Papa Johns International Stock Volatility
| PZZA Stock | USD 64.26 1.04 1.65% |
Papa Johns International maintains Sharpe Ratio (i.e., Efficiency) of -0.16, which implies the firm had a -0.16% return per unit of risk over the last 3 months. Papa Johns International exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check Papa Johns' Coefficient Of Variation of (748.43), risk adjusted performance of (0.08), and Variance of 3.21 to confirm the risk estimate we provide. Key indicators related to Papa Johns' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Papa Johns 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 Papa daily returns, and it is calculated using variance and standard deviation. We also use Papa's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Papa Johns volatility.
Papa |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Papa Johns 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 Papa Johns at lower prices. For example, an investor can purchase Papa 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 Papa Johns' 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 Papa Stock
| 0.89 | MCD | McDonalds Earnings Call This Week | PairCorr |
Moving against Papa Stock
| 0.89 | CMG | Chipotle Mexican Grill Earnings Call Today | PairCorr |
| 0.87 | DPZ | Dominos Pizza Earnings Call This Week | PairCorr |
| 0.87 | NGMS | NeogamesSA Financial Report 8th of May 2024 | PairCorr |
| 0.77 | WING | Wingstop Earnings Call This Week | PairCorr |
| 0.76 | LE | Lands End Financial Report 6th of June 2024 | PairCorr |
| 0.65 | AN | AutoNation Earnings Call This Week | PairCorr |
| 0.64 | BBY | Best Buy Sell-off Trend | PairCorr |
| 0.62 | BLD | Topbuild Corp Financial Report 2nd of May 2024 | PairCorr |
| 0.6 | BROS | Dutch Bros Financial Report 14th of May 2024 | PairCorr |
Papa Johns Market Sensitivity And Downside Risk
Papa Johns' beta coefficient measures the volatility of Papa 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 Papa stock's returns against your selected market. In other words, Papa Johns's beta of 1.28 provides an investor with an approximation of how much risk Papa Johns stock can potentially add to one of your existing portfolios. Papa Johns International exhibits very low volatility with skewness of -0.23 and kurtosis of -0.38. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Papa Johns' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Papa Johns' 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 Papa Johns International Demand TrendCheck current 90 days Papa Johns correlation with market (NYSE Composite)Papa Beta |
Papa 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 | 1.81 |
It is essential to understand the difference between upside risk (as represented by Papa Johns's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Papa Johns' daily returns or price. Since the actual investment returns on holding a position in papa 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 Papa Johns.
Using Papa Put Option to Manage Risk
Put options written on Papa Johns grant holders of the option the right to sell a specified amount of Papa Johns 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 Papa Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Papa Johns' 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 Papa Johns will be realized, the loss incurred will be offset by the profits made with the option trade.
Papa Johns' PUT expiring on 2024-05-17
Profit |
| Papa Johns Price At Expiration |
Current Papa Johns Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | 2024-05-17 PUT at $80.0 | -0.8972 | 0.0163 | 1 | 2024-05-17 | 15.3 - 19.1 | 13.0 | View |
Put | 2024-05-17 PUT at $75.0 | -0.9032 | 0.0218 | 15 | 2024-05-17 | 10.3 - 13.8 | 8.76 | View |
Put | 2024-05-17 PUT at $72.5 | -0.8622 | 0.0295 | 17 | 2024-05-17 | 8.3 - 11.1 | 8.7 | View |
Put | 2024-05-17 PUT at $70.0 | -0.7638 | 0.038 | 19 | 2024-05-17 | 6.5 - 9.0 | 5.8 | View |
Put | 2024-05-17 PUT at $67.5 | -0.7511 | 0.0564 | 539 | 2024-05-17 | 3.9 - 6.1 | 7.07 | View |
Put | 2024-05-17 PUT at $65.0 | -0.5894 | 0.0639 | 299 | 2024-05-17 | 3.3 - 3.5 | 3.4 | View |
Put | 2024-05-17 PUT at $62.5 | -0.4277 | 0.0646 | 1838 | 2024-05-17 | 1.95 - 2.1 | 2.3 | View |
Put | 2024-05-17 PUT at $60.0 | -0.2747 | 0.054 | 15893 | 2024-05-17 | 1.05 - 1.15 | 1.25 | View |
Put | 2024-05-17 PUT at $57.5 | -0.164 | 0.0379 | 4680 | 2024-05-17 | 0.45 - 0.6 | 0.6 | View |
Put | 2024-05-17 PUT at $55.0 | -0.0802 | 0.0226 | 598 | 2024-05-17 | 0.2 - 0.3 | 0.25 | View |
Papa Johns International Stock Volatility Analysis
Volatility refers to the frequency at which Papa Johns stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Papa Johns' price changes. Investors will then calculate the volatility of Papa Johns' 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 Papa Johns' volatility:
Historical Volatility
This type of stock volatility measures Papa Johns' fluctuations based on previous trends. It's commonly used to predict Papa Johns' 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 Papa Johns' 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 Papa Johns' 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. Papa Johns International 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.
Papa Johns Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 1.2839 indicating as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Papa Johns 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 Papa Johns or Hotels, Restaurants & Leisure 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 Papa Johns' 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 Papa 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.
Papa Johns International has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the NYSE Composite. Predicted Return Density |
| Returns |
What Drives a Papa Johns 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.Papa Johns Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Papa Johns is -644.76. The daily returns are distributed with a variance of 3.27 and standard deviation of 1.81. The mean deviation of Papa Johns International is currently at 1.47. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | -0.35 | |
β | Beta against NYSE Composite | 1.28 | |
σ | Overall volatility | 1.81 | |
Ir | Information ratio | -0.18 |
Papa Johns Stock Return Volatility
Papa Johns historical daily return volatility represents how much of Papa Johns stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 1.8088% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.6371% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Papa Johns Volatility
Volatility is a rate at which the price of Papa Johns 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 Papa Johns may increase or decrease. In other words, similar to Papa's beta indicator, it measures the risk of Papa Johns and helps estimate the fluctuations that may happen in a short period of time. So if prices of Papa Johns 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 Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 8.4 M | 8 M | |
| Market Cap | 2.3 B | 2.4 B |
Papa Johns' 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 Papa Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Papa Johns' price varies over time.
3 ways to utilize Papa Johns' volatility to invest better
Higher Papa Johns' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Papa Johns International 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. Papa Johns International 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 Papa Johns International investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Papa Johns' 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 Papa Johns' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Papa Johns Investment Opportunity
Papa Johns International has a volatility of 1.81 and is 2.83 times more volatile than NYSE Composite. 15 percent of all equities and portfolios are less risky than Papa Johns. You can use Papa Johns International to enhance the returns of your portfolios. The stock experiences a large bullish trend. Check odds of Papa Johns to be traded at $70.69 in 90 days.Very weak diversification
The correlation between Papa Johns International and NYA is 0.44 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Papa Johns International and NYA in the same portfolio, assuming nothing else is changed.
Papa Johns Additional Risk Indicators
The analysis of Papa Johns' 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 Papa Johns' investment and either accepting that risk or mitigating it. Along with some common measures of Papa Johns 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.
| Risk Adjusted Performance | (0.08) | |||
| Market Risk Adjusted Performance | (0.18) | |||
| Mean Deviation | 1.45 | |||
| Coefficient Of Variation | (748.43) | |||
| Standard Deviation | 1.79 | |||
| Variance | 3.21 | |||
| Information Ratio | (0.18) |
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.
Papa Johns 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 Papa Johns 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. Papa Johns' 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, Papa Johns' 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 Papa Johns International.
When determining whether Papa Johns International offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Papa Johns' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Papa Johns International Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Papa Johns International Stock: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Papa Johns International. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation. Note that the Papa Johns International information on this page should be used as a complementary analysis to other Papa Johns' 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 Papa Stock analysis
When running Papa Johns' price analysis, check to measure Papa Johns' 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 Papa Johns is operating at the current time. Most of Papa Johns' value examination focuses on studying past and present price action to predict the probability of Papa Johns' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Papa Johns' price. Additionally, you may evaluate how the addition of Papa Johns to your portfolios can decrease your overall portfolio volatility.
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Stocks Directory Find actively traded stocks across global markets |
Is Papa Johns' 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 Papa Johns. If investors know Papa 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 Papa Johns 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 0.205 | Dividend Share 1.76 | Earnings Share 2.48 | Revenue Per Share 64.854 | Quarterly Revenue Growth 0.086 |
The market value of Papa Johns International is measured differently than its book value, which is the value of Papa that is recorded on the company's balance sheet. Investors also form their own opinion of Papa Johns' value that differs from its market value or its book value, called intrinsic value, which is Papa Johns' 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 Papa Johns' market value can be influenced by many factors that don't directly affect Papa Johns' 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 Papa Johns' value and its price as these two are different measures arrived at by different means. Investors typically determine if Papa Johns is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Papa Johns' 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.