ConAgra Foods secures Sharpe Ratio (or Efficiency) of -0.0337, which signifies that the company had -0.0337% of return per unit of risk over the last 3 months. Our standpoint towards foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. ConAgra Foods exposes twenty-one different technical indicators, which can help you to evaluate volatility embedded in its stock price that cannot be diversified away. Please confirm ConAgra Foods Mean Deviation of 0.9042, standard deviation of 1.28, and Risk Adjusted Performance of (0.05) to double-check the risk estimate we provide. Key technical indicators related to ConAgra Foods' volatility include:
720 Days Market Risk
Chance of Distress
720 Days Economic Sensitivity
ConAgra Foods 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 ConAgra daily returns, and it is calculated using variance and standard deviation. We also use ConAgra's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of ConAgra Foods volatility.
ESG SustainabilityWhile most ESG disclosures are voluntary, ConAgra Foods' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to ConAgra Foods' managers and investors.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as ConAgra Foods 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 ConAgra Foods at lower prices. For example, an investor can purchase ConAgra 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 ConAgra Foods' 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 ConAgra Stock
ConAgra Foods Market Sensitivity And Downside Risk
ConAgra Foods' beta coefficient measures the volatility of ConAgra stock compared to the systematic risk of the entire stock 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 ConAgra stock's returns against your selected market. In other words, ConAgra Foods's beta of 0.71 provides an investor with an approximation of how much risk ConAgra Foods stock can potentially add to one of your existing portfolios.ConAgra Foods exhibits very low volatility with skewness of 1.06 and kurtosis of 2.42. However, we advise investors to further study ConAgra Foods technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure ConAgra Foods' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact ConAgra Foods' 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. 3 Months Beta |Analyze ConAgra Foods Demand TrendCheck current 90 days ConAgra Foods correlation with market (NYSE Composite)
ConAgra standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity 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.
It is essential to understand the difference between upside risk (as represented by ConAgra Foods's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of ConAgra Foods' daily returns or price. Since the actual investment returns on holding a position in conagra 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 ConAgra Foods.
Using ConAgra Put Option to Manage Risk
Put options written on ConAgra Foods grant holders of the option the right to sell a specified amount of ConAgra Foods 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 ConAgra Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge ConAgra Foods' 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 ConAgra Foods will be realized, the loss incurred will be offset by the profits made with the option trade.
ConAgra Foods' PUT expiring on 2023-12-01
ConAgra Foods Stock Volatility Analysis
Volatility refers to the frequency at which ConAgra Foods stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with ConAgra Foods' price changes. Investors will then calculate the volatility of ConAgra Foods' 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 ConAgra Foods' volatility:
Historical VolatilityThis type of stock volatility measures ConAgra Foods' fluctuations based on previous trends. It's commonly used to predict ConAgra Foods' future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.
Implied VolatilityThis type of volatility provides a positive outlook on future price fluctuations for ConAgra Foods' 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 ConAgra Foods' to be redeemed at a future date.
ConAgra Foods Projected Return Density Against MarketConsidering the 90-day investment horizon ConAgra Foods has a beta of 0.7095 suggesting as returns on the market go up, ConAgra Foods average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding ConAgra Foods will be expected to be much smaller as well.
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 ConAgra Foods or Food Products 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 ConAgra Foods' 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 ConAgra 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.The company has a negative alpha, implying that the risk taken by holding this instrument is not justified. ConAgra Foods is significantly underperforming NYSE Composite. ConAgra Foods' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how conagra 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 ConAgra Foods Price Volatility?Several factors can influence a stock's market volatility:
IndustrySpecific 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 environmentWhen 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 PerformanceSometimes 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.
ConAgra Foods Stock Risk Measures
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 ConAgra Foods or Food Products 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 ConAgra Foods' 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 ConAgra 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. Considering the 90-day investment horizon the coefficient of variation of ConAgra Foods is -2967.17. The daily returns are distributed with a variance of 1.65 and standard deviation of 1.28. The mean deviation of ConAgra Foods is currently at 0.91. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.77
ConAgra Foods Stock Return VolatilityConAgra Foods historical daily return volatility represents how much of ConAgra Foods stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company has volatility of 1.2829% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.7722% volatility on return distribution over the 90 days horizon.
About ConAgra Foods Volatility
Volatility is a rate at which the price of ConAgra Foods 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 ConAgra Foods may increase or decrease. In other words, similar to ConAgra's beta indicator, it measures the risk of ConAgra Foods and helps estimate the fluctuations that may happen in a short period of time. So if prices of ConAgra Foods 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.
ConAgra Foods' 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 ConAgra Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much ConAgra Foods' price varies over time.
3 ways to utilize ConAgra Foods' volatility to invest betterHigher ConAgra Foods' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of ConAgra Foods 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. ConAgra Foods 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 ConAgra Foods investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in ConAgra Foods' 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 ConAgra Foods' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
ConAgra Foods Investment OpportunityConAgra Foods has a volatility of 1.28 and is 1.66 times more volatile than NYSE Composite. 11 of all equities and portfolios are less risky than ConAgra Foods. Compared to the overall equity markets, volatility of historical daily returns of ConAgra Foods is lower than 11 () of all global equities and portfolios over the last 90 days. Use ConAgra Foods to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a moderate upward volatility. Check odds of ConAgra Foods to be traded at $31.12 in 90 days.
ConAgra Foods Additional Risk Indicators
The analysis of ConAgra Foods' 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 ConAgra Foods' investment and either accepting that risk or mitigating it. Along with some common measures of ConAgra Foods 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.
ConAgra Foods 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 ConAgra Foods 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. ConAgra Foods' 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, ConAgra Foods' 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 ConAgra Foods.When determining whether ConAgra Foods is a strong investment it is important to analyze ConAgra Foods' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact ConAgra Foods' future performance. For an informed investment choice regarding ConAgra Stock, refer to the following important reports:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in ConAgra Foods. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.For more detail on how to invest in ConAgra Stock please use our How to Invest in ConAgra Foods guide.Note that the ConAgra Foods information on this page should be used as a complementary analysis to other ConAgra Foods' 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Complementary Tools for ConAgra Stock analysis
When running ConAgra Foods' price analysis, check to measure ConAgra Foods' 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 ConAgra Foods is operating at the current time. Most of ConAgra Foods' value examination focuses on studying past and present price action to predict the probability of ConAgra Foods' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move ConAgra Foods' price. Additionally, you may evaluate how the addition of ConAgra Foods to your portfolios can decrease your overall portfolio volatility.
Is ConAgra Foods' 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 ConAgra Foods. If investors know ConAgra 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 ConAgra Foods 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
Revenue Per Share
Return On Assets
The market value of ConAgra Foods is measured differently than its book value, which is the value of ConAgra that is recorded on the company's balance sheet. Investors also form their own opinion of ConAgra Foods' value that differs from its market value or its book value, called intrinsic value, which is ConAgra Foods' 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 ConAgra Foods' market value can be influenced by many factors that don't directly affect ConAgra Foods' 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 ConAgra Foods' value and its price as these two are different measures arrived at by different means. Investors typically determine if ConAgra Foods is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ConAgra Foods' 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.