Embassy Bancorp Stock Volatility
| EMYB Stock | USD 16.45 0.05 0.30% |
At this point, Embassy Bancorp is very steady. Embassy Bancorp secures Sharpe Ratio (or Efficiency) of 0.18, which denotes the company had a 0.18% return per unit of standard deviation over the last 3 months. We have found twenty-one technical indicators for Embassy Bancorp, which you can use to evaluate the volatility of the firm. Please confirm Embassy Bancorp's Coefficient Of Variation of 461.61, mean deviation of 0.3203, and Standard Deviation of 0.6554 to check if the risk estimate we provide is consistent with the expected return of 0.0958%. Key indicators related to Embassy Bancorp's volatility include:
180 Days Market Risk | Chance Of Distress | 180 Days Economic Sensitivity |
Embassy Bancorp 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 Embassy daily returns, and it is calculated using variance and standard deviation. We also use Embassy's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Embassy Bancorp volatility.
Embassy |
ESG Sustainability
While most ESG disclosures are voluntary, Embassy Bancorp's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Embassy Bancorp's managers and investors.Environmental | Governance | Social |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Embassy Bancorp 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 Embassy Bancorp at lower prices to lower their average cost per share. Similarly, when the prices of Embassy Bancorp's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with Embassy OTC Stock
Moving against Embassy OTC Stock
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| 0.57 | PBCRY | Bank Central Asia | PairCorr |
Embassy Bancorp Market Sensitivity And Downside Risk
Embassy Bancorp's beta coefficient measures the volatility of Embassy 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 Embassy otc stock's returns against your selected market. In other words, Embassy Bancorp's beta of 0.42 provides an investor with an approximation of how much risk Embassy Bancorp otc stock can potentially add to one of your existing portfolios. Embassy Bancorp exhibits very low volatility with skewness of 3.3 and kurtosis of 14.84. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Embassy Bancorp'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 Embassy Bancorp'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 Embassy Bancorp Demand TrendCheck current 90 days Embassy Bancorp correlation with market (Dow Jones Industrial)Embassy Beta |
Embassy 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 | 0.53 |
It is essential to understand the difference between upside risk (as represented by Embassy Bancorp's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Embassy Bancorp's daily returns or price. Since the actual investment returns on holding a position in embassy 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 Embassy Bancorp.
Embassy Bancorp OTC Stock Volatility Analysis
Volatility refers to the frequency at which Embassy Bancorp otc price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Embassy Bancorp's price changes. Investors will then calculate the volatility of Embassy Bancorp'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 Embassy Bancorp's volatility:
Historical Volatility
This type of otc volatility measures Embassy Bancorp's fluctuations based on previous trends. It's commonly used to predict Embassy Bancorp'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 Embassy Bancorp'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 Embassy Bancorp'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. Embassy Bancorp 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.
Embassy Bancorp Projected Return Density Against Market
Given the investment horizon of 90 days Embassy Bancorp has a beta of 0.4168 suggesting as returns on the market go up, Embassy Bancorp average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Embassy Bancorp 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 Embassy Bancorp 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 Embassy Bancorp'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 Embassy 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.
Embassy Bancorp has an alpha of 0.0839, implying that it can generate a 0.0839 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Embassy Bancorp 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.Embassy Bancorp OTC Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Embassy Bancorp is 555.37. The daily returns are distributed with a variance of 0.28 and standard deviation of 0.53. The mean deviation of Embassy Bancorp is currently at 0.25. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 0.08 | |
β | Beta against Dow Jones | 0.42 | |
σ | Overall volatility | 0.53 | |
Ir | Information ratio | 0.03 |
Embassy Bancorp OTC Stock Return Volatility
Embassy Bancorp historical daily return volatility represents how much of Embassy Bancorp otc's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 0.5323% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7444% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Embassy Bancorp Volatility
Volatility is a rate at which the price of Embassy Bancorp 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 Embassy Bancorp may increase or decrease. In other words, similar to Embassy's beta indicator, it measures the risk of Embassy Bancorp and helps estimate the fluctuations that may happen in a short period of time. So if prices of Embassy Bancorp 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.Embassy Bancorp, Inc. operates as the bank holding company for the Embassy Bank for the Lehigh Valley that provides traditional banking and related financial services to individual, business, and government customers in Pennsylvania. Embassy Bancorp, Inc. was founded in 2001 and is headquartered in Bethlehem, Pennsylvania. Embassy Bancorp operates under BanksRegional classification in the United States and is traded on OTC Exchange. It employs 106 people.
Embassy Bancorp'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 Embassy OTC Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Embassy Bancorp's price varies over time.
3 ways to utilize Embassy Bancorp's volatility to invest better
Higher Embassy Bancorp's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Embassy Bancorp 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. Embassy Bancorp 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 Embassy Bancorp investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Embassy Bancorp'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 Embassy Bancorp's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Embassy Bancorp Investment Opportunity
Dow Jones Industrial has a standard deviation of returns of 0.74 and is 1.4 times more volatile than Embassy Bancorp. 4 percent of all equities and portfolios are less risky than Embassy Bancorp. You can use Embassy Bancorp to enhance the returns of your portfolios. The otc stock experiences a normal upward fluctuation. Check odds of Embassy Bancorp to be traded at $17.27 in 90 days.Very weak diversification
The correlation between Embassy Bancorp and DJI is 0.49 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Embassy Bancorp and DJI in the same portfolio, assuming nothing else is changed.
Embassy Bancorp Additional Risk Indicators
The analysis of Embassy Bancorp'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 Embassy Bancorp's investment and either accepting that risk or mitigating it. Along with some common measures of Embassy Bancorp 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 | 0.1643 | |||
| Market Risk Adjusted Performance | 0.3267 | |||
| Mean Deviation | 0.3203 | |||
| Coefficient Of Variation | 461.61 | |||
| Standard Deviation | 0.6554 | |||
| Variance | 0.4296 | |||
| Information Ratio | 0.0254 |
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.
Embassy Bancorp 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 Embassy Bancorp 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. Embassy Bancorp'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, Embassy Bancorp'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 Embassy Bancorp.
Complementary Tools for Embassy OTC Stock analysis
When running Embassy Bancorp's price analysis, check to measure Embassy Bancorp'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 Embassy Bancorp is operating at the current time. Most of Embassy Bancorp's value examination focuses on studying past and present price action to predict the probability of Embassy Bancorp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Embassy Bancorp's price. Additionally, you may evaluate how the addition of Embassy Bancorp to your portfolios can decrease your overall portfolio volatility.
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