Insteel Industries Stock Volatility
| IIIN Stock | USD 32.88 0.26 0.78% |
As of now, Insteel Stock is very steady. Insteel Industries holds Efficiency (Sharpe) Ratio of 0.0539, which attests that the entity had a 0.0539 % return per unit of risk over the last 3 months. We have found thirty technical indicators for Insteel Industries, which you can use to evaluate the volatility of the firm. Please check out Insteel Industries' Risk Adjusted Performance of 0.0512, market risk adjusted performance of (0.47), and Downside Deviation of 1.97 to validate if the risk estimate we provide is consistent with the expected return of 0.1%.
Sharpe Ratio = 0.0539
| High Returns | Best Equity | |||
| Good Returns | ||||
| Average Returns | ||||
| Small Returns | ||||
| Cash | Small Risk | IIIN | High Risk | Huge Risk |
| Negative Returns |
Based on monthly moving average Insteel Industries is performing at about 4% 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 Insteel Industries by adding it to a well-diversified portfolio.
Key indicators related to Insteel Industries' volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Insteel Industries 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 Insteel daily returns, and it is calculated using variance and standard deviation. We also use Insteel's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Insteel Industries volatility.
ESG Sustainability
While most ESG disclosures are voluntary, Insteel Industries' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Insteel Industries' managers and investors.Environmental | Governance | Social |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Insteel Industries 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 Insteel Industries at lower prices. For example, an investor can purchase Insteel 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 Insteel Industries' 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 Insteel Industries' market risk premium analysis include:
Beta (0.22) | Alpha 0.12 | Risk 1.94 | Sharpe Ratio 0.0539 | Expected Return 0.1 |
Moving together with Insteel Stock
| 0.8 | AOS | Smith AO | PairCorr |
| 0.62 | MAS | Masco | PairCorr |
| 0.74 | 603221 | Zhangjiagang Elegant Home | PairCorr |
| 0.61 | 300599 | Guangdong Xiongsu | PairCorr |
| 0.69 | ELEZF | Endesa SA | PairCorr |
| 0.71 | VLVLY | Volvo AB ADR | PairCorr |
| 0.72 | FCBC | First Community Banc Normal Trading | PairCorr |
| 0.7 | SRCE | 1st Source | PairCorr |
| 0.67 | PLD | Prologis | PairCorr |
Moving against Insteel Stock
| 0.57 | TT | Trane Technologies plc | PairCorr |
| 0.56 | 002084 | Guangzhou Seagull Kitchen | PairCorr |
| 0.54 | MSAI | Infrared Cameras Holdings | PairCorr |
| 0.5 | 002205 | XinJiang GuoTong Pipeline | PairCorr |
| 0.35 | WXM | WF International | PairCorr |
| 0.35 | 600202 | Harbin Air Conditioning | PairCorr |
Insteel Industries Market Sensitivity And Downside Risk
Insteel Industries' beta coefficient measures the volatility of Insteel 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 Insteel stock's returns against your selected market. In other words, Insteel Industries's beta of -0.22 provides an investor with an approximation of how much risk Insteel Industries stock can potentially add to one of your existing portfolios. Insteel Industries has relatively low volatility with skewness of 0.04 and kurtosis of 1.94. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Insteel Industries' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Insteel Industries' 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 Insteel Industries Demand TrendCheck current 90 days Insteel Industries correlation with market (Dow Jones Industrial)Insteel Industries Volatility and Downside Risk
Insteel 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 Insteel Put Option to Manage Risk
Put options written on Insteel Industries grant holders of the option the right to sell a specified amount of Insteel Industries 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 Insteel Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Insteel Industries' 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 Insteel Industries will be realized, the loss incurred will be offset by the profits made with the option trade.
Insteel Industries' PUT expiring on 2026-04-17
Profit |
| Insteel Industries Price At Expiration |
Current Insteel Industries Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | IIIN260417P00017500 | -0.040207 | 0.006562 | 28 | 2026-04-17 | 0.0 - 0.25 | 0.0 | View |
Put | IIIN260417P00019000 | -0.032505 | 0.006942 | 126 | 2026-04-17 | 0.05 - 0.25 | 0.0 | View |
Put | IIIN260417P00020000 | -0.039143 | 0.008538 | 50 | 2026-04-17 | 0.1 - 0.25 | 0.0 | View |
Put | IIIN260417P00021500 | -0.052363 | 0.011686 | 1 | 2026-04-17 | 0.15 - 0.3 | 0.0 | View |
Put | IIIN260417P00024000 | -0.086031 | 0.019627 | 40 | 2026-04-17 | 0.25 - 0.45 | 0.0 | View |
Put | IIIN260417P00029000 | -0.232355 | 0.053016 | 3 | 2026-04-17 | 0.75 - 0.95 | 0.0 | View |
Insteel Industries Stock Volatility Analysis
Volatility refers to the frequency at which Insteel Industries stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Insteel Industries' price changes. Investors will then calculate the volatility of Insteel Industries' 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 Insteel Industries' volatility:
Historical Volatility
This type of stock volatility measures Insteel Industries' fluctuations based on previous trends. It's commonly used to predict Insteel Industries' 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 Insteel Industries' 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 Insteel Industries' 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. Insteel Industries 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.
Insteel Industries Projected Return Density Against Market
Given the investment horizon of 90 days Insteel Industries has a beta of -0.2234 . This usually indicates as returns on the benchmark increase, returns on holding Insteel Industries are expected to decrease at a much lower rate. During a bear market, however, Insteel Industries 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 Insteel Industries or Building Products 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 Insteel Industries' 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 Insteel 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.
Insteel Industries has an alpha of 0.1154, implying that it can generate a 0.12 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Insteel Industries 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.Insteel Industries Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Insteel Industries is 1856.26. The daily returns are distributed with a variance of 3.78 and standard deviation of 1.94. The mean deviation of Insteel Industries is currently at 1.43. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.72
α | Alpha over Dow Jones | 0.12 | |
β | Beta against Dow Jones | -0.22 | |
σ | Overall volatility | 1.94 | |
Ir | Information ratio | 0.04 |
Insteel Industries Stock Return Volatility
Insteel Industries historical daily return volatility represents how much of Insteel Industries stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 1.9448% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7413% 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 Insteel Stock performing well and Insteel Industries 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 Insteel Industries' 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| NWPX | 1.42 | 0.28 | 0.17 | 0.28 | 1.37 | 3.78 | 10.96 | |||
| RYI | 1.97 | 0.30 | 0.12 | 0.24 | 2.26 | 4.22 | 11.34 | |||
| SNCY | 2.26 | 0.62 | 0.27 | 0.41 | 1.87 | 6.22 | 13.97 | |||
| HY | 2.31 | (0.17) | 0.00 | (0.05) | 0.00 | 5.10 | 20.43 | |||
| HTLD | 1.75 | 0.29 | 0.19 | 0.19 | 1.44 | 5.38 | 10.25 | |||
| ADSE | 2.43 | 0.40 | 0.13 | (1.20) | 2.48 | 5.43 | 17.85 | |||
| ASPN | 3.62 | (1.03) | 0.00 | (3.64) | 0.00 | 5.80 | 52.64 | |||
| BXC | 2.35 | (0.07) | 0.00 | (0.08) | 0.00 | 7.49 | 13.08 | |||
| NX | 2.11 | 0.30 | 0.11 | 0.69 | 2.32 | 6.18 | 14.57 | |||
| CODI | 4.02 | (0.11) | 0.00 | (0.03) | 0.00 | 7.26 | 35.68 |
About Insteel Industries Volatility
Volatility is a rate at which the price of Insteel Industries 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 Insteel Industries may increase or decrease. In other words, similar to Insteel's beta indicator, it measures the risk of Insteel Industries and helps estimate the fluctuations that may happen in a short period of time. So if prices of Insteel Industries 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 | 1.3 M | 1.2 M | |
| Market Cap | 266.5 M | 279.9 M |
Insteel Industries' 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 Insteel Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Insteel Industries' price varies over time.
3 ways to utilize Insteel Industries' volatility to invest better
Higher Insteel Industries' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Insteel Industries 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. Insteel Industries 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 Insteel Industries investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Insteel Industries' 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 Insteel Industries' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Insteel Industries Investment Opportunity
Insteel Industries has a volatility of 1.94 and is 2.62 times more volatile than Dow Jones Industrial. 17 percent of all equities and portfolios are less risky than Insteel Industries. You can use Insteel Industries to protect your portfolios against small market fluctuations. The stock experiences a moderate downward daily trend and can be a good diversifier. Check odds of Insteel Industries to be traded at $32.22 in 90 days.Poor diversification
The correlation between Insteel Industries and DJI is 0.75 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Insteel Industries and DJI in the same portfolio, assuming nothing else is changed.
Insteel Industries Additional Risk Indicators
The analysis of Insteel Industries' 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 Insteel Industries' investment and either accepting that risk or mitigating it. Along with some common measures of Insteel Industries 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 | 0.0512 | |||
| Market Risk Adjusted Performance | (0.47) | |||
| Mean Deviation | 1.36 | |||
| Semi Deviation | 1.87 | |||
| Downside Deviation | 1.97 | |||
| Coefficient Of Variation | 1604.61 | |||
| Standard Deviation | 1.89 |
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.
Insteel Industries 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 Insteel Industries 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. Insteel Industries' 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, Insteel Industries' 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 Insteel Industries.
When determining whether Insteel Industries offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Insteel Industries' 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 Insteel Industries Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Insteel Industries Stock: Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Insteel Industries. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product. To learn how to invest in Insteel Stock, please use our How to Invest in Insteel Industries guide.You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Will Building Products sector continue expanding? Could Insteel diversify its offerings? Factors like these will boost the valuation of Insteel Industries. Market participants price Insteel higher when confident in its future expansion prospects. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Insteel Industries data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth 6.033 | Dividend Share 0.12 | Earnings Share 2.45 | Revenue Per Share | Quarterly Revenue Growth 0.233 |
Insteel Industries's market price often diverges from its book value, the accounting figure shown on Insteel's balance sheet. Smart investors calculate Insteel Industries' intrinsic value—its true economic worth—which may differ significantly from both market price and book value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. Since Insteel Industries' trading price responds to investor sentiment, macroeconomic conditions, and market psychology, it can swing far from fundamental value.
Please note, there is a significant difference between Insteel Industries' value and its price as these two are different measures arrived at by different means. Investors typically determine if Insteel Industries is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Insteel Industries' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.