First Merchants Variance
| FRME Stock | | | USD 40.57 -0.14 -0.34% |
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 First Merchants's current Variance with peer comparisons and related risk metrics.
Current Variance Value
First Merchants's Variance of 1.93 reflects moderate price variability. This places First Merchants within the typical volatility range for Regional Banks.
Variance | = | SUM(RET DEV)2N |
| = | 1.93 | |
| SUM | = | Summation notation |
| RET DEV | = | Actual returns deviation over selected period |
| N | = | Number of points for the period |
Variance Peers Comparison
Among sector peers, First Merchants's Variance of 1.93 is below the 2.49 group average. The range runs from 1.85 (Trustmark) to 3.82 (Customers Bancorp). First Merchants 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 First Merchants 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.
With Variance at
1.93 and Maximum Drawdown at
7.27 , First Merchants shows a
3.76 -to-one ratio between these indicators. This indicates Maximum Drawdown is significantly higher than Variance for First Merchants.
Methodology, Assumptions & Data Sources
First Merchants' Variance currently stands at 1.93. First Merchants' Variance is computed from historical closing prices over the selected time horizon, applying the indicator's defined mathematical transformation to raw price data. The underlying data comes from exchange-reported daily closes with corporate action adjustments applied where relevant. First Merchants operates in the financial services sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. Values are specific to the selected time horizon and may differ across measurement periods. This indicator does not constitute investment advice.
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