White Mountains Insurance Stock Volatility
| WTM Stock | USD 1,791 49.12 2.82% |
We consider White Mountains very steady. White Mountains Insurance shows Sharpe Ratio of 0.097, which attests that the company had a 0.097% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for White Mountains Insurance, which you can use to evaluate the volatility of the company. Please check out White Mountains' Mean Deviation of 1.17, market risk adjusted performance of 0.2566, and Downside Deviation of 1.4 to validate if the risk estimate we provide is consistent with the expected return of 0.14%. Key indicators related to White Mountains' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
White Mountains 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 White daily returns, and it is calculated using variance and standard deviation. We also use White's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of White Mountains volatility.
White |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as White Mountains 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 White Mountains at lower prices. For example, an investor can purchase White 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 White Mountains' 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 White Stock
| 0.83 | L | Loews Corp | PairCorr |
| 0.78 | CB | Chubb Earnings Call This Week | PairCorr |
| 0.85 | AFG | American Financial Financial Report 7th of May 2024 | PairCorr |
| 0.7 | HCI | HCI Group Financial Report 14th of May 2024 | PairCorr |
Moving against White Stock
| 0.62 | FACO | First Acceptance Corp | PairCorr |
| 0.45 | PRA | ProAssurance Financial Report 14th of May 2024 | PairCorr |
White Mountains Market Sensitivity And Downside Risk
White Mountains' beta coefficient measures the volatility of White 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 White stock's returns against your selected market. In other words, White Mountains's beta of 0.65 provides an investor with an approximation of how much risk White Mountains stock can potentially add to one of your existing portfolios. White Mountains Insurance has relatively low volatility with skewness of -0.06 and kurtosis of -0.62. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure White Mountains' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact White Mountains' 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 White Mountains Insurance Demand TrendCheck current 90 days White Mountains correlation with market (NYSE Composite)White Beta |
White 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 White Mountains's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of White Mountains' daily returns or price. Since the actual investment returns on holding a position in white 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 White Mountains.
White Mountains Insurance Stock Volatility Analysis
Volatility refers to the frequency at which White Mountains stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with White Mountains' price changes. Investors will then calculate the volatility of White Mountains' 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 White Mountains' volatility:
Historical Volatility
This type of stock volatility measures White Mountains' fluctuations based on previous trends. It's commonly used to predict White Mountains' 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 White Mountains' 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 White Mountains' 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. White Mountains Insurance 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.
White Mountains Projected Return Density Against Market
Considering the 90-day investment horizon White Mountains has a beta of 0.6512 . This entails as returns on the market go up, White Mountains average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding White Mountains Insurance 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 White Mountains or Insurance 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 White Mountains' 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 White 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.
White Mountains Insurance has an alpha of 0.1225, implying that it can generate a 0.12 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a White Mountains 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.White Mountains Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of White Mountains is 1030.53. The daily returns are distributed with a variance of 2.16 and standard deviation of 1.47. The mean deviation of White Mountains Insurance is currently at 1.19. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 0.12 | |
β | Beta against NYSE Composite | 0.65 | |
σ | Overall volatility | 1.47 | |
Ir | Information ratio | 0.07 |
White Mountains Stock Return Volatility
White Mountains historical daily return volatility represents how much of White Mountains stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 1.4684% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.6179% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About White Mountains Volatility
Volatility is a rate at which the price of White Mountains 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 White Mountains may increase or decrease. In other words, similar to White's beta indicator, it measures the risk of White Mountains and helps estimate the fluctuations that may happen in a short period of time. So if prices of White Mountains 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 | 88.7 M | 76.3 M | |
| Market Cap | 3.8 B | 2.4 B |
White Mountains' 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 White Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much White Mountains' price varies over time.
3 ways to utilize White Mountains' volatility to invest better
Higher White Mountains' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of White Mountains Insurance 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. White Mountains Insurance 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 White Mountains Insurance investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in White Mountains' 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 White Mountains' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
White Mountains Investment Opportunity
White Mountains Insurance 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 White Mountains Insurance is lower than 12 percent of all global equities and portfolios over the last 90 days. You can use White Mountains Insurance to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of White Mountains to be traded at $2149.43 in 90 days.Modest diversification
The correlation between White Mountains Insurance and NYA is 0.28 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding White Mountains Insurance and NYA in the same portfolio, assuming nothing else is changed.
White Mountains Additional Risk Indicators
The analysis of White Mountains' 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 White Mountains' investment and either accepting that risk or mitigating it. Along with some common measures of White Mountains 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 | 0.0792 | |||
| Market Risk Adjusted Performance | 0.2566 | |||
| Mean Deviation | 1.17 | |||
| Semi Deviation | 1.22 | |||
| Downside Deviation | 1.4 | |||
| Coefficient Of Variation | 840.35 | |||
| Standard Deviation | 1.43 |
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.
White Mountains 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 White Mountains 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. White Mountains' 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, White Mountains' 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 White Mountains Insurance.
When determining whether White Mountains Insurance is a strong investment it is important to analyze White Mountains' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact White Mountains' future performance. For an informed investment choice regarding White Stock, refer to the following important reports: Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in White Mountains Insurance. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate. You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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When running White Mountains' price analysis, check to measure White Mountains' 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 White Mountains is operating at the current time. Most of White Mountains' value examination focuses on studying past and present price action to predict the probability of White Mountains' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move White Mountains' price. Additionally, you may evaluate how the addition of White Mountains to your portfolios can decrease your overall portfolio volatility.
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Is White Mountains' 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 White Mountains. If investors know White 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 White Mountains 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 9.187 | Dividend Share 1 | Earnings Share 198.64 | Revenue Per Share 857.318 | Quarterly Revenue Growth 0.684 |
The market value of White Mountains Insurance is measured differently than its book value, which is the value of White that is recorded on the company's balance sheet. Investors also form their own opinion of White Mountains' value that differs from its market value or its book value, called intrinsic value, which is White Mountains' 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 White Mountains' market value can be influenced by many factors that don't directly affect White Mountains' 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 White Mountains' value and its price as these two are different measures arrived at by different means. Investors typically determine if White Mountains is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, White Mountains' 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.