Kroger Company Stock Volatility

KR Stock  USD 57.13  0.23  0.40%   
Kroger appears to be very steady, given 3 months investment horizon. Kroger Company has Sharpe Ratio of 0.24, which conveys that the firm had a 0.24% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Kroger, which you can use to evaluate the volatility of the firm. Please exercise Kroger's Risk Adjusted Performance of 0.1426, mean deviation of 0.8952, and Downside Deviation of 0.9683 to check out if our risk estimates are consistent with your expectations. Key indicators related to Kroger's volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
Kroger 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 Kroger daily returns, and it is calculated using variance and standard deviation. We also use Kroger's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Kroger volatility.
  

ESG Sustainability

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

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Kroger Market Sensitivity And Downside Risk

Kroger's beta coefficient measures the volatility of Kroger 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 Kroger stock's returns against your selected market. In other words, Kroger's beta of 0.7 provides an investor with an approximation of how much risk Kroger stock can potentially add to one of your existing portfolios. Kroger Company has low volatility with Treynor Ratio of 0.53, Maximum Drawdown of 11.63 and kurtosis of 21.64. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Kroger'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 Kroger'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 Kroger Company Demand Trend
Check current 90 days Kroger correlation with market (NYSE Composite)

Kroger Beta

    
  0.7  
Kroger 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

    
  1.59  
It is essential to understand the difference between upside risk (as represented by Kroger's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Kroger's daily returns or price. Since the actual investment returns on holding a position in kroger 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 Kroger.

Using Kroger Put Option to Manage Risk

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

Kroger's PUT expiring on 2024-04-05

   Profit   
       Kroger Price At Expiration  

Current Kroger Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2024-04-05 PUT at $59.0-0.75380.123412024-04-050.79 - 2.212.91View
Put
2024-04-05 PUT at $58.0-0.76120.2664562024-04-050.96 - 1.031.01View
Put
2024-04-05 PUT at $57.0-0.43720.37043632024-04-050.34 - 0.380.35View
Put
2024-04-05 PUT at $56.0-0.16690.20388142024-04-050.08 - 0.110.11View
Put
2024-04-05 PUT at $55.0-0.06290.08511652024-04-050.01 - 0.040.04View
Put
2024-04-05 PUT at $54.0-0.02950.0386622024-04-050.0 - 0.020.02View
Put
2024-04-05 PUT at $51.0-0.01020.0095242024-04-050.0 - 0.040.01View
Put
2024-04-05 PUT at $50.0-0.0090.00741442024-04-050.0 - 0.040.01View
View All Kroger Options

Kroger Company Stock Volatility Analysis

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

Historical Volatility

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

Kroger Projected Return Density Against Market

Allowing for the 90-day total investment horizon Kroger has a beta of 0.7002 . This indicates as returns on the market go up, Kroger average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Kroger Company 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 Kroger or Consumer Staples Distribution & Retail 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 Kroger'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 Kroger 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.
Kroger Company has an alpha of 0.2812, implying that it can generate a 0.28 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Kroger's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how kroger 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 Kroger 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.

Kroger Stock Risk Measures

Allowing for the 90-day total investment horizon the coefficient of variation of Kroger is 415.28. The daily returns are distributed with a variance of 2.52 and standard deviation of 1.59. The mean deviation of Kroger Company is currently at 0.92. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
0.28
β
Beta against NYSE Composite0.70
σ
Overall volatility
1.59
Ir
Information ratio 0.16

Kroger Stock Return Volatility

Kroger historical daily return volatility represents how much of Kroger stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The enterprise accepts 1.5889% volatility on return distribution over the 90 days horizon. By contrast, NYSE Composite accepts 0.5689% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Kroger Volatility

Volatility is a rate at which the price of Kroger 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 Kroger may increase or decrease. In other words, similar to Kroger's beta indicator, it measures the risk of Kroger and helps estimate the fluctuations that may happen in a short period of time. So if prices of Kroger 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 Expenses854 M1.2 B
Kroger'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 Kroger Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Kroger's price varies over time.

3 ways to utilize Kroger's volatility to invest better

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

Kroger Investment Opportunity

Kroger Company has a volatility of 1.59 and is 2.79 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Kroger Company is lower than 14 percent of all global equities and portfolios over the last 90 days. You can use Kroger Company to enhance the returns of your portfolios. The stock experiences a normal upward fluctuation. Check odds of Kroger to be traded at $59.99 in 90 days.

Modest diversification

The correlation between Kroger Company and NYA is 0.25 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Kroger Company and NYA in the same portfolio, assuming nothing else is changed.

Kroger Additional Risk Indicators

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

Kroger 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 Kroger 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. Kroger'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, Kroger'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 Kroger Company.
When determining whether Kroger Company is a strong investment it is important to analyze Kroger'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 Kroger's future performance. For an informed investment choice regarding Kroger Stock, refer to the following important reports:
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Kroger Company. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in metropolitan statistical area.
You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

Complementary Tools for Kroger Stock analysis

When running Kroger's price analysis, check to measure Kroger'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 Kroger is operating at the current time. Most of Kroger's value examination focuses on studying past and present price action to predict the probability of Kroger's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Kroger's price. Additionally, you may evaluate how the addition of Kroger to your portfolios can decrease your overall portfolio volatility.
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Is Kroger'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 Kroger. If investors know Kroger 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 Kroger 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
(0.88)
Dividend Share
1.13
Earnings Share
2.96
Revenue Per Share
208.968
Quarterly Revenue Growth
(0.01)
The market value of Kroger Company is measured differently than its book value, which is the value of Kroger that is recorded on the company's balance sheet. Investors also form their own opinion of Kroger's value that differs from its market value or its book value, called intrinsic value, which is Kroger'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 Kroger's market value can be influenced by many factors that don't directly affect Kroger'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 Kroger's value and its price as these two are different measures arrived at by different means. Investors typically determine if Kroger is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Kroger'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.