Enterprise Financial Services Preferred Stock Volatility
| EFSCP Preferred Stock | USD 20.50 0.20 0.99% |
Currently, Enterprise Financial Services is very steady. Enterprise Financial secures Sharpe Ratio (or Efficiency) of 0.0723, which denotes the company had a 0.0723% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Enterprise Financial Services, which you can use to evaluate the volatility of the firm. Please confirm Enterprise Financial's Downside Deviation of 1.05, mean deviation of 0.7929, and Coefficient Of Variation of 1198.52 to check if the risk estimate we provide is consistent with the expected return of 0.0774%. Key indicators related to Enterprise Financial's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Enterprise Financial Preferred 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 Enterprise daily returns, and it is calculated using variance and standard deviation. We also use Enterprise's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Enterprise Financial volatility.
Enterprise |
ESG Sustainability
While most ESG disclosures are voluntary, Enterprise Financial's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Enterprise Financial's managers and investors.Environmental | Governance | Social |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Enterprise Financial 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 Enterprise Financial at lower prices. For example, an investor can purchase Enterprise 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 Enterprise Financial'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.
Enterprise Financial Market Sensitivity And Downside Risk
Enterprise Financial's beta coefficient measures the volatility of Enterprise preferred 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 Enterprise preferred stock's returns against your selected market. In other words, Enterprise Financial's beta of 0.0342 provides an investor with an approximation of how much risk Enterprise Financial preferred stock can potentially add to one of your existing portfolios. Enterprise Financial Services has relatively low volatility with skewness of 0.0 and kurtosis of 0.78. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Enterprise Financial's preferred stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Enterprise Financial's preferred 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 Enterprise Financial Demand TrendCheck current 90 days Enterprise Financial correlation with market (Dow Jones Industrial)Enterprise Beta |
Enterprise 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 | 1.07 |
It is essential to understand the difference between upside risk (as represented by Enterprise Financial's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Enterprise Financial's daily returns or price. Since the actual investment returns on holding a position in enterprise preferred 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 Enterprise Financial.
Enterprise Financial Preferred Stock Volatility Analysis
Volatility refers to the frequency at which Enterprise Financial preferred stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Enterprise Financial's price changes. Investors will then calculate the volatility of Enterprise Financial's preferred stock to predict their future moves. A preferred stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A preferred stock with relatively stable price changes has low volatility. A highly volatile preferred 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 Enterprise Financial's volatility:
Historical Volatility
This type of preferred stock volatility measures Enterprise Financial's fluctuations based on previous trends. It's commonly used to predict Enterprise Financial's future behavior based on its past. However, it cannot conclusively determine the future direction of the preferred stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Enterprise Financial's current market price. This means that the preferred stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Enterprise 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. Enterprise Financial 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.
Enterprise Financial Projected Return Density Against Market
Assuming the 90 days horizon Enterprise Financial has a beta of 0.0342 suggesting as returns on the market go up, Enterprise Financial average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Enterprise Financial Services 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 Enterprise Financial or Financial Services 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 Enterprise Financial's price will be affected by overall preferred 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 Enterprise preferred 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.
Enterprise Financial Services has an alpha of 0.0749, implying that it can generate a 0.0749 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Enterprise Financial Price Volatility?
Several factors can influence a preferred 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.Enterprise Financial Preferred Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of Enterprise Financial is 1382.37. The daily returns are distributed with a variance of 1.14 and standard deviation of 1.07. The mean deviation of Enterprise Financial Services is currently at 0.8. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.07 | |
β | Beta against Dow Jones | 0.03 | |
σ | Overall volatility | 1.07 | |
Ir | Information ratio | -0.02 |
Enterprise Financial Preferred Stock Return Volatility
Enterprise Financial historical daily return volatility represents how much of Enterprise Financial preferred stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The enterprise shows 1.0699% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7608% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Enterprise Financial Volatility
Volatility is a rate at which the price of Enterprise 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 Enterprise Financial may increase or decrease. In other words, similar to Enterprise's beta indicator, it measures the risk of Enterprise Financial and helps estimate the fluctuations that may happen in a short period of time. So if prices of Enterprise 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.Enterprise Financial Services Corp operates as the financial holding company for Enterprise Bank Trust that offers banking and wealth management services to individuals and corporate customers. Enterprise Financial Services Corp was founded in 1988 and is headquartered in Clayton, Missouri. Enterprise Financial operates under BanksRegional classification in the United States and is traded on NASDAQ Exchange. It employs 1032 people.
Enterprise 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 Enterprise Preferred Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Enterprise Financial's price varies over time.
3 ways to utilize Enterprise Financial's volatility to invest better
Higher Enterprise Financial's preferred stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Enterprise Financial preferred 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. Enterprise Financial preferred 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 Enterprise Financial investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Enterprise Financial's preferred 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 Enterprise Financial's preferred stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Enterprise Financial Investment Opportunity
Enterprise Financial Services has a volatility of 1.07 and is 1.41 times more volatile than Dow Jones Industrial. 9 percent of all equities and portfolios are less risky than Enterprise Financial. You can use Enterprise Financial Services to enhance the returns of your portfolios. The preferred stock experiences a moderate upward volatility. Check odds of Enterprise Financial to be traded at $22.55 in 90 days.Significant diversification
The correlation between Enterprise Financial Services and DJI is 0.02 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Enterprise Financial Services and DJI in the same portfolio, assuming nothing else is changed.
Enterprise Financial Additional Risk Indicators
The analysis of Enterprise 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 Enterprise Financial's investment and either accepting that risk or mitigating it. Along with some common measures of Enterprise Financial preferred 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 | 0.0664 | |||
| Market Risk Adjusted Performance | 2.3 | |||
| Mean Deviation | 0.7929 | |||
| Semi Deviation | 0.9535 | |||
| Downside Deviation | 1.05 | |||
| Coefficient Of Variation | 1198.52 | |||
| Standard Deviation | 1.06 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential preferred stocks, we recommend comparing similar preferred stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Enterprise 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 Enterprise 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. Enterprise 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, Enterprise 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 Enterprise Financial Services.
Additional Tools for Enterprise Preferred Stock Analysis
When running Enterprise Financial's price analysis, check to measure Enterprise 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 Enterprise Financial is operating at the current time. Most of Enterprise Financial's value examination focuses on studying past and present price action to predict the probability of Enterprise 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 Enterprise Financial's price. Additionally, you may evaluate how the addition of Enterprise Financial to your portfolios can decrease your overall portfolio volatility.