Eaton Plc Stock Volatility
| ETN Stock | USD 310.18 5.17 1.64% |
Eaton PLC appears to be very steady, given 3 months investment horizon. Eaton PLC secures Sharpe Ratio (or Efficiency) of 0.28, which denotes the company had a 0.28% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Eaton PLC, which you can use to evaluate the volatility of the firm. Please utilize Eaton PLC's Downside Deviation of 1.28, mean deviation of 1.08, and Coefficient Of Variation of 390.87 to check if our risk estimates are consistent with your expectations. Key indicators related to Eaton PLC's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Eaton PLC 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 Eaton daily returns, and it is calculated using variance and standard deviation. We also use Eaton's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Eaton PLC volatility.
Eaton |
ESG Sustainability
While most ESG disclosures are voluntary, Eaton PLC's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Eaton PLC'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 Eaton PLC 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 Eaton PLC at lower prices. For example, an investor can purchase Eaton 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 Eaton PLC'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 Eaton Stock
| 0.77 | B | Barnes Group Earnings Call This Week | PairCorr |
| 0.92 | CR | Crane Company Financial Report 8th of May 2024 | PairCorr |
| 0.75 | HI | Hillenbrand Financial Report 13th of May 2024 | PairCorr |
| 0.96 | IR | Ingersoll Rand Financial Report 1st of May 2024 | PairCorr |
| 0.97 | PH | Parker Hannifin Financial Report 2nd of May 2024 | PairCorr |
| 0.91 | DNOW | Now Inc Financial Report 2nd of May 2024 | PairCorr |
Moving against Eaton Stock
Eaton PLC Market Sensitivity And Downside Risk
Eaton PLC's beta coefficient measures the volatility of Eaton 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 Eaton stock's returns against your selected market. In other words, Eaton PLC's beta of 1.28 provides an investor with an approximation of how much risk Eaton PLC stock can potentially add to one of your existing portfolios. Eaton PLC has relatively low volatility with skewness of 1.28 and kurtosis of 6.41. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Eaton PLC'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 Eaton PLC'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 Eaton PLC Demand TrendCheck current 90 days Eaton PLC correlation with market (NYSE Composite)Eaton Beta |
Eaton 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 | 1.54 |
It is essential to understand the difference between upside risk (as represented by Eaton PLC's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Eaton PLC's daily returns or price. Since the actual investment returns on holding a position in eaton 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 Eaton PLC.
Using Eaton Put Option to Manage Risk
Put options written on Eaton PLC grant holders of the option the right to sell a specified amount of Eaton PLC 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 Eaton Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Eaton PLC'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 Eaton PLC will be realized, the loss incurred will be offset by the profits made with the option trade.
Eaton PLC's PUT expiring on 2024-04-19
Profit |
| Eaton PLC Price At Expiration |
Current Eaton PLC Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | 2024-04-19 PUT at $350.0 | -0.8652 | 0.0067 | 1 | 2024-04-19 | 37.6 - 41.9 | 38.5 | View |
Put | 2024-04-19 PUT at $340.0 | -0.8444 | 0.0089 | 2 | 2024-04-19 | 27.7 - 31.9 | 28.5 | View |
Put | 2024-04-19 PUT at $330.0 | -0.8535 | 0.0129 | 293 | 2024-04-19 | 17.5 - 21.1 | 12.15 | View |
Put | 2024-04-19 PUT at $320.0 | -0.8757 | 0.0249 | 1057 | 2024-04-19 | 9.0 - 11.6 | 12.88 | View |
Put | 2024-04-19 PUT at $310.0 | -0.4843 | 0.0508 | 1831 | 2024-04-19 | 2.65 - 3.1 | 3.03 | View |
Put | 2024-04-19 PUT at $300.0 | -0.1086 | 0.0219 | 2754 | 2024-04-19 | 0.3 - 0.5 | 0.45 | View |
Put | 2024-04-19 PUT at $290.0 | -0.0198 | 0.0047 | 874 | 2024-04-19 | 0.05 - 0.1 | 0.5 | View |
Put | 2024-04-19 PUT at $280.0 | -0.044 | 0.0049 | 524 | 2024-04-19 | 0.05 - 0.65 | 0.15 | View |
Put | 2024-04-19 PUT at $270.0 | -0.0082 | 0.0012 | 614 | 2024-04-19 | 0.05 - 0.1 | 0.05 | View |
Eaton PLC Stock Volatility Analysis
Volatility refers to the frequency at which Eaton PLC stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Eaton PLC's price changes. Investors will then calculate the volatility of Eaton PLC'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 Eaton PLC's volatility:
Historical Volatility
This type of stock volatility measures Eaton PLC's fluctuations based on previous trends. It's commonly used to predict Eaton PLC'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 Eaton PLC'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 Eaton PLC'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. Eaton PLC 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.
Eaton PLC Projected Return Density Against Market
Considering the 90-day investment horizon the stock has the beta coefficient of 1.2797 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, Eaton PLC 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 Eaton PLC 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 Eaton PLC'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 Eaton 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.
Eaton PLC has an alpha of 0.3241, implying that it can generate a 0.32 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Eaton PLC 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.Eaton PLC Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Eaton PLC is 363.15. The daily returns are distributed with a variance of 2.37 and standard deviation of 1.54. The mean deviation of Eaton PLC is currently at 1.08. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.63
α | Alpha over NYSE Composite | 0.32 | |
β | Beta against NYSE Composite | 1.28 | |
σ | Overall volatility | 1.54 | |
Ir | Information ratio | 0.22 |
Eaton PLC Stock Return Volatility
Eaton PLC historical daily return volatility represents how much of Eaton PLC stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 1.5385% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.6217% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Eaton PLC Volatility
Volatility is a rate at which the price of Eaton PLC 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 Eaton PLC may increase or decrease. In other words, similar to Eaton's beta indicator, it measures the risk of Eaton PLC and helps estimate the fluctuations that may happen in a short period of time. So if prices of Eaton PLC 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 | 2.8 B | 2.5 B | |
| Market Cap | 56.3 B | 59.1 B |
Eaton PLC'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 Eaton Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Eaton PLC's price varies over time.
3 ways to utilize Eaton PLC's volatility to invest better
Higher Eaton PLC's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Eaton PLC 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. Eaton PLC 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 Eaton PLC investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Eaton PLC'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 Eaton PLC's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Eaton PLC Investment Opportunity
Eaton PLC has a volatility of 1.54 and is 2.48 times more volatile than NYSE Composite. 13 percent of all equities and portfolios are less risky than Eaton PLC. You can use Eaton PLC to protect your portfolios against small market fluctuations. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of Eaton PLC to be traded at $300.87 in 90 days.Very weak diversification
The correlation between Eaton PLC and NYA is 0.53 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Eaton PLC and NYA in the same portfolio, assuming nothing else is changed.
Eaton PLC Additional Risk Indicators
The analysis of Eaton PLC'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 Eaton PLC's investment and either accepting that risk or mitigating it. Along with some common measures of Eaton PLC 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 | 0.1672 | |||
| Market Risk Adjusted Performance | 0.3087 | |||
| Mean Deviation | 1.08 | |||
| Semi Deviation | 0.8166 | |||
| Downside Deviation | 1.28 | |||
| Coefficient Of Variation | 390.87 | |||
| Standard Deviation | 1.53 |
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.
Eaton PLC 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 Eaton PLC 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. Eaton PLC'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, Eaton PLC'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 Eaton PLC.
When determining whether Eaton PLC offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Eaton PLC's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Eaton Plc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Eaton Plc Stock: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Eaton PLC. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate. To learn how to invest in Eaton Stock, please use our How to Invest in Eaton PLC guide.You can also try the Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Complementary Tools for Eaton Stock analysis
When running Eaton PLC's price analysis, check to measure Eaton PLC'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 Eaton PLC is operating at the current time. Most of Eaton PLC's value examination focuses on studying past and present price action to predict the probability of Eaton PLC's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Eaton PLC's price. Additionally, you may evaluate how the addition of Eaton PLC to your portfolios can decrease your overall portfolio volatility.
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |
Is Eaton PLC'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 Eaton PLC. If investors know Eaton 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 Eaton PLC 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 0.304 | Dividend Share 3.44 | Earnings Share 8.01 | Revenue Per Share 58.121 | Quarterly Revenue Growth 0.108 |
The market value of Eaton PLC is measured differently than its book value, which is the value of Eaton that is recorded on the company's balance sheet. Investors also form their own opinion of Eaton PLC's value that differs from its market value or its book value, called intrinsic value, which is Eaton PLC'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 Eaton PLC's market value can be influenced by many factors that don't directly affect Eaton PLC'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 Eaton PLC's value and its price as these two are different measures arrived at by different means. Investors typically determine if Eaton PLC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Eaton PLC'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.