |Analyze Icahn Enterprises Demand Trend
Check current 90 days Icahn Enterprises correlation with market (NYSE Composite)

Icahn Beta

    
  0.35  
Icahn standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity 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 Icahn Enterprises's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Icahn Enterprises' daily returns or price. Since the actual investment returns on holding a position in icahn 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 Icahn Enterprises.

Using Icahn Put Option to Manage Risk

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

Icahn Enterprises' PUT expiring on 2024-03-22

   Profit   
       Icahn Enterprises Price At Expiration  

Current Icahn Enterprises Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2024-03-22 PUT at $26.0-0.73470.040312024-03-228.3 - 10.95.2View
Put
2024-03-22 PUT at $24.0-0.71480.047362024-03-226.3 - 8.95.6View
Put
2024-03-22 PUT at $20.0-0.69150.0898982024-03-221.6 - 4.92.0View
Put
2024-03-22 PUT at $19.0-0.7520.155522024-03-221.35 - 1.851.45View
Put
2024-03-22 PUT at $18.5-0.98370.071562024-03-220.95 - 1.21.17View
Put
2024-03-22 PUT at $18.0-0.7680.40682062024-03-220.5 - 0.850.67View
Put
2024-03-22 PUT at $17.5-0.52030.43792024-03-220.3 - 0.450.4View
Put
2024-03-22 PUT at $17.0-0.2880.4197742024-03-220.15 - 0.20.15View
Put
2024-03-22 PUT at $16.5-0.17280.24381162024-03-220.05 - 0.10.1View
View All Icahn Enterprises Options

Icahn Enterprises Stock Volatility Analysis

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

Historical Volatility

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

Icahn Enterprises Projected Return Density Against Market

Considering the 90-day investment horizon Icahn Enterprises has a beta of 0.3496 . This usually indicates as returns on the market go up, Icahn Enterprises average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Icahn Enterprises LP will be expected to be much smaller as well.
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 Icahn Enterprises or Industrial Conglomerates 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 Icahn Enterprises' 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 Icahn 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.
The company has an alpha of 0.1568, implying that it can generate a 0.16 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Icahn Enterprises' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how icahn 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 Icahn Enterprises 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.

Icahn Enterprises Stock Risk Measures

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 Icahn Enterprises or Industrial Conglomerates 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 Icahn Enterprises' 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 Icahn 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. Considering the 90-day investment horizon the coefficient of variation of Icahn Enterprises is 928.5. The daily returns are distributed with a variance of 6.16 and standard deviation of 2.48. The mean deviation of Icahn Enterprises LP is currently at 1.77. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.63
α
Alpha over NYSE Composite
0.16
β
Beta against NYSE Composite0.35
σ
Overall volatility
2.48
Ir
Information ratio 0.03

Icahn Enterprises Stock Return Volatility

Icahn Enterprises historical daily return volatility represents how much of Icahn Enterprises stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The enterprise has volatility of 2.4812% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.5953% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Icahn Enterprises Volatility

Volatility is a rate at which the price of Icahn Enterprises 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 Icahn Enterprises may increase or decrease. In other words, similar to Icahn's beta indicator, it measures the risk of Icahn Enterprises and helps estimate the fluctuations that may happen in a short period of time. So if prices of Icahn Enterprises 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.
Icahn Enterprises L.P., through its subsidiaries, operates in investment, energy, automotive, food packaging, real estate, home fashion, and pharma businesses in the United States and Internationally. The company was incorporated in 1987 and is headquartered in Sunny Isles Beach, Florida. Icahn Enterprises operates under Conglomerates classification in the United States and is traded on NASDAQ Exchange. It employs 19536 people.
Icahn Enterprises' 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 Icahn Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Icahn Enterprises' price varies over time.

3 ways to utilize Icahn Enterprises' volatility to invest better

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

Icahn Enterprises Investment Opportunity

Icahn Enterprises LP has a volatility of 2.48 and is 4.13 times more volatile than NYSE Composite. 21  of all equities and portfolios are less risky than Icahn Enterprises. Compared to the overall equity markets, volatility of historical daily returns of Icahn Enterprises LP is lower than 21 () of all global equities and portfolios over the last 90 days. Use Icahn Enterprises LP to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of Icahn Enterprises to be traded at $16.65 in 90 days.

Significant diversification

The correlation between Icahn Enterprises LP and NYA is 0.09 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Icahn Enterprises LP and NYA in the same portfolio, assuming nothing else is changed.

Icahn Enterprises Additional Risk Indicators

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

Icahn Enterprises 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 Icahn Enterprises 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. Icahn Enterprises' 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, Icahn Enterprises' 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 Icahn Enterprises LP.
When determining whether Icahn Enterprises is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Icahn Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Icahn Enterprises Lp Stock. Highlighted below are key reports to facilitate an investment decision about Icahn Enterprises Lp Stock:
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Icahn Enterprises LP. Also, note that the market value of any Company could be tightly coupled with the direction of predictive economic indicators such as signals in income.
Note that the Icahn Enterprises information on this page should be used as a complementary analysis to other Icahn Enterprises' 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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When running Icahn Enterprises' price analysis, check to measure Icahn Enterprises' 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 Icahn Enterprises is operating at the current time. Most of Icahn Enterprises' value examination focuses on studying past and present price action to predict the probability of Icahn Enterprises' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Icahn Enterprises' price. Additionally, you may evaluate how the addition of Icahn Enterprises to your portfolios can decrease your overall portfolio volatility.
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Is Icahn Enterprises' 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 Icahn Enterprises. If investors know Icahn 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 Icahn Enterprises 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
0.631
Dividend Share
6
Earnings Share
(1.75)
Revenue Per Share
28.359
Quarterly Revenue Growth
(0.14)
The market value of Icahn Enterprises is measured differently than its book value, which is the value of Icahn that is recorded on the company's balance sheet. Investors also form their own opinion of Icahn Enterprises' value that differs from its market value or its book value, called intrinsic value, which is Icahn Enterprises' 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 Icahn Enterprises' market value can be influenced by many factors that don't directly affect Icahn Enterprises' 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 Icahn Enterprises' value and its price as these two are different measures arrived at by different means. Investors typically determine if Icahn Enterprises is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Icahn Enterprises' 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.