Mbt Bancshares Stock Volatility
| MBKL Stock | USD 19.50 0.05 0.26% |
As of now, MBT Pink Sheet is very steady. MBT Bancshares has Sharpe Ratio of 0.11, which conveys that the company had a 0.11% return per unit of standard deviation over the last 3 months. We have found twenty-one technical indicators for MBT Bancshares, which you can use to evaluate the volatility of the entity. Please verify MBT Bancshares' mean deviation of 0.231, and Standard Deviation of 0.5773 to check out if the risk estimate we provide is consistent with the expected return of 0.0639%. Key indicators related to MBT Bancshares' volatility include:
60 Days Market Risk | Chance Of Distress | 60 Days Economic Sensitivity |
MBT Bancshares Pink Sheet 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 MBT daily returns, and it is calculated using variance and standard deviation. We also use MBT's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of MBT Bancshares volatility.
MBT |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of MBT Bancshares at lower prices. For example, an investor can purchase MBT stock that has halved in price over a short period. This will lower their average cost per share, thereby improving the overall portfolio performance when market normalizes.
Moving together with MBT Pink Sheet
Moving against MBT Pink Sheet
| 0.83 | PPERF | Bank Mandiri Persero | PairCorr |
| 0.83 | BKRKY | Bank Rakyat | PairCorr |
| 0.83 | MRK | Merck Company Fiscal Year End 6th of February 2025 | PairCorr |
| 0.8 | PPERY | Bank Mandiri Persero | PairCorr |
| 0.76 | TLK | Telkom Indonesia Tbk | PairCorr |
| 0.75 | BKRKF | PT Bank Rakyat | PairCorr |
| 0.57 | PBCRY | Bank Central Asia | PairCorr |
| 0.56 | BA | Boeing Fiscal Year End 29th of January 2025 | PairCorr |
| 0.49 | PBCRF | PT Bank Central | PairCorr |
MBT Bancshares Market Sensitivity And Downside Risk
MBT Bancshares' beta coefficient measures the volatility of MBT pink sheet 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 MBT pink sheet's returns against your selected market. In other words, MBT Bancshares's beta of 0.0269 provides an investor with an approximation of how much risk MBT Bancshares pink sheet can potentially add to one of your existing portfolios. MBT Bancshares exhibits very low volatility with skewness of 0.77 and kurtosis of 16.73. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure MBT Bancshares' pink sheet risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact MBT Bancshares' pink sheet 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 MBT Bancshares Demand TrendCheck current 90 days MBT Bancshares correlation with market (Dow Jones Industrial)MBT Beta |
MBT 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 | 0.58 |
It is essential to understand the difference between upside risk (as represented by MBT Bancshares's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of MBT Bancshares' daily returns or price. Since the actual investment returns on holding a position in mbt pink sheet 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 MBT Bancshares.
MBT Bancshares Pink Sheet Volatility Analysis
Volatility refers to the frequency at which MBT Bancshares pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with MBT Bancshares' price changes. Investors will then calculate the volatility of MBT Bancshares' pink sheet to predict their future moves. A pink sheet that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A pink sheet with relatively stable price changes has low volatility. A highly volatile pink sheet 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 MBT Bancshares' volatility:
Historical Volatility
This type of pink sheet volatility measures MBT Bancshares' fluctuations based on previous trends. It's commonly used to predict MBT Bancshares' future behavior based on its past. However, it cannot conclusively determine the future direction of the pink sheet.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for MBT Bancshares' current market price. This means that the pink sheet will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on MBT Bancshares' 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. MBT Bancshares 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.
MBT Bancshares Projected Return Density Against Market
Given the investment horizon of 90 days MBT Bancshares has a beta of 0.0269 . This indicates as returns on the market go up, MBT Bancshares average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding MBT Bancshares 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 MBT Bancshares 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 MBT Bancshares' price will be affected by overall pink sheet 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 MBT pink sheet'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.
MBT Bancshares has an alpha of 0.06, implying that it can generate a 0.06 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a MBT Bancshares Price Volatility?
Several factors can influence a pink sheet'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.MBT Bancshares Pink Sheet Risk Measures
Given the investment horizon of 90 days the coefficient of variation of MBT Bancshares is 912.49. The daily returns are distributed with a variance of 0.34 and standard deviation of 0.58. The mean deviation of MBT Bancshares is currently at 0.22. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.06 | |
β | Beta against Dow Jones | 0.03 | |
σ | Overall volatility | 0.58 | |
Ir | Information ratio | -0.1 |
MBT Bancshares Pink Sheet Return Volatility
MBT Bancshares historical daily return volatility represents how much of MBT Bancshares pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 0.5835% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7716% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About MBT Bancshares Volatility
Volatility is a rate at which the price of MBT Bancshares 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 MBT Bancshares may increase or decrease. In other words, similar to MBT's beta indicator, it measures the risk of MBT Bancshares and helps estimate the fluctuations that may happen in a short period of time. So if prices of MBT Bancshares 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.MBT Bancshares, Inc. operates as a bank holding company for the Metairie Bank and Trust Company that provides various banking products and services. MBT Bancshares, Inc. was founded in 1947 and is based in Metairie, Louisiana. Metairie is traded on OTC Exchange in the United States.
MBT Bancshares' 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 MBT Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much MBT Bancshares' price varies over time.
3 ways to utilize MBT Bancshares' volatility to invest better
Higher MBT Bancshares' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of MBT Bancshares 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. MBT Bancshares 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 MBT Bancshares investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in MBT Bancshares' 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 MBT Bancshares' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
MBT Bancshares Investment Opportunity
Dow Jones Industrial has a standard deviation of returns of 0.77 and is 1.33 times more volatile than MBT Bancshares. Compared to the overall equity markets, volatility of historical daily returns of MBT Bancshares is lower than 5 percent of all global equities and portfolios over the last 90 days. You can use MBT Bancshares to protect your portfolios against small market fluctuations. The pink sheet experiences a normal downward fluctuation but is a risky buy. Check odds of MBT Bancshares to be traded at $19.31 in 90 days.Significant diversification
The correlation between MBT Bancshares and DJI is 0.04 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding MBT Bancshares and DJI in the same portfolio, assuming nothing else is changed.
MBT Bancshares Additional Risk Indicators
The analysis of MBT Bancshares' 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 MBT Bancshares' investment and either accepting that risk or mitigating it. Along with some common measures of MBT Bancshares pink sheet'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 | 0.0938 | |||
| Market Risk Adjusted Performance | 2.36 | |||
| Mean Deviation | 0.231 | |||
| Coefficient Of Variation | 788.03 | |||
| Standard Deviation | 0.5773 | |||
| Variance | 0.3333 | |||
| Information Ratio | (0.1) |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential pink sheets, we recommend comparing similar pink sheets with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
MBT Bancshares 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 MBT Bancshares 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. MBT Bancshares' 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, MBT Bancshares' 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 MBT Bancshares.
Other Information on Investing in MBT Pink Sheet
MBT Bancshares financial ratios help investors to determine whether MBT Pink Sheet is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in MBT with respect to the benefits of owning MBT Bancshares security.