Uwharrie Capital Corp Stock Volatility
| UWHR Stock | USD 7.51 0.14 1.83% |
We consider Uwharrie Capital not too volatile. Uwharrie Capital Corp owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0173, which indicates the firm had a 0.0173% return per unit of risk over the last 3 months. We have found twenty-two technical indicators for Uwharrie Capital Corp, which you can use to evaluate the volatility of the company. Please validate Uwharrie Capital's Coefficient Of Variation of (1,440), variance of 3.29, and Risk Adjusted Performance of (0.04) to confirm if the risk estimate we provide is consistent with the expected return of 0.0254%. Key indicators related to Uwharrie Capital's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Uwharrie Capital OTC 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 Uwharrie daily returns, and it is calculated using variance and standard deviation. We also use Uwharrie's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Uwharrie Capital volatility.
Uwharrie |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Uwharrie Capital 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 Uwharrie Capital at lower prices. For example, an investor can purchase Uwharrie 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 Uwharrie Capital'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 against Uwharrie OTC Stock
| 0.55 | TLK | Telkom Indonesia Tbk Financial Report 26th of April 2024 | PairCorr |
Uwharrie Capital Market Sensitivity And Downside Risk
Uwharrie Capital's beta coefficient measures the volatility of Uwharrie otc 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 Uwharrie otc stock's returns against your selected market. In other words, Uwharrie Capital's beta of 0.78 provides an investor with an approximation of how much risk Uwharrie Capital otc stock can potentially add to one of your existing portfolios. Uwharrie Capital Corp exhibits very low volatility with skewness of -0.01 and kurtosis of 17.51. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Uwharrie Capital's otc stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Uwharrie Capital's otc 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 Uwharrie Capital Corp Demand TrendCheck current 90 days Uwharrie Capital correlation with market (NYSE Composite)Uwharrie Beta |
Uwharrie 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 | 1.47 |
It is essential to understand the difference between upside risk (as represented by Uwharrie Capital's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Uwharrie Capital's daily returns or price. Since the actual investment returns on holding a position in uwharrie otc 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 Uwharrie Capital.
Uwharrie Capital Corp OTC Stock Volatility Analysis
Volatility refers to the frequency at which Uwharrie Capital otc price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Uwharrie Capital's price changes. Investors will then calculate the volatility of Uwharrie Capital's otc stock to predict their future moves. A otc that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A otc stock with relatively stable price changes has low volatility. A highly volatile otc 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 Uwharrie Capital's volatility:
Historical Volatility
This type of otc volatility measures Uwharrie Capital's fluctuations based on previous trends. It's commonly used to predict Uwharrie Capital's future behavior based on its past. However, it cannot conclusively determine the future direction of the otc stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Uwharrie Capital's current market price. This means that the otc will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Uwharrie Capital's 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. Uwharrie Capital 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.
Uwharrie Capital Projected Return Density Against Market
Given the investment horizon of 90 days Uwharrie Capital has a beta of 0.7778 . This usually implies as returns on the market go up, Uwharrie Capital average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Uwharrie Capital Corp 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 Uwharrie Capital 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 Uwharrie Capital's price will be affected by overall otc 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 Uwharrie otc'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.
Uwharrie Capital 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 an Uwharrie Capital Price Volatility?
Several factors can influence a otc'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.Uwharrie Capital OTC Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Uwharrie Capital is 5786.42. The daily returns are distributed with a variance of 2.16 and standard deviation of 1.47. The mean deviation of Uwharrie Capital Corp is currently at 0.56. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.63
α | Alpha over NYSE Composite | -0.17 | |
β | Beta against NYSE Composite | 0.78 | |
σ | Overall volatility | 1.47 | |
Ir | Information ratio | -0.1 |
Uwharrie Capital OTC Stock Return Volatility
Uwharrie Capital historical daily return volatility represents how much of Uwharrie Capital otc's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The enterprise inherits 1.4698% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.6219% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Uwharrie Capital Volatility
Volatility is a rate at which the price of Uwharrie Capital 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 Uwharrie Capital may increase or decrease. In other words, similar to Uwharrie's beta indicator, it measures the risk of Uwharrie Capital and helps estimate the fluctuations that may happen in a short period of time. So if prices of Uwharrie Capital 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.Uwharrie Capital Corp operates as the bank holding company for Uwharrie Bank that provides retail and commercial banking services to individuals and small to medium-sized businesses in North Carolina. The company was incorporated in 1993 and is based in Albemarle, North Carolina. Uwharrie Capital operates under BanksRegional classification in the United States and is traded on OTC Exchange. It employs 178 people.
Uwharrie Capital's 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 Uwharrie OTC Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Uwharrie Capital's price varies over time.
3 ways to utilize Uwharrie Capital's volatility to invest better
Higher Uwharrie Capital's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Uwharrie Capital 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. Uwharrie Capital 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 Uwharrie Capital Corp investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Uwharrie Capital's 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 Uwharrie Capital's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Uwharrie Capital Investment Opportunity
Uwharrie Capital Corp has a volatility of 1.47 and is 2.37 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Uwharrie Capital Corp is lower than 12 percent of all global equities and portfolios over the last 90 days. You can use Uwharrie Capital Corp to protect your portfolios against small market fluctuations. The otc stock experiences a bearish sentiment with high volatility. Check odds of Uwharrie Capital to be traded at $7.28 in 90 days.Modest diversification
The correlation between Uwharrie Capital Corp and NYA is 0.27 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Uwharrie Capital Corp and NYA in the same portfolio, assuming nothing else is changed.
Uwharrie Capital Additional Risk Indicators
The analysis of Uwharrie Capital'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 Uwharrie Capital's investment and either accepting that risk or mitigating it. Along with some common measures of Uwharrie Capital otc 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 | (0.04) | |||
| Market Risk Adjusted Performance | (0.16) | |||
| Mean Deviation | 0.7434 | |||
| Coefficient Of Variation | (1,440) | |||
| Standard Deviation | 1.81 | |||
| Variance | 3.29 | |||
| Information Ratio | (0.10) |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential otc stocks, we recommend comparing similar otcs with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Uwharrie Capital 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 Uwharrie Capital 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. Uwharrie Capital'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, Uwharrie Capital'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 Uwharrie Capital Corp.
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Uwharrie Capital Corp. Also, note that the market value of any otc stock could be tightly coupled with the direction of predictive economic indicators such as signals in rate. Note that the Uwharrie Capital Corp information on this page should be used as a complementary analysis to other Uwharrie Capital'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 the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Complementary Tools for Uwharrie OTC Stock analysis
When running Uwharrie Capital's price analysis, check to measure Uwharrie Capital'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 Uwharrie Capital is operating at the current time. Most of Uwharrie Capital's value examination focuses on studying past and present price action to predict the probability of Uwharrie Capital's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Uwharrie Capital's price. Additionally, you may evaluate how the addition of Uwharrie Capital to your portfolios can decrease your overall portfolio volatility.
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