Banco Bilbao Viscaya Stock Volatility
| BBVA Stock | USD 11.27 0.13 1.14% |
Banco Bilbao appears to be not too volatile, given 3 months investment horizon. Banco Bilbao Viscaya secures Sharpe Ratio (or Efficiency) of 0.3, which signifies that the company had a 0.3% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Banco Bilbao Viscaya, which you can use to evaluate the volatility of the firm. Please makes use of Banco Bilbao's Downside Deviation of 1.42, risk adjusted performance of 0.1932, and Mean Deviation of 1.21 to double-check if our risk estimates are consistent with your expectations. Key indicators related to Banco Bilbao's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Banco Bilbao 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 Banco daily returns, and it is calculated using variance and standard deviation. We also use Banco's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Banco Bilbao volatility.
Banco |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Banco Bilbao 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 Banco Bilbao at lower prices. For example, an investor can purchase Banco 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 Banco Bilbao'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 Banco Stock
| 0.93 | C | Citigroup Earnings Call This Week | PairCorr |
| 0.89 | CM | Canadian Imperial Bank Financial Report 23rd of May 2024 | PairCorr |
| 0.89 | NU | Nu Holdings Financial Report 20th of May 2024 | PairCorr |
| 0.62 | RY | Royal Bank Financial Report 23rd of May 2024 | PairCorr |
| 0.94 | BML-PG | Bank of America | PairCorr |
| 0.89 | BML-PH | Bank of America | PairCorr |
| 0.92 | BML-PJ | Bank of America | PairCorr |
| 0.81 | BML-PL | Bank of America | PairCorr |
Banco Bilbao Market Sensitivity And Downside Risk
Banco Bilbao's beta coefficient measures the volatility of Banco 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 Banco stock's returns against your selected market. In other words, Banco Bilbao's beta of 0.95 provides an investor with an approximation of how much risk Banco Bilbao stock can potentially add to one of your existing portfolios. Banco Bilbao Viscaya has relatively low volatility with skewness of 0.32 and kurtosis of 0.51. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Banco Bilbao'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 Banco Bilbao'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 Banco Bilbao Viscaya Demand TrendCheck current 90 days Banco Bilbao correlation with market (NYSE Composite)Banco Beta |
Banco 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 | 1.6 |
It is essential to understand the difference between upside risk (as represented by Banco Bilbao's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Banco Bilbao's daily returns or price. Since the actual investment returns on holding a position in banco 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 Banco Bilbao.
Using Banco Put Option to Manage Risk
Put options written on Banco Bilbao grant holders of the option the right to sell a specified amount of Banco Bilbao 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 Banco Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Banco Bilbao's 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 Banco Bilbao will be realized, the loss incurred will be offset by the profits made with the option trade.
Banco Bilbao's PUT expiring on 2024-05-17
Profit |
| Banco Bilbao Price At Expiration |
Banco Bilbao Viscaya Stock Volatility Analysis
Volatility refers to the frequency at which Banco Bilbao stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Banco Bilbao's price changes. Investors will then calculate the volatility of Banco Bilbao'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 Banco Bilbao's volatility:
Historical Volatility
This type of stock volatility measures Banco Bilbao's fluctuations based on previous trends. It's commonly used to predict Banco Bilbao'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 Banco Bilbao'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 Banco Bilbao'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. Banco Bilbao Viscaya 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.
Banco Bilbao Projected Return Density Against Market
Given the investment horizon of 90 days Banco Bilbao has a beta of 0.946 suggesting Banco Bilbao Viscaya market returns are sensitive to returns on the market. As the market goes up or down, Banco Bilbao is expected to follow.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 Banco Bilbao 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 Banco Bilbao'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 Banco 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.
Banco Bilbao Viscaya has an alpha of 0.3796, implying that it can generate a 0.38 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Banco Bilbao 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.Banco Bilbao Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Banco Bilbao is 335.42. The daily returns are distributed with a variance of 2.55 and standard deviation of 1.6. The mean deviation of Banco Bilbao Viscaya is currently at 1.24. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 0.38 | |
β | Beta against NYSE Composite | 0.95 | |
σ | Overall volatility | 1.60 | |
Ir | Information ratio | 0.24 |
Banco Bilbao Stock Return Volatility
Banco Bilbao historical daily return volatility represents how much of Banco Bilbao stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 1.5969% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.6372% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Banco Bilbao Volatility
Volatility is a rate at which the price of Banco Bilbao 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 Banco Bilbao may increase or decrease. In other words, similar to Banco's beta indicator, it measures the risk of Banco Bilbao and helps estimate the fluctuations that may happen in a short period of time. So if prices of Banco Bilbao 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 | 349 M | 340 M | |
| Market Cap | 44.6 B | 24.6 B |
Banco Bilbao'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 Banco Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Banco Bilbao's price varies over time.
3 ways to utilize Banco Bilbao's volatility to invest better
Higher Banco Bilbao's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Banco Bilbao Viscaya 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. Banco Bilbao Viscaya 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 Banco Bilbao Viscaya investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Banco Bilbao'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 Banco Bilbao's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Banco Bilbao Investment Opportunity
Banco Bilbao Viscaya has a volatility of 1.6 and is 2.5 times more volatile than NYSE Composite. 14 percent of all equities and portfolios are less risky than Banco Bilbao. You can use Banco Bilbao Viscaya 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 Banco Bilbao to be traded at $10.93 in 90 days.Weak diversification
The correlation between Banco Bilbao Viscaya and NYA is 0.38 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Banco Bilbao Viscaya and NYA in the same portfolio, assuming nothing else is changed.
Banco Bilbao Additional Risk Indicators
The analysis of Banco Bilbao'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 Banco Bilbao's investment and either accepting that risk or mitigating it. Along with some common measures of Banco Bilbao 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 | 0.1932 | |||
| Market Risk Adjusted Performance | 0.4966 | |||
| Mean Deviation | 1.21 | |||
| Semi Deviation | 1.05 | |||
| Downside Deviation | 1.42 | |||
| Coefficient Of Variation | 333.12 | |||
| Standard Deviation | 1.57 |
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.
Banco Bilbao 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 Banco Bilbao 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. Banco Bilbao'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, Banco Bilbao'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 Banco Bilbao Viscaya.
When determining whether Banco Bilbao Viscaya offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Banco Bilbao's 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 Banco Bilbao Viscaya Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Banco Bilbao Viscaya Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Banco Bilbao Viscaya. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in real. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Complementary Tools for Banco Stock analysis
When running Banco Bilbao's price analysis, check to measure Banco Bilbao'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 Banco Bilbao is operating at the current time. Most of Banco Bilbao's value examination focuses on studying past and present price action to predict the probability of Banco Bilbao's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Banco Bilbao's price. Additionally, you may evaluate how the addition of Banco Bilbao to your portfolios can decrease your overall portfolio volatility.
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |
Is Banco Bilbao'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 Banco Bilbao. If investors know Banco 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 Banco Bilbao 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 0.334 | Dividend Share 0.55 | Earnings Share 1.37 | Revenue Per Share 4.562 | Quarterly Revenue Growth 0.117 |
The market value of Banco Bilbao Viscaya is measured differently than its book value, which is the value of Banco that is recorded on the company's balance sheet. Investors also form their own opinion of Banco Bilbao's value that differs from its market value or its book value, called intrinsic value, which is Banco Bilbao'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 Banco Bilbao's market value can be influenced by many factors that don't directly affect Banco Bilbao'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 Banco Bilbao's value and its price as these two are different measures arrived at by different means. Investors typically determine if Banco Bilbao is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Banco Bilbao'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.