Ofg Bancorp Stock Volatility
| OFG Stock | USD 45.52 1.11 2.50% |
At this point, OFG Bancorp is very steady. OFG Bancorp maintains Sharpe Ratio (i.e., Efficiency) of 0.0214, which implies the firm had a 0.0214% return per unit of volatility over the last 3 months. We have found twenty-eight technical indicators for OFG Bancorp, which you can use to evaluate the volatility of the company. Please check OFG Bancorp's semi deviation of 2.06, and Risk Adjusted Performance of 0.0343 to confirm if the risk estimate we provide is consistent with the expected return of 0.0523%. Key indicators related to OFG Bancorp's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
OFG Bancorp 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 OFG daily returns, and it is calculated using variance and standard deviation. We also use OFG's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of OFG Bancorp volatility.
OFG |
ESG Sustainability
While most ESG disclosures are voluntary, OFG Bancorp's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to OFG Bancorp's managers and investors.Environmental | Governance | Social |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as OFG Bancorp 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 OFG Bancorp at lower prices to lower their average cost per share. Similarly, when the prices of OFG Bancorp's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving against OFG Stock
| 0.41 | CFG-PH | Citizens Financial Group, | PairCorr |
| 0.35 | KB | KB Financial Group | PairCorr |
| 0.33 | ECBK | ECB Bancorp | PairCorr |
OFG Bancorp Market Sensitivity And Downside Risk
OFG Bancorp's beta coefficient measures the volatility of OFG 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 OFG stock's returns against your selected market. In other words, OFG Bancorp's beta of 1.95 provides an investor with an approximation of how much risk OFG Bancorp stock can potentially add to one of your existing portfolios. OFG Bancorp currently demonstrates below-average downside deviation. It has Information Ratio of -0.01 and Jensen Alpha of -0.12. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure OFG Bancorp'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 OFG Bancorp'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 OFG Bancorp Demand TrendCheck current 90 days OFG Bancorp correlation with market (Dow Jones Industrial)OFG Beta |
OFG 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 | 2.44 |
It is essential to understand the difference between upside risk (as represented by OFG Bancorp's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of OFG Bancorp's daily returns or price. Since the actual investment returns on holding a position in ofg stock 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 OFG Bancorp.
OFG Bancorp Stock Volatility Analysis
Volatility refers to the frequency at which OFG Bancorp stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with OFG Bancorp's price changes. Investors will then calculate the volatility of OFG Bancorp'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 OFG Bancorp's volatility:
Historical Volatility
This type of stock volatility measures OFG Bancorp's fluctuations based on previous trends. It's commonly used to predict OFG Bancorp'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 OFG Bancorp'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 OFG Bancorp'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. OFG Bancorp 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.
OFG Bancorp Projected Return Density Against Market
Considering the 90-day investment horizon the stock has the beta coefficient of 1.9538 . 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, OFG Bancorp 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 OFG Bancorp 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 OFG Bancorp'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 OFG 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.
OFG Bancorp has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives an OFG Bancorp 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.OFG Bancorp Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of OFG Bancorp is 4671.93. The daily returns are distributed with a variance of 5.96 and standard deviation of 2.44. The mean deviation of OFG Bancorp is currently at 1.47. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | -0.12 | |
β | Beta against Dow Jones | 1.95 | |
σ | Overall volatility | 2.44 | |
Ir | Information ratio | -0.0089 |
OFG Bancorp Stock Return Volatility
OFG Bancorp historical daily return volatility represents how much of OFG Bancorp stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company has volatility of 2.4418% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7685% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About OFG Bancorp Volatility
Volatility is a rate at which the price of OFG Bancorp 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 OFG Bancorp may increase or decrease. In other words, similar to OFG's beta indicator, it measures the risk of OFG Bancorp and helps estimate the fluctuations that may happen in a short period of time. So if prices of OFG Bancorp 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 | 8.7 M | 4.9 M | |
| Market Cap | 1.6 B | 1.7 B |
OFG Bancorp'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 OFG Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much OFG Bancorp's price varies over time.
3 ways to utilize OFG Bancorp's volatility to invest better
Higher OFG Bancorp's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of OFG Bancorp 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. OFG Bancorp 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 OFG Bancorp investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in OFG Bancorp'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 OFG Bancorp's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
OFG Bancorp Investment Opportunity
OFG Bancorp has a volatility of 2.44 and is 3.17 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of OFG Bancorp is lower than 21 percent of all global equities and portfolios over the last 90 days. You can use OFG Bancorp to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of OFG Bancorp to be traded at $54.62 in 90 days.Poor diversification
The correlation between OFG Bancorp and DJI is 0.61 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding OFG Bancorp and DJI in the same portfolio, assuming nothing else is changed.
OFG Bancorp Additional Risk Indicators
The analysis of OFG Bancorp'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 OFG Bancorp's investment and either accepting that risk or mitigating it. Along with some common measures of OFG Bancorp 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 | 0.0343 | |||
| Market Risk Adjusted Performance | 0.0498 | |||
| Mean Deviation | 1.47 | |||
| Semi Deviation | 2.06 | |||
| Downside Deviation | 2.18 | |||
| Coefficient Of Variation | 2776.29 | |||
| Standard Deviation | 2.44 |
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.
OFG Bancorp 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 OFG Bancorp 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. OFG Bancorp'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, OFG Bancorp'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 OFG Bancorp.
Complementary Tools for OFG Stock analysis
When running OFG Bancorp's price analysis, check to measure OFG Bancorp'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 OFG Bancorp is operating at the current time. Most of OFG Bancorp's value examination focuses on studying past and present price action to predict the probability of OFG Bancorp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move OFG Bancorp's price. Additionally, you may evaluate how the addition of OFG Bancorp to your portfolios can decrease your overall portfolio volatility.
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