The Baldwin Insurance Stock Volatility
| BWIN Stock | 16.76 0.25 1.51% |
Baldwin Insurance secures Sharpe Ratio (or Efficiency) of -0.22, which signifies that the company had a -0.22 % return per unit of standard deviation over the last 3 months. The Baldwin Insurance exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Baldwin Insurance's Risk Adjusted Performance of (0.14), mean deviation of 2.64, and Coefficient Of Variation of (534.94) to double-check the risk estimate we provide.
Sharpe Ratio = -0.2194
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Based on monthly moving average Baldwin Insurance 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 Baldwin Insurance by adding Baldwin Insurance to a well-diversified portfolio.
Key indicators related to Baldwin Insurance's volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Baldwin Insurance 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 Baldwin daily returns, and it is calculated using variance and standard deviation. We also use Baldwin's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Baldwin Insurance volatility.
ESG Sustainability
While most ESG disclosures are voluntary, Baldwin Insurance's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Baldwin Insurance's managers and investors.Environmental | Governance | Social |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Baldwin Insurance 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 Baldwin Insurance at lower prices. For example, an investor can purchase Baldwin 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 Baldwin Insurance'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. Main indicators related to Baldwin Insurance's market risk premium analysis include:
Beta 1.58 | Alpha (0.77) | Risk 3.58 | Sharpe Ratio (0.22) | Expected Return (0.79) |
Moving against Baldwin Stock
| 0.8 | OBYCF | Obayashi | PairCorr |
| 0.79 | NFG | National Fuel Gas | PairCorr |
| 0.65 | FIBK | First Interstate Ban | PairCorr |
| 0.6 | ENS | Enersys | PairCorr |
| 0.58 | GURE | Gulf Resources Common | PairCorr |
| 0.57 | LNDNF | Lundin Energy AB Earnings Call This Week | PairCorr |
| 0.55 | BNKHF | BOC Hong Kong | PairCorr |
| 0.52 | 18M | Sabre Insurance Group | PairCorr |
| 0.48 | FCAP | First Capital | PairCorr |
| 0.42 | SECVY | Seche Environnement | PairCorr |
Baldwin Insurance Market Sensitivity And Downside Risk
Baldwin Insurance's beta coefficient measures the volatility of Baldwin 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 Baldwin stock's returns against your selected market. In other words, Baldwin Insurance's beta of 1.58 provides an investor with an approximation of how much risk Baldwin Insurance stock can potentially add to one of your existing portfolios. The Baldwin Insurance exhibits very low volatility with skewness of -0.55 and kurtosis of 0.2. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Baldwin Insurance'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 Baldwin Insurance'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 Baldwin Insurance Demand TrendCheck current 90 days Baldwin Insurance correlation with market (Dow Jones Industrial)Baldwin Insurance Volatility and Downside Risk
Baldwin 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.
Using Baldwin Put Option to Manage Risk
Put options written on Baldwin Insurance grant holders of the option the right to sell a specified amount of Baldwin Insurance at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Baldwin Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Baldwin Insurance's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Baldwin Insurance will be realized, the loss incurred will be offset by the profits made with the option trade.
Baldwin Insurance's PUT expiring on 2026-03-20
Profit |
| Baldwin Insurance Price At Expiration |
Current Baldwin Insurance Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | BWIN260320P00015000 | -0.287187 | 0.076517 | 11 | 2026-03-20 | 0.55 - 1.3 | 0.0 | View |
Put | BWIN260320P00017500 | -0.521371 | 0.100945 | 83 | 2026-03-20 | 1.3 - 2.65 | 0.0 | View |
Put | BWIN260320P00020000 | -0.736661 | 0.084018 | 62 | 2026-03-20 | 2.6 - 4.9 | 0.0 | View |
Put | BWIN260320P00022500 | -0.74493 | 0.054872 | 84 | 2026-03-20 | 4.9 - 8.0 | 0.0 | View |
Put | BWIN260320P00025000 | -0.882998 | 0.039654 | 3 | 2026-03-20 | 7.4 - 9.5 | 0.0 | View |
Baldwin Insurance Stock Volatility Analysis
Volatility refers to the frequency at which Baldwin Insurance stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Baldwin Insurance's price changes. Investors will then calculate the volatility of Baldwin Insurance'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 Baldwin Insurance's volatility:
Historical Volatility
This type of stock volatility measures Baldwin Insurance's fluctuations based on previous trends. It's commonly used to predict Baldwin Insurance'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 Baldwin Insurance'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 Baldwin Insurance'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. Baldwin Insurance 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.
Baldwin Insurance Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 1.5827 suggesting as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Baldwin Insurance will likely underperform.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 Baldwin Insurance 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 Baldwin Insurance'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 Baldwin 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.
Predicted Return Density |
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What Drives a Baldwin Insurance 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 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.Baldwin Insurance Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Baldwin Insurance is -455.85. The daily returns are distributed with a variance of 12.82 and standard deviation of 3.58. The mean deviation of The Baldwin Insurance is currently at 2.73. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.81
α | Alpha over Dow Jones | -0.77 | |
β | Beta against Dow Jones | 1.58 | |
σ | Overall volatility | 3.58 | |
Ir | Information ratio | -0.21 |
Baldwin Insurance Stock Return Volatility
Baldwin Insurance historical daily return volatility represents how much of Baldwin Insurance stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 3.581% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7767% 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 Baldwin Stock performing well and Baldwin Insurance 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 Baldwin Insurance'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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| QFIN | 1.89 | (0.55) | 0.00 | (0.92) | 0.00 | 3.31 | 17.07 | |||
| FINV | 1.90 | (0.10) | 0.00 | (0.42) | 0.00 | 3.99 | 16.06 | |||
| FCF | 1.05 | 0.19 | 0.14 | 0.35 | 0.89 | 2.94 | 8.06 | |||
| BLX | 0.91 | 0.15 | 0.11 | 0.44 | 0.87 | 2.60 | 4.63 | |||
| CLBK | 1.49 | 0.20 | 0.14 | 0.25 | 1.18 | 4.31 | 11.19 | |||
| CCB | 1.99 | (0.47) | 0.00 | (0.19) | 0.00 | 3.33 | 13.11 | |||
| STEL | 1.13 | 0.36 | 0.31 | 0.56 | 0.65 | 2.67 | 11.51 | |||
| FRME | 1.10 | 0.17 | 0.13 | 0.27 | 1.02 | 2.84 | 8.32 | |||
| PWP | 2.16 | 0.17 | 0.10 | 0.15 | 2.38 | 5.28 | 12.28 | |||
| GABC | 1.17 | 0.10 | 0.06 | 0.21 | 1.10 | 3.30 | 7.84 |
About Baldwin Insurance Volatility
Volatility is a rate at which the price of Baldwin Insurance 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 Baldwin Insurance may increase or decrease. In other words, similar to Baldwin's beta indicator, it measures the risk of Baldwin Insurance and helps estimate the fluctuations that may happen in a short period of time. So if prices of Baldwin Insurance 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 | 1.6 B | 1.7 B |
Baldwin Insurance'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 Baldwin Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Baldwin Insurance's price varies over time.
3 ways to utilize Baldwin Insurance's volatility to invest better
Higher Baldwin Insurance's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Baldwin Insurance 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. Baldwin Insurance 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 Baldwin Insurance investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Baldwin Insurance'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 Baldwin Insurance's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Baldwin Insurance Investment Opportunity
The Baldwin Insurance has a volatility of 3.58 and is 4.59 times more volatile than Dow Jones Industrial. 32 percent of all equities and portfolios are less risky than Baldwin Insurance. You can use The Baldwin Insurance to enhance the returns of your portfolios. The stock experiences a large bullish trend. Check odds of Baldwin Insurance to be traded at 18.44 in 90 days.Excellent diversification
The correlation between The Baldwin Insurance and DJI is -0.59 (i.e., Excellent diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding The Baldwin Insurance and DJI in the same portfolio, assuming nothing else is changed.
Baldwin Insurance Additional Risk Indicators
The analysis of Baldwin Insurance'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 Baldwin Insurance's investment and either accepting that risk or mitigating it. Along with some common measures of Baldwin Insurance 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 | (0.14) | |||
| Market Risk Adjusted Performance | (0.41) | |||
| Mean Deviation | 2.64 | |||
| Coefficient Of Variation | (534.94) | |||
| Standard Deviation | 3.49 | |||
| Variance | 12.15 | |||
| Information Ratio | (0.21) |
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.
Baldwin Insurance 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 Baldwin Insurance 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. Baldwin Insurance'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, Baldwin Insurance'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 The Baldwin Insurance.
When determining whether Baldwin Insurance offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Baldwin Insurance'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 The Baldwin Insurance Stock. Outlined below are crucial reports that will aid in making a well-informed decision on The Baldwin Insurance Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in The Baldwin Insurance. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product. You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Will Insurance Brokers sector continue expanding? Could Baldwin diversify its offerings? Factors like these will boost the valuation of Baldwin Insurance. Projected growth potential of Baldwin fundamentally drives upward valuation adjustments. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Baldwin Insurance data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth (0.39) | Earnings Share (0.44) | Revenue Per Share | Quarterly Revenue Growth 0.078 | Return On Assets |
Baldwin Insurance's market price often diverges from its book value, the accounting figure shown on Baldwin's balance sheet. Smart investors calculate Baldwin Insurance's intrinsic value - its true economic worth - which may differ significantly from both market price and book value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. Since Baldwin Insurance's trading price responds to investor sentiment, macroeconomic conditions, and market psychology, it can swing far from fundamental value.
It's important to distinguish between Baldwin Insurance's intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Baldwin Insurance should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. However, Baldwin Insurance'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.