Andover Bancorp Stock Volatility
| ANDC Stock | USD 18.60 0.25 1.33% |
Andover Bancorp secures Sharpe Ratio (or Efficiency) of close to zero, which signifies that the company had a close to zero % return per unit of standard deviation over the last 3 months. Andover Bancorp exposes twenty-six different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Andover Bancorp's risk adjusted performance of 0.0151, and Mean Deviation of 0.7611 to double-check the risk estimate we provide.
Sharpe Ratio = -0.0089
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Based on monthly moving average Andover Bancorp is not performing at its full potential. However, if added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Andover Bancorp by adding Andover Bancorp to a well-diversified portfolio.
Key indicators related to Andover Bancorp's volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Andover Bancorp Pink Sheet 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 Andover daily returns, and it is calculated using variance and standard deviation. We also use Andover's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Andover Bancorp volatility.
Andover |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Andover Bancorp can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game as hey may decide to buy additional stocks of Andover Bancorp at lower prices to lower their average cost per share. Similarly, when the prices of Andover Bancorp's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities. Main indicators related to Andover Bancorp's market risk premium analysis include:
Beta (0.27) | Alpha 0.0257 | Risk 1.58 | Sharpe Ratio (0.01) | Expected Return (0.01) |
Moving against Andover Pink Sheet
| 0.52 | CIHKY | China Merchants Bank | PairCorr |
| 0.51 | HDB | HDFC Bank Limited | PairCorr |
| 0.45 | EQC | Equity Commonwealth | PairCorr |
| 0.42 | ROBOF | RoboGroup TEK | PairCorr |
| 0.37 | IBN | ICICI Bank Limited | PairCorr |
Andover Bancorp Market Sensitivity And Downside Risk
Andover Bancorp's beta coefficient measures the volatility of Andover pink sheet 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 Andover pink sheet's returns against your selected market. In other words, Andover Bancorp's beta of -0.27 provides an investor with an approximation of how much risk Andover Bancorp pink sheet can potentially add to one of your existing portfolios. Andover Bancorp currently demonstrates below-average downside deviation. It has Information Ratio of -0.03 and Jensen Alpha of 0.03. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Andover Bancorp's pink sheet risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Andover Bancorp's pink sheet 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 Andover Bancorp Demand TrendCheck current 90 days Andover Bancorp correlation with market (Dow Jones Industrial)Andover Bancorp Volatility and Downside Risk
Andover 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.
Andover Bancorp Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Andover Bancorp pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Andover Bancorp's price changes. Investors will then calculate the volatility of Andover Bancorp's pink sheet to predict their future moves. A pink sheet that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A pink sheet with relatively stable price changes has low volatility. A highly volatile pink sheet 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 Andover Bancorp's volatility:
Historical Volatility
This type of pink sheet volatility measures Andover Bancorp's fluctuations based on previous trends. It's commonly used to predict Andover Bancorp's future behavior based on its past. However, it cannot conclusively determine the future direction of the pink sheet.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Andover Bancorp's current market price. This means that the pink sheet will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Andover Bancorp'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. Andover Bancorp 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.
Andover Bancorp Projected Return Density Against Market
Given the investment horizon of 90 days Andover Bancorp has a beta of -0.266 . This suggests as returns on the benchmark increase, returns on holding Andover Bancorp are expected to decrease at a much lower rate. During a bear market, however, Andover Bancorp is likely to outperform the market.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 Andover Bancorp or Financial Services 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 Andover Bancorp's price will be affected by overall pink sheet 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 Andover pink sheet'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.
Predicted Return Density |
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What Drives an Andover Bancorp Price Volatility?
Several factors can influence a pink sheet'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 investor attention to the company. This positive attention may impact the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Andover Bancorp Pink Sheet Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Andover Bancorp is -11273.3. The daily returns are distributed with a variance of 2.5 and standard deviation of 1.58. The mean deviation of Andover Bancorp is currently at 0.78. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.81
α | Alpha over Dow Jones | 0.03 | |
β | Beta against Dow Jones | -0.27 | |
σ | Overall volatility | 1.58 | |
Ir | Information ratio | -0.03 |
Andover Bancorp Pink Sheet Return Volatility
Andover Bancorp historical daily return volatility represents how much of Andover Bancorp pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 1.582% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7551% volatility on return distribution over the 90 days horizon. Performance |
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Related Correlations Analysis
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
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Risk-Adjusted Indicators
There is a big difference between Andover Pink Sheet performing well and Andover Bancorp Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Andover Bancorp's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| ALBY | 0.28 | (0.03) | 0.00 | (2.82) | 0.00 | 0.86 | 4.47 | |||
| MFBP | 0.99 | 0.15 | 0.05 | 0.41 | 1.07 | 3.63 | 8.74 | |||
| HCBN | 0.40 | 0.10 | 0.00 | 0.64 | 0.00 | 1.27 | 10.07 | |||
| OAKV | 1.27 | 0.16 | 0.04 | (0.35) | 1.46 | 2.59 | 7.56 | |||
| WDFN | 1.01 | 0.23 | 0.08 | 0.86 | 1.08 | 3.70 | 9.03 | |||
| CIZN | 1.11 | 0.58 | 0.30 | 3.87 | 0.66 | 4.86 | 9.52 | |||
| VTYB | 0.52 | 0.22 | 0.21 | 20.70 | 0.00 | 2.61 | 5.79 | |||
| OSBK | 0.24 | 0.07 | 0.00 | 0.39 | 0.00 | 0.61 | 4.37 | |||
| EXCH | 0.50 | 0.24 | 0.00 | (7.57) | 0.00 | 0.00 | 17.10 | |||
| FMFP | 0.81 | 0.16 | 0.02 | (1.03) | 1.14 | 5.13 | 12.41 |
About Andover Bancorp Volatility
Volatility is a rate at which the price of Andover Bancorp 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 Andover Bancorp may increase or decrease. In other words, similar to Andover's beta indicator, it measures the risk of Andover Bancorp and helps estimate the fluctuations that may happen in a short period of time. So if prices of Andover Bancorp 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.Andover Bancorp, Inc. operates as the bank holding company for Andover Bank that provides commercial and retail banking products and services. Andover Bancorp, Inc. was founded in 1884 and is headquartered in Andover, Ohio. Andover Bancorp operates under BanksRegional classification in the United States and is traded on OTC Exchange. It employs 90 people.
Andover Bancorp'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 Andover Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Andover Bancorp's price varies over time.
3 ways to utilize Andover Bancorp's volatility to invest better
Higher Andover Bancorp's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Andover Bancorp 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. Andover Bancorp 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 Andover Bancorp investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Andover Bancorp'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 Andover Bancorp's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Andover Bancorp Investment Opportunity
Andover Bancorp has a volatility of 1.58 and is 2.08 times more volatile than Dow Jones Industrial. 14 percent of all equities and portfolios are less risky than Andover Bancorp. You can use Andover Bancorp to protect your portfolios against small market fluctuations. The pink sheet experiences a bearish sentiment with high volatility. Check odds of Andover Bancorp to be traded at $18.04 in 90 days.Weak diversification
The correlation between Andover Bancorp and DJI is 0.35 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Andover Bancorp and DJI in the same portfolio, assuming nothing else is changed.
Andover Bancorp Additional Risk Indicators
The analysis of Andover Bancorp'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 Andover Bancorp's investment and either accepting that risk or mitigating it. Along with some common measures of Andover Bancorp pink sheet'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 | 0.0151 | |||
| Market Risk Adjusted Performance | (0.03) | |||
| Mean Deviation | 0.7611 | |||
| Semi Deviation | 1.04 | |||
| Downside Deviation | 2.35 | |||
| Coefficient Of Variation | 7798.34 | |||
| Standard Deviation | 1.54 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential pink sheets, we recommend comparing similar pink sheets with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Andover Bancorp 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 Andover Bancorp 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. Andover Bancorp'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, Andover Bancorp'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 Andover Bancorp.
Complementary Tools for Andover Pink Sheet analysis
When running Andover Bancorp's price analysis, check to measure Andover Bancorp'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 Andover Bancorp is operating at the current time. Most of Andover Bancorp's value examination focuses on studying past and present price action to predict the probability of Andover Bancorp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Andover Bancorp's price. Additionally, you may evaluate how the addition of Andover Bancorp to your portfolios can decrease your overall portfolio volatility.
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