# Chargepoint Holdings Stock Volatility

CHPT Stock | USD 1.77 0.18 11.32% |

ChargePoint Holdings appears to be very risky, given 3 months investment horizon. ChargePoint Holdings secures Sharpe Ratio (or Efficiency) of 0.0644, which signifies that the company had a 0.0644% return per unit of standard deviation over the last 3 months. We have found twenty-nine technical indicators for ChargePoint Holdings, which you can use to evaluate the volatility of the firm. Please makes use of ChargePoint Holdings' risk adjusted performance of 0.0306, and Mean Deviation of 4.92 to double-check if our risk estimates are consistent with your expectations.

**Key indicators related to ChargePoint Holdings' volatility include:**720 Days Market Risk | Chance Of Distress | 720 Days Economic Sensitivity |

ChargePoint Holdings 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 ChargePoint daily returns, and it is calculated using variance and standard deviation. We also use ChargePoint's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of ChargePoint Holdings volatility.

ChargePoint |

Since volatility provides investors with entry points to take advantage of stock prices, companies, such as ChargePoint Holdings 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 ChargePoint Holdings at lower prices. For example, an investor can purchase ChargePoint 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 ChargePoint Holdings' 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 ChargePoint Stock

## Moving against ChargePoint Stock

0.66 | GNRSU | Greenrose Acquisition | PairCorr |

0.46 | KSPN | Kaspien Holdings | PairCorr |

0.43 | FIVE | Five Below | PairCorr |

0.37 | GNRS | Greenrose Acquisition | PairCorr |

## ChargePoint Holdings Market Sensitivity And Downside Risk

ChargePoint Holdings' beta coefficient measures the volatility of ChargePoint 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 ChargePoint stock's returns against your selected market. In other words, ChargePoint Holdings's beta of 2.88 provides an investor with an approximation of how much risk ChargePoint Holdings stock can potentially add to one of your existing portfolios. ChargePoint Holdings is displaying above-average volatility over the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure ChargePoint Holdings' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact ChargePoint Holdings' 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 ChargePoint Holdings Demand TrendCheck current 90 days ChargePoint Holdings correlation with market (Dow Jones Industrial)## ChargePoint Beta |

ChargePoint 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 | 6.1 |

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

## Using ChargePoint Put Option to Manage Risk

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

### ChargePoint Holdings' PUT expiring on 2024-08-09

Profit |

ChargePoint Holdings Price At Expiration |

### Current ChargePoint Holdings Insurance Chain

Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||

Put | 2024-08-09 PUT at $3.0 | -0.8377 | 0.3167 | 4 | 2024-08-09 | 1.06 - 1.51 | 0.97 | View |

Put | 2024-08-09 PUT at $2.5 | -0.8155 | 0.4628 | 21 | 2024-08-09 | 0.57 - 0.99 | 0.7 | View |

Put | 2024-08-09 PUT at $2.0 | -0.9995 | 5.3784 | 1559 | 2024-08-09 | 0.18 - 0.31 | 0.23 | View |

Put | 2024-08-09 PUT at $1.5 | -0.0893 | 0.705 | 1391 | 2024-08-09 | 0.0 - 0.02 | 0.01 | View |

## ChargePoint Holdings Stock Volatility Analysis

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

### Historical Volatility

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

## ChargePoint Holdings Projected Return Density Against Market

Given the investment horizon of 90 days the stock has the beta coefficient of 2.8801 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, ChargePoint Holdings 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 ChargePoint Holdings or Electrical Equipment 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 ChargePoint Holdings' 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 ChargePoint 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.

ChargePoint Holdings has an alpha of 0.1146, implying that it can generate a 0.11 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |

Returns |

## What Drives a ChargePoint Holdings 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.## ChargePoint Holdings Stock Risk Measures

Given the investment horizon of 90 days the coefficient of variation of ChargePoint Holdings is 1552.44. The daily returns are distributed with a variance of 37.25 and standard deviation of 6.1. The mean deviation of ChargePoint Holdings is currently at 5.0. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.78

α | Alpha over Dow Jones | 0.11 | |

β | Beta against Dow Jones | 2.88 | |

σ | Overall volatility | 6.10 | |

Ir | Information ratio | 0.02 |

## ChargePoint Holdings Stock Return Volatility

ChargePoint Holdings historical daily return volatility represents how much of ChargePoint Holdings stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 6.1034% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7948% volatility on return distribution over the 90 days horizon. Performance |

Timeline |

## About ChargePoint Holdings Volatility

Volatility is a rate at which the price of ChargePoint Holdings 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 ChargePoint Holdings may increase or decrease. In other words, similar to ChargePoint's beta indicator, it measures the risk of ChargePoint Holdings and helps estimate the fluctuations that may happen in a short period of time. So if prices of ChargePoint Holdings 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 | 150.2 M | 109.1 M | |

Market Cap | 713.5 M | 605.9 M |

ChargePoint Holdings' 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 ChargePoint Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much ChargePoint Holdings' price varies over time.

## 3 ways to utilize ChargePoint Holdings' volatility to invest better

Higher ChargePoint Holdings' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of ChargePoint Holdings 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. ChargePoint Holdings 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 ChargePoint Holdings investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in ChargePoint Holdings' 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 ChargePoint Holdings' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.

## ChargePoint Holdings Investment Opportunity

ChargePoint Holdings has a volatility of 6.1 and is 7.72 times more volatile than Dow Jones Industrial.**54 percent**of all equities and portfolios are less risky than ChargePoint Holdings. You can use ChargePoint Holdings to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of ChargePoint Holdings to be traded at $2.21 in 90 days.

### Weak diversification

The correlation between ChargePoint Holdings and DJI is

**0.37**(i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding ChargePoint Holdings and DJI in the same portfolio, assuming nothing else is changed.## ChargePoint Holdings Additional Risk Indicators

The analysis of ChargePoint Holdings' 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 ChargePoint Holdings' investment and either accepting that risk or mitigating it. Along with some common measures of ChargePoint Holdings 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 | 0.0306 | |||

Market Risk Adjusted Performance | 0.0658 | |||

Mean Deviation | 4.92 | |||

Semi Deviation | 4.94 | |||

Downside Deviation | 5.16 | |||

Coefficient Of Variation | 3569.02 | |||

Standard Deviation | 6.09 |

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.

## ChargePoint Holdings 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 ChargePoint Holdings 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. ChargePoint Holdings' 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, ChargePoint Holdings' 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 ChargePoint Holdings.

## Additional Tools for ChargePoint Stock Analysis

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