Brown Brown Stock Volatility
| BRO Stock | USD 112.05 1.30 1.17% |
As of now, Brown Stock is very steady. Brown Brown secures Sharpe Ratio (or Efficiency) of 0.12, which signifies that the company had a 0.12% return per unit of risk over the last 3 months. We have found thirty technical indicators for Brown Brown, which you can use to evaluate the volatility of the firm. Please confirm Brown Brown's Mean Deviation of 0.9142, downside deviation of 1.11, and Risk Adjusted Performance of 0.0867 to double-check if the risk estimate we provide is consistent with the expected return of 0.14%. Key indicators related to Brown Brown's volatility include:
270 Days Market Risk | Chance Of Distress | 270 Days Economic Sensitivity |
Brown Brown 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 Brown daily returns, and it is calculated using variance and standard deviation. We also use Brown's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Brown Brown volatility.
Brown |
ESG Sustainability
While most ESG disclosures are voluntary, Brown Brown's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Brown Brown's managers and investors.Environmental | Governance | Social |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Brown Brown can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Brown Brown at lower prices. For example, an investor can purchase Brown stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Brown Brown's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Moving together with Brown Stock
| 0.74 | EHTH | eHealth | PairCorr |
| 0.87 | AON | Aon PLC | PairCorr |
| 0.91 | WTW | Willis Towers Watson | PairCorr |
| 0.67 | GOCO | GoHealth | PairCorr |
Moving against Brown Stock
| 0.75 | RELI | Reliance Global Group | PairCorr |
| 0.71 | ERIE | Erie Indemnity | PairCorr |
| 0.5 | ZBAO | Zhibao Technology Class | PairCorr |
| 0.4 | TIRX | Tian Ruixiang Holdings | PairCorr |
Brown Brown Market Sensitivity And Downside Risk
Brown Brown's beta coefficient measures the volatility of Brown 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 Brown stock's returns against your selected market. In other words, Brown Brown's beta of 0.6 provides an investor with an approximation of how much risk Brown Brown stock can potentially add to one of your existing portfolios. Brown Brown has relatively low volatility with skewness of -0.14 and kurtosis of 0.97. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Brown Brown'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 Brown Brown'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 Brown Brown Demand TrendCheck current 90 days Brown Brown correlation with market (Dow Jones Industrial)Brown Beta |
Brown 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 | 1.16 |
It is essential to understand the difference between upside risk (as represented by Brown Brown's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Brown Brown's daily returns or price. Since the actual investment returns on holding a position in brown 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 Brown Brown.
Brown Brown Stock Volatility Analysis
Volatility refers to the frequency at which Brown Brown stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Brown Brown's price changes. Investors will then calculate the volatility of Brown Brown'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 Brown Brown's volatility:
Historical Volatility
This type of stock volatility measures Brown Brown's fluctuations based on previous trends. It's commonly used to predict Brown Brown'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 Brown Brown'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 Brown Brown'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. Brown Brown 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.
Brown Brown Projected Return Density Against Market
Considering the 90-day investment horizon Brown Brown has a beta of 0.5983 suggesting as returns on the market go up, Brown Brown average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Brown Brown 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 Brown Brown or Insurance 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 Brown Brown'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 Brown 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.
Brown Brown has an alpha of 0.0443, implying that it can generate a 0.0443 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Brown Brown 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.Brown Brown Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Brown Brown is 826.55. The daily returns are distributed with a variance of 1.35 and standard deviation of 1.16. The mean deviation of Brown Brown is currently at 0.91. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 0.04 | |
β | Beta against Dow Jones | 0.60 | |
σ | Overall volatility | 1.16 | |
Ir | Information ratio | -0.0036 |
Brown Brown Stock Return Volatility
Brown Brown historical daily return volatility represents how much of Brown Brown stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 1.1608% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7685% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Brown Brown Volatility
Volatility is a rate at which the price of Brown Brown 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 Brown Brown may increase or decrease. In other words, similar to Brown's beta indicator, it measures the risk of Brown Brown and helps estimate the fluctuations that may happen in a short period of time. So if prices of Brown Brown 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.| Last Reported | Projected for Next Year | ||
| Market Cap | 890.9 M | 935.5 M |
Brown Brown'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 Brown Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Brown Brown's price varies over time.
3 ways to utilize Brown Brown's volatility to invest better
Higher Brown Brown's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Brown Brown 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. Brown Brown 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 Brown Brown investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Brown Brown'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 Brown Brown's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Brown Brown Investment Opportunity
Brown Brown has a volatility of 1.16 and is 1.51 times more volatile than Dow Jones Industrial. 10 percent of all equities and portfolios are less risky than Brown Brown. You can use Brown Brown to enhance the returns of your portfolios. The stock experiences a large bullish trend. Check odds of Brown Brown to be traded at $123.26 in 90 days.Weak diversification
The correlation between Brown Brown and DJI is 0.39 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Brown Brown and DJI in the same portfolio, assuming nothing else is changed.
Brown Brown Additional Risk Indicators
The analysis of Brown Brown'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 Brown Brown's investment and either accepting that risk or mitigating it. Along with some common measures of Brown Brown 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 | 0.0867 | |||
| Market Risk Adjusted Performance | 0.2049 | |||
| Mean Deviation | 0.9142 | |||
| Semi Deviation | 1.02 | |||
| Downside Deviation | 1.11 | |||
| Coefficient Of Variation | 920.8 | |||
| Standard Deviation | 1.17 |
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.
Brown Brown 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 Brown Brown 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. Brown Brown'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, Brown Brown'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 Brown Brown.
When determining whether Brown Brown offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Brown Brown's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Brown Brown Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Brown Brown Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Brown Brown. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. To learn how to invest in Brown Stock, please use our How to Invest in Brown Brown guide.You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Is Insurance Brokers space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Brown Brown. If investors know Brown will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Brown Brown listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.311 | Dividend Share 0.52 | Earnings Share 3.68 | Revenue Per Share 16.261 | Quarterly Revenue Growth 0.099 |
The market value of Brown Brown is measured differently than its book value, which is the value of Brown that is recorded on the company's balance sheet. Investors also form their own opinion of Brown Brown's value that differs from its market value or its book value, called intrinsic value, which is Brown Brown's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Brown Brown's market value can be influenced by many factors that don't directly affect Brown Brown's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Brown Brown's value and its price as these two are different measures arrived at by different means. Investors typically determine if Brown Brown is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Brown Brown's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.