Hims Hers Health Stock Volatility

HIMS Stock  USD 15.74  0.08  0.51%   
Hims Hers is somewhat reliable given 3 months investment horizon. Hims Hers Health holds Efficiency (Sharpe) Ratio of 0.2, which attests that the entity had a 0.2% return per unit of risk over the last 3 months. We have collected data for twenty-nine different technical indicators, which can help you to evaluate if expected returns of 1.07% are justified by taking the suggested risk. Use Hims Hers Health Risk Adjusted Performance of 0.1203, downside deviation of 2.85, and Market Risk Adjusted Performance of 0.3664 to evaluate company specific risk that cannot be diversified away. Key indicators related to Hims Hers' volatility include:
720 Days Market Risk
Chance Of Distress
720 Days Economic Sensitivity
Hims Hers 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 Hims daily returns, and it is calculated using variance and standard deviation. We also use Hims's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Hims Hers volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Hims Hers 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 Hims Hers at lower prices. For example, an investor can purchase Hims 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 Hims Hers' 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 Hims Stock

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Moving against Hims Stock

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  0.46MBOT Microbot Medical Earnings Call TomorrowPairCorr

Hims Hers Market Sensitivity And Downside Risk

Hims Hers' beta coefficient measures the volatility of Hims 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 Hims stock's returns against your selected market. In other words, Hims Hers's beta of 2.89 provides an investor with an approximation of how much risk Hims Hers stock can potentially add to one of your existing portfolios. Hims Hers Health currently demonstrates below-average downside deviation. It has Information Ratio of 0.17 and Jensen Alpha of 0.67. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Hims Hers' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Hims Hers' 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 Hims Hers Health Demand Trend
Check current 90 days Hims Hers correlation with market (NYSE Composite)

Hims Beta

    
  2.89  
Hims 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

    
  5.38  
It is essential to understand the difference between upside risk (as represented by Hims Hers's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Hims Hers' daily returns or price. Since the actual investment returns on holding a position in hims 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 Hims Hers.

Using Hims Put Option to Manage Risk

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

Hims Hers' PUT expiring on 2024-03-28

   Profit   
       Hims Hers Price At Expiration  

Current Hims Hers Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2024-03-28 PUT at $17.5-0.70890.13122024-03-281.7 - 2.70.9View
Put
2024-03-28 PUT at $17.0-0.69960.1692152024-03-281.2 - 2.051.17View
Put
2024-03-28 PUT at $16.5-0.91260.2955622024-03-280.75 - 1.20.78View
Put
2024-03-28 PUT at $16.0-0.65260.59461382024-03-280.3 - 0.40.4View
Put
2024-03-28 PUT at $15.5-0.34380.5764112024-03-280.1 - 0.150.15View
View All Hims Hers Options

Hims Hers Health Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Hims Hers' fluctuations based on previous trends. It's commonly used to predict Hims Hers' 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 Hims Hers' 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 Hims Hers' 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. Hims Hers Health 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.

Hims Hers Projected Return Density Against Market

Given the investment horizon of 90 days the stock has the beta coefficient of 2.8885 . 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, Hims Hers 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 Hims Hers or Health Care Providers & 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 Hims Hers' 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 Hims 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.
Hims Hers Health has an alpha of 0.6706, implying that it can generate a 0.67 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Hims Hers' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how hims 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 Hims Hers 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.

Hims Hers Stock Risk Measures

Given the investment horizon of 90 days the coefficient of variation of Hims Hers is 504.06. The daily returns are distributed with a variance of 28.96 and standard deviation of 5.38. The mean deviation of Hims Hers Health is currently at 3.31. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
0.67
β
Beta against NYSE Composite2.89
σ
Overall volatility
5.38
Ir
Information ratio 0.17

Hims Hers Stock Return Volatility

Hims Hers historical daily return volatility represents how much of Hims Hers stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 5.3812% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.5731% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Hims Hers Volatility

Volatility is a rate at which the price of Hims Hers 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 Hims Hers may increase or decrease. In other words, similar to Hims's beta indicator, it measures the risk of Hims Hers and helps estimate the fluctuations that may happen in a short period of time. So if prices of Hims Hers 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 2024
Selling And Marketing Expenses446.4 M468.8 M
Hims Hers' 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 Hims Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Hims Hers' price varies over time.

3 ways to utilize Hims Hers' volatility to invest better

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

Hims Hers Investment Opportunity

Hims Hers Health has a volatility of 5.38 and is 9.44 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Hims Hers Health is lower than 47 percent of all global equities and portfolios over the last 90 days. You can use Hims Hers Health 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 Hims Hers to be traded at $15.43 in 90 days.

Weak diversification

The correlation between Hims Hers Health and NYA is 0.31 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Hims Hers Health and NYA in the same portfolio, assuming nothing else is changed.

Hims Hers Additional Risk Indicators

The analysis of Hims Hers' 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 Hims Hers' investment and either accepting that risk or mitigating it. Along with some common measures of Hims Hers 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.

Hims Hers 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 Hims Hers 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. Hims Hers' 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, Hims Hers' 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 Hims Hers Health.
When determining whether Hims Hers Health is a strong investment it is important to analyze Hims Hers' 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 Hims Hers' future performance. For an informed investment choice regarding Hims Stock, refer to the following important reports:
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Hims Hers Health. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population.
You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

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When running Hims Hers' price analysis, check to measure Hims Hers' 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 Hims Hers is operating at the current time. Most of Hims Hers' value examination focuses on studying past and present price action to predict the probability of Hims Hers' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Hims Hers' price. Additionally, you may evaluate how the addition of Hims Hers to your portfolios can decrease your overall portfolio volatility.
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Is Hims Hers' 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 Hims Hers. If investors know Hims 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 Hims Hers listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.11)
Revenue Per Share
4.165
Quarterly Revenue Growth
0.475
Return On Assets
(0.04)
Return On Equity
(0.07)
The market value of Hims Hers Health is measured differently than its book value, which is the value of Hims that is recorded on the company's balance sheet. Investors also form their own opinion of Hims Hers' value that differs from its market value or its book value, called intrinsic value, which is Hims Hers' 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 Hims Hers' market value can be influenced by many factors that don't directly affect Hims Hers' 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 Hims Hers' value and its price as these two are different measures arrived at by different means. Investors typically determine if Hims Hers is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hims Hers' 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.