Capital One Financial Stock Volatility
| COF Stock | USD 223.34 0.34 0.15% |
At this point, Capital One is very steady. Capital One Financial secures Sharpe Ratio (or Efficiency) of 0.0203, which signifies that the company had a 0.0203 % return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Capital One Financial, which you can use to evaluate the volatility of the firm. Please confirm Capital One's Downside Deviation of 2.79, risk adjusted performance of 0.0225, and Mean Deviation of 1.34 to double-check if the risk estimate we provide is consistent with the expected return of 0.041%.
Sharpe Ratio = 0.0203
| High Returns | Best Equity | |||
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| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
| Negative Returns | COF |
Based on monthly moving average Capital One is performing at about 1% 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 Capital One by adding it to a well-diversified portfolio.
Key indicators related to Capital One's volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Capital One 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 Capital daily returns, and it is calculated using variance and standard deviation. We also use Capital's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Capital One volatility.
ESG Sustainability
While most ESG disclosures are voluntary, Capital One's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Capital One's managers and investors.Environmental | Governance | Social |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Capital One 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 Capital One at lower prices to lower their average cost per share. Similarly, when the prices of Capital One's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities. Main indicators related to Capital One's market risk premium analysis include:
Beta 1.63 | Alpha (0.04) | Risk 2.01 | Sharpe Ratio 0.0203 | Expected Return 0.041 |
Moving together with Capital Stock
| 0.65 | RM | Regional Management Corp | PairCorr |
| 0.84 | AXP | American Express | PairCorr |
| 0.75 | NNI | Nelnet Inc | PairCorr |
| 0.76 | KSPI | Joint Stock | PairCorr |
| 0.9 | ATLC | Atlanticus Holdings | PairCorr |
| 0.78 | UPST | Upstart Holdings | PairCorr |
| 0.69 | FMCB | Farmers Merchants Bancorp Earnings Call Today | PairCorr |
| 0.69 | IVZ | Invesco Plc | PairCorr |
| 0.65 | ISNPY | Intesa Sanpaolo SpA | PairCorr |
| 0.66 | FUL | H B Fuller | PairCorr |
Moving against Capital Stock
Capital One Market Sensitivity And Downside Risk
Capital One's beta coefficient measures the volatility of Capital 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 Capital stock's returns against your selected market. In other words, Capital One's beta of 1.63 provides an investor with an approximation of how much risk Capital One stock can potentially add to one of your existing portfolios. Capital One Financial currently demonstrates below-average downside deviation. It has Information Ratio of -0.01 and Jensen Alpha of -0.04. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Capital One'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 Capital One'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 Capital One Financial Demand TrendCheck current 90 days Capital One correlation with market (Dow Jones Industrial)Capital One Volatility and Downside Risk
Capital 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 Capital Put Option to Manage Risk
Put options written on Capital One grant holders of the option the right to sell a specified amount of Capital One 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 Capital Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Capital One'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 Capital One will be realized, the loss incurred will be offset by the profits made with the option trade.
Capital One's PUT expiring on 2026-03-20
Profit |
| Capital One Price At Expiration |
Current Capital One Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | COF260320P00290000 | 0.0 | 0.0 | 5 | 2026-03-20 | 64.6 - 67.7 | 0.0 | View |
Put | COF260320P00280000 | 0.0 | 0.0 | 13 | 2026-03-20 | 54.7 - 57.6 | 0.0 | View |
Put | COF260320P00270000 | 0.0 | 0.0 | 32 | 2026-03-20 | 45.2 - 47.4 | 0.0 | View |
Put | COF260320P00260000 | -0.926594 | 0.006195 | 79 | 2026-03-20 | 35.6 - 37.9 | 0.0 | View |
Put | COF260320P00250000 | -0.867236 | 0.019806 | 257 | 2026-03-20 | 26.6 - 28.7 | 0.0 | View |
Put | COF260320P00240000 | -0.729136 | 0.016802 | 1065 | 2026-03-20 | 19.2 - 20.3 | 0.0 | View |
Put | COF260320P00230000 | -0.574426 | 0.016494 | 2340 | 2026-03-20 | 12.6 - 13.0 | 0.0 | View |
Put | COF260320P00220000 | -0.408685 | 0.016245 | 1465 | 2026-03-20 | 7.5 - 7.9 | 0.0 | View |
Put | COF260320P00210000 | -0.265889 | 0.012682 | 1049 | 2026-03-20 | 4.3 - 4.6 | 0.0 | View |
Put | COF260320P00200000 | -0.158472 | 0.008871 | 4172 | 2026-03-20 | 2.2 - 2.7 | 0.0 | View |
Put | COF260320P00195000 | -0.119034 | 0.007103 | 626 | 2026-03-20 | 1.6 - 2.05 | 0.0 | View |
Capital One Financial Stock Volatility Analysis
Volatility refers to the frequency at which Capital One stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Capital One's price changes. Investors will then calculate the volatility of Capital One'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 Capital One's volatility:
Historical Volatility
This type of stock volatility measures Capital One's fluctuations based on previous trends. It's commonly used to predict Capital One'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 Capital One'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 Capital One'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 Capital One Financial price series.
Capital One Projected Return Density Against Market
Considering the 90-day investment horizon the stock has the beta coefficient of 1.6311 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, Capital One 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 Capital One or Consumer Finance 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 Capital One'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 Capital 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.
Capital One Financial has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives a Capital One 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.Capital One Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Capital One is 4919.26. The daily returns are distributed with a variance of 4.06 and standard deviation of 2.01. The mean deviation of Capital One Financial is currently at 1.39. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.73
α | Alpha over Dow Jones | -0.04 | |
β | Beta against Dow Jones | 1.63 | |
σ | Overall volatility | 2.01 | |
Ir | Information ratio | -0.0065 |
Capital One Stock Return Volatility
Capital One historical daily return volatility represents how much of Capital One stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company has volatility of 2.0149% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7542% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
Related Correlations Analysis
| 0.52 | 0.32 | 0.86 | 0.97 | 0.93 | -0.6 | TD | ||
| 0.52 | 0.38 | 0.45 | 0.51 | 0.36 | 0.06 | BAC | ||
| 0.32 | 0.38 | 0.13 | 0.22 | 0.26 | -0.36 | PGR | ||
| 0.86 | 0.45 | 0.13 | 0.91 | 0.85 | -0.59 | SPGI | ||
| 0.97 | 0.51 | 0.22 | 0.91 | 0.94 | -0.61 | UBS | ||
| 0.93 | 0.36 | 0.26 | 0.85 | 0.94 | -0.68 | SAN | ||
| -0.6 | 0.06 | -0.36 | -0.59 | -0.61 | -0.68 | HOOD | ||
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 Capital Stock performing well and Capital One 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 Capital One'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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| TD | 0.76 | 0.18 | 0.18 | 0.39 | 0.68 | 1.66 | 5.15 | |||
| BAC | 0.90 | 0.00 | (0.03) | 0.00 | 1.35 | 1.68 | 5.64 | |||
| PGR | 1.02 | 0.02 | (0.01) | 0.13 | 1.40 | 2.24 | 8.94 | |||
| SPGI | 0.96 | 0.07 | 0.04 | 0.13 | 1.37 | 2.15 | 8.95 | |||
| UBS | 1.12 | 0.26 | 0.18 | 0.32 | 1.14 | 2.57 | 7.56 | |||
| SAN | 1.23 | 0.36 | 0.24 | 0.35 | 1.08 | 2.90 | 6.15 | |||
| HOOD | 3.08 | (0.74) | 0.00 | (0.35) | 0.00 | 6.31 | 19.98 |
About Capital One Volatility
Volatility is a rate at which the price of Capital One 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 Capital One may increase or decrease. In other words, similar to Capital's beta indicator, it measures the risk of Capital One and helps estimate the fluctuations that may happen in a short period of time. So if prices of Capital One 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 | ||
| Selling And Marketing Expenses | 5.9 B | 6.2 B | |
| Market Cap | 14.8 B | 11.7 B |
Capital One'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 Capital Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Capital One's price varies over time.
3 ways to utilize Capital One's volatility to invest better
Higher Capital One's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Capital One 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. Capital One 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 Capital One Financial investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Capital One'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 Capital One's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Capital One Investment Opportunity
Capital One Financial has a volatility of 2.01 and is 2.68 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Capital One Financial is lower than 18 percent of all global equities and portfolios over the last 90 days. You can use Capital One Financial to protect your portfolios against small market fluctuations. The stock experiences a normal downward trend and little activity. Check odds of Capital One to be traded at $221.11 in 90 days.Poor diversification
The correlation between Capital One Financial and DJI is 0.67 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Capital One Financial and DJI in the same portfolio, assuming nothing else is changed.
Capital One Additional Risk Indicators
The analysis of Capital One'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 Capital One's investment and either accepting that risk or mitigating it. Along with some common measures of Capital One 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 | 0.0225 | |||
| Market Risk Adjusted Performance | 0.0303 | |||
| Mean Deviation | 1.34 | |||
| Semi Deviation | 2.73 | |||
| Downside Deviation | 2.79 | |||
| Coefficient Of Variation | 4506.82 | |||
| Standard Deviation | 1.95 |
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.
Capital One 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.
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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 Capital One 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. Capital One'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, Capital One'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 Capital One Financial.
Complementary Tools for Capital Stock analysis
When running Capital One's price analysis, check to measure Capital One'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 Capital One is operating at the current time. Most of Capital One's value examination focuses on studying past and present price action to predict the probability of Capital One's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Capital One's price. Additionally, you may evaluate how the addition of Capital One to your portfolios can decrease your overall portfolio volatility.
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