CNA Financial Stock Volatility

CNA
 Stock
  

USD 41.41  0.13  0.31%   

We consider CNA Financial very steady. CNA Financial retains Efficiency (Sharpe Ratio) of 0.0546, which signifies that the company had 0.0546% of return per unit of risk over the last 3 months. Our philosophy in foreseeing the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for CNA Financial, which you can use to evaluate the future volatility of the firm. Please confirm CNA Financial coefficient of variation of 1703.95, and Market Risk Adjusted Performance of 0.1139 to double-check if the risk estimate we provide is consistent with the expected return of 0.0854%.
  
CNA Financial 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 CNA Financial daily returns, and it is calculated using variance and standard deviation. We also use CNA Financial's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of CNA Financial volatility.

720 Days Market Risk

Very steady

Chance of Distress

720 Days Economic Sensitivity

Follows the market closely

ESG Sustainability

While most ESG disclosures are voluntary, CNA Financial's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to CNA Financial's managers and investors.
Environment Score
Governance Score
Social Score
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as CNA Financial 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 CNA Financial at lower prices. For example, an investor can purchase CNA Financial 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 CNA Financial'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 CNA Financial

+0.95AFGAmerican FinancialPairCorr
+0.96CBChubbPairCorr
+0.89CINFCincinnati FinancialPairCorr
+0.85KMPRKemperPairCorr
+0.89LLoews CorpPairCorr

Moving against CNA Financial

-0.75AIZAssurantPairCorr
-0.55ALLYAlly FinancialPairCorr

CNA Financial Market Sensitivity And Downside Risk

CNA Financial's beta coefficient measures the volatility of CNA Financial 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 CNA Financial stock's returns against your selected market. In other words, CNA Financial's beta of 0.78 provides an investor with an approximation of how much risk CNA Financial stock can potentially add to one of your existing portfolios.
CNA Financial has relatively low volatility with skewness of 0.62 and kurtosis of -0.05. However, we advise all investors to independently investigate CNA Financial to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure CNA Financial'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 CNA Financial'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 stocks as prices fall.
3 Months Beta |Analyze CNA Financial Demand Trend
Check current 90 days CNA Financial correlation with market (NYSE Composite)

CNA Financial Beta

    
  0.78  
CNA Financial 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.

Standard Deviation

    
  1.57  
It is essential to understand the difference between upside risk (as represented by CNA Financial's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of CNA Financial's daily returns or price. Since the actual investment returns on holding a position in cna financial 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 CNA Financial.

Using CNA Financial Put Option to Manage Risk

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

CNA Financial's PUT expiring on 2022-12-16

   Profit   
Share
       CNA Financial Price At Expiration  

CNA Financial Stock Volatility Analysis

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

Historical Volatility

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

CNA Financial Projected Return Density Against Market

Considering the 90-day investment horizon CNA Financial has a beta of 0.7765 suggesting as returns on the market go up, CNA Financial average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding CNA Financial 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 CNA Financial or Insurance 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 CNA Financial'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 CNA Financial 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 an alpha of 0.0368, implying that it can generate a 0.0368 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
CNA Financial's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how cna financial 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 CNA Financial 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.

CNA Financial 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 CNA Financial or Insurance 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 CNA Financial'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 CNA Financial 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 CNA Financial is 1833.05. The daily returns are distributed with a variance of 2.45 and standard deviation of 1.57. The mean deviation of CNA Financial is currently at 1.26. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 1.49
α
Alpha over NYSE Composite
0.0368
β
Beta against NYSE Composite0.78
σ
Overall volatility
1.57
Ir
Information ratio 0.0156

CNA Financial Stock Return Volatility

CNA Financial historical daily return volatility represents how much of CNA Financial stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company has volatility of 1.5654% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 1.4849% volatility on return distribution over the 90 days horizon.
 Performance (%) 
       Timeline  

About CNA Financial Volatility

Volatility is a rate at which the price of CNA Financial 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 CNA Financial may increase or decrease. In other words, similar to CNA Financial's beta indicator, it measures the risk of CNA Financial and helps estimate the fluctuations that may happen in a short period of time. So if prices of CNA Financial 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 2022
Market Capitalization12 B12.5 B

CNA Financial Investment Opportunity

CNA Financial has a volatility of 1.57 and is 1.06 times more volatile than NYSE Composite. 13  of all equities and portfolios are less risky than CNA Financial. Compared to the overall equity markets, volatility of historical daily returns of CNA Financial is lower than 13 () of all global equities and portfolios over the last 90 days. Use CNA Financial to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a normal downward trend and little activity. Check odds of CNA Financial to be traded at $41.0 in 90 days.

Poor diversification

The correlation between CNA Financial and NYA is 0.75 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding CNA Financial and NYA in the same portfolio, assuming nothing else is changed.

CNA Financial Additional Risk Indicators

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

CNA Financial 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 CNA Financial 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. CNA Financial'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, CNA Financial'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 CNA Financial.
Continue to Trending Equities. You can also try Fundamental Analysis module to view fundamental data based on most recent published financial statements.

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When running CNA Financial price analysis, check to measure CNA Financial'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 CNA Financial is operating at the current time. Most of CNA Financial's value examination focuses on studying past and present price action to predict the probability of CNA Financial's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move CNA Financial's price. Additionally, you may evaluate how the addition of CNA Financial to your portfolios can decrease your overall portfolio volatility.
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Is CNA Financial'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 CNA Financial. If investors know CNA Financial 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 CNA Financial 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 YOY
(0.50) 
Market Capitalization
11.3 B
Quarterly Revenue Growth YOY
(0.001) 
Return On Assets
0.0121
Return On Equity
0.0879
The market value of CNA Financial is measured differently than its book value, which is the value of CNA Financial that is recorded on the company's balance sheet. Investors also form their own opinion of CNA Financial's value that differs from its market value or its book value, called intrinsic value, which is CNA Financial'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 CNA Financial's market value can be influenced by many factors that don't directly affect CNA Financial'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 CNA Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine CNA Financial value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CNA Financial'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.