Belden Inc Stock Volatility

BDC Stock  USD 95.15  1.13  1.20%   
We consider Belden very steady. Belden Inc secures Sharpe Ratio (or Efficiency) of 0.0375, which signifies that the company had a 0.0375% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Belden Inc, which you can use to evaluate the volatility of the firm. Please confirm Belden's Mean Deviation of 1.34, risk adjusted performance of 0.0549, and Downside Deviation of 1.64 to double-check if the risk estimate we provide is consistent with the expected return of 0.0726%. Key indicators related to Belden's volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
Belden 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 Belden daily returns, and it is calculated using variance and standard deviation. We also use Belden's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Belden volatility.
  

ESG Sustainability

While most ESG disclosures are voluntary, Belden's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Belden's managers and investors.
Environmental
Governance
Social
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Belden can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game as hey may decide to buy additional stocks of Belden at lower prices to lower their average cost per share. Similarly, when the prices of Belden's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.

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Belden Market Sensitivity And Downside Risk

Belden's beta coefficient measures the volatility of Belden 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 Belden stock's returns against your selected market. In other words, Belden's beta of 1.3 provides an investor with an approximation of how much risk Belden stock can potentially add to one of your existing portfolios. Belden Inc has relatively low volatility with skewness of 1.52 and kurtosis of 6.89. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Belden'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 Belden'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 Belden Inc Demand Trend
Check current 90 days Belden correlation with market (Dow Jones Industrial)

Belden Beta

    
  1.3  
Belden 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

    
  1.94  
It is essential to understand the difference between upside risk (as represented by Belden's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Belden's daily returns or price. Since the actual investment returns on holding a position in belden 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 Belden.

Using Belden Put Option to Manage Risk

Put options written on Belden grant holders of the option the right to sell a specified amount of Belden 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 Belden Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Belden'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 Belden will be realized, the loss incurred will be offset by the profits made with the option trade.

Belden's PUT expiring on 2024-06-21

   Profit   
       Belden Price At Expiration  

Current Belden Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2024-06-21 PUT at $100.0-0.97640.019412024-06-213.9 - 8.15.5View
View All Belden Options

Belden Inc Stock Volatility Analysis

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

Historical Volatility

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

Belden Projected Return Density Against Market

Considering the 90-day investment horizon the stock has the beta coefficient of 1.3015 suggesting as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Belden 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 Belden or Electronic Equipment, Instruments & Components 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 Belden'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 Belden 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.
Belden Inc has an alpha of 0.1218, implying that it can generate a 0.12 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Belden's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how belden 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 Belden 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.

Belden Stock Risk Measures

Considering the 90-day investment horizon the coefficient of variation of Belden is 2667.35. The daily returns are distributed with a variance of 3.75 and standard deviation of 1.94. The mean deviation of Belden Inc is currently at 1.33. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.67
α
Alpha over Dow Jones
0.12
β
Beta against Dow Jones1.30
σ
Overall volatility
1.94
Ir
Information ratio 0.06

Belden Stock Return Volatility

Belden historical daily return volatility represents how much of Belden stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 1.9354% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.658% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Belden Volatility

Volatility is a rate at which the price of Belden 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 Belden may increase or decrease. In other words, similar to Belden's beta indicator, it measures the risk of Belden and helps estimate the fluctuations that may happen in a short period of time. So if prices of Belden 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 Next Year
Market Cap2.8 BB
Belden'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 Belden Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Belden's price varies over time.

3 ways to utilize Belden's volatility to invest better

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

Belden Investment Opportunity

Belden Inc has a volatility of 1.94 and is 2.94 times more volatile than Dow Jones Industrial. 17 percent of all equities and portfolios are less risky than Belden. You can use Belden Inc to enhance the returns of your portfolios. The stock experiences a large bullish trend. Check odds of Belden to be traded at $104.67 in 90 days.

Very weak diversification

The correlation between Belden Inc and DJI is 0.45 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Belden Inc and DJI in the same portfolio, assuming nothing else is changed.

Belden Additional Risk Indicators

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

Belden 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 Belden 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. Belden'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, Belden'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 Belden Inc.

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When running Belden's price analysis, check to measure Belden'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 Belden is operating at the current time. Most of Belden's value examination focuses on studying past and present price action to predict the probability of Belden's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Belden's price. Additionally, you may evaluate how the addition of Belden to your portfolios can decrease your overall portfolio volatility.
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