OFG Bancorp runs under
Banks sector within
Financials industry.
Volatility is a rate at which the price of OFG Bancorp 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 OFG Bancorp may increase or decrease. In other words, similar to OFG's
beta indicator, it measures the risk of OFG Bancorp and helps estimate the fluctuations that may happen in a short period of time. So if prices of OFG Bancorp 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.
How important is OFG Bancorp's Liquidity
OFG Bancorp
financial leverage refers to using borrowed capital as a funding source to finance OFG Bancorp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. OFG Bancorp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to OFG Bancorp's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of OFG Bancorp's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between OFG Bancorp's total debt and its cash.
OFG Bancorp Gross Profit
OFG Bancorp Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing OFG Bancorp previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show OFG Bancorp Gross Profit growth over the last 10 years. Please check OFG Bancorp's
gross profit and other
fundamental indicators for more details.
OFG Bancorp Volatility Drivers
OFG Bancorp unsystematic risk is unique to OFG Bancorp and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in OFG Bancorp you can also buy
The First Bancshares. You can also mitigate this risk by investing in the financials sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing OFG Bancorp important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in OFG Bancorp income statement and balance sheet. Here are more
details about OFG volatility.
Click cells to compare fundamentals
What is driving OFG Bancorp Investor Appetite?
The small dip in market price for the last few months may encourage shareholders to take a closer look at the company as it is trading at a share price of
27.27 on
150,518 in trading volume. The company management teams did not add much value to OFG Bancorp investors in
December. However, diversifying your holdings with OFG Bancorp or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.42. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
OFG Bancorp is likely finish below USD28 in 30 days
Latest maximum drawdown is at 8.67. OFG Bancorp has relatively low volatility with skewness of -0.4 and kurtosis of 1.78. However, we advise all investors to independently investigate OFG Bancorp to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure OFG Bancorp'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 OFG Bancorp'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 stocks as prices fall.
Our Final Takeaway
When is the right time to buy or sell OFG Bancorp? Buying stocks such as OFG Bancorp isn't very hard. However, what challenging for most investors is doing it at the right time. Proper
market timing is something most people cannot do without
sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
The inconsistency in the assessment between current OFG Bancorp valuation and our trade advice on OFG Bancorp is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to OFG Bancorp.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of OFG Bancorp. Please refer to our
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