National Capital Bank Stock Volatility
| NACB Stock | USD 300.00 31.00 11.52% |
National Capital appears to be very steady, given 3 months investment horizon. National Capital Bank has Sharpe Ratio of 0.22, which conveys that the firm had a 0.22% return per unit of risk over the last 3 months. By analyzing National Capital's technical indicators, you can evaluate if the expected return of 0.81% is justified by implied risk. Please exercise National Capital's Mean Deviation of 1.83, risk adjusted performance of 0.1549, and Downside Deviation of 5.33 to check out if our risk estimates are consistent with your expectations. Key indicators related to National Capital's volatility include:
720 Days Market Risk | Chance Of Distress | 720 Days Economic Sensitivity |
National Capital 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 National daily returns, and it is calculated using variance and standard deviation. We also use National's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of National Capital volatility.
National |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as National Capital 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 National Capital at lower prices to lower their average cost per share. Similarly, when the prices of National Capital's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving against National Pink Sheet
| 0.73 | JNJ | Johnson Johnson Fiscal Year End 28th of January 2025 | PairCorr |
| 0.71 | KO | Coca Cola Aggressive Push | PairCorr |
| 0.69 | QLGN | Qualigen Therapeutics Trending | PairCorr |
| 0.64 | SGD | Safe and Green | PairCorr |
| 0.52 | BA | Boeing Fiscal Year End 29th of January 2025 | PairCorr |
| 0.34 | MMM | 3M Company Fiscal Year End 28th of January 2025 | PairCorr |
National Capital Market Sensitivity And Downside Risk
National Capital's beta coefficient measures the volatility of National 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 National pink sheet's returns against your selected market. In other words, National Capital's beta of -0.2 provides an investor with an approximation of how much risk National Capital pink sheet can potentially add to one of your existing portfolios. National Capital Bank shows above-average downside volatility for the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure National Capital's 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 National Capital's 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 National Capital Bank Demand TrendCheck current 90 days National Capital correlation with market (Dow Jones Industrial)National Beta |
National 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 | 3.59 |
It is essential to understand the difference between upside risk (as represented by National Capital's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of National Capital's daily returns or price. Since the actual investment returns on holding a position in national 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 National Capital.
National Capital Bank Pink Sheet Volatility Analysis
Volatility refers to the frequency at which National Capital pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with National Capital's price changes. Investors will then calculate the volatility of National Capital's 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 National Capital's volatility:
Historical Volatility
This type of pink sheet volatility measures National Capital's fluctuations based on previous trends. It's commonly used to predict National Capital's 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 National Capital's 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 National Capital'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. National Capital Bank 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.
National Capital Projected Return Density Against Market
Given the investment horizon of 90 days National Capital Bank has a beta of -0.1971 . This indicates as returns on the benchmark increase, returns on holding National Capital are expected to decrease at a much lower rate. During a bear market, however, National Capital Bank 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 National Capital 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 National Capital's 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 National 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.
National Capital Bank has an alpha of 0.6324, implying that it can generate a 0.63 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a National Capital 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.National Capital Pink Sheet Risk Measures
Given the investment horizon of 90 days the coefficient of variation of National Capital is 445.65. The daily returns are distributed with a variance of 12.89 and standard deviation of 3.59. The mean deviation of National Capital Bank is currently at 2.16. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 0.63 | |
β | Beta against Dow Jones | -0.2 | |
σ | Overall volatility | 3.59 | |
Ir | Information ratio | 0.15 |
National Capital Pink Sheet Return Volatility
National Capital historical daily return volatility represents how much of National Capital pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 3.5908% risk (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 National Capital Volatility
Volatility is a rate at which the price of National Capital 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 National Capital may increase or decrease. In other words, similar to National's beta indicator, it measures the risk of National Capital and helps estimate the fluctuations that may happen in a short period of time. So if prices of National Capital 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.National Capital Bancorp, Inc. operates as the bank holding for The National Capital Bank of Washington that provides various banking products and services to individuals and businesses in Washington. The company was founded in 1889 and is based in Washington, the District of Columbia. National Capital operates under BanksRegional classification in the United States and is traded on OTC Exchange.
National Capital'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 National Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much National Capital's price varies over time.
3 ways to utilize National Capital's volatility to invest better
Higher National Capital's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of National Capital Bank 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. National Capital Bank 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 National Capital Bank investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in National Capital'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 National Capital's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
National Capital Investment Opportunity
National Capital Bank has a volatility of 3.59 and is 4.6 times more volatile than Dow Jones Industrial. 31 percent of all equities and portfolios are less risky than National Capital. You can use National Capital Bank to enhance the returns of your portfolios. The pink sheet experiences a very speculative upward sentiment. The trend is possibly hyped up. Check odds of National Capital to be traded at $375.0 in 90 days.Good diversification
The correlation between National Capital Bank and DJI is -0.05 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding National Capital Bank and DJI in the same portfolio, assuming nothing else is changed.
National Capital Additional Risk Indicators
The analysis of National Capital'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 National Capital's investment and either accepting that risk or mitigating it. Along with some common measures of National Capital 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 | 0.1549 | |||
| Market Risk Adjusted Performance | (3.08) | |||
| Mean Deviation | 1.83 | |||
| Semi Deviation | 1.81 | |||
| Downside Deviation | 5.33 | |||
| Coefficient Of Variation | 520.73 | |||
| Standard Deviation | 3.22 |
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.
National Capital 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 National Capital 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. National Capital'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, National Capital'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 National Capital Bank.
Complementary Tools for National Pink Sheet analysis
When running National Capital's price analysis, check to measure National Capital'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 National Capital is operating at the current time. Most of National Capital's value examination focuses on studying past and present price action to predict the probability of National Capital's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move National Capital's price. Additionally, you may evaluate how the addition of National Capital to your portfolios can decrease your overall portfolio volatility.
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