Graubuendner Kantonalbank (Switzerland) Volatility
| GRKP Stock | CHF 1,755 5.00 0.29% |
At this stage we consider Graubuendner Stock to be very steady. Graubuendner Kantonalbank holds Efficiency (Sharpe) Ratio of 0.0681, which attests that the entity had a 0.0681% return per unit of standard deviation over the last 3 months. We have found twenty-nine technical indicators for Graubuendner Kantonalbank, which you can use to evaluate the volatility of the firm. Please check out Graubuendner Kantonalbank's market risk adjusted performance of (0.33), and Risk Adjusted Performance of 0.0654 to validate if the risk estimate we provide is consistent with the expected return of 0.0375%. Key indicators related to Graubuendner Kantonalbank's volatility include:
510 Days Market Risk | Chance Of Distress | 510 Days Economic Sensitivity |
Graubuendner Kantonalbank 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 Graubuendner daily returns, and it is calculated using variance and standard deviation. We also use Graubuendner's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Graubuendner Kantonalbank volatility.
Graubuendner |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Graubuendner Kantonalbank 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 Graubuendner Kantonalbank at lower prices. For example, an investor can purchase Graubuendner 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 Graubuendner Kantonalbank'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 together with Graubuendner Stock
| 0.76 | SGKN | St Galler Kantonalbank | PairCorr |
| 0.65 | BEKN | Berner Kantonalbank | PairCorr |
| 0.68 | VATN | Valiant Holding AG | PairCorr |
Moving against Graubuendner Stock
| 0.71 | LLBN | Liechtensteinische | PairCorr |
| 0.57 | BLKB | Basellandschaftliche | PairCorr |
| 0.53 | WKBN | Banque Cantonale | PairCorr |
| 0.39 | BCGE | Banque Cantonale | PairCorr |
| 0.33 | VPBN | VP Bank AG | PairCorr |
Graubuendner Kantonalbank Market Sensitivity And Downside Risk
Graubuendner Kantonalbank's beta coefficient measures the volatility of Graubuendner 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 Graubuendner stock's returns against your selected market. In other words, Graubuendner Kantonalbank's beta of -0.12 provides an investor with an approximation of how much risk Graubuendner Kantonalbank stock can potentially add to one of your existing portfolios. Graubuendner Kantonalbank exhibits relatively low volatility with skewness of 0.02 and kurtosis of 0.81. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Graubuendner Kantonalbank'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 Graubuendner Kantonalbank'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 Graubuendner Kantonalbank Demand TrendCheck current 90 days Graubuendner Kantonalbank correlation with market (Dow Jones Industrial)Graubuendner Beta |
Graubuendner 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 | 0.55 |
It is essential to understand the difference between upside risk (as represented by Graubuendner Kantonalbank's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Graubuendner Kantonalbank's daily returns or price. Since the actual investment returns on holding a position in graubuendner 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 Graubuendner Kantonalbank.
Graubuendner Kantonalbank Stock Volatility Analysis
Volatility refers to the frequency at which Graubuendner Kantonalbank stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Graubuendner Kantonalbank's price changes. Investors will then calculate the volatility of Graubuendner Kantonalbank'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 Graubuendner Kantonalbank's volatility:
Historical Volatility
This type of stock volatility measures Graubuendner Kantonalbank's fluctuations based on previous trends. It's commonly used to predict Graubuendner Kantonalbank'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 Graubuendner Kantonalbank'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 Graubuendner Kantonalbank'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. Graubuendner Kantonalbank 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.
Graubuendner Kantonalbank Projected Return Density Against Market
Assuming the 90 days trading horizon Graubuendner Kantonalbank has a beta of -0.1165 . This usually indicates as returns on the benchmark increase, returns on holding Graubuendner Kantonalbank are expected to decrease at a much lower rate. During a bear market, however, Graubuendner Kantonalbank is likely to outperform the market.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 Graubuendner Kantonalbank 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 Graubuendner Kantonalbank'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 Graubuendner 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.
Graubuendner Kantonalbank has an alpha of 0.0536, implying that it can generate a 0.0536 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Graubuendner Kantonalbank 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.Graubuendner Kantonalbank Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Graubuendner Kantonalbank is 1468.54. The daily returns are distributed with a variance of 0.3 and standard deviation of 0.55. The mean deviation of Graubuendner Kantonalbank is currently at 0.42. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.05 | |
β | Beta against Dow Jones | -0.12 | |
σ | Overall volatility | 0.55 | |
Ir | Information ratio | -0.14 |
Graubuendner Kantonalbank Stock Return Volatility
Graubuendner Kantonalbank historical daily return volatility represents how much of Graubuendner Kantonalbank stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The venture accepts 0.5511% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7796% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Graubuendner Kantonalbank Volatility
Volatility is a rate at which the price of Graubuendner Kantonalbank 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 Graubuendner Kantonalbank may increase or decrease. In other words, similar to Graubuendner's beta indicator, it measures the risk of Graubuendner Kantonalbank and helps estimate the fluctuations that may happen in a short period of time. So if prices of Graubuendner Kantonalbank 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.Graubndner Kantonalbank provides various banking and products services to private individuals and companies. Graubndner Kantonalbank was founded in 1870 and is based in Chur, Switzerland. GRAUB KB operates under Banks - Regional - Europe classification in Switzerland and is traded on Switzerland Exchange. It employs 744 people.
Graubuendner Kantonalbank'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 Graubuendner Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Graubuendner Kantonalbank's price varies over time.
3 ways to utilize Graubuendner Kantonalbank's volatility to invest better
Higher Graubuendner Kantonalbank's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Graubuendner Kantonalbank 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. Graubuendner Kantonalbank 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 Graubuendner Kantonalbank investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Graubuendner Kantonalbank'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 Graubuendner Kantonalbank's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Graubuendner Kantonalbank Investment Opportunity
Dow Jones Industrial has a standard deviation of returns of 0.78 and is 1.42 times more volatile than Graubuendner Kantonalbank. Compared to the overall equity markets, volatility of historical daily returns of Graubuendner Kantonalbank is lower than 4 percent of all global equities and portfolios over the last 90 days. You can use Graubuendner Kantonalbank to enhance the returns of your portfolios. The stock experiences a normal upward fluctuation. Check odds of Graubuendner Kantonalbank to be traded at ₣1842.75 in 90 days.Good diversification
The correlation between Graubuendner Kantonalbank and DJI is -0.16 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Graubuendner Kantonalbank and DJI in the same portfolio, assuming nothing else is changed.
Graubuendner Kantonalbank Additional Risk Indicators
The analysis of Graubuendner Kantonalbank'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 Graubuendner Kantonalbank's investment and either accepting that risk or mitigating it. Along with some common measures of Graubuendner Kantonalbank 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 | 0.0654 | |||
| Market Risk Adjusted Performance | (0.33) | |||
| Mean Deviation | 0.4222 | |||
| Semi Deviation | 0.4794 | |||
| Downside Deviation | 0.6706 | |||
| Coefficient Of Variation | 1101.22 | |||
| Standard Deviation | 0.5476 |
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.
Graubuendner Kantonalbank 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 Graubuendner Kantonalbank 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. Graubuendner Kantonalbank'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, Graubuendner Kantonalbank'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 Graubuendner Kantonalbank.
Additional Tools for Graubuendner Stock Analysis
When running Graubuendner Kantonalbank's price analysis, check to measure Graubuendner Kantonalbank'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 Graubuendner Kantonalbank is operating at the current time. Most of Graubuendner Kantonalbank's value examination focuses on studying past and present price action to predict the probability of Graubuendner Kantonalbank's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Graubuendner Kantonalbank's price. Additionally, you may evaluate how the addition of Graubuendner Kantonalbank to your portfolios can decrease your overall portfolio volatility.