Dominion Energy Stock Volatility

D Stock  USD 48.57  0.25  0.52%   
We consider Dominion Energy very steady. Dominion Energy secures Sharpe Ratio (or Efficiency) of 0.0845, which denotes the company had a 0.0845% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Dominion Energy, which you can use to evaluate the volatility of the firm. Please confirm Dominion Energy's Downside Deviation of 1.78, coefficient of variation of 1932.63, and Mean Deviation of 1.38 to check if the risk estimate we provide is consistent with the expected return of 0.16%. Key indicators related to Dominion Energy's volatility include:
270 Days Market Risk
Chance Of Distress
270 Days Economic Sensitivity
Dominion Energy 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 Dominion daily returns, and it is calculated using variance and standard deviation. We also use Dominion's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Dominion Energy volatility.
  

ESG Sustainability

While most ESG disclosures are voluntary, Dominion Energy's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Dominion Energy'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 Dominion Energy 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 Dominion Energy at lower prices. For example, an investor can purchase Dominion 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 Dominion Energy'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 Dominion Stock

  0.85ES Eversource Energy Financial Report 1st of May 2024 PairCorr
  0.73FE FirstEnergy Earnings Call This WeekPairCorr
  0.77SO Southern Financial Report 25th of April 2024 PairCorr

Moving against Dominion Stock

  0.83HE Hawaiian Electric Buyout TrendPairCorr

Dominion Energy Market Sensitivity And Downside Risk

Dominion Energy's beta coefficient measures the volatility of Dominion 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 Dominion stock's returns against your selected market. In other words, Dominion Energy's beta of 0.96 provides an investor with an approximation of how much risk Dominion Energy stock can potentially add to one of your existing portfolios. Dominion Energy has relatively low volatility with skewness of -0.14 and kurtosis of 1.8. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Dominion Energy'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 Dominion Energy'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 Dominion Energy Demand Trend
Check current 90 days Dominion Energy correlation with market (NYSE Composite)

Dominion Beta

    
  0.96  
Dominion 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

    
  1.87  
It is essential to understand the difference between upside risk (as represented by Dominion Energy's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Dominion Energy's daily returns or price. Since the actual investment returns on holding a position in dominion 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 Dominion Energy.

Using Dominion Put Option to Manage Risk

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

Dominion Energy's PUT expiring on 2024-04-19

   Profit   
       Dominion Energy Price At Expiration  

Current Dominion Energy Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2024-04-19 PUT at $55.0-0.70720.036612024-04-194.7 - 8.07.43View
Put
2024-04-19 PUT at $52.5-0.760.0623102024-04-192.8 - 4.64.26View
Put
2024-04-19 PUT at $50.0-0.80550.17151652024-04-191.3 - 1.61.42View
Put
2024-04-19 PUT at $47.5-0.11320.212928662024-04-190.0 - 0.10.05View
Put
2024-04-19 PUT at $45.0-0.05090.045517972024-04-190.0 - 0.050.05View
View All Dominion Energy Options

Dominion Energy Stock Volatility Analysis

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

Historical Volatility

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

Dominion Energy Projected Return Density Against Market

Taking into account the 90-day investment horizon Dominion Energy has a beta of 0.9595 suggesting Dominion Energy market returns are highly-sensitive to returns on the market. As the market goes up or down, Dominion Energy 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 Dominion Energy or Multi-Utilities 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 Dominion Energy'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 Dominion 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.
Dominion Energy has an alpha of 0.0294, implying that it can generate a 0.0294 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Dominion Energy's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how dominion 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 Dominion Energy 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.

Dominion Energy Stock Risk Measures

Taking into account the 90-day investment horizon the coefficient of variation of Dominion Energy is 1183.21. The daily returns are distributed with a variance of 3.5 and standard deviation of 1.87. The mean deviation of Dominion Energy is currently at 1.39. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α
Alpha over NYSE Composite
0.03
β
Beta against NYSE Composite0.96
σ
Overall volatility
1.87
Ir
Information ratio 0.01

Dominion Energy Stock Return Volatility

Dominion Energy historical daily return volatility represents how much of Dominion Energy stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm accepts 1.87% volatility on return distribution over the 90 days horizon. By contrast, NYSE Composite accepts 0.6214% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Dominion Energy Volatility

Volatility is a rate at which the price of Dominion Energy 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 Dominion Energy may increase or decrease. In other words, similar to Dominion's beta indicator, it measures the risk of Dominion Energy and helps estimate the fluctuations that may happen in a short period of time. So if prices of Dominion Energy 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 Cap60.3 B63.3 B
Dominion Energy'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 Dominion Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Dominion Energy's price varies over time.

3 ways to utilize Dominion Energy's volatility to invest better

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

Dominion Energy Investment Opportunity

Dominion Energy has a volatility of 1.87 and is 3.02 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Dominion Energy is lower than 16 percent of all global equities and portfolios over the last 90 days. You can use Dominion Energy to enhance the returns of your portfolios. The stock experiences a moderate upward volatility. Check odds of Dominion Energy to be traded at $53.43 in 90 days.

Weak diversification

The correlation between Dominion Energy and NYA is 0.32 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Dominion Energy and NYA in the same portfolio, assuming nothing else is changed.

Dominion Energy Additional Risk Indicators

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

Dominion Energy 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 Dominion Energy 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. Dominion Energy'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, Dominion Energy'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 Dominion Energy.
When determining whether Dominion Energy is a strong investment it is important to analyze Dominion Energy's 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 Dominion Energy's future performance. For an informed investment choice regarding Dominion Stock, refer to the following important reports:
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Dominion Energy. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in unemployment.
For information on how to trade Dominion Stock refer to our How to Trade Dominion Stock guide.
Note that the Dominion Energy information on this page should be used as a complementary analysis to other Dominion Energy's 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

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When running Dominion Energy's price analysis, check to measure Dominion Energy'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 Dominion Energy is operating at the current time. Most of Dominion Energy's value examination focuses on studying past and present price action to predict the probability of Dominion Energy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Dominion Energy's price. Additionally, you may evaluate how the addition of Dominion Energy to your portfolios can decrease your overall portfolio volatility.
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Is Dominion Energy'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 Dominion Energy. If investors know Dominion 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 Dominion Energy 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
(0.21)
Dividend Share
2.67
Earnings Share
2.48
Revenue Per Share
17.208
Quarterly Revenue Growth
(0.07)
The market value of Dominion Energy is measured differently than its book value, which is the value of Dominion that is recorded on the company's balance sheet. Investors also form their own opinion of Dominion Energy's value that differs from its market value or its book value, called intrinsic value, which is Dominion Energy'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 Dominion Energy's market value can be influenced by many factors that don't directly affect Dominion Energy'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 Dominion Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Dominion Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Dominion Energy'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.