Landsea Homes Corp Stock Volatility
| LSEA Stock | USD 9.85 0.11 1.10% |
Landsea Homes Corp has Sharpe Ratio of -0.0781, which conveys that the firm had a -0.0781% return per unit of risk over the last 3 months. Landsea Homes exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify Landsea Homes' Standard Deviation of 3.8, mean deviation of 2.78, and Risk Adjusted Performance of (0.02) to check out the risk estimate we provide. Key indicators related to Landsea Homes' volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Landsea Homes 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 Landsea daily returns, and it is calculated using variance and standard deviation. We also use Landsea's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Landsea Homes volatility.
Landsea |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Landsea Homes 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 Landsea Homes at lower prices. For example, an investor can purchase Landsea 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 Landsea Homes' 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.
Landsea Homes Market Sensitivity And Downside Risk
Landsea Homes' beta coefficient measures the volatility of Landsea 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 Landsea stock's returns against your selected market. In other words, Landsea Homes's beta of -0.23 provides an investor with an approximation of how much risk Landsea Homes stock can potentially add to one of your existing portfolios. Landsea Homes Corp exhibits very low volatility with skewness of 0.3 and kurtosis of 4.0. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Landsea Homes' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Landsea Homes' 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 Landsea Homes Corp Demand TrendCheck current 90 days Landsea Homes correlation with market (NYSE Composite)Landsea Beta |
Landsea 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 | 3.83 |
It is essential to understand the difference between upside risk (as represented by Landsea Homes's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Landsea Homes' daily returns or price. Since the actual investment returns on holding a position in landsea 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 Landsea Homes.
Landsea Homes Corp Stock Volatility Analysis
Volatility refers to the frequency at which Landsea Homes stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Landsea Homes' price changes. Investors will then calculate the volatility of Landsea Homes' 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 Landsea Homes' volatility:
Historical Volatility
This type of stock volatility measures Landsea Homes' fluctuations based on previous trends. It's commonly used to predict Landsea Homes' 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 Landsea Homes' 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 Landsea Homes' 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. Landsea Homes Corp 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.
Landsea Homes Projected Return Density Against Market
Given the investment horizon of 90 days Landsea Homes Corp has a beta of -0.2327 . This indicates as returns on the benchmark increase, returns on holding Landsea Homes are expected to decrease at a much lower rate. During a bear market, however, Landsea Homes Corp 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 Landsea Homes or Real Estate Management & Development 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 Landsea Homes' 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 Landsea 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.
Landsea Homes Corp has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the NYSE Composite. Predicted Return Density |
| Returns |
What Drives a Landsea Homes 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.Landsea Homes Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Landsea Homes is -1280.12. The daily returns are distributed with a variance of 14.66 and standard deviation of 3.83. The mean deviation of Landsea Homes Corp is currently at 2.79. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | -0.16 | |
β | Beta against NYSE Composite | -0.23 | |
σ | Overall volatility | 3.83 | |
Ir | Information ratio | -0.06 |
Landsea Homes Stock Return Volatility
Landsea Homes historical daily return volatility represents how much of Landsea Homes stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 3.8295% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.6307% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Landsea Homes Volatility
Volatility is a rate at which the price of Landsea Homes 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 Landsea Homes may increase or decrease. In other words, similar to Landsea's beta indicator, it measures the risk of Landsea Homes and helps estimate the fluctuations that may happen in a short period of time. So if prices of Landsea Homes 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 Next Year | ||
| Selling And Marketing Expenses | 73.2 M | 63.8 M | |
| Market Cap | 510.9 M | 281.3 M |
Landsea Homes' 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 Landsea Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Landsea Homes' price varies over time.
3 ways to utilize Landsea Homes' volatility to invest better
Higher Landsea Homes' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Landsea Homes Corp 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. Landsea Homes Corp 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 Landsea Homes Corp investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Landsea Homes' 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 Landsea Homes' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Landsea Homes Investment Opportunity
Landsea Homes Corp has a volatility of 3.83 and is 6.08 times more volatile than NYSE Composite. 33 percent of all equities and portfolios are less risky than Landsea Homes. You can use Landsea Homes Corp 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 Landsea Homes to be traded at $9.55 in 90 days.Good diversification
The correlation between Landsea Homes Corp and NYA is -0.04 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Landsea Homes Corp and NYA in the same portfolio, assuming nothing else is changed.
Landsea Homes Additional Risk Indicators
The analysis of Landsea Homes' 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 Landsea Homes' investment and either accepting that risk or mitigating it. Along with some common measures of Landsea Homes 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.
| Risk Adjusted Performance | (0.02) | |||
| Market Risk Adjusted Performance | 0.7511 | |||
| Mean Deviation | 2.78 | |||
| Coefficient Of Variation | (2,336) | |||
| Standard Deviation | 3.8 | |||
| Variance | 14.41 | |||
| Information Ratio | (0.06) |
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.
Landsea Homes 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 Landsea Homes 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. Landsea Homes' 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, Landsea Homes' 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 Landsea Homes Corp.
When determining whether Landsea Homes Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Landsea Homes' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Landsea Homes Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Landsea Homes Corp Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Landsea Homes Corp. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in income. For information on how to trade Landsea Stock refer to our How to Trade Landsea Stock guide.Note that the Landsea Homes Corp information on this page should be used as a complementary analysis to other Landsea Homes' 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 the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Complementary Tools for Landsea Stock analysis
When running Landsea Homes' price analysis, check to measure Landsea Homes' 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 Landsea Homes is operating at the current time. Most of Landsea Homes' value examination focuses on studying past and present price action to predict the probability of Landsea Homes' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Landsea Homes' price. Additionally, you may evaluate how the addition of Landsea Homes to your portfolios can decrease your overall portfolio volatility.
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |
Is Landsea Homes' 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 Landsea Homes. If investors know Landsea 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 Landsea Homes 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 (0.94) | Earnings Share 0.68 | Revenue Per Share 33.256 | Quarterly Revenue Growth 0.216 | Return On Assets 0.0215 |
The market value of Landsea Homes Corp is measured differently than its book value, which is the value of Landsea that is recorded on the company's balance sheet. Investors also form their own opinion of Landsea Homes' value that differs from its market value or its book value, called intrinsic value, which is Landsea Homes' 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 Landsea Homes' market value can be influenced by many factors that don't directly affect Landsea Homes' 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 Landsea Homes' value and its price as these two are different measures arrived at by different means. Investors typically determine if Landsea Homes is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Landsea Homes' 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.