Grand Stock Volatility

LOPE -  USA Stock  

USD 75.52  1.04  1.36%

Grand Canyon Educati holds Efficiency (Sharpe) Ratio of -0.26, which attests that the entity had -0.26% of return per unit of standard deviation over the last month. Macroaxis philosophy in determining 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. Grand Canyon Educati exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to check out Grand Canyon market risk adjusted performance of (1.90), and Risk Adjusted Performance of (0.09) to validate the risk estimate we provide.

Grand Volatility 

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

30 Days Market Risk

Very steady

Chance of Distress

Very Low

30 Days Economic Sensitivity

Follows the market closely
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Grand Canyon 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 Grand Canyon at lower prices. For example, an investor can purchase Grand 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 Grand Canyon'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.

Grand Canyon Market Sensitivity And Downside Risk

Grand Canyon's beta coefficient measures the volatility of Grand 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 Grand stock's returns against your selected market. In other words, Grand Canyon's beta of 0.33 provides an investor with an approximation of how much risk Grand Canyon stock can potentially add to one of your existing portfolios.
Let's try to break down what Grand's beta means in this case. As returns on the market increase, Grand Canyon returns are expected to increase less than the market. However, during the bear market, the loss on holding Grand Canyon will be expected to be smaller as well.
One Month Beta |Analyze Grand Canyon Educati Demand Trend
Check current 90 days Grand Canyon correlation with market (DOW)

Grand Beta

    
  0.33  
Grand 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

    
  2.76  
It is essential to understand the difference between upside risk (as represented by Grand Canyon's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Grand Canyon stock's daily returns or price. Since the actual investment returns on holding a position in Grand Canyon 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 Grand Canyon.

Grand Canyon Implied Volatility

    
  26.89  
Grand Canyon's implied volatility exposes the market's sentiment of Grand Canyon Educati stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Grand Canyon's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Grand Canyon stock will not fluctuate a lot when Grand Canyon's options are near their expiration.

Grand Canyon Educati Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Grand Canyon's fluctuations based on previous trends. It's commonly used to predict Grand Canyon'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 Grand Canyon'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 seventeen. Developed by Larry Williams, the Weighted Close is the average of Grand Canyon Educati high, low and close of a chart with the close values weighted twice. It can be used to smooth an indicator that normally takes only Grand Canyon closing price as input. View also all equity analysis or get more info about weighted close price price transform indicator.

Grand Canyon Projected Return Density Against Market

Given the investment horizon of 90 days Grand Canyon has a beta of 0.3254 . This indicates as returns on the market go up, Grand Canyon average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Grand Canyon Educati 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 Grand Canyon or Consumer Defensive 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 Grand Canyon 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 Grand 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. Grand Canyon Educati is significantly underperforming DOW.
 Predicted Return Density 
      Returns 
Grand Canyon's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Grand Canyon 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.

Grand Canyon 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 Grand Canyon or Consumer Defensive 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 Grand Canyon 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 Grand 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 Grand Canyon is -377.48. The daily returns are distributed with a variance of 7.62 and standard deviation of 2.76. The mean deviation of Grand Canyon Educati is currently at 1.69. For similar time horizon, the selected benchmark (DOW) has volatility of 0.68
α
Alpha over DOW
-0.59
β
Beta against DOW0.33
σ
Overall volatility
2.76
Ir
Information ratio -0.13

Grand Canyon Stock Return Volatility

Grand Canyon historical daily return volatility represents how much Grand Canyon stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The firm inherits 2.76% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 0.6831% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Grand Canyon Volatility

Volatility is a rate at which the price of Grand Canyon 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 Grand Canyon may increase or decrease. In other words, similar to Grand's beta indicator, it measures the risk of Grand Canyon and helps estimate the fluctuations that may happen in a short period of time. So if prices of Grand Canyon 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 2021
Market Capitalization4.4 B3.8 B
Grand Canyon Education, Inc. provides education services to colleges and universities in the United States. The companys technology services include learning management system, internal administration, infrastructure, and support services academic services comprises program and curriculum, faculty and related training and development, class scheduling, and skills and simulation lab sites and counseling services and support include admission, financial aid, and field experience counseling services. It also offers marketing and communication services, such as lead acquisition, digital communications strategy, brand identity, media planning and strategy, video, and data science and analysis services and back office services comprising finance and accounting, human resources, audit, procurement services. The company, through its subsidiary, Orbis Education Services, LLC, supports healthcare education programs for 22 universities. Grand Canyon Education, Inc. was founded in 1949 and is based in Phoenix, Arizona.

Nearest Grand long CALL Option Payoff at Expiration

Grand Canyon's implied volatility is one of the determining factors in the pricing options written on Grand Canyon Educati. Implied volatility approximates the future value of Grand Canyonusing the option's current value. Options with high implied volatility have higher premiums and can be used to hedge the downside of investing in Grand Canyon Educati over a specific time period.
View All Grand options
2021-12-17 CALL at $40.0 is a CALL option contract on Grand Canyon's common stock with a strick price of 40.0 expiring on 2021-12-17. The contract was not traded in recent days and, as of today, has 19 days remaining before the expiration. The option is currently trading at a bid price of $33.2, and an ask price of $37.5. The implied volatility as of the 29th of November is 235.6463.
 Profit 
Share
      Grand Canyon Price At Expiration 

Grand Canyon Investment Opportunity

Grand Canyon Educati has a volatility of 2.76 and is 4.06 times more volatile than DOW. 23  of all equities and portfolios are less risky than Grand Canyon. Compared to the overall equity markets, volatility of historical daily returns of Grand Canyon Educati is lower than 23 () of all global equities and portfolios over the last 90 days. Use Grand Canyon Educati 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 Grand Canyon to be traded at $73.25 in 90 days. . Let's try to break down what Grand's beta means in this case. As returns on the market increase, Grand Canyon returns are expected to increase less than the market. However, during the bear market, the loss on holding Grand Canyon will be expected to be smaller as well.

Significant diversification

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

Grand Canyon Additional Risk Indicators

The analysis of Grand Canyon'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 Grand Canyon's investment and either accepting that risk or mitigating it. Along with some common measures of Grand Canyon 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(0.09)
Market Risk Adjusted Performance(1.90)
Mean Deviation2.45
Coefficient Of Variation(664.71)
Standard Deviation4.06
Variance16.51
Information Ratio(0.13)
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.

Grand Canyon 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 Grand Canyon 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. Grand Canyon'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, Grand Canyon'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 Grand Canyon Educati.
Additionally, see Stocks Correlation. Note that the Grand Canyon Educati information on this page should be used as a complementary analysis to other Grand Canyon'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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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