Carnival Stock Volatility

Moving together with Carnival Stock

Moving against Carnival Stock

Carnival Market Sensitivity And Downside Risk

3 Months Beta |Analyze Carnival Demand TrendCheck current 90 days Carnival correlation with market (Dow Jones Industrial)

Carnival Volatility and Downside Risk

Using Carnival Put Option to Manage Risk

Carnival's PUT expiring on 2026-04-17

Carnival Stock Volatility Analysis

Carnival Projected Return Density Against Market

Considering the 90-day investment horizon the stock has the beta coefficient of 1.6774 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, Carnival will likely underperform. Carnival has an alpha of 0.0336, implying that it can generate a 0.0336 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Carnival's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how carnival stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Carnival 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.

Carnival Stock Risk Measures

Carnival Stock Return Volatility

Carnival historical daily return volatility represents how much of Carnival stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company has volatility of 2.9504% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7517% volatility on return distribution over the 90 days horizon.

Related Correlations Analysis

Volatility is a rate at which the price of Carnival 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 Carnival may increase or decrease. In other words, similar to Carnival's beta indicator, it measures the risk of Carnival and helps estimate the fluctuations that may happen in a short period of time. So if prices of Carnival 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.

Carnival'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 Carnival Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Carnival's price varies over time.

The analysis of Carnival'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 Carnival's investment and either accepting that risk or mitigating it. Along with some common measures of Carnival 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.

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.

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 Carnival 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. Carnival'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, Carnival'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 Carnival.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Carnival. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in unemployment. For more information on how to buy Carnival Stock please use our How to buy in Carnival Stock guide.You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.

Is Hotels, Resorts & Cruise Lines 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 Carnival. Projected growth potential of Carnival fundamentally drives upward valuation adjustments. The financial industry is built on trying to define current growth potential and future valuation accurately. Comprehensive Carnival assessment requires weighing all these inputs, though not all factors influence outcomes equally.

Understanding Carnival requires distinguishing between market price and book value, where the latter reflects Carnival's accounting equity. The concept of intrinsic value—what Carnival's is actually worth based on fundamentals—guides informed investors toward better entry and exit points. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Market sentiment, economic cycles, and investor behavior can push Carnival's price substantially above or below its fundamental value.

It's important to distinguish between Carnival's intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Carnival should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. In contrast, Carnival's trading price reflects the actual exchange value where willing buyers and sellers reach mutual agreement.