Texas Story

Closer look at Texas Capital Variance

Texas Capital Bancshares has current Variance of 9.02. Variance is another measure of security risk that shows the amount of dispersion of equity returns around their mean value. Variance is calculated as the average squared deviations from the mean. Evaluating a set of investment alternatives one can use variance to help determine the volatility when purchasing a specific security. Similar to Standard Deviation, the variance is a measure of how far a set of numbers is spread out around its mean.

Variance is also a measure of stock volatility and can help determine the risk an investor might take on when purchasing a specific security. A relatively big variance indicates that the daily prices or returns are far from the mean and a small variance indicates that they are located around the mean.

Variance   =  SUM(RET DEV)2  N

=

9.02

SUM	=	Summation notation
RET DEV	=	Actual returns deviation over selected period
N	=	Number of points for the period

Let's now compare Texas Capital Variance to its closest peers:

	TCBI	9.015135658576076
	CIHHF	12.61
	CIHKY	6.75
	HDB	2.71
	SBRCY	6.2

Our perspective of the current Texas Capital drop

Current downside variance is at 2.66. As of the 21st of January, Texas Capital has the Risk Adjusted Performance of 0.3473, coefficient of variation of 294.06, and Semi Deviation of 0.8062. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Texas Capital Bancsh, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We are able to interpolate and collect nineteen technical drivers for Texas Capital Bancshares, which can be compared to its competition. Please validate Texas Capital Bancsh downside deviation, treynor ratio, expected short fall, as well as the relationship between the variance and potential upside to decide if Texas Capital is priced more or less accurately, providing market reflects its prevalent price of 66.6 per share. Given that Texas Capital Bancsh has jensen alpha of 0.8615, we advise you to double-check Texas Capital Bancshares's current market performance to make sure the company can sustain itself at a future point.

Our Takeaway on Texas Capital Investment

While some firms under the banks?regional industry are still a bit expensive, Texas Capital may offer a potential longer-term growth to stockholders. To summarize, as of the 21st of January 2021, our research shows that Texas Capital is a rather very steady investment opportunity with a low probability of financial unrest in the next two years. From a slightly different view, the entity currently appears to be fairly valued. Our ongoing 30 days 'Buy-vs-Sell' recommendation on the company is Strong Buy.