Village Bank And Stock Volatility
| VBFC Stock | USD 40.93 0.36 0.87% |
We consider Village Bank very steady. Village Bank owns Efficiency Ratio (i.e., Sharpe Ratio) of 9.0E-4, which indicates the firm had a 9.0E-4% return per unit of risk over the last 3 months. We have found thirty technical indicators for Village Bank and, which you can use to evaluate the volatility of the company. Please validate Village Bank's Risk Adjusted Performance of 0.0409, semi deviation of 1.18, and Coefficient Of Variation of 1760.79 to confirm if the risk estimate we provide is consistent with the expected return of 0.0013%. Key indicators related to Village Bank's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Village Bank 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 Village daily returns, and it is calculated using variance and standard deviation. We also use Village's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Village Bank volatility.
Village |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Village Bank 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 Village Bank at lower prices. For example, an investor can purchase Village 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 Village Bank'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 Village Stock
| 0.61 | WF | Woori Financial Group Earnings Call Today | PairCorr |
Moving against Village Stock
| 0.64 | EBMT | Eagle Bancorp Montana Earnings Call This Week | PairCorr |
| 0.57 | EGBN | Eagle Bancorp Earnings Call This Week | PairCorr |
| 0.55 | BY | Byline Bancorp Report 25th of April 2024 | PairCorr |
| 0.53 | EFSC | Enterprise Financial Earnings Call This Week | PairCorr |
| 0.5 | VBTX | Veritex Holdings Earnings Call This Week | PairCorr |
| 0.45 | VABK | Virginia National | PairCorr |
Village Bank Market Sensitivity And Downside Risk
Village Bank's beta coefficient measures the volatility of Village 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 Village stock's returns against your selected market. In other words, Village Bank's beta of 0.22 provides an investor with an approximation of how much risk Village Bank stock can potentially add to one of your existing portfolios. Village Bank and currently demonstrates below-average downside deviation. It has Information Ratio of 0.01 and Jensen Alpha of 0.05. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Village Bank's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Village Bank's 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 Village Bank Demand TrendCheck current 90 days Village Bank correlation with market (NYSE Composite)Village Beta |
Village 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 | 1.41 |
It is essential to understand the difference between upside risk (as represented by Village Bank's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Village Bank's daily returns or price. Since the actual investment returns on holding a position in village 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 Village Bank.
Village Bank Stock Volatility Analysis
Volatility refers to the frequency at which Village Bank stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Village Bank's price changes. Investors will then calculate the volatility of Village Bank'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 Village Bank's volatility:
Historical Volatility
This type of stock volatility measures Village Bank's fluctuations based on previous trends. It's commonly used to predict Village Bank'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 Village Bank's 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 Village Bank'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. Village Bank 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.
Village Bank Projected Return Density Against Market
Given the investment horizon of 90 days Village Bank has a beta of 0.2191 . This entails as returns on the market go up, Village Bank average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Village Bank and 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 Village Bank 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 Village Bank'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 Village 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.
Village Bank and has an alpha of 0.0524, implying that it can generate a 0.0524 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Village Bank 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.Village Bank Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Village Bank is 106650.09. The daily returns are distributed with a variance of 1.98 and standard deviation of 1.41. The mean deviation of Village Bank and is currently at 0.76. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.63
α | Alpha over NYSE Composite | 0.05 | |
β | Beta against NYSE Composite | 0.22 | |
σ | Overall volatility | 1.41 | |
Ir | Information ratio | 0.01 |
Village Bank Stock Return Volatility
Village Bank historical daily return volatility represents how much of Village Bank stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 1.4082% 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 Village Bank Volatility
Volatility is a rate at which the price of Village Bank 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 Village Bank may increase or decrease. In other words, similar to Village's beta indicator, it measures the risk of Village Bank and helps estimate the fluctuations that may happen in a short period of time. So if prices of Village Bank 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 | 404 K | 570.5 K | |
| Market Cap | 38.9 M | 40.8 M |
Village Bank'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 Village Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Village Bank's price varies over time.
3 ways to utilize Village Bank's volatility to invest better
Higher Village Bank's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Village Bank 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. Village Bank 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 Village Bank investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Village Bank'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 Village Bank's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Village Bank Investment Opportunity
Village Bank and has a volatility of 1.41 and is 2.27 times more volatile than NYSE Composite. 12 percent of all equities and portfolios are less risky than Village Bank. You can use Village Bank and 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 Village Bank to be traded at $40.11 in 90 days.Average diversification
The correlation between Village Bank and and NYA is 0.11 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Village Bank and and NYA in the same portfolio, assuming nothing else is changed.
Village Bank Additional Risk Indicators
The analysis of Village Bank'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 Village Bank's investment and either accepting that risk or mitigating it. Along with some common measures of Village Bank 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 | 0.0409 | |||
| Market Risk Adjusted Performance | 0.2945 | |||
| Mean Deviation | 0.7166 | |||
| Semi Deviation | 1.18 | |||
| Downside Deviation | 2.09 | |||
| Coefficient Of Variation | 1760.79 | |||
| Standard Deviation | 1.27 |
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.
Village Bank 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 Village Bank 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. Village Bank'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, Village Bank'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 Village Bank and.
When determining whether Village Bank offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Village Bank's 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 Village Bank And Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Village Bank And Stock: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Village Bank and. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in census. Note that the Village Bank information on this page should be used as a complementary analysis to other Village Bank'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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Complementary Tools for Village Stock analysis
When running Village Bank's price analysis, check to measure Village Bank'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 Village Bank is operating at the current time. Most of Village Bank's value examination focuses on studying past and present price action to predict the probability of Village Bank's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Village Bank's price. Additionally, you may evaluate how the addition of Village Bank to your portfolios can decrease your overall portfolio volatility.
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Is Village Bank'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 Village Bank. If investors know Village 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 Village Bank 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 (0.22) | Earnings Share 1.29 | Revenue Per Share 16.96 | Quarterly Revenue Growth (0.06) | Return On Assets 0.0026 |
The market value of Village Bank is measured differently than its book value, which is the value of Village that is recorded on the company's balance sheet. Investors also form their own opinion of Village Bank's value that differs from its market value or its book value, called intrinsic value, which is Village Bank'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 Village Bank's market value can be influenced by many factors that don't directly affect Village Bank'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 Village Bank's value and its price as these two are different measures arrived at by different means. Investors typically determine if Village Bank is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Village Bank'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.