HR Block (Germany) Volatility
| HRB Stock | EUR 35.60 0.80 2.20% |
HR Block retains Efficiency (Sharpe Ratio) of -0.18, which attests that the entity had a -0.18 % return per unit of price deviation over the last 3 months. HR Block exposes twenty-one different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check out HR Block's Coefficient Of Variation of (671.30), market risk adjusted performance of 2.43, and Information Ratio of (0.20) to validate the risk estimate we provide.
Sharpe Ratio = -0.1831
| High Returns | Best Equity | |||
| Good Returns | ||||
| Average Returns | ||||
| Small Returns | ||||
| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
| Negative Returns | HRB |
Estimated Market Risk
| 1.79 actual daily | 16 84% of assets are more volatile |
Expected Return
| -0.33 actual daily | 0 Most of other assets have higher returns |
Risk-Adjusted Return
| -0.18 actual daily | 0 Most of other assets perform better |
Based on monthly moving average HR Block is not performing at its full potential. However, 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 HR Block by adding HR Block to a well-diversified portfolio.
Key indicators related to HR Block's volatility include:60 Days Market Risk | Chance Of Distress | 60 Days Economic Sensitivity |
HR Block 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 HRB daily returns, and it is calculated using variance and standard deviation. We also use HRB's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of HR Block volatility.
HRB |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as HR Block 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 HR Block at lower prices to lower their average cost per share. Similarly, when the prices of HR Block's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities. Main indicators related to HR Block's market risk premium analysis include:
Beta (0.12) | Alpha (0.27) | Risk 1.79 | Sharpe Ratio (0.18) | Expected Return (0.33) |
Moving together with HRB Stock
| 0.73 | SVC | Service International | PairCorr |
| 0.7 | 3I5 | Frontdoor | PairCorr |
| 0.67 | E3G | Evolution Gaming | PairCorr |
| 0.86 | 1M4 | Sportradar Group | PairCorr |
Moving against HRB Stock
| 0.68 | 74F | LIFE BANC SPLIT | PairCorr |
| 0.59 | 3YT | BOYD GROUP SERVICES | PairCorr |
| 0.55 | RFC4 | COPAUR MINERALS INC | PairCorr |
| 0.32 | JTH | Gesundheitswelt Chiemgau | PairCorr |
| 0.32 | 0KJ | ABERFORTH SMCOS TRLS | PairCorr |
HR Block Market Sensitivity And Downside Risk
HR Block's beta coefficient measures the volatility of HRB 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 HRB stock's returns against your selected market. In other words, HR Block's beta of -0.12 provides an investor with an approximation of how much risk HR Block stock can potentially add to one of your existing portfolios. HR Block exhibits very low volatility with skewness of -0.04 and kurtosis of -0.71. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure HR Block'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 HR Block'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 HR Block Demand TrendCheck current 90 days HR Block correlation with market (Dow Jones Industrial)HR Block Volatility and Downside Risk
HRB 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.
HR Block Stock Volatility Analysis
Volatility refers to the frequency at which HR Block stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with HR Block's price changes. Investors will then calculate the volatility of HR Block'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 HR Block's volatility:
Historical Volatility
This type of stock volatility measures HR Block's fluctuations based on previous trends. It's commonly used to predict HR Block'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 HR Block'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 HR Block'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. Developed by Larry Williams, the Weighted Close is the average of HR Block high, low and close of a chart with the close values weighted twice. It can be used to smooth an indicator that normally takes only HR Block closing price as input.
HR Block Projected Return Density Against Market
Assuming the 90 days horizon HR Block has a beta of -0.1175 . This usually indicates as returns on the benchmark increase, returns on holding HR Block are expected to decrease at a much lower rate. During a bear market, however, HR Block 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 HR Block or Consumer Cyclical 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 HR Block'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 HRB 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.
HR Block has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives a HR Block 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.HR Block Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of HR Block is -546.24. The daily returns are distributed with a variance of 3.19 and standard deviation of 1.79. The mean deviation of HR Block is currently at 1.48. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.69
α | Alpha over Dow Jones | -0.27 | |
β | Beta against Dow Jones | -0.12 | |
σ | Overall volatility | 1.79 | |
Ir | Information ratio | -0.2 |
HR Block Stock Return Volatility
HR Block historical daily return volatility represents how much of HR Block stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 1.7872% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.6908% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
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
| High negative correlations
|
Risk-Adjusted Indicators
There is a big difference between HRB Stock performing well and HR Block 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 HR Block'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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| SVC | 0.81 | 0.05 | (0.06) | (0.15) | 0.97 | 1.83 | 7.20 | |||
| BHA | 1.74 | 0.04 | 0.00 | 0.03 | 0.00 | 4.32 | 14.72 | |||
| HRB | 1.54 | (0.27) | 0.00 | 2.42 | 0.00 | 2.33 | 7.96 | |||
| 3YT | 1.08 | 0.06 | (0.03) | (0.07) | 1.29 | 2.88 | 9.16 | |||
| 3I5 | 1.71 | (0.09) | 0.00 | 1.16 | 0.00 | 2.71 | 20.62 | |||
| 4C9 | 1.70 | 0.02 | (0.02) | 0.17 | 2.05 | 3.52 | 17.22 | |||
| JTH | 1.79 | 0.15 | 0.01 | 0.39 | 2.33 | 8.93 | 22.02 | |||
| CWC | 0.81 | 0.04 | (0.07) | (0.21) | 0.82 | 1.59 | 4.86 | |||
| CWC | 0.83 | 0.04 | (0.06) | (0.10) | 1.02 | 2.01 | 6.43 |
About HR Block Volatility
Volatility is a rate at which the price of HR Block 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 HR Block may increase or decrease. In other words, similar to HRB's beta indicator, it measures the risk of HR Block and helps estimate the fluctuations that may happen in a short period of time. So if prices of HR Block 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.HR Block, Inc., through its subsidiaries, provides assisted income tax return preparation and do-it-yourself tax return preparation services and products to the general public primarily in the United States, Canada, and Australia. HR Block, Inc. was founded in 1955 and is headquartered in Kansas City, Missouri. BLOCK HR operates under Personal Services classification in Germany and is traded on Frankfurt Stock Exchange. It employs 3600 people.
HR Block'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 HRB Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much HR Block's price varies over time.
3 ways to utilize HR Block's volatility to invest better
Higher HR Block's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of HR Block 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. HR Block 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 HR Block investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in HR Block'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 HR Block's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
HR Block Investment Opportunity
HR Block has a volatility of 1.79 and is 2.59 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of HR Block is lower than 16 percent of all global equities and portfolios over the last 90 days. You can use HR Block to protect your portfolios against small market fluctuations. The stock experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of HR Block to be traded at €34.18 in 90 days.Good diversification
The correlation between HR Block and DJI is -0.04 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding HR Block and DJI in the same portfolio, assuming nothing else is changed.
HR Block Additional Risk Indicators
The analysis of HR Block'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 HR Block's investment and either accepting that risk or mitigating it. Along with some common measures of HR Block 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 | (0.1) | |||
| Market Risk Adjusted Performance | 2.43 | |||
| Mean Deviation | 1.54 | |||
| Coefficient Of Variation | (671.30) | |||
| Standard Deviation | 1.84 | |||
| Variance | 3.4 | |||
| Information Ratio | (0.20) |
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.
HR Block 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.
| Ford vs. HR Block | ||
| Walker Dunlop vs. HR Block | ||
| GM vs. HR Block | ||
| Alphabet vs. HR Block | ||
| Visa vs. HR Block | ||
| Microsoft vs. HR Block | ||
| Citigroup vs. HR Block | ||
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 HR Block 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. HR Block'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, HR Block'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 HR Block.
Complementary Tools for HRB Stock analysis
When running HR Block's price analysis, check to measure HR Block'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 HR Block is operating at the current time. Most of HR Block's value examination focuses on studying past and present price action to predict the probability of HR Block's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move HR Block's price. Additionally, you may evaluate how the addition of HR Block to your portfolios can decrease your overall portfolio volatility.
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Stocks Directory Find actively traded stocks across global markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |