BAWAG Group (Austria) Volatility
| BG Stock | EUR 87.55 0.65 0.75% |
BAWAG Group appears to be very steady, given 3 months investment horizon. BAWAG Group AG secures Sharpe Ratio (or Efficiency) of 0.33, which signifies that the company had a 0.33 % return per unit of volatility over the last 3 months. We have found twenty-nine technical indicators for BAWAG Group AG, which you can use to evaluate the volatility of the entity. Please makes use of BAWAG Group's Market Risk Adjusted Performance of 9.09, coefficient of variation of 356.0, and Mean Deviation of 0.9487 to double-check if our risk estimates are consistent with your expectations. Key indicators related to BAWAG Group's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
BAWAG Group 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 BAWAG daily returns, and it is calculated using variance and standard deviation. We also use BAWAG's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of BAWAG Group volatility.
BAWAG |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of BAWAG Group at lower prices. For example, an investor can purchase BAWAG stock that has halved in price over a short period. This will lower their average cost per share, thereby improving the overall portfolio performance when market normalizes.
Moving together with BAWAG Stock
Moving against BAWAG Stock
| 0.84 | WPB | Wiener Privatbank | PairCorr |
| 0.76 | ADKO | Addiko Bank AG | PairCorr |
| 0.76 | GAGV | Gurktaler Aktiengesellscha | PairCorr |
| 0.37 | CAI | CA Immobilien Anlagen | PairCorr |
BAWAG Group Market Sensitivity And Downside Risk
BAWAG Group's beta coefficient measures the volatility of BAWAG 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 BAWAG stock's returns against your selected market. In other words, BAWAG Group's beta of 0.0381 provides an investor with an approximation of how much risk BAWAG Group stock can potentially add to one of your existing portfolios. BAWAG Group AG has relatively low volatility with skewness of 0.73 and kurtosis of 2.19. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure BAWAG Group's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact BAWAG Group's 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 BAWAG Group AG Demand TrendCheck current 90 days BAWAG Group correlation with market (Dow Jones Industrial)BAWAG Beta |
BAWAG 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 | 1.27 |
It is essential to understand the difference between upside risk (as represented by BAWAG Group's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of BAWAG Group's daily returns or price. Since the actual investment returns on holding a position in bawag 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 BAWAG Group.
BAWAG Group AG Stock Volatility Analysis
Volatility refers to the frequency at which BAWAG Group stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with BAWAG Group's price changes. Investors will then calculate the volatility of BAWAG Group's 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 BAWAG Group's volatility:
Historical Volatility
This type of stock volatility measures BAWAG Group's fluctuations based on previous trends. It's commonly used to predict BAWAG Group's 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 BAWAG Group's 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 BAWAG Group'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. BAWAG Group AG 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.
BAWAG Group Projected Return Density Against Market
Assuming the 90 days horizon BAWAG Group has a beta of 0.0381 suggesting as returns on the market go up, BAWAG Group average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding BAWAG Group AG 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 BAWAG Group 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 BAWAG Group's 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 BAWAG 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.
BAWAG Group AG has an alpha of 0.3451, implying that it can generate a 0.35 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a BAWAG Group 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.BAWAG Group Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of BAWAG Group is 299.64. The daily returns are distributed with a variance of 1.61 and standard deviation of 1.27. The mean deviation of BAWAG Group AG is currently at 0.94. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.84
α | Alpha over Dow Jones | 0.35 | |
β | Beta against Dow Jones | 0.04 | |
σ | Overall volatility | 1.27 | |
Ir | Information ratio | 0.25 |
BAWAG Group Stock Return Volatility
BAWAG Group historical daily return volatility represents how much of BAWAG Group stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm shows 1.2698% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.8666% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About BAWAG Group Volatility
Volatility is a rate at which the price of BAWAG Group 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 BAWAG Group may increase or decrease. In other words, similar to BAWAG's beta indicator, it measures the risk of BAWAG Group and helps estimate the fluctuations that may happen in a short period of time. So if prices of BAWAG Group 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.BAWAG Group AG operates as a holding company for BAWAG P.S.K. that provides various banking products and services in Austria, Western Europe, North America, and internationally. BAWAG Group AG serves retail, small business, and corporate customers through a managed branch network, as well as through its online and mobile sales channels supported by its customer care center. BAWAG GROUP is traded on Vienna Stock Exchange in Austria.
BAWAG Group'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 BAWAG Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much BAWAG Group's price varies over time.
3 ways to utilize BAWAG Group's volatility to invest better
Higher BAWAG Group's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of BAWAG Group AG 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. BAWAG Group AG 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 BAWAG Group AG investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in BAWAG Group'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 BAWAG Group's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
BAWAG Group Investment Opportunity
BAWAG Group AG has a volatility of 1.27 and is 1.46 times more volatile than Dow Jones Industrial. 11 percent of all equities and portfolios are less risky than BAWAG Group. You can use BAWAG Group AG to enhance the returns of your portfolios. The stock experiences a moderate upward volatility. Check odds of BAWAG Group to be traded at €96.31 in 90 days.Significant diversification
The correlation between BAWAG Group AG and DJI is 0.03 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding BAWAG Group AG and DJI in the same portfolio, assuming nothing else is changed.
BAWAG Group Additional Risk Indicators
The analysis of BAWAG Group'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 BAWAG Group's investment and either accepting that risk or mitigating it. Along with some common measures of BAWAG Group 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 | 0.2404 | |||
| Market Risk Adjusted Performance | 9.09 | |||
| Mean Deviation | 0.9487 | |||
| Semi Deviation | 0.661 | |||
| Downside Deviation | 1.13 | |||
| Coefficient Of Variation | 356.0 | |||
| Standard Deviation | 1.27 |
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.
BAWAG Group 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 BAWAG Group 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. BAWAG Group'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, BAWAG Group'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 BAWAG Group AG.
Complementary Tools for BAWAG Stock analysis
When running BAWAG Group's price analysis, check to measure BAWAG Group'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 BAWAG Group is operating at the current time. Most of BAWAG Group's value examination focuses on studying past and present price action to predict the probability of BAWAG Group's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move BAWAG Group's price. Additionally, you may evaluate how the addition of BAWAG Group to your portfolios can decrease your overall portfolio volatility.
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