3m Company Stock Volatility
| MMM Stock | USD 173.46 0.61 0.35% |
As of now, 3M Stock is very steady. 3M Company retains Efficiency (Sharpe Ratio) of 0.0381, which signifies that the company had a 0.0381 % return per unit of price deviation over the last 3 months. We have found twenty-nine technical indicators for 3M, which you can use to evaluate the volatility of the firm. Please confirm 3M's Standard Deviation of 1.7, market risk adjusted performance of 0.0846, and Coefficient Of Variation of 1671.57 to double-check if the risk estimate we provide is consistent with the expected return of 0.0668%.
Sharpe Ratio = 0.0381
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Based on monthly moving average 3M is performing at about 3% 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 3M by adding it to a well-diversified portfolio.
Key indicators related to 3M's volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
3M 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 3M daily returns, and it is calculated using variance and standard deviation. We also use 3M's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of 3M volatility.
ESG Sustainability
While most ESG disclosures are voluntary, 3M's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to 3M's managers and investors.Environmental | Governance | Social |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as 3M 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 3M at lower prices. For example, an investor can purchase 3M 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 3M'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. Main indicators related to 3M's market risk premium analysis include:
Beta 1.23 | Alpha (0.02) | Risk 1.75 | Sharpe Ratio 0.0381 | Expected Return 0.0668 |
Moving against 3M Stock
3M Market Sensitivity And Downside Risk
3M's beta coefficient measures the volatility of 3M 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 3M stock's returns against your selected market. In other words, 3M's beta of 1.23 provides an investor with an approximation of how much risk 3M stock can potentially add to one of your existing portfolios. 3M Company has relatively low volatility with skewness of -0.48 and kurtosis of 4.66. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure 3M'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 3M'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 3M Company Demand TrendCheck current 90 days 3M correlation with market (Dow Jones Industrial)3M Volatility and Downside Risk
3M 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 3M Put Option to Manage Risk
Put options written on 3M grant holders of the option the right to sell a specified amount of 3M 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 3M Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge 3M's 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 3M will be realized, the loss incurred will be offset by the profits made with the option trade.
3M's PUT expiring on 2026-04-17
Profit |
| 3M Price At Expiration |
Current 3M Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | MMM260417P00210000 | -0.924951 | 0.006287 | 1 | 2026-04-17 | 35.65 - 39.5 | 0.0 | View |
Put | MMM260417P00200000 | -0.914077 | 0.008764 | 172 | 2026-04-17 | 26.0 - 29.1 | 0.0 | View |
Put | MMM260417P00190000 | -0.808609 | 0.015779 | 153 | 2026-04-17 | 17.05 - 19.95 | 0.0 | View |
Put | MMM260417P00185000 | -0.708492 | 0.018327 | 169 | 2026-04-17 | 13.85 - 16.05 | 0.0 | View |
Put | MMM260417P00180000 | -0.617893 | 0.020641 | 224 | 2026-04-17 | 10.3 - 12.35 | 0.0 | View |
Put | MMM260417P00175000 | -0.513649 | 0.02148 | 197 | 2026-04-17 | 8.15 - 8.45 | 0.0 | View |
Put | MMM260417P00170000 | -0.407598 | 0.020422 | 243 | 2026-04-17 | 5.85 - 6.05 | 0.0 | View |
Put | MMM260417P00165000 | -0.309304 | 0.018148 | 1033 | 2026-04-17 | 4.0 - 4.25 | 0.0 | View |
Put | MMM260417P00160000 | -0.228266 | 0.014907 | 380 | 2026-04-17 | 2.82 - 2.88 | 0.0 | View |
Put | MMM260417P00155000 | -0.161654 | 0.011698 | 505 | 2026-04-17 | 1.78 - 2.0 | 0.0 | View |
Put | MMM260417P00150000 | -0.114552 | 0.008785 | 228 | 2026-04-17 | 1.1 - 1.76 | 0.0 | View |
3M Company Stock Volatility Analysis
Volatility refers to the frequency at which 3M stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with 3M's price changes. Investors will then calculate the volatility of 3M'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 3M's volatility:
Historical Volatility
This type of stock volatility measures 3M's fluctuations based on previous trends. It's commonly used to predict 3M'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 3M'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 3M'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. 3M Company 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.
3M Projected Return Density Against Market
Considering the 90-day investment horizon the stock has the beta coefficient of 1.2317 . This indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, 3M will likely underperform.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 3M or Industrial Conglomerates 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 3M'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 3M 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.
Predicted Return Density |
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What Drives a 3M 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 investor attention to the company. This positive attention may impact the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.3M Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of 3M is 2624.16. The daily returns are distributed with a variance of 3.07 and standard deviation of 1.75. The mean deviation of 3M Company is currently at 1.22. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.79
α | Alpha over Dow Jones | -0.02 | |
β | Beta against Dow Jones | 1.23 | |
σ | Overall volatility | 1.75 | |
Ir | Information ratio | -0.0009 |
3M Stock Return Volatility
3M historical daily return volatility represents how much of 3M stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 1.7535% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7721% volatility on return distribution over the 90 days horizon. Performance |
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Related Correlations Analysis
Risk-Adjusted Indicators
There is a big difference between 3M Stock performing well and 3M 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 3M'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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| NOC | 1.28 | 0.22 | 0.11 | 0.49 | 1.40 | 2.91 | 9.88 | |||
| GD | 1.06 | (0.05) | (0.04) | 0.04 | 1.46 | 2.28 | 7.72 | |||
| WM | 0.80 | 0.23 | 0.13 | 1.08 | 0.90 | 2.06 | 6.00 | |||
| EMR | 1.44 | 0.09 | 0.08 | 0.15 | 1.84 | 3.43 | 9.23 | |||
| HWM | 1.39 | 0.09 | 0.06 | 0.18 | 1.44 | 3.27 | 7.17 | |||
| UPS | 1.15 | 0.33 | 0.22 | 0.48 | 1.03 | 3.16 | 7.68 | |||
| PH | 0.96 | 0.18 | 0.17 | 0.27 | 0.75 | 2.41 | 5.24 | |||
| ITW | 0.99 | 0.23 | 0.17 | 0.34 | 0.87 | 2.77 | 6.58 | |||
| HON | 1.04 | 0.25 | 0.21 | 0.36 | 0.84 | 2.22 | 5.53 | |||
| TT | 1.23 | 0.06 | 0.03 | 0.16 | 1.38 | 2.42 | 9.37 |
About 3M Volatility
Volatility is a rate at which the price of 3M 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 3M may increase or decrease. In other words, similar to 3M's beta indicator, it measures the risk of 3M and helps estimate the fluctuations that may happen in a short period of time. So if prices of 3M 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 | 116.1 M | 150.8 M | |
| Market Cap | 77 B | 80.8 B |
3M'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 3M Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much 3M's price varies over time.
3 ways to utilize 3M's volatility to invest better
Higher 3M's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of 3M Company 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. 3M Company 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 3M Company investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in 3M'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 3M's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
3M Investment Opportunity
3M Company has a volatility of 1.75 and is 2.27 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of 3M Company is lower than 15 percent of all global equities and portfolios over the last 90 days. You can use 3M Company to enhance the returns of your portfolios. The stock experiences a normal upward fluctuation. Check odds of 3M to be traded at $182.13 in 90 days.Good diversification
The correlation between 3M Company and DJI is -0.15 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding 3M Company and DJI in the same portfolio, assuming nothing else is changed.
3M Additional Risk Indicators
The analysis of 3M'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 3M's investment and either accepting that risk or mitigating it. Along with some common measures of 3M 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 | 0.0528 | |||
| Market Risk Adjusted Performance | 0.0846 | |||
| Mean Deviation | 1.2 | |||
| Semi Deviation | 1.77 | |||
| Downside Deviation | 1.9 | |||
| Coefficient Of Variation | 1671.57 | |||
| Standard Deviation | 1.7 |
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.
3M 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 3M 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. 3M'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, 3M'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 3M Company.
When determining whether 3M Company is a strong investment it is important to analyze 3M's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact 3M's future performance. For an informed investment choice regarding 3M Stock, refer to the following important reports: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in 3M Company. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state. You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Will Industrial Conglomerates sector continue expanding? Could 3M diversify its offerings? Factors like these will boost the valuation of 3M. Expected growth trajectory for 3M significantly influences the price investors are willing to assign. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every 3M data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth (0.20) | Dividend Share 2.92 | Earnings Share 6.1 | Revenue Per Share | Quarterly Revenue Growth 0.02 |
3M Company's market price often diverges from its book value, the accounting figure shown on 3M's balance sheet. Smart investors calculate 3M's 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 3M's trading price responds to investor sentiment, macroeconomic conditions, and market psychology, it can swing far from fundamental value.
Understanding that 3M's value differs from its trading price is crucial, as each reflects different aspects of the company. Evaluating whether 3M represents a sound investment requires analyzing earnings trends, revenue growth, technical signals, industry dynamics, and expert forecasts. However, 3M's 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.