Home Bancorp Stock Volatility

HBCP Stock  USD 37.53  1.38  3.82%   
Home Bancorp holds Efficiency (Sharpe) Ratio of -0.059, which attests that the entity had a -0.059% return per unit of risk over the last 3 months. Home Bancorp exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check out Home Bancorp's Market Risk Adjusted Performance of (0.05), standard deviation of 2.38, and Risk Adjusted Performance of (0.03) to validate the risk estimate we provide. Key indicators related to Home Bancorp's volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
Home Bancorp 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 Home daily returns, and it is calculated using variance and standard deviation. We also use Home's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Home Bancorp volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Home Bancorp 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 Home Bancorp at lower prices. For example, an investor can purchase Home 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 Home Bancorp'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 Home Stock

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  0.84AX Axos Financial Financial Report 25th of April 2024 PairCorr
  0.95BY Byline Bancorp Normal TradingPairCorr

Moving against Home Stock

  0.86KB KB Financial Group Financial Report 20th of May 2024 PairCorr
  0.86NU Nu Holdings Financial Report 20th of May 2024 PairCorr
  0.84WF Woori Financial Group Financial Report 21st of May 2024 PairCorr
  0.8MFBP MF BancorpPairCorr
  0.79TECTP Tectonic FinancialPairCorr
  0.75RF-PB Regions FinancialPairCorr
  0.71RF-PC Regions FinancialPairCorr
  0.66VBFC Village Bank AndPairCorr
  0.54RF-PE Regions FinancialPairCorr

Home Bancorp Market Sensitivity And Downside Risk

Home Bancorp's beta coefficient measures the volatility of Home 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 Home stock's returns against your selected market. In other words, Home Bancorp's beta of 2.59 provides an investor with an approximation of how much risk Home Bancorp stock can potentially add to one of your existing portfolios. Home Bancorp exhibits very low volatility with skewness of -0.56 and kurtosis of 1.68. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Home 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 Home 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 financial instruments as prices fall.
3 Months Beta |Analyze Home Bancorp Demand Trend
Check current 90 days Home Bancorp correlation with market (NYSE Composite)

Home Beta

    
  2.59  
Home 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

    
  2.45  
It is essential to understand the difference between upside risk (as represented by Home Bancorp's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Home Bancorp's daily returns or price. Since the actual investment returns on holding a position in home 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 Home Bancorp.

Home Bancorp Stock Volatility Analysis

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

Historical Volatility

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

Home Bancorp Projected Return Density Against Market

Given the investment horizon of 90 days the stock has the beta coefficient of 2.5882 . This usually indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Home Bancorp 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 Home Bancorp or Thrifts & Mortgage Finance 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 Home Bancorp'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 Home 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.
Home Bancorp has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming NYSE Composite.
   Predicted Return Density   
       Returns  
Home Bancorp's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how home 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 Home Bancorp 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.

Home Bancorp Stock Risk Measures

Given the investment horizon of 90 days the coefficient of variation of Home Bancorp is -1695.04. The daily returns are distributed with a variance of 5.99 and standard deviation of 2.45. The mean deviation of Home Bancorp is currently at 1.81. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
-0.47
β
Beta against NYSE Composite2.59
σ
Overall volatility
2.45
Ir
Information ratio -0.12

Home Bancorp Stock Return Volatility

Home Bancorp historical daily return volatility represents how much of Home Bancorp stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The enterprise inherits 2.447% risk (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 Home Bancorp Volatility

Volatility is a rate at which the price of Home 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 Home Bancorp may increase or decrease. In other words, similar to Home's beta indicator, it measures the risk of Home Bancorp and helps estimate the fluctuations that may happen in a short period of time. So if prices of Home 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.
Last ReportedProjected for 2024
Selling And Marketing Expenses2.1 M1.2 M
Home Bancorp'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 Home Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Home Bancorp's price varies over time.

3 ways to utilize Home Bancorp's volatility to invest better

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

Home Bancorp Investment Opportunity

Home Bancorp has a volatility of 2.45 and is 4.3 times more volatile than NYSE Composite. 21 percent of all equities and portfolios are less risky than Home Bancorp. You can use Home Bancorp to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Home Bancorp to be traded at $45.04 in 90 days.

Poor diversification

The correlation between Home Bancorp and NYA is 0.6 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Home Bancorp and NYA in the same portfolio, assuming nothing else is changed.

Home Bancorp Additional Risk Indicators

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

Home Bancorp 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 Home Bancorp 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. Home Bancorp'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, Home Bancorp'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 Home Bancorp.
When determining whether Home Bancorp 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 Home 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 Home Bancorp Stock. Highlighted below are key reports to facilitate an investment decision about Home Bancorp Stock:
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Home Bancorp. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in main economic indicators.
To learn how to invest in Home Stock, please use our How to Invest in Home Bancorp guide.
Note that the Home Bancorp information on this page should be used as a complementary analysis to other Home Bancorp's 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 Global Correlations module to find global opportunities by holding instruments from different markets.

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When running Home Bancorp's price analysis, check to measure Home Bancorp'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 Home Bancorp is operating at the current time. Most of Home Bancorp's value examination focuses on studying past and present price action to predict the probability of Home Bancorp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Home Bancorp's price. Additionally, you may evaluate how the addition of Home Bancorp to your portfolios can decrease your overall portfolio volatility.
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Is Home Bancorp's 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 Home Bancorp. If investors know Home 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 Home Bancorp 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
(0.12)
Dividend Share
1
Earnings Share
4.99
Revenue Per Share
16.503
Quarterly Revenue Growth
(0.08)
The market value of Home Bancorp is measured differently than its book value, which is the value of Home that is recorded on the company's balance sheet. Investors also form their own opinion of Home Bancorp's value that differs from its market value or its book value, called intrinsic value, which is Home Bancorp's 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 Home Bancorp's market value can be influenced by many factors that don't directly affect Home Bancorp's 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 Home Bancorp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Home Bancorp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Home Bancorp'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.