Bank Hapoalim (Israel) Volatility

POLI Stock  ILA 3,430  42.00  1.21%   
We consider Bank Hapoalim very steady. Bank Hapoalim secures Sharpe Ratio (or Efficiency) of 0.0536, which signifies that the company had a 0.0536% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Bank Hapoalim, which you can use to evaluate the volatility of the firm. Please confirm Bank Hapoalim's Downside Deviation of 1.26, mean deviation of 1.21, and Risk Adjusted Performance of 0.0626 to double-check if the risk estimate we provide is consistent with the expected return of 0.0777%. Key indicators related to Bank Hapoalim's volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
Bank Hapoalim 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 Bank daily returns, and it is calculated using variance and standard deviation. We also use Bank's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Bank Hapoalim volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Bank Hapoalim 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 Bank Hapoalim at lower prices. For example, an investor can purchase Bank 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 Bank Hapoalim'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.

Moving together with Bank Stock

  0.84LUMI Bank Leumi Le-IsraelPairCorr
  0.66DSCT Israel Discount BankPairCorr
  0.83MGDL Migdal InsurancePairCorr
  0.67FIBIH FIBI HoldingsPairCorr
  0.92CLIS Clal Insurance Enter Earnings Call TodayPairCorr
  0.76HARL Harel Insurance Inve Earnings Call TodayPairCorr
  0.88MMHD Menora Miv HldPairCorr

Bank Hapoalim Market Sensitivity And Downside Risk

Bank Hapoalim's beta coefficient measures the volatility of Bank 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 Bank stock's returns against your selected market. In other words, Bank Hapoalim's beta of 0.5 provides an investor with an approximation of how much risk Bank Hapoalim stock can potentially add to one of your existing portfolios. Bank Hapoalim has relatively low volatility with skewness of 0.51 and kurtosis of -0.22. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Bank Hapoalim'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 Bank Hapoalim'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 Bank Hapoalim Demand Trend
Check current 90 days Bank Hapoalim correlation with market (NYSE Composite)

Bank Beta

    
  0.5  
Bank 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

    
  1.45  
It is essential to understand the difference between upside risk (as represented by Bank Hapoalim's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Bank Hapoalim's daily returns or price. Since the actual investment returns on holding a position in bank 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 Bank Hapoalim.

Bank Hapoalim Stock Volatility Analysis

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

Historical Volatility

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

Bank Hapoalim Projected Return Density Against Market

Assuming the 90 days trading horizon Bank Hapoalim has a beta of 0.4952 indicating as returns on the market go up, Bank Hapoalim average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Bank Hapoalim 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 Bank Hapoalim or Banks 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 Bank Hapoalim'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 Bank 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.
Bank Hapoalim has an alpha of 0.0797, implying that it can generate a 0.0797 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Bank Hapoalim's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how bank 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 Bank Hapoalim 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.

Bank Hapoalim Stock Risk Measures

Assuming the 90 days trading horizon the coefficient of variation of Bank Hapoalim is 1864.33. The daily returns are distributed with a variance of 2.1 and standard deviation of 1.45. The mean deviation of Bank Hapoalim is currently at 1.18. 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 Composite0.50
σ
Overall volatility
1.45
Ir
Information ratio 0.01

Bank Hapoalim Stock Return Volatility

Bank Hapoalim historical daily return volatility represents how much of Bank Hapoalim stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 1.4488% volatility on return distribution over the 90 days horizon. By contrast, NYSE Composite accepts 0.5731% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Bank Hapoalim Volatility

Volatility is a rate at which the price of Bank Hapoalim 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 Bank Hapoalim may increase or decrease. In other words, similar to Bank's beta indicator, it measures the risk of Bank Hapoalim and helps estimate the fluctuations that may happen in a short period of time. So if prices of Bank Hapoalim 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.
Bank Hapoalim B.M., together with its subsidiaries, provides various banking and financial products and services in Israel and internationally. Bank Hapoalim B.M. was founded in 1921 and is based in Tel Aviv, Israel. BANK HAPOALIM is traded on Tel Aviv Stock Exchange in Israel.
Bank Hapoalim'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 Bank Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Bank Hapoalim's price varies over time.

3 ways to utilize Bank Hapoalim's volatility to invest better

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

Bank Hapoalim Investment Opportunity

Bank Hapoalim has a volatility of 1.45 and is 2.54 times more volatile than NYSE Composite. 12 percent of all equities and portfolios are less risky than Bank Hapoalim. You can use Bank Hapoalim to protect your portfolios against small market fluctuations. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of Bank Hapoalim to be traded at 3327.1 in 90 days.

Average diversification

The correlation between Bank Hapoalim 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 Bank Hapoalim and NYA in the same portfolio, assuming nothing else is changed.

Bank Hapoalim Additional Risk Indicators

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

Bank Hapoalim 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 Bank Hapoalim 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. Bank Hapoalim'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, Bank Hapoalim'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 Bank Hapoalim.
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Bank Hapoalim. 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.

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When running Bank Hapoalim's price analysis, check to measure Bank Hapoalim'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 Bank Hapoalim is operating at the current time. Most of Bank Hapoalim's value examination focuses on studying past and present price action to predict the probability of Bank Hapoalim's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Bank Hapoalim's price. Additionally, you may evaluate how the addition of Bank Hapoalim to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between Bank Hapoalim's value and its price as these two are different measures arrived at by different means. Investors typically determine if Bank Hapoalim is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bank Hapoalim'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.