Altria Stock Volatility

MO -  USA Stock  

USD 54.50  0.61  1.13%

We consider Altria very steady. Altria Group secures Sharpe Ratio (or Efficiency) of 0.0854, which signifies that the company had 0.0854% of return per unit of risk over the last 3 months. Our standpoint towards foreseeing 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-seven technical indicators for Altria Group, which you can use to evaluate the future volatility of the firm. Please confirm Altria Group Mean Deviation of 1.18, downside deviation of 2.36, and Risk Adjusted Performance of 0.0909 to double-check if the risk estimate we provide is consistent with the expected return of 0.14%.
  
Refresh
Altria 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 Altria daily returns, and it is calculated using variance and standard deviation. We also use Altria's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Altria volatility.

540 Days Market Risk

Very steady

Chance of Distress

540 Days Economic Sensitivity

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

Moving together with Altria

0.81CASYCaseys General Stor Financial Report 14th of June 2022 PairCorr
0.8BGBungePairCorr
0.78TWTRTwitterPairCorr
0.76DGDollar General CorpPairCorr
0.76ADMArcher Daniels MidlandPairCorr
0.73JNJJohnson JohnsonPairCorr

Moving against Altria

-0.69BEDUBright Scholar EducationPairCorr
-0.65CLXTCalyxt IncPairCorr
-0.63CJJDChina Jojo DrugstorePairCorr
-0.58CAWWCCA INDUSTRIESPairCorr
-0.58CUSICuisine SolutionsPairCorr
-0.54KAVLKaival Brands InnovationsPairCorr
-0.53JAPAFJapan TobaccoPairCorr

Altria Market Sensitivity And Downside Risk

Altria's beta coefficient measures the volatility of Altria 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 Altria stock's returns against your selected market. In other words, Altria's beta of 0.49 provides an investor with an approximation of how much risk Altria stock can potentially add to one of your existing portfolios.
Let's try to break down what Altria's beta means in this case. As returns on the market increase, Altria returns are expected to increase less than the market. However, during the bear market, the loss on holding Altria will be expected to be smaller as well.
3 Months Beta |Analyze Altria Group Demand Trend
Check current 90 days Altria correlation with market (DOW)

Altria Beta

    
  0.49  
Altria 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

    
  1.6  
It is essential to understand the difference between upside risk (as represented by Altria's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Altria stock's daily returns or price. Since the actual investment returns on holding a position in Altria 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 Altria.

Altria Implied Volatility

    
  25.4  
Altria's implied volatility exposes the market's sentiment of Altria Group stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Altria'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 Altria stock will not fluctuate a lot when Altria's options are near their expiration.

Altria Group Stock Volatility Analysis

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

Historical Volatility

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

Altria Projected Return Density Against Market

Allowing for the 90-day total investment horizon Altria has a beta of 0.4936 . This indicates as returns on the market go up, Altria average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Altria Group 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 Altria 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 Altria 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 Altria 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 0.1152, implying that it can generate a 0.12 percent excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 
Altria's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Altria 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.

Altria 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 Altria 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 Altria 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 Altria 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.
Allowing for the 90-day total investment horizon the coefficient of variation of Altria is 1171.6. The daily returns are distributed with a variance of 2.55 and standard deviation of 1.6. The mean deviation of Altria Group is currently at 1.09. For similar time horizon, the selected benchmark (DOW) has volatility of 1.35
α
Alpha over DOW
0.12
β
Beta against DOW0.49
σ
Overall volatility
1.60
Ir
Information ratio 0.07

Altria Stock Return Volatility

Altria historical daily return volatility represents how much Altria stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The company accepts 1.5976% volatility on return distribution over the 90 days horizon. By contrast, DOW inherits 1.3448% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Altria Volatility

Volatility is a rate at which the price of Altria 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 Altria may increase or decrease. In other words, similar to Altria's beta indicator, it measures the risk of Altria and helps estimate the fluctuations that may happen in a short period of time. So if prices of Altria 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 2022
Market Capitalization87.1 B100 B
Altria Group, Inc., through its subsidiaries, manufactures and sells smokeable and oral tobacco products in the United States. Altria Group, Inc. was founded in 1822 and is headquartered in Richmond, Virginia. Altria operates under Tobacco classification in the United States and is traded on New York Stock Exchange. It employs 6000 people.

Nearest Altria long CALL Option Payoff at Expiration

Altria's implied volatility is one of the determining factors in the pricing options written on Altria Group. Implied volatility approximates the future value of Altriausing the option's current value. Options with high implied volatility have higher premiums and can be used to hedge the downside of investing in Altria Group over a specific time period.
View All Altria options
2022-05-27 CALL at $30.0 is a CALL option contract on Altria's common stock with a strick price of 30.0 expiring on 2022-05-27. The contract was not traded in recent days and, as of today, has 0 days remaining before the expiration. The option is currently trading at a bid price of $24.25, and an ask price of $24.65. The implied volatility as of the 27th of May is 612.355.
 Profit 
Share
      Altria Price At Expiration 

Altria Investment Opportunity

Altria Group has a volatility of 1.6 and is 1.19 times more volatile than DOW. 13  of all equities and portfolios are less risky than Altria. Compared to the overall equity markets, volatility of historical daily returns of Altria Group is lower than 13 () of all global equities and portfolios over the last 90 days. Use Altria Group to enhance returns of your portfolios. The stock experiences a large bullish trend. Check odds of Altria to be traded at $59.95 in 90 days. . Let's try to break down what Altria's beta means in this case. As returns on the market increase, Altria returns are expected to increase less than the market. However, during the bear market, the loss on holding Altria will be expected to be smaller as well.

Weak diversification

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

Altria Additional Risk Indicators

The analysis of Altria'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 Altria's investment and either accepting that risk or mitigating it. Along with some common measures of Altria 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 Performance0.0909
Market Risk Adjusted Performance0.2197
Mean Deviation1.18
Semi Deviation2.1
Downside Deviation2.36
Coefficient Of Variation1524.24
Standard Deviation1.73
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.

Altria 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.
Vmware vs. Altria
COSCO SHIPPING vs. Altria
Ford vs. Altria
Sentinelone Inc vs. Altria
Visa vs. Altria
BANK OF NINGBO vs. Altria
HITHINK ROYALFLUSH vs. Altria
Meta Platforms vs. Altria
Salesforce vs. Altria
Walker Dunlop vs. Altria
Microsoft Corp vs. Altria
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 Altria 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. Altria'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, Altria'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 Altria Group.
Additionally, see Stocks Correlation. Note that the Altria Group information on this page should be used as a complementary analysis to other Altria'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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

Complementary Tools for Altria Stock analysis

When running Altria Group price analysis, check to measure Altria'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 Altria is operating at the current time. Most of Altria's value examination focuses on studying past and present price action to predict the probability of Altria's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Altria's price. Additionally, you may evaluate how the addition of Altria to your portfolios can decrease your overall portfolio volatility.
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Go
Is Altria'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 Altria. If investors know Altria 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 Altria 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 Altria Group is measured differently than its book value, which is the value of Altria that is recorded on the company's balance sheet. Investors also form their own opinion of Altria's value that differs from its market value or its book value, called intrinsic value, which is Altria'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 Altria's market value can be influenced by many factors that don't directly affect Altria'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 Altria's value and its price as these two are different measures arrived at by different means. Investors typically determine Altria value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Altria'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.