# Fifth Stock Volatility

FITB | - USA Stock | ## USD 35.78 0.24 0.67% |

Fifth Third Bancorp secures Sharpe Ratio (or Efficiency) of -0.0681, which denotes the company had -0.0681% of return per unit of risk over the last 3 months. Macroaxis standpoint towards predicting the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Fifth Third Bancorp exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Fifth Third Bancorp coefficient of variation of (4,140), and Mean Deviation of 1.46 to check the risk estimate we provide.

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

### 90 Days Market Risk

### Chance of Distress

### 90 Days Economic Sensitivity

## Fifth Third Market Sensitivity And Downside Risk

Fifth Third's beta coefficient measures the volatility of Fifth 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 Fifth stock's returns against your selected market. In other words, Fifth Third's beta of 1.85 provides an investor with an approximation of how much risk Fifth Third stock can potentially add to one of your existing portfolios.

Let's try to break down what Fifth's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Fifth Third will likely underperform. 3 Months Beta |Analyze Fifth Third Bancorp Demand TrendCheck current 90 days Fifth Third correlation with market (DOW)## Fifth Beta |

## Standard Deviation | 1.9 |

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

## Fifth Third Bancorp Stock Volatility Analysis

Transformation |

The output start index for this execution was zero with a total number of output elements of sixty-one. Fifth Third Bancorp 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.

## Fifth Third Projected Return Density Against Market

Given the investment horizon of 90 days the stock has the beta coefficient of 1.8505 . This usually indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Fifth Third 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 Fifth Third 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 Fifth Third 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 Fifth 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 a negative alpha, implying that the risk taken by holding this instrument is not justified. Fifth Third Bancorp is significantly underperforming DOW. Predicted Return Density |

Returns |

## Fifth Third 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 Fifth Third 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 Fifth Third 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 Fifth 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 Fifth Third is -1469.01. The daily returns are distributed with a variance of 3.59 and standard deviation of 1.89. The mean deviation of Fifth Third Bancorp is currently at 1.4. For similar time horizon, the selected benchmark (DOW) has volatility of 0.75α | Alpha over DOW | -0.12 | |

β | Beta against DOW | 1.85 | |

σ | Overall volatility | 1.90 | |

Ir | Information ratio | -0.05 |

## Fifth Third Stock Return Volatility

Fifth Third historical daily return volatility represents how much Fifth Third 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 1.895% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 0.7494% risk (volatility on return distribution) over the 90 days horizon.

Performance (%) |

Timeline |

## About Fifth Third Volatility

Volatility is a rate at which the price of Fifth Third 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 Fifth Third may increase or decrease. In other words, similar to Fifth's beta indicator, it measures the risk of Fifth Third and helps estimate the fluctuations that may happen in a short period of time. So if prices of Fifth Third 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 2021 | |

Market Capitalization | 19.6 B | 20.2 B |

### Nearest Fifth long CALL Option Payoff at Expiration

Fifth Third's implied volatility is one of the determining factors in the pricing options written on Fifth Third Bancorp. Implied volatility approximates the future value of Fifth Thirdusing the option's current value. Options with high implied volatility have higher premiums and can be used to hedge the downside of investing in Fifth Third Bancorp over a specific time period.View All Fifth optionsFITB210820C00015000 is a CALL option contract on Fifth Third's common stock with a strick price of 15.0 expiring on 2021-08-20. The contract was not traded in recent days and, as of today, has 25 days remaining before the expiration. The option is currently trading at a bid price of $20.5, and an ask price of $21.7. The implied volatility as of the 26th of July is 207.6773. Profit |

Fifth Third Price At Expiration |

## Fifth Third Investment Opportunity

Fifth Third Bancorp has a volatility of 1.9 and is 2.53 times more volatile than DOW.

**16**of all equities and portfolios are less risky than Fifth Third. Compared to the overall equity markets, volatility of historical daily returns of Fifth Third Bancorp is lower than**16 ()**of all global equities and portfolios over the last 90 days. Use Fifth Third Bancorp to protect your portfolios against small market fluctuations. The stock experiences a moderate downward daily trend and can be a good diversifier. Check odds of Fifth Third to be traded at $35.06 in 90 days. . Let's try to break down what Fifth's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Fifth Third will likely underperform.### Poor diversification

The correlation between Fifth Third Bancorp and DJI is

**Poor diversification**for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Fifth Third Bancorp and DJI in the same portfolio assuming nothing else is changed.## Fifth Third Additional Risk Indicators

The analysis of Fifth Third'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 Fifth Third's investment and either accepting that risk or mitigating it. Along with some common measures of Fifth Third 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 Performance | (0.011889) | |||

Market Risk Adjusted Performance | (0.020708) | |||

Mean Deviation | 1.46 | |||

Coefficient Of Variation | (4,140) | |||

Standard Deviation | 1.94 | |||

Variance | 3.76 | |||

Information Ratio | (0.04646) |

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.

## Fifth Third 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 Fifth Third 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. Fifth Third'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, Fifth Third'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 Fifth Third Bancorp.

Please check Investing Opportunities. Note that the Fifth Third Bancorp information on this page should be used as a complementary analysis to other Fifth Third'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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

## Complementary Tools for Fifth Stock analysis

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

Competition AnalyzerAnalyze and compare many basic indicators for a group of related or unrelated entities | Go | |

Money ManagersScreen money managers from public funds and ETFs managed around the world | Go | |

Shere PortfolioTrack or share privately all of your investments from the convenience of any device | Go | |

Probability Of BankruptcyGet analysis of equity chance of financial distress in the next 2 years | Go | |

Efficient FrontierPlot and analyze your portfolio and positions against risk-return landscape of the market. | Go |

The market value of Fifth Third Bancorp is measured differently than its book value, which is the value of Fifth that is recorded on the company's balance sheet. Investors also form their own opinion of Fifth Third's value that differs from its market value or its book value, called intrinsic value, which is Fifth Third'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 Fifth Third's market value can be influenced by many factors that don't directly affect Fifth Third Bancorp underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.

Please note, there is a significant difference between Fifth Third's value and its price as these two are different measures arrived at by different means. Investors typically determine Fifth Third value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Fifth Third'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.