Saga Communications Stock Volatility
| SGA Stock | USD 22.68 0.02 0.09% |
Saga Communications owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0078, which indicates the firm had a -0.0078% return per unit of risk over the last 3 months. Saga Communications exposes twenty-nine different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Saga Communications' Risk Adjusted Performance of 0.0323, semi deviation of 1.7, and Coefficient Of Variation of 2419.03 to confirm the risk estimate we provide. Key indicators related to Saga Communications' volatility include:
720 Days Market Risk | Chance Of Distress | 720 Days Economic Sensitivity |
Saga Communications 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 Saga daily returns, and it is calculated using variance and standard deviation. We also use Saga's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Saga Communications volatility.
Saga |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Saga Communications 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 Saga Communications at lower prices. For example, an investor can purchase Saga 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 Saga Communications' 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.
Saga Communications Market Sensitivity And Downside Risk
Saga Communications' beta coefficient measures the volatility of Saga 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 Saga stock's returns against your selected market. In other words, Saga Communications's beta of 0.16 provides an investor with an approximation of how much risk Saga Communications stock can potentially add to one of your existing portfolios. Saga Communications has relatively low volatility with skewness of -0.31 and kurtosis of 0.86. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Saga Communications' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Saga Communications' 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 Saga Communications Demand TrendCheck current 90 days Saga Communications correlation with market (NYSE Composite)Saga Beta |
Saga 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 | 1.69 |
It is essential to understand the difference between upside risk (as represented by Saga Communications's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Saga Communications' daily returns or price. Since the actual investment returns on holding a position in saga 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 Saga Communications.
Saga Communications Stock Volatility Analysis
Volatility refers to the frequency at which Saga Communications stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Saga Communications' price changes. Investors will then calculate the volatility of Saga Communications' 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 Saga Communications' volatility:
Historical Volatility
This type of stock volatility measures Saga Communications' fluctuations based on previous trends. It's commonly used to predict Saga Communications' 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 Saga Communications' 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 Saga Communications' 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. Saga Communications 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.
Saga Communications Projected Return Density Against Market
Considering the 90-day investment horizon Saga Communications has a beta of 0.1556 . This usually implies as returns on the market go up, Saga Communications average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Saga Communications 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 Saga Communications or Media 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 Saga Communications' 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 Saga 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.
Saga Communications has an alpha of 0.0526, implying that it can generate a 0.0526 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Saga Communications 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.Saga Communications Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Saga Communications is -12740.0. The daily returns are distributed with a variance of 2.86 and standard deviation of 1.69. The mean deviation of Saga Communications is currently at 1.24. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 0.05 | |
β | Beta against NYSE Composite | 0.16 | |
σ | Overall volatility | 1.69 | |
Ir | Information ratio | -0.0072 |
Saga Communications Stock Return Volatility
Saga Communications historical daily return volatility represents how much of Saga Communications stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company has volatility of 1.6903% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.6372% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Saga Communications Volatility
Volatility is a rate at which the price of Saga Communications 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 Saga Communications may increase or decrease. In other words, similar to Saga's beta indicator, it measures the risk of Saga Communications and helps estimate the fluctuations that may happen in a short period of time. So if prices of Saga Communications 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 | ||
| Market Cap | 174.3 M | 160 M |
Saga Communications' 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 Saga Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Saga Communications' price varies over time.
3 ways to utilize Saga Communications' volatility to invest better
Higher Saga Communications' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Saga Communications 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. Saga Communications 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 Saga Communications investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Saga Communications' 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 Saga Communications' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Saga Communications Investment Opportunity
Saga Communications has a volatility of 1.69 and is 2.64 times more volatile than NYSE Composite. 14 percent of all equities and portfolios are less risky than Saga Communications. You can use Saga Communications to protect your portfolios against small market fluctuations. The stock experiences a normal downward trend and little activity. Check odds of Saga Communications to be traded at $22.45 in 90 days.Significant diversification
The correlation between Saga Communications and NYA is 0.05 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Saga Communications and NYA in the same portfolio, assuming nothing else is changed.
Saga Communications Additional Risk Indicators
The analysis of Saga Communications' 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 Saga Communications' investment and either accepting that risk or mitigating it. Along with some common measures of Saga Communications 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 | 0.0323 | |||
| Market Risk Adjusted Performance | 0.426 | |||
| Mean Deviation | 1.34 | |||
| Semi Deviation | 1.7 | |||
| Downside Deviation | 1.88 | |||
| Coefficient Of Variation | 2419.03 | |||
| Standard Deviation | 1.81 |
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.
Saga Communications 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 Saga Communications 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. Saga Communications' 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, Saga Communications' 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 Saga Communications.
When determining whether Saga Communications offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Saga Communications' 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 Saga Communications Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Saga Communications Stock: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Saga Communications. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in price. For information on how to trade Saga Stock refer to our How to Trade Saga Stock guide.Note that the Saga Communications information on this page should be used as a complementary analysis to other Saga Communications' 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Complementary Tools for Saga Stock analysis
When running Saga Communications' price analysis, check to measure Saga Communications' 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 Saga Communications is operating at the current time. Most of Saga Communications' value examination focuses on studying past and present price action to predict the probability of Saga Communications' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Saga Communications' price. Additionally, you may evaluate how the addition of Saga Communications to your portfolios can decrease your overall portfolio volatility.
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Is Saga Communications' 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 Saga Communications. If investors know Saga 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 Saga Communications 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 (0.42) | Dividend Share 1 | Earnings Share 1.55 | Revenue Per Share 18.656 | Quarterly Revenue Growth (0.03) |
The market value of Saga Communications is measured differently than its book value, which is the value of Saga that is recorded on the company's balance sheet. Investors also form their own opinion of Saga Communications' value that differs from its market value or its book value, called intrinsic value, which is Saga Communications' 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 Saga Communications' market value can be influenced by many factors that don't directly affect Saga Communications' 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 Saga Communications' value and its price as these two are different measures arrived at by different means. Investors typically determine if Saga Communications is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Saga Communications' 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.