Webster Financial Downside Variance
| WBS Stock | | | USD 71.81 0.08 0.11% |
Downside Variance (or DV) is measured by target semi-variance and is termed downside volatility. It is expressed in percentages and therefore allows for rankings in the same way as variance. One way to view downside volatility is the annualized variance of returns below the target. Below is Webster Financial's current Downside Variance with peer comparisons and related risk metrics.
Current Downside Variance Value
Webster Financial has a Downside Variance of 1.46, indicating moderate price variability. This places Webster Financial within the typical volatility range for Regional Banks.
Downside Variance | = | SUM(RET DEV)2N(ER) |
| = | 1.46 | |
| SUM | = | Summation notation |
| RET DEV | = | Actual returns deviation over selected period |
| N(ER) | = | Number of points with returns less than expected return for the period |
Downside Variance Peers Comparison
Webster Financial's Downside Variance of 1.46 falls below the 3.82 peer average. Values range from 3.59 (Old National Bancorp) to 4.02 (Citizens Financial Group), with tight clustering across the group. Webster Financial has exhibited less price dispersion than the peer average over the measured period.
Downside Variance Relative To Other Indicators
The chart below plots Downside Variance against Maximum Drawdown for Webster Financial and its peers. Each point represents one equity — position along the horizontal axis shows Downside 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 Downside Variance (
1.46 ) to Maximum Drawdown (
12.70 ) for Webster Financial yields a
8.71 multiple. This indicates Maximum Drawdown substantially exceeds Downside Variance for Webster Financial.
Methodology, Assumptions & Data Sources
Webster Financial's Downside Variance currently stands at 1.46. Webster Financial's Downside 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. Webster Financial operates in the financial services sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. The output reflects the selected calculation window — changing the horizon will produce different readings. This stock metric is provided for analytical reference.
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