Loral Stock Volatility

LORL -  USA Stock  

USD 41.52  0.00  0.00%

We consider Loral Space very steady. Loral Space Comm has Sharpe Ratio of 0.0047, which conveys that the firm had 0.0047% of return per unit of risk over the last 3 months. Our standpoint towards estimating the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Loral Space, which you can use to evaluate the future volatility of the firm. Please verify Loral Space Comm Risk Adjusted Performance of 0.0418, mean deviation of 2.21, and Downside Deviation of 3.32 to check out if the risk estimate we provide is consistent with the expected return of 0.0138%.

Loral Volatility 

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

90 Days Market Risk

Very steady

Chance of Distress

Close to Average

90 Days Economic Sensitivity

Moves indifferently to market moves
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Loral Space 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 Loral Space at lower prices. For example, an investor can purchase Loral 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 Loral Space'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.

Loral Space Market Sensitivity And Downside Risk

Loral Space's beta coefficient measures the volatility of Loral 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 Loral stock's returns against your selected market. In other words, Loral Space's beta of -0.0094 provides an investor with an approximation of how much risk Loral Space stock can potentially add to one of your existing portfolios.
Let's try to break down what Loral's beta means in this case. As returns on the market increase, returns on owning Loral Space are expected to decrease at a much lower rate. During the bear market, Loral Space is likely to outperform the market.
3 Months Beta |Analyze Loral Space Comm Demand Trend
Check current 90 days Loral Space correlation with market (DOW)

Loral Beta

    
  -0.0094  
Loral 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

    
  2.92  
It is essential to understand the difference between upside risk (as represented by Loral Space's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Loral Space stock's daily returns or price. Since the actual investment returns on holding a position in Loral Space 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 Loral Space.

Loral Space Implied Volatility

    
  79.5  
Loral Space's implied volatility exposes the market's sentiment of Loral Space Comm stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Loral Space'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 Loral Space stock will not fluctuate a lot when Loral Space's options are near their expiration.

Loral Space Comm Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Loral Space's fluctuations based on previous trends. It's commonly used to predict Loral Space'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 Loral Space'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 sixty-one. Loral Space Typical Price indicator is an average of each day price and can be used instead of closing price when creating different Loral Space Comm moving average lines. View also all equity analysis or get more info about typical price price transform indicator.

Loral Space Projected Return Density Against Market

Given the investment horizon of 90 days Loral Space Comm has a beta of -0.0094 . This indicates as returns on benchmark increase, returns on holding Loral Space are expected to decrease at a much lower rate. During the bear market, however, Loral Space Comm is likely to outperform the market.
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 Loral Space or Communication 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 Loral Space 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 Loral 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 an alpha of 0.1135, implying that it can generate a 0.11 percent excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 
Loral Space's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Loral Space 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.

Loral Space 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 Loral Space or Communication 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 Loral Space 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 Loral 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 Loral Space is 21146.82. The daily returns are distributed with a variance of 8.5 and standard deviation of 2.92. The mean deviation of Loral Space Comm is currently at 2.09. For similar time horizon, the selected benchmark (DOW) has volatility of 0.83
α
Alpha over DOW
0.11
β
Beta against DOW-0.0094
σ
Overall volatility
2.92
Ir
Information ratio 0.05

Loral Space Stock Return Volatility

Loral Space historical daily return volatility represents how much Loral Space 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 2.9158% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 0.8384% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Loral Space Volatility

Volatility is a rate at which the price of Loral Space 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 Loral Space may increase or decrease. In other words, similar to Loral's beta indicator, it measures the risk of Loral Space and helps estimate the fluctuations that may happen in a short period of time. So if prices of Loral Space 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 Capitalization649.3 MB
Loral Space Communications Inc., a satellite communications company, provides satellite-based communications services to the broadcast, corporate, and government customers worldwide. Loral Space Communications Inc. was founded in 1996 and is headquartered in New York, New York. Loral Space operates under Telecom Services classification in the United States and is traded on NASDAQ Exchange. It employs 12 people.

Nearest Loral long CALL Option Payoff at Expiration

Loral Space's implied volatility is one of the determining factors in the pricing options written on Loral Space Comm. Implied volatility approximates the future value of Loral Spaceusing the option's current value. Options with high implied volatility have higher premiums and can be used to hedge the downside of investing in Loral Space Comm over a specific time period.
View All Loral options
2021-12-17 CALL at $25.0 is a CALL option contract on Loral Space's common stock with a strick price of 25.0 expiring on 2021-12-17. The contract was last traded on 0000-00-00 at 00:00:00 for $20.35 and, as of today, has 14 days remaining before the expiration. The option is currently trading at a bid price of $16.0, and an ask price of $19.0. The implied volatility as of the 3rd of December is 162.3955.
 Profit 
Share
      Loral Space Price At Expiration 

Loral Space Investment Opportunity

Loral Space Comm has a volatility of 2.92 and is 3.48 times more volatile than DOW. 25  of all equities and portfolios are less risky than Loral Space. Compared to the overall equity markets, volatility of historical daily returns of Loral Space Comm is lower than 25 () of all global equities and portfolios over the last 90 days.

Loral Space Additional Risk Indicators

The analysis of Loral Space'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 Loral Space's investment and either accepting that risk or mitigating it. Along with some common measures of Loral Space 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 Performance0.0418
Market Risk Adjusted Performance(12.10)
Mean Deviation2.21
Semi Deviation2.85
Downside Deviation3.32
Coefficient Of Variation2384.66
Standard Deviation2.95
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.

Loral Space 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 Loral Space 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. Loral Space'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, Loral Space'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 Loral Space Comm.
Additionally, see Stocks Correlation. Note that the Loral Space Comm information on this page should be used as a complementary analysis to other Loral Space'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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

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