Cna Financial Stock Volatility
| CNA Stock | USD 48.35 0.49 1.02% |
At this point, CNA Financial is very steady. CNA Financial retains Efficiency (Sharpe Ratio) of 0.15, which signifies that the company had a 0.15 % return per unit of risk over the last 3 months. We have found thirty technical indicators for CNA Financial, which you can use to evaluate the volatility of the firm. Please confirm CNA Financial's market risk adjusted performance of 0.5056, and Coefficient Of Variation of 687.92 to double-check if the risk estimate we provide is consistent with the expected return of 0.15%.
Sharpe Ratio = 0.1513
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Based on monthly moving average CNA Financial is performing at about 12% of its full potential. 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 CNA Financial by adding it to a well-diversified portfolio.
Key indicators related to CNA Financial's volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
CNA Financial 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 CNA daily returns, and it is calculated using variance and standard deviation. We also use CNA's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of CNA Financial volatility.
ESG Sustainability
While most ESG disclosures are voluntary, CNA Financial's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to CNA Financial's managers and investors.Environment Score | Governance Score | Social Score |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as CNA Financial 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 CNA Financial at lower prices to lower their average cost per share. Similarly, when the prices of CNA Financial's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities. Main indicators related to CNA Financial's market risk premium analysis include:
Beta 0.27 | Alpha 0.12 | Risk 1 | Sharpe Ratio 0.15 | Expected Return 0.15 |
Moving together with CNA Stock
| 0.86 | FIHL | Fidelis Insurance | PairCorr |
| 0.64 | EIG | Employers Holdings | PairCorr |
| 0.67 | ORI | Old Republic Interna | PairCorr |
| 0.69 | TRV | The Travelers Companies | PairCorr |
| 0.66 | SV2 | Selective Insurance | PairCorr |
| 0.78 | SFN | Safety Insurance | PairCorr |
| 0.87 | SIGI | Selective Insurance | PairCorr |
Moving against CNA Stock
CNA Financial Market Sensitivity And Downside Risk
CNA Financial's beta coefficient measures the volatility of CNA 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 CNA stock's returns against your selected market. In other words, CNA Financial's beta of 0.27 provides an investor with an approximation of how much risk CNA Financial stock can potentially add to one of your existing portfolios. CNA Financial has relatively low volatility with skewness of -0.08 and kurtosis of 0.4. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure CNA Financial'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 CNA Financial'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 CNA Financial Demand TrendCheck current 90 days CNA Financial correlation with market (Dow Jones Industrial)CNA Financial Volatility and Downside Risk
CNA 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 CNA Put Option to Manage Risk
Put options written on CNA Financial grant holders of the option the right to sell a specified amount of CNA Financial 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 CNA Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge CNA Financial'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 CNA Financial will be realized, the loss incurred will be offset by the profits made with the option trade.
CNA Financial's PUT expiring on 2026-03-20
Profit |
| CNA Financial Price At Expiration |
CNA Financial Stock Volatility Analysis
Volatility refers to the frequency at which CNA Financial stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with CNA Financial's price changes. Investors will then calculate the volatility of CNA Financial'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 CNA Financial's volatility:
Historical Volatility
This type of stock volatility measures CNA Financial's fluctuations based on previous trends. It's commonly used to predict CNA Financial'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 CNA Financial'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 CNA Financial'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. The Median Price line plots median indexes of CNA Financial price series.
CNA Financial Projected Return Density Against Market
Considering the 90-day investment horizon CNA Financial has a beta of 0.2733 suggesting as returns on the market go up, CNA Financial average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding CNA Financial 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 CNA Financial 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 CNA Financial'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 CNA 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.
CNA Financial has an alpha of 0.123, implying that it can generate a 0.12 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a CNA Financial 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.CNA Financial Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of CNA Financial is 660.9. The daily returns are distributed with a variance of 1.0 and standard deviation of 1.0. The mean deviation of CNA Financial is currently at 0.74. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.73
α | Alpha over Dow Jones | 0.12 | |
β | Beta against Dow Jones | 0.27 | |
σ | Overall volatility | 1.00 | |
Ir | Information ratio | 0.09 |
CNA Financial Stock Return Volatility
CNA Financial historical daily return volatility represents how much of CNA Financial stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company has volatility of 1.0006% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7587% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
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 CNA Stock performing well and CNA Financial 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 CNA Financial'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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| AFG | 0.84 | 0.02 | (0.02) | (0.32) | 1.03 | 1.79 | 6.99 | |||
| KNSL | 1.42 | (0.12) | 0.00 | (0.13) | 0.00 | 3.94 | 8.82 | |||
| RNR | 1.09 | 0.32 | 0.24 | (4.16) | 0.94 | 2.66 | 10.07 | |||
| RGA | 0.96 | 0.13 | 0.08 | 0.39 | 1.01 | 2.36 | 5.26 | |||
| FHN | 1.05 | 0.21 | 0.17 | 0.24 | 1.04 | 2.71 | 7.47 | |||
| UNM | 0.94 | 0.03 | 0.00 | 0.15 | 0.95 | 1.99 | 10.28 | |||
| AEG | 1.16 | 0.04 | 0.01 | 0.10 | 2.09 | 2.39 | 11.41 | |||
| BSAC | 1.20 | 0.34 | 0.17 | 0.45 | 1.48 | 2.85 | 8.40 | |||
| ORI | 1.15 | 0.09 | 0.02 | 1.08 | 2.10 | 2.11 | 12.07 |
About CNA Financial Volatility
Volatility is a rate at which the price of CNA Financial 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 CNA Financial may increase or decrease. In other words, similar to CNA's beta indicator, it measures the risk of CNA Financial and helps estimate the fluctuations that may happen in a short period of time. So if prices of CNA Financial 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 | 7.5 B | 4.9 B |
CNA Financial'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 CNA Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much CNA Financial's price varies over time.
3 ways to utilize CNA Financial's volatility to invest better
Higher CNA Financial's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of CNA Financial 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. CNA Financial 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 CNA Financial investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in CNA Financial'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 CNA Financial's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
CNA Financial Investment Opportunity
CNA Financial has a volatility of 1.0 and is 1.32 times more volatile than Dow Jones Industrial. 8 percent of all equities and portfolios are less risky than CNA Financial. You can use CNA Financial to enhance the returns of your portfolios. The stock experiences a large bullish trend. Check odds of CNA Financial to be traded at $53.19 in 90 days.Very weak diversification
The correlation between CNA Financial and DJI is 0.42 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding CNA Financial and DJI in the same portfolio, assuming nothing else is changed.
CNA Financial Additional Risk Indicators
The analysis of CNA Financial'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 CNA Financial's investment and either accepting that risk or mitigating it. Along with some common measures of CNA Financial 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 | 0.1092 | |||
| Market Risk Adjusted Performance | 0.5056 | |||
| Mean Deviation | 0.7583 | |||
| Semi Deviation | 0.8049 | |||
| Downside Deviation | 1.02 | |||
| Coefficient Of Variation | 687.92 | |||
| Standard Deviation | 1.0 |
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.
CNA Financial 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 CNA Financial 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. CNA Financial'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, CNA Financial'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 CNA Financial.
Complementary Tools for CNA Stock analysis
When running CNA Financial's price analysis, check to measure CNA Financial'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 CNA Financial is operating at the current time. Most of CNA Financial's value examination focuses on studying past and present price action to predict the probability of CNA Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CNA Financial's price. Additionally, you may evaluate how the addition of CNA Financial to your portfolios can decrease your overall portfolio volatility.
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