Cashmere Valley Bank Stock Volatility
| CSHX Stock | USD 59.00 1.48 2.57% |
At this stage we consider Cashmere OTC Stock to be very steady. Cashmere Valley Bank secures Sharpe Ratio (or Efficiency) of 0.16, which signifies that the company had a 0.16% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Cashmere Valley Bank, which you can use to evaluate the volatility of the firm. Please confirm Cashmere Valley's Mean Deviation of 0.3198, coefficient of variation of 650.2, and Risk Adjusted Performance of 0.117 to double-check if the risk estimate we provide is consistent with the expected return of 0.11%. Key indicators related to Cashmere Valley's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Cashmere Valley OTC 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 Cashmere daily returns, and it is calculated using variance and standard deviation. We also use Cashmere's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Cashmere Valley volatility.
Cashmere |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Cashmere Valley 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 Cashmere Valley at lower prices. For example, an investor can purchase Cashmere 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 Cashmere Valley'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 against Cashmere OTC Stock
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| 0.66 | BKRKF | PT Bank Rakyat | PairCorr |
| 0.66 | KO | Coca Cola Sell-off Trend | PairCorr |
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| 0.6 | TLK | Telkom Indonesia Tbk | PairCorr |
| 0.46 | PBCRY | Bank Central Asia | PairCorr |
Cashmere Valley Market Sensitivity And Downside Risk
Cashmere Valley's beta coefficient measures the volatility of Cashmere otc 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 Cashmere otc stock's returns against your selected market. In other words, Cashmere Valley's beta of 0.32 provides an investor with an approximation of how much risk Cashmere Valley otc stock can potentially add to one of your existing portfolios. Cashmere Valley Bank has low volatility with Treynor Ratio of 0.31, Maximum Drawdown of 4.89 and kurtosis of 10.28. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Cashmere Valley's otc stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Cashmere Valley's otc 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 Cashmere Valley Bank Demand TrendCheck current 90 days Cashmere Valley correlation with market (Dow Jones Industrial)Cashmere Beta |
Cashmere 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 | 0.72 |
It is essential to understand the difference between upside risk (as represented by Cashmere Valley's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Cashmere Valley's daily returns or price. Since the actual investment returns on holding a position in cashmere otc 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 Cashmere Valley.
Cashmere Valley Bank OTC Stock Volatility Analysis
Volatility refers to the frequency at which Cashmere Valley otc price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Cashmere Valley's price changes. Investors will then calculate the volatility of Cashmere Valley's otc stock to predict their future moves. A otc that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A otc stock with relatively stable price changes has low volatility. A highly volatile otc 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 Cashmere Valley's volatility:
Historical Volatility
This type of otc volatility measures Cashmere Valley's fluctuations based on previous trends. It's commonly used to predict Cashmere Valley's future behavior based on its past. However, it cannot conclusively determine the future direction of the otc stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Cashmere Valley's current market price. This means that the otc will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Cashmere Valley'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. Cashmere Valley Bank 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.
Cashmere Valley Projected Return Density Against Market
Given the investment horizon of 90 days Cashmere Valley has a beta of 0.3169 suggesting as returns on the market go up, Cashmere Valley average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Cashmere Valley Bank 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 Cashmere Valley or Banks 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 Cashmere Valley's price will be affected by overall otc 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 Cashmere otc'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.
Cashmere Valley Bank has an alpha of 0.0623, implying that it can generate a 0.0623 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Cashmere Valley Price Volatility?
Several factors can influence a otc'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.Cashmere Valley OTC Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Cashmere Valley is 635.11. The daily returns are distributed with a variance of 0.52 and standard deviation of 0.72. The mean deviation of Cashmere Valley Bank is currently at 0.33. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 0.06 | |
β | Beta against Dow Jones | 0.32 | |
σ | Overall volatility | 0.72 | |
Ir | Information ratio | -0.02 |
Cashmere Valley OTC Stock Return Volatility
Cashmere Valley historical daily return volatility represents how much of Cashmere Valley otc's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 0.7244% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7496% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Cashmere Valley Volatility
Volatility is a rate at which the price of Cashmere Valley 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 Cashmere Valley may increase or decrease. In other words, similar to Cashmere's beta indicator, it measures the risk of Cashmere Valley and helps estimate the fluctuations that may happen in a short period of time. So if prices of Cashmere Valley 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.Cashmere Valley Bank, a state chartered bank, provides banking products and services to small and middle-market businesses, and retail customers. Cashmere Valley Bank was incorporated in 1932 and is based in Cashmere, Washington. Cashmere Valley is traded on OTC Exchange in the United States.
Cashmere Valley'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 Cashmere OTC Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Cashmere Valley's price varies over time.
3 ways to utilize Cashmere Valley's volatility to invest better
Higher Cashmere Valley's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Cashmere Valley Bank 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. Cashmere Valley Bank 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 Cashmere Valley Bank investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Cashmere Valley'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 Cashmere Valley's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Cashmere Valley Investment Opportunity
Dow Jones Industrial has a standard deviation of returns of 0.75 and is 1.04 times more volatile than Cashmere Valley Bank. 6 percent of all equities and portfolios are less risky than Cashmere Valley. You can use Cashmere Valley Bank to enhance the returns of your portfolios. The otc stock experiences an expected bullish sentiment for its category. Check odds of Cashmere Valley to be traded at $70.8 in 90 days.Weak diversification
The correlation between Cashmere Valley Bank and DJI is 0.34 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Cashmere Valley Bank and DJI in the same portfolio, assuming nothing else is changed.
Cashmere Valley Additional Risk Indicators
The analysis of Cashmere Valley'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 Cashmere Valley's investment and either accepting that risk or mitigating it. Along with some common measures of Cashmere Valley otc 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 | 0.117 | |||
| Market Risk Adjusted Performance | 0.322 | |||
| Mean Deviation | 0.3198 | |||
| Downside Deviation | 0.9106 | |||
| Coefficient Of Variation | 650.2 | |||
| Standard Deviation | 0.7078 | |||
| Variance | 0.501 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential otc stocks, we recommend comparing similar otcs with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Cashmere Valley 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 Cashmere Valley 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. Cashmere Valley'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, Cashmere Valley'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 Cashmere Valley Bank.
Additional Tools for Cashmere OTC Stock Analysis
When running Cashmere Valley's price analysis, check to measure Cashmere Valley'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 Cashmere Valley is operating at the current time. Most of Cashmere Valley's value examination focuses on studying past and present price action to predict the probability of Cashmere Valley's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cashmere Valley's price. Additionally, you may evaluate how the addition of Cashmere Valley to your portfolios can decrease your overall portfolio volatility.