Nl Industries Stock Volatility
| NL Stock | USD 6.22 0.20 3.12% |
NL Industries appears to be slightly risky, given 3 months investment horizon. NL Industries retains Efficiency (Sharpe Ratio) of 0.12, which conveys that the firm had a 0.12 % return per unit of price deviation over the last 3 months. We have found twenty-eight technical indicators for NL Industries, which you can use to evaluate the volatility of the firm. Please exercise NL Industries' Standard Deviation of 3.11, mean deviation of 2.2, and Market Risk Adjusted Performance of 0.1792 to check out if our risk estimates are consistent with your expectations.
Sharpe Ratio = 0.1172
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Based on monthly moving average NL Industries is performing at about 9% 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 NL Industries by adding it to a well-diversified portfolio.
Key indicators related to NL Industries' volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
NL 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 NL Industries daily returns, and it is calculated using variance and standard deviation. We also use NL Industries's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of NL Industries volatility.
NL Industries | Build AI portfolio with NL Industries Stock |
ESG Sustainability
While most ESG disclosures are voluntary, NL Industries' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to NL Industries' managers and investors.Environmental | Governance | Social |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of NL Industries at lower prices. For example, an investor can purchase NL Industries 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. Main indicators related to NL Industries' market risk premium analysis include:
Beta 0.84 | Alpha 0.0829 | Risk 3.15 | Sharpe Ratio 0.12 | Expected Return 0.37 |
Moving together with NL Industries Stock
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| 0.83 | RILYL | B Riley Financial | PairCorr |
| 0.74 | OBYCF | Obayashi | PairCorr |
Moving against NL Industries Stock
NL Industries Market Sensitivity And Downside Risk
NL Industries' beta coefficient measures the volatility of NL Industries 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 NL Industries stock's returns against your selected market. In other words, NL Industries's beta of 0.84 provides an investor with an approximation of how much risk NL Industries stock can potentially add to one of your existing portfolios. NL Industries currently demonstrates below-average downside deviation. It has Information Ratio of 0.02 and Jensen Alpha of 0.08. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure NL 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 NL 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 NL Industries Demand TrendCheck current 90 days NL Industries correlation with market (Dow Jones Industrial)NL Industries Volatility and Downside Risk
NL Industries 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 NL Industries Put Option to Manage Risk
Put options written on NL Industries grant holders of the option the right to sell a specified amount of NL 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 NL Industries Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge NL 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 NL Industries will be realized, the loss incurred will be offset by the profits made with the option trade.
NL Industries' PUT expiring on 2026-05-15
Profit |
| NL Industries Price At Expiration |
Current NL Industries Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | NL260515P00002500 | -0.058189 | 0.007798 | 1 | 2026-05-15 | 0.0 - 1.55 | 0.0 | View |
Put | NL260515P00007500 | -0.391536 | 0.066948 | 1 | 2026-05-15 | 0.0 - 2.95 | 0.0 | View |
NL Industries Stock Volatility Analysis
Volatility refers to the frequency at which NL Industries stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with NL Industries' price changes. Investors will then calculate the volatility of NL 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 NL Industries' volatility:
Historical Volatility
This type of stock volatility measures NL Industries' fluctuations based on previous trends. It's commonly used to predict NL 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 NL 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 NL 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. NL 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.
NL Industries Projected Return Density Against Market
Allowing for the 90-day total investment horizon NL Industries has a beta of 0.8415 . This indicates as returns on the market go up, NL Industries average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding NL Industries 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 NL Industries or Commercial Services & Supplies 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 NL 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 NL Industries 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 NL 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 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.NL Industries Stock Risk Measures
Allowing for the 90-day total investment horizon the coefficient of variation of NL Industries is 853.5. The daily returns are distributed with a variance of 9.92 and standard deviation of 3.15. The mean deviation of NL Industries is currently at 2.24. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.81
α | Alpha over Dow Jones | 0.08 | |
β | Beta against Dow Jones | 0.84 | |
σ | Overall volatility | 3.15 | |
Ir | Information ratio | 0.02 |
NL Industries Stock Return Volatility
NL Industries historical daily return volatility represents how much of NL Industries stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 3.1496% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7767% volatility on return distribution over the 90 days horizon. Performance |
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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
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Risk-Adjusted Indicators
There is a big difference between NL Industries Stock performing well and NL 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 NL 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| MG | 1.80 | 0.14 | 0.09 | 0.16 | 1.77 | 4.12 | 13.29 | |||
| RLGT | 1.77 | 0.25 | 0.13 | 0.24 | 1.96 | 3.86 | 16.21 | |||
| MEC | 2.27 | 0.29 | 0.14 | 0.28 | 2.00 | 5.19 | 11.91 | |||
| FSTR | 1.52 | 0.18 | 0.10 | 0.27 | 1.39 | 3.69 | 11.26 | |||
| PKOH | 1.96 | 0.51 | 0.23 | 0.53 | 1.82 | 5.26 | 10.51 | |||
| OFLX | 1.95 | 0.37 | 0.18 | 0.31 | 1.94 | 4.53 | 13.45 | |||
| SPCE | 3.76 | (0.54) | 0.00 | (0.22) | 0.00 | 6.72 | 27.80 | |||
| TGEN | 4.00 | (1.20) | 0.00 | (0.49) | 0.00 | 7.23 | 29.87 |
About NL Industries Volatility
Volatility is a rate at which the price of NL 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 NL Industries may increase or decrease. In other words, similar to NL Industries's beta indicator, it measures the risk of NL Industries and helps estimate the fluctuations that may happen in a short period of time. So if prices of NL 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 | 28.9 M | 20.4 M | |
| Market Cap | 488.4 M | 279.1 M |
NL 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 NL Industries Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much NL Industries' price varies over time.
3 ways to utilize NL Industries' volatility to invest better
Higher NL Industries' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of NL 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. NL 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 NL Industries investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in NL 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 NL Industries' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
NL Industries Investment Opportunity
NL Industries has a volatility of 3.15 and is 4.04 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of NL Industries is lower than 28 percent of all global equities and portfolios over the last 90 days. You can use NL Industries 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 NL Industries to be traded at $5.97 in 90 days.Poor diversification
The correlation between NL Industries and DJI is 0.77 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding NL Industries and DJI in the same portfolio, assuming nothing else is changed.
NL Industries Additional Risk Indicators
The analysis of NL 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 NL Industries' investment and either accepting that risk or mitigating it. Along with some common measures of NL 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 | 0.0472 | |||
| Market Risk Adjusted Performance | 0.1792 | |||
| Mean Deviation | 2.2 | |||
| Semi Deviation | 2.33 | |||
| Downside Deviation | 2.43 | |||
| Coefficient Of Variation | 2041.82 | |||
| Standard Deviation | 3.11 |
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.
NL 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 NL 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. NL 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, NL 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 NL Industries.
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in NL 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 board of governors. For more information on how to buy NL Industries Stock please use our How to buy in NL Industries Stock guide.You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Is Commercial Services & Supplies space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of NL Industries. Anticipated expansion of NL Industries directly elevates investor willingness to pay premium valuations. The financial industry is built on trying to define current growth potential and future valuation accurately. Comprehensive NL Industries assessment requires weighing all these inputs, though not all factors influence outcomes equally.
Quarterly Earnings Growth (0.95) | Dividend Share 0.35 | Earnings Share 0.19 | Revenue Per Share | Quarterly Revenue Growth 0.187 |
The market value of NL Industries is measured differently than its book value, which is the value of NL Industries that is recorded on the company's balance sheet. Investors also form their own opinion of NL Industries' value that differs from its market value or its book value, called intrinsic value, which is NL Industries' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because NL Industries' market value can be influenced by many factors that don't directly affect NL Industries' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
It's important to distinguish between NL Industries' intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding NL Industries should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. Meanwhile, NL Industries' quoted price indicates the marketplace figure where supply meets demand through bilateral consent.