Paymentus Holdings Stock Volatility
| PAY Stock | USD 32.08 0.12 0.38% |
Paymentus Holdings appears to be not too volatile, given 3 months investment horizon. Paymentus Holdings maintains Sharpe Ratio (i.e., Efficiency) of 0.12, which implies the firm had a 0.12 % return per unit of risk over the last 3 months. By analyzing Paymentus Holdings' technical indicators, you can evaluate if the expected return of 0.57% is justified by implied risk. Please evaluate Paymentus Holdings' Risk Adjusted Performance of 0.0932, standard deviation of 4.44, and Downside Deviation of 2.64 to confirm if our risk estimates are consistent with your expectations. Key indicators related to Paymentus Holdings' volatility include:
150 Days Market Risk | Chance Of Distress | 150 Days Economic Sensitivity |
Paymentus Holdings 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 Paymentus daily returns, and it is calculated using variance and standard deviation. We also use Paymentus's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Paymentus Holdings volatility.
Paymentus |
ESG Sustainability
While most ESG disclosures are voluntary, Paymentus Holdings' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Paymentus Holdings' managers and investors.Environmental | Governance | Social |
Using Paymentus Put Option to Manage Risk
Put options written on Paymentus Holdings grant holders of the option the right to sell a specified amount of Paymentus Holdings 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 Paymentus Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Paymentus Holdings' 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 Paymentus Holdings will be realized, the loss incurred will be offset by the profits made with the option trade.
Paymentus Holdings' PUT expiring on 2025-03-21
Profit |
| Paymentus Holdings Price At Expiration |
Current Paymentus Holdings Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | PAY250321P00041000 | -0.806469 | 0.034991 | 1 | 2025-03-21 | 9.0 - 10.1 | 0.0 | View |
Put | PAY250321P00040000 | -0.782023 | 0.038223 | 2 | 2025-03-21 | 8.1 - 9.2 | 0.0 | View |
Put | PAY250321P00039000 | -0.75133 | 0.041346 | 2 | 2025-03-21 | 7.3 - 8.3 | 0.0 | View |
Put | PAY250321P00038000 | -0.743956 | 0.046472 | 17 | 2025-03-21 | 4.8 - 8.7 | 0.0 | View |
Put | PAY250321P00037000 | -0.656255 | 0.04418 | 14 | 2025-03-21 | 4.1 - 8.8 | 0.0 | View |
Put | PAY250321P00036000 | -0.617939 | 0.046068 | 7 | 2025-03-21 | 5.4 - 6.0 | 0.0 | View |
Put | PAY250321P00035000 | -0.585621 | 0.049782 | 14 | 2025-03-21 | 4.7 - 5.3 | 0.0 | View |
Put | PAY250321P00034000 | -0.536218 | 0.049813 | 10 | 2025-03-21 | 3.9 - 4.7 | 0.0 | View |
Put | PAY250321P00033000 | -0.483483 | 0.047281 | 10 | 2025-03-21 | 3.5 - 4.1 | 0.0 | View |
Put | PAY250321P00032000 | -0.424218 | 0.035975 | 77 | 2025-03-21 | 2.9 - 5.5 | 0.0 | View |
Put | PAY250321P00031000 | -0.389781 | 0.0461 | 18 | 2025-03-21 | 2.45 - 2.9 | 0.0 | View |
Paymentus Holdings Stock Volatility Analysis
Volatility refers to the frequency at which Paymentus Holdings stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Paymentus Holdings' price changes. Investors will then calculate the volatility of Paymentus Holdings' 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 Paymentus Holdings' volatility:
Historical Volatility
This type of stock volatility measures Paymentus Holdings' fluctuations based on previous trends. It's commonly used to predict Paymentus Holdings' 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 Paymentus Holdings' 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 Paymentus Holdings' 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. Paymentus Holdings 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.
Paymentus Holdings Projected Return Density Against Market
Considering the 90-day investment horizon Paymentus Holdings has a beta that is very close to zero indicating the returns on DOW JONES INDUSTRIAL and Paymentus Holdings do not appear to be sensitive.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 Paymentus Holdings or Electronic Equipment, Instruments & Components 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 Paymentus Holdings' 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 Paymentus 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.
It does not look like Paymentus Holdings' alpha can have any bearing on the current valuation. Predicted Return Density |
| Returns |
What Drives a Paymentus Holdings 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.Paymentus Holdings Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Paymentus Holdings is 810.27. The daily returns are distributed with a variance of 21.31 and standard deviation of 4.62. The mean deviation of Paymentus Holdings is currently at 2.8. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.84
α | Alpha over Dow Jones | 0.00 | |
β | Beta against Dow Jones | 0.00 | |
σ | Overall volatility | 4.62 | |
Ir | Information ratio | 0.08 |
Paymentus Holdings Stock Return Volatility
Paymentus Holdings historical daily return volatility represents how much of Paymentus Holdings stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company has volatility of 4.6159% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.8521% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Paymentus Holdings Volatility
Volatility is a rate at which the price of Paymentus Holdings 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 Paymentus Holdings may increase or decrease. In other words, similar to Paymentus's beta indicator, it measures the risk of Paymentus Holdings and helps estimate the fluctuations that may happen in a short period of time. So if prices of Paymentus Holdings 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 | 75.6 M | 94.9 M | |
| Market Cap | 2.5 B | 3.1 B |
Paymentus Holdings' 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 Paymentus Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Paymentus Holdings' price varies over time.
3 ways to utilize Paymentus Holdings' volatility to invest better
Higher Paymentus Holdings' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Paymentus Holdings 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. Paymentus Holdings 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 Paymentus Holdings investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Paymentus Holdings' 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 Paymentus Holdings' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Paymentus Holdings Investment Opportunity
Paymentus Holdings has a volatility of 4.62 and is 5.44 times more volatile than Dow Jones Industrial. 41 percent of all equities and portfolios are less risky than Paymentus Holdings. You can use Paymentus Holdings to enhance the returns of your portfolios. The stock experiences a normal upward fluctuation. Check odds of Paymentus Holdings to be traded at $33.68 in 90 days.Paymentus Holdings Additional Risk Indicators
The analysis of Paymentus Holdings' 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 Paymentus Holdings' investment and either accepting that risk or mitigating it. Along with some common measures of Paymentus Holdings 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 | 0.0932 | |||
| Mean Deviation | 2.71 | |||
| Semi Deviation | 2.41 | |||
| Downside Deviation | 2.64 | |||
| Coefficient Of Variation | 981.28 | |||
| Standard Deviation | 4.44 | |||
| Variance | 19.69 |
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.
Paymentus Holdings 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 Paymentus Holdings 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. Paymentus Holdings' 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, Paymentus Holdings' 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 Paymentus Holdings.
Additional Tools for Paymentus Stock Analysis
When running Paymentus Holdings' price analysis, check to measure Paymentus Holdings' 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 Paymentus Holdings is operating at the current time. Most of Paymentus Holdings' value examination focuses on studying past and present price action to predict the probability of Paymentus Holdings' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Paymentus Holdings' price. Additionally, you may evaluate how the addition of Paymentus Holdings to your portfolios can decrease your overall portfolio volatility.