Eagle Stock Volatility

ECCB -  USA Stock  

USD 25.15  0.02  0.08%

We consider Eagle Point very steady. Eagle Point Credit secures Sharpe Ratio (or Efficiency) of 0.0713, which denotes the company had 0.0713% of return per unit of risk over the last 3 months. Our standpoint towards predicting 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 Eagle Point Credit, which you can use to evaluate the future volatility of the firm. Please confirm Eagle Point Credit Mean Deviation of 0.2058, downside deviation of 0.3583, and Coefficient Of Variation of 1497.87 to check if the risk estimate we provide is consistent with the expected return of 0.0218%.

Eagle Volatility 

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

720 Days Market Risk

Very steady

Chance of Distress

Quite High

720 Days Economic Sensitivity

Barely shadows the market
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Eagle Point 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 Eagle Point at lower prices. For example, an investor can purchase Eagle 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 Eagle Point'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.

Eagle Point Market Sensitivity And Downside Risk

Eagle Point's beta coefficient measures the volatility of Eagle 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 Eagle stock's returns against your selected market. In other words, Eagle Point's beta of 0.0904 provides an investor with an approximation of how much risk Eagle Point stock can potentially add to one of your existing portfolios.
Let's try to break down what Eagle's beta means in this case. As returns on the market increase, Eagle Point returns are expected to increase less than the market. However, during the bear market, the loss on holding Eagle Point will be expected to be smaller as well.
3 Months Beta |Analyze Eagle Point Credit Demand Trend
Check current 90 days Eagle Point correlation with market (DOW)

Eagle Beta

    
  0.0904  
Eagle 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

    
  0.31  
It is essential to understand the difference between upside risk (as represented by Eagle Point's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Eagle Point stock's daily returns or price. Since the actual investment returns on holding a position in Eagle Point 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 Eagle Point.

Eagle Point Credit Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Eagle Point's fluctuations based on previous trends. It's commonly used to predict Eagle Point'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 Eagle Point's current market price. This means that the stock will return to its initially predicted market price.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Eagle Point Credit 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. View also all equity analysis or get more info about average price price transform indicator.

Eagle Point Projected Return Density Against Market

Given the investment horizon of 90 days Eagle Point has a beta of 0.0904 suggesting as returns on the market go up, Eagle Point average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Eagle Point Credit 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 Eagle Point or Financial Services 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 Eagle Point stock'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 Eagle 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 0.0164, implying that it can generate a 0.0164 percent excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 
Eagle Point's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Eagle Point 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 Company's Stock Price Volatility?

Several factors can influence a company's stock 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.

Eagle Point 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 Eagle Point or Financial Services 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 Eagle Point stock'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 Eagle 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.
Given the investment horizon of 90 days the coefficient of variation of Eagle Point is 1403.21. The daily returns are distributed with a variance of 0.09 and standard deviation of 0.31. The mean deviation of Eagle Point Credit is currently at 0.21. For similar time horizon, the selected benchmark (DOW) has volatility of 0.83
α
Alpha over DOW
0.0164
β
Beta against DOW0.09
σ
Overall volatility
0.31
Ir
Information ratio 0.28

Eagle Point Stock Return Volatility

Eagle Point historical daily return volatility represents how much Eagle Point stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The company inherits 0.3054% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 0.8429% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Eagle Point Volatility

Volatility is a rate at which the price of Eagle Point 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 Eagle Point may increase or decrease. In other words, similar to Eagle's beta indicator, it measures the risk of Eagle Point and helps estimate the fluctuations that may happen in a short period of time. So if prices of Eagle Point 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.
Eagle Point Credit Company Inc. is a closed ended fund launched and managed by Eagle Point Credit Management LLC. Eagle Point Credit Company Inc. was formed on March 24, 2014 and is domiciled in the United States. Eagle Point is traded on New York Stock Exchange in the United States.

Eagle Point Investment Opportunity

DOW has a standard deviation of returns of 0.84 and is 2.71 times more volatile than Eagle Point Credit. of all equities and portfolios are less risky than Eagle Point. Compared to the overall equity markets, volatility of historical daily returns of Eagle Point Credit is lower than 2 () of all global equities and portfolios over the last 90 days. Use Eagle Point Credit to enhance returns of your portfolios. The stock experiences a normal upward fluctuation. Check odds of Eagle Point to be traded at $26.41 in 90 days. . Let's try to break down what Eagle's beta means in this case. As returns on the market increase, Eagle Point returns are expected to increase less than the market. However, during the bear market, the loss on holding Eagle Point will be expected to be smaller as well.

Modest diversification

The correlation between Eagle Point Credit and DJI is Modest diversification for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Point Credit and DJI in the same portfolio assuming nothing else is changed.

Eagle Point Additional Risk Indicators

The analysis of Eagle Point'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 Eagle Point's investment and either accepting that risk or mitigating it. Along with some common measures of Eagle Point stock 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 Performance0.0374
Market Risk Adjusted Performance0.119
Mean Deviation0.2058
Semi Deviation0.2841
Downside Deviation0.3583
Coefficient Of Variation1497.87
Standard Deviation0.2974
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stock investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Eagle Point 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.
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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 Eagle Point 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. Eagle Point'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, Eagle Point'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 Eagle Point Credit.
Continue to Investing Opportunities. Note that the Eagle Point Credit information on this page should be used as a complementary analysis to other Eagle Point'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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

Complementary Tools for Eagle Stock analysis

When running Eagle Point Credit price analysis, check to measure Eagle Point'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 Eagle Point is operating at the current time. Most of Eagle Point's value examination focuses on studying past and present price action to predict the probability of Eagle Point's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Eagle Point's price. Additionally, you may evaluate how the addition of Eagle Point to your portfolios can decrease your overall portfolio volatility.
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Is Eagle Point'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 Eagle Point. If investors know Eagle 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 Eagle Point listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Eagle Point Credit is measured differently than its book value, which is the value of Eagle that is recorded on the company's balance sheet. Investors also form their own opinion of Eagle Point's value that differs from its market value or its book value, called intrinsic value, which is Eagle Point'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 Eagle Point's market value can be influenced by many factors that don't directly affect Eagle Point'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 Eagle Point's value and its price as these two are different measures arrived at by different means. Investors typically determine Eagle Point value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Eagle Point'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.