Devon Energy Stock Volatility
| DVN Stock | USD 39.83 0.38 0.96% |
Devon Energy appears to be very steady, given 3 months investment horizon. Devon Energy secures Sharpe Ratio (or Efficiency) of 0.17, which denotes the company had a 0.17 % return per unit of risk over the last 3 months. We have found thirty technical indicators for Devon Energy, which you can use to evaluate the volatility of the firm. Please utilize Devon Energy's Downside Deviation of 1.9, mean deviation of 1.6, and Coefficient Of Variation of 701.34 to check if our risk estimates are consistent with your expectations.
Sharpe Ratio = 0.1743
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Based on monthly moving average Devon Energy is performing at about 13% 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 Devon Energy by adding it to a well-diversified portfolio.
Key indicators related to Devon Energy's volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Devon Energy 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 Devon daily returns, and it is calculated using variance and standard deviation. We also use Devon's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Devon Energy volatility.
ESG Sustainability
While most ESG disclosures are voluntary, Devon Energy's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Devon Energy's managers and investors.Environmental | Governance | Social |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Devon Energy 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 Devon Energy at lower prices. For example, an investor can purchase Devon 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 Devon Energy'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 Devon Energy's market risk premium analysis include:
Beta 0.0118 | Alpha 0.29 | Risk 2.1 | Sharpe Ratio 0.17 | Expected Return 0.37 |
Moving together with Devon Stock
| 0.73 | GTE | Gran Tierra Energy | PairCorr |
| 0.9 | INR | Infinity Natural Res | PairCorr |
| 0.83 | MUR | Murphy Oil | PairCorr |
| 0.83 | PNRG | PrimeEnergy | PairCorr |
| 0.65 | GS | Goldman Sachs Group | PairCorr |
| 0.71 | HL | Hecla Mining | PairCorr |
| 0.81 | NGS | Natural Gas Services | PairCorr |
| 0.71 | WAL | Western Alliance Ban | PairCorr |
Moving against Devon Stock
| 0.89 | NTNX | Nutanix | PairCorr |
| 0.61 | IMPP | Imperial Petroleum | PairCorr |
| 0.54 | EPM | Evolution Petroleum | PairCorr |
| 0.49 | KGEI | Kolibri Global Energy | PairCorr |
| 0.37 | VGN | Greencastle Resources | PairCorr |
Devon Energy Market Sensitivity And Downside Risk
Devon Energy's beta coefficient measures the volatility of Devon 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 Devon stock's returns against your selected market. In other words, Devon Energy's beta of 0.0118 provides an investor with an approximation of how much risk Devon Energy stock can potentially add to one of your existing portfolios. Devon Energy has relatively low volatility with skewness of 0.07 and kurtosis of -0.05. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Devon Energy'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 Devon Energy'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 Devon Energy Demand TrendCheck current 90 days Devon Energy correlation with market (Dow Jones Industrial)Devon Energy Volatility and Downside Risk
Devon 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 Devon Put Option to Manage Risk
Put options written on Devon Energy grant holders of the option the right to sell a specified amount of Devon Energy 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 Devon Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Devon Energy'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 Devon Energy will be realized, the loss incurred will be offset by the profits made with the option trade.
Devon Energy's PUT expiring on 2026-04-17
Profit |
| Devon Energy Price At Expiration |
Current Devon Energy Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | DVN260417P00017500 | -0.086296 | 0.004481 | 11 | 2026-04-17 | 0.0 - 2.13 | 0.0 | View |
Put | DVN260417P00020000 | -0.032879 | 0.004439 | 1 | 2026-04-17 | 0.0 - 0.25 | 0.0 | View |
Put | DVN260417P00022500 | -0.093702 | 0.007857 | 13 | 2026-04-17 | 0.0 - 1.19 | 0.0 | View |
Put | DVN260417P00025000 | -0.035525 | 0.007189 | 198 | 2026-04-17 | 0.0 - 0.17 | 0.0 | View |
Put | DVN260417P00027500 | -0.052043 | 0.011142 | 232 | 2026-04-17 | 0.0 - 0.23 | 0.0 | View |
Put | DVN260417P00030000 | -0.060238 | 0.015928 | 824 | 2026-04-17 | 0.17 - 0.4 | 0.0 | View |
Put | DVN260417P00032500 | -0.115895 | 0.027999 | 1237 | 2026-04-17 | 0.36 - 0.44 | 0.0 | View |
Put | DVN260417P00035000 | -0.208143 | 0.043088 | 1461 | 2026-04-17 | 0.72 - 0.94 | 0.0 | View |
Put | DVN260417P00037500 | -0.337518 | 0.058631 | 725 | 2026-04-17 | 1.39 - 1.66 | 0.0 | View |
Put | DVN260417P00040000 | -0.494871 | 0.062754 | 347 | 2026-04-17 | 2.49 - 3.1 | 0.0 | View |
Put | DVN260417P00042500 | -0.642528 | 0.058753 | 6 | 2026-04-17 | 4.05 - 4.65 | 0.0 | View |
Devon Energy Stock Volatility Analysis
Volatility refers to the frequency at which Devon Energy stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Devon Energy's price changes. Investors will then calculate the volatility of Devon Energy'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 Devon Energy's volatility:
Historical Volatility
This type of stock volatility measures Devon Energy's fluctuations based on previous trends. It's commonly used to predict Devon Energy'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 Devon Energy'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 Devon Energy'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. Devon Energy 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.
Devon Energy Projected Return Density Against Market
Considering the 90-day investment horizon Devon Energy has a beta of 0.0118 suggesting as returns on the market go up, Devon Energy average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Devon Energy 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 Devon Energy or Oil, Gas & Consumable Fuels 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 Devon Energy'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 Devon 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.
Devon Energy has an alpha of 0.2853, implying that it can generate a 0.29 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
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What Drives a Devon Energy 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.Devon Energy Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Devon Energy is 573.73. The daily returns are distributed with a variance of 4.43 and standard deviation of 2.1. The mean deviation of Devon Energy is currently at 1.63. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.74
α | Alpha over Dow Jones | 0.29 | |
β | Beta against Dow Jones | 0.01 | |
σ | Overall volatility | 2.10 | |
Ir | Information ratio | 0.11 |
Devon Energy Stock Return Volatility
Devon Energy historical daily return volatility represents how much of Devon Energy stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 2.1047% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7548% 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 Devon Stock performing well and Devon Energy 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 Devon Energy'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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| CTRA | 1.30 | 0.28 | 0.11 | (0.71) | 1.57 | 2.45 | 9.69 | |||
| TPL | 2.10 | 0.17 | 0.07 | 0.24 | 2.27 | 5.79 | 16.39 | |||
| EC | 1.61 | 0.51 | 0.21 | 3.59 | 1.72 | 3.15 | 10.93 | |||
| VG | 3.53 | (0.01) | 0.00 | 0.06 | 4.26 | 6.78 | 17.61 | |||
| TS | 1.27 | 0.30 | 0.15 | 1.00 | 1.34 | 3.69 | 9.87 | |||
| PBA | 0.90 | 0.15 | 0.06 | 3.49 | 1.22 | 1.99 | 6.67 | |||
| EXEEL | 1.70 | 0.17 | 0.04 | 1.09 | 1.79 | 4.97 | 13.68 | |||
| EXE | 1.56 | 0.08 | 0.01 | 3.66 | 1.71 | 4.39 | 10.14 | |||
| EXEEZ | 0.28 | 0.00 | 0.00 | 0.06 | 0.00 | 0.00 | 8.55 | |||
| HAL | 1.52 | 0.34 | 0.15 | 0.80 | 1.67 | 4.05 | 11.25 |
About Devon Energy Volatility
Volatility is a rate at which the price of Devon Energy 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 Devon Energy may increase or decrease. In other words, similar to Devon's beta indicator, it measures the risk of Devon Energy and helps estimate the fluctuations that may happen in a short period of time. So if prices of Devon Energy 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 | 5.5 B | 5.7 B | |
| Market Cap | 18.4 B | 19.3 B |
Devon Energy'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 Devon Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Devon Energy's price varies over time.
3 ways to utilize Devon Energy's volatility to invest better
Higher Devon Energy's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Devon Energy 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. Devon Energy 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 Devon Energy investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Devon Energy'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 Devon Energy's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Devon Energy Investment Opportunity
Devon Energy has a volatility of 2.1 and is 2.8 times more volatile than Dow Jones Industrial. 18 percent of all equities and portfolios are less risky than Devon Energy. You can use Devon Energy to enhance the returns of your portfolios. The stock experiences a moderate upward volatility. Check odds of Devon Energy to be traded at $43.81 in 90 days.Very weak diversification
The correlation between Devon Energy and DJI is 0.5 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Devon Energy and DJI in the same portfolio, assuming nothing else is changed.
Devon Energy Additional Risk Indicators
The analysis of Devon Energy'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 Devon Energy's investment and either accepting that risk or mitigating it. Along with some common measures of Devon Energy 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 | 0.1113 | |||
| Market Risk Adjusted Performance | 24.25 | |||
| Mean Deviation | 1.6 | |||
| Semi Deviation | 1.62 | |||
| Downside Deviation | 1.9 | |||
| Coefficient Of Variation | 701.34 | |||
| Standard Deviation | 2.08 |
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.
Devon Energy 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 Devon Energy 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. Devon Energy'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, Devon Energy'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 Devon Energy.
When determining whether Devon Energy offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Devon Energy'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 Devon Energy Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Devon Energy Stock: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Devon Energy. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in manufacturing. To learn how to invest in Devon Stock, please use our How to Invest in Devon Energy guide.You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Will Oil & Gas Exploration & Production sector continue expanding? Could Devon diversify its offerings? Factors like these will boost the valuation of Devon Energy. Projected growth potential of Devon fundamentally drives upward valuation adjustments. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Devon Energy data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth (0.16) | Dividend Share 0.94 | Earnings Share 4.24 | Revenue Per Share | Quarterly Revenue Growth 0.071 |
Understanding Devon Energy requires distinguishing between market price and book value, where the latter reflects Devon's accounting equity. The concept of intrinsic value—what Devon Energy's is actually worth based on fundamentals—guides informed investors toward better entry and exit points. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. Market sentiment, economic cycles, and investor behavior can push Devon Energy's price substantially above or below its fundamental value.
It's important to distinguish between Devon Energy's intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Devon Energy should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. In contrast, Devon Energy's trading price reflects the actual exchange value where willing buyers and sellers reach mutual agreement.