# Nu Holdings Stock Volatility

NU Stock | USD 10.84 0.11 1.00% |

Nu Holdings appears to be not too volatile, given 3 months investment horizon. Nu Holdings retains Efficiency (Sharpe Ratio) of 0.15, which conveys that the firm had a 0.15% return per unit of price deviation over the last 3 months. We have found twenty-nine technical indicators for Nu Holdings, which you can use to evaluate the volatility of the firm. Please exercise Nu Holdings' Standard Deviation of 2.11, market risk adjusted performance of 0.227, and Mean Deviation of 1.6 to check out if our risk estimates are consistent with your expectations.

**Key indicators related to Nu Holdings' volatility include:**60 Days Market Risk | Chance Of Distress | 60 Days Economic Sensitivity |

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

Nu Holdings |

Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Nu Holdings 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 Nu Holdings at lower prices. For example, an investor can purchase Nu Holdings 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 Nu Holdings' 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 Nu Holdings Stock

0.8 | KB | KB Financial Group Financial Report 20th of May 2024 | PairCorr |

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0.83 | WF | Woori Financial Group Earnings Call Tomorrow | PairCorr |

## Moving against Nu Holdings Stock

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0.78 | EBMT | Eagle Bancorp Montana Earnings Call This Week | PairCorr |

0.73 | EFSC | Enterprise Financial Earnings Call This Week | PairCorr |

0.71 | VABK | Virginia National | PairCorr |

0.67 | VBTX | Veritex Holdings Earnings Call This Week | PairCorr |

0.65 | BY | Byline Bancorp Report 25th of April 2024 | PairCorr |

0.52 | AX | Axos Financial Financial Report 25th of April 2024 | PairCorr |

0.51 | ECBK | ECB Bancorp | PairCorr |

## Nu Holdings Market Sensitivity And Downside Risk

Nu Holdings' beta coefficient measures the volatility of Nu Holdings 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 Nu Holdings stock's returns against your selected market. In other words, Nu Holdings's beta of 1.3 provides an investor with an approximation of how much risk Nu Holdings stock can potentially add to one of your existing portfolios. Nu Holdings has relatively low volatility with skewness of 0.01 and kurtosis of 0.8. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Nu Holdings' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Nu Holdings' 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 Nu Holdings Demand TrendCheck current 90 days Nu Holdings correlation with market (NYSE Composite)## Nu Holdings Beta |

Nu Holdings 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 | 2.15 |

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

## Using Nu Holdings Put Option to Manage Risk

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

### Nu Holdings' PUT expiring on 2024-04-19

Profit |

Nu Holdings Price At Expiration |

### Current Nu Holdings Insurance Chain

Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||

Put | 2024-04-19 PUT at $12.5 | -0.7948 | 0.1764 | 429 | 2024-04-19 | 1.37 - 1.72 | 0.98 | View |

Put | 2024-04-19 PUT at $12.0 | -0.9497 | 0.1742 | 1444 | 2024-04-19 | 0.84 - 1.12 | 1.06 | View |

Put | 2024-04-19 PUT at $11.5 | -0.8889 | 0.4421 | 680 | 2024-04-19 | 0.55 - 0.78 | 0.57 | View |

Put | 2024-04-19 PUT at $11.0 | -0.531 | 0.8556 | 14222 | 2024-04-19 | 0.2 - 0.22 | 0.21 | View |

Put | 2024-04-19 PUT at $10.5 | -0.1927 | 0.4976 | 692 | 2024-04-19 | 0.04 - 0.06 | 0.06 | View |

Put | 2024-04-19 PUT at $10.0 | -0.0659 | 0.1895 | 2440 | 2024-04-19 | 0.0 - 0.04 | 0.02 | View |

Put | 2024-04-19 PUT at $9.0 | -0.0232 | 0.0496 | 5323 | 2024-04-19 | 0.0 - 0.01 | 0.01 | View |

Put | 2024-04-19 PUT at $8.0 | -0.016 | 0.024 | 3924 | 2024-04-19 | 0.0 - 0.01 | 0.01 | View |

## Nu Holdings Stock Volatility Analysis

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

### Historical Volatility

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

## Nu Holdings Projected Return Density Against Market

Allowing for the 90-day total investment horizon the stock has the beta coefficient of 1.3009 . This indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Nu Holdings will likely underperform.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 Nu Holdings or Banks 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 Nu Holdings' 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 Nu Holdings 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.

Nu Holdings has an alpha of 0.2198, implying that it can generate a 0.22 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |

Returns |

## What Drives a Nu Holdings 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.## Nu Holdings Stock Risk Measures

Allowing for the 90-day total investment horizon the coefficient of variation of Nu Holdings is 684.24. The daily returns are distributed with a variance of 4.62 and standard deviation of 2.15. The mean deviation of Nu Holdings is currently at 1.62. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.63

α | Alpha over NYSE Composite | 0.22 | |

β | Beta against NYSE Composite | 1.30 | |

σ | Overall volatility | 2.15 | |

Ir | Information ratio | 0.11 |

## Nu Holdings Stock Return Volatility

Nu Holdings historical daily return volatility represents how much of Nu Holdings stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm accepts 2.1499% volatility on return distribution over the 90 days horizon. By contrast, NYSE Composite accepts 0.6265% volatility on return distribution over the 90 days horizon. Performance |

Timeline |

## About Nu Holdings Volatility

Volatility is a rate at which the price of Nu Holdings 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 Nu Holdings may increase or decrease. In other words, similar to Nu Holdings's beta indicator, it measures the risk of Nu Holdings and helps estimate the fluctuations that may happen in a short period of time. So if prices of Nu Holdings 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 | 175.9 M | 184.7 M | |

Market Cap | 49.7 B | 50 B |

Nu Holdings' 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 Nu Holdings Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Nu Holdings' price varies over time.

## 3 ways to utilize Nu Holdings' volatility to invest better

Higher Nu Holdings' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Nu Holdings 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. Nu Holdings 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 Nu Holdings investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Nu Holdings' 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 Nu Holdings' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.

## Nu Holdings Investment Opportunity

Nu Holdings has a volatility of 2.15 and is 3.41 times more volatile than NYSE Composite.**19 percent**of all equities and portfolios are less risky than Nu Holdings. You can use Nu Holdings to protect your portfolios against small market fluctuations. The stock experiences a moderate downward daily trend and can be a good diversifier. Check odds of Nu Holdings to be traded at $10.62 in 90 days.

### Weak diversification

The correlation between Nu Holdings and NYA is

**0.39**(i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Nu Holdings and NYA in the same portfolio, assuming nothing else is changed.## Nu Holdings Additional Risk Indicators

The analysis of Nu Holdings' 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 Nu Holdings' investment and either accepting that risk or mitigating it. Along with some common measures of Nu Holdings 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 | 0.0944 | |||

Market Risk Adjusted Performance | 0.227 | |||

Mean Deviation | 1.6 | |||

Semi Deviation | 1.71 | |||

Downside Deviation | 1.94 | |||

Coefficient Of Variation | 721.05 | |||

Standard Deviation | 2.11 |

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.

## Nu Holdings 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 Nu Holdings 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. Nu Holdings' 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, Nu Holdings' 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 Nu Holdings.

When determining whether Nu Holdings is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Nu Holdings Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Nu Holdings Stock. **Highlighted below are key reports to facilitate an investment decision about Nu Holdings Stock:**

Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Nu Holdings. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in employment. For more information on how to buy Nu Holdings Stock please use our How to Invest in Nu Holdings guide.You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.

## Complementary Tools for Nu Holdings Stock analysis

When running Nu Holdings' price analysis, check to measure Nu Holdings' 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 Nu Holdings is operating at the current time. Most of Nu Holdings' value examination focuses on studying past and present price action to predict the probability of Nu Holdings' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Nu Holdings' price. Additionally, you may evaluate how the addition of Nu Holdings to your portfolios can decrease your overall portfolio volatility.

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Is Nu Holdings' 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 Nu Holdings. If investors know Nu Holdings 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 Nu Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

Quarterly Earnings Growth38 | Earnings Share0.21 | Revenue Per Share0.782 | Quarterly Revenue Growth0.922 | Return On Assets0.0281 |

The market value of Nu Holdings is measured differently than its book value, which is the value of Nu Holdings that is recorded on the company's balance sheet. Investors also form their own opinion of Nu Holdings' value that differs from its market value or its book value, called intrinsic value, which is Nu Holdings' 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 Nu Holdings' market value can be influenced by many factors that don't directly affect Nu Holdings' 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 Nu Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if Nu Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nu Holdings' 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.