Applied Industrial Variance
| AIT Stock | | | USD 315.64 0.25 0.08% |
Variance is another measure of security risk that shows the amount of dispersion of equity returns around their mean value. Variance is calculated as the average squared deviations from the mean. Evaluating a set of investment alternatives one can use variance to help determine the volatility when purchasing a specific security. Similar to Standard Deviation, the variance is a measure of how far a set of numbers is spread out around its mean. Below is Applied Industrial's current Variance with peer comparisons and related risk metrics.
Current Variance Value
At 2.8, Applied Industrial's Variance indicates moderate price variability. This places Applied Industrial within the typical volatility range for Stock.
Variance | = | SUM(RET DEV)2N |
| = | 2.8 | |
| SUM | = | Summation notation |
| RET DEV | = | Actual returns deviation over selected period |
| N | = | Number of points for the period |
Variance Peers Comparison
The peer group averages 7.3 for Variance, with Applied Industrial at 2.8 falling below that level. Readings span 2.73 (Watts Water Technologies) to 15.74 (Generac Holdings). Applied Industrial has exhibited less price dispersion than the peer average over the measured period.
Variance Relative To Other Indicators
The chart below plots Variance against Maximum Drawdown for Applied Industrial and its peers. Each point represents one equity — position along the horizontal axis shows Variance while the vertical axis shows Maximum Drawdown. Equities that cluster in different quadrants carry distinct risk-return profiles. Use the dropdowns to swap in other indicators for either axis.
Comparing Variance (
2.80 ) to Maximum Drawdown (
6.21 ) for Applied Industrial yields a
2.22 multiple. This indicates Maximum Drawdown is significantly higher than Variance for Applied Industrial.
Methodology, Assumptions & Data Sources
Applied Industrial has a current Variance reading of 2.8. Variance for Applied Industrial is derived by applying a defined formula to historical price observations, producing a time-series of comparable readings. The underlying data comes from exchange-reported daily closes with corporate action adjustments applied where relevant. Results are based on historical returns and do not predict future performance. This indicator is provided for informational purposes.
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