Freightcar America Stock Volatility
| RAIL Stock | USD 13.47 0.48 3.70% |
Freightcar America appears to be somewhat reliable, given 3 months investment horizon. Freightcar America secures Sharpe Ratio (or Efficiency) of 0.22, which denotes the company had a 0.22 % return per unit of risk over the last 3 months. By reviewing Freightcar America's technical indicators, you can evaluate if the expected return of 0.87% is justified by implied risk. Please utilize Freightcar America's Mean Deviation of 3.01, downside deviation of 2.98, and Coefficient Of Variation of 555.71 to check if our risk estimates are consistent with your expectations.
Sharpe Ratio = 0.2159
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Based on monthly moving average Freightcar America is performing at about 17% 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 Freightcar America by adding it to a well-diversified portfolio.
Key indicators related to Freightcar America's volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Freightcar America 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 Freightcar daily returns, and it is calculated using variance and standard deviation. We also use Freightcar's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Freightcar America volatility.
Freightcar | Build AI portfolio with Freightcar Stock |
ESG Sustainability
While most ESG disclosures are voluntary, Freightcar America's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Freightcar America's 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 Freightcar America at lower prices. For example, an investor can purchase Freightcar 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 Freightcar America's market risk premium analysis include:
Beta 1.72 | Alpha 0.61 | Risk 4.01 | Sharpe Ratio 0.22 | Expected Return 0.87 |
Moving together with Freightcar Stock
| 0.82 | VELO | Velo3D | PairCorr |
| 0.88 | ALG | Alamo Group | PairCorr |
| 0.82 | CAT | Caterpillar | PairCorr |
| 0.88 | CMI | Cummins | PairCorr |
| 0.77 | CYD | China Yuchai Interna | PairCorr |
| 0.88 | GBX | Greenbrier Companies | PairCorr |
| 0.76 | MLR | Miller Industries | PairCorr |
| 0.86 | MTW | Manitowoc Earnings Call Today | PairCorr |
| 0.83 | OSK | Oshkosh | PairCorr |
| 0.92 | TEX | Terex | PairCorr |
| 0.76 | TRN | Trinity Industries | PairCorr |
| 0.91 | WAB | Westinghouse Air Brake Earnings Call This Week | PairCorr |
| 0.81 | WNC | Wabash National | PairCorr |
| 0.77 | 6WW | WIMFARM SA EO | PairCorr |
| 0.81 | PIG | Haulotte Group SA | PairCorr |
| 0.89 | PCAR | PACCAR Inc Sell-off Trend | PairCorr |
| 0.9 | PLOW | Douglas Dynamics | PairCorr |
| 0.66 | HCM | Hitachi Construction | PairCorr |
| 0.85 | REVG | Rev Group | PairCorr |
| 0.91 | ALSN | Allison Transmission Earnings Call This Week | PairCorr |
| 0.8 | ASTE | Astec Industries | PairCorr |
Moving against Freightcar Stock
| 0.7 | HCAI | Huachen AI Parking | PairCorr |
| 0.44 | GP | GreenPower Motor | PairCorr |
| 0.42 | ALH | Alliance Laundry Holdings | PairCorr |
Freightcar America Market Sensitivity And Downside Risk
Freightcar America's beta coefficient measures the volatility of Freightcar 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 Freightcar stock's returns against your selected market. In other words, Freightcar America's beta of 1.72 provides an investor with an approximation of how much risk Freightcar America stock can potentially add to one of your existing portfolios. Freightcar America currently demonstrates below-average downside deviation. It has Information Ratio of 0.16 and Jensen Alpha of 0.61. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Freightcar America'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 Freightcar America'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 Freightcar America Demand TrendCheck current 90 days Freightcar America correlation with market (Dow Jones Industrial)Freightcar America Volatility and Downside Risk
Freightcar 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 Freightcar Put Option to Manage Risk
Put options written on Freightcar America grant holders of the option the right to sell a specified amount of Freightcar America 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 Freightcar Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Freightcar America'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 Freightcar America will be realized, the loss incurred will be offset by the profits made with the option trade.
Freightcar America's PUT expiring on 2026-03-20
Profit |
| Freightcar America Price At Expiration |
Current Freightcar America Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | RAIL260320P00005000 | -0.071232 | 0.009516 | 52 | 2026-03-20 | 0.0 - 0.75 | 0.0 | View |
Put | RAIL260320P00007500 | -0.127168 | 0.019624 | 44 | 2026-03-20 | 0.0 - 1.0 | 0.0 | View |
Put | RAIL260320P00010000 | -0.184342 | 0.044726 | 106 | 2026-03-20 | 0.0 - 0.75 | 0.0 | View |
Put | RAIL260320P00012500 | -0.342937 | 0.091068 | 12 | 2026-03-20 | 0.15 - 1.35 | 0.0 | View |
Freightcar America Stock Volatility Analysis
Volatility refers to the frequency at which Freightcar America stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Freightcar America's price changes. Investors will then calculate the volatility of Freightcar America'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 Freightcar America's volatility:
Historical Volatility
This type of stock volatility measures Freightcar America's fluctuations based on previous trends. It's commonly used to predict Freightcar America'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 Freightcar America'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 Freightcar America'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. Freightcar America 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.
Freightcar America Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 1.7244 indicating as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Freightcar America 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 Freightcar America or Machinery 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 Freightcar America'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 Freightcar 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 |
| Returns |
What Drives a Freightcar America 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.Freightcar America Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Freightcar America is 463.21. The daily returns are distributed with a variance of 16.06 and standard deviation of 4.01. The mean deviation of Freightcar America is currently at 2.81. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.8
α | Alpha over Dow Jones | 0.61 | |
β | Beta against Dow Jones | 1.72 | |
σ | Overall volatility | 4.01 | |
Ir | Information ratio | 0.16 |
Freightcar America Stock Return Volatility
Freightcar America historical daily return volatility represents how much of Freightcar America stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 4.0081% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7778% 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 Freightcar Stock performing well and Freightcar America 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 Freightcar America'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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| ROMA | 7.83 | 0.07 | 0.03 | 0.10 | 9.53 | 29.11 | 105.24 | |||
| SCAG | 5.35 | (0.05) | 0.00 | 0.05 | 6.06 | 13.47 | 36.10 | |||
| BLNK | 4.36 | (1.33) | 0.00 | (0.49) | 0.00 | 9.38 | 30.46 | |||
| RGP | 2.10 | (0.20) | 0.00 | (0.10) | 0.00 | 4.68 | 20.76 | |||
| CRGO | 3.42 | (0.94) | 0.00 | (0.26) | 0.00 | 7.47 | 34.36 | |||
| ISSC | 3.76 | 1.15 | 0.33 | 0.69 | 2.99 | 9.75 | 39.02 | |||
| ZJK | 4.64 | (0.31) | 0.00 | (0.05) | 0.00 | 10.36 | 58.59 | |||
| RCMT | 1.74 | (0.48) | 0.00 | (0.38) | 0.00 | 3.73 | 12.06 | |||
| SKYX | 4.72 | 0.39 | 0.12 | 0.23 | 3.99 | 11.11 | 33.38 | |||
| SHIP | 1.59 | 0.43 | 0.19 | 5.56 | 1.49 | 4.47 | 9.88 |
About Freightcar America Volatility
Volatility is a rate at which the price of Freightcar America 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 Freightcar America may increase or decrease. In other words, similar to Freightcar's beta indicator, it measures the risk of Freightcar America and helps estimate the fluctuations that may happen in a short period of time. So if prices of Freightcar America 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 | 21.8 M | 19.4 M | |
| Market Cap | 190.8 M | 151.1 M |
Freightcar America'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 Freightcar Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Freightcar America's price varies over time.
3 ways to utilize Freightcar America's volatility to invest better
Higher Freightcar America's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Freightcar America 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. Freightcar America 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 Freightcar America investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Freightcar America'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 Freightcar America's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Freightcar America Investment Opportunity
Freightcar America has a volatility of 4.01 and is 5.14 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Freightcar America is lower than 36 percent of all global equities and portfolios over the last 90 days. You can use Freightcar America to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Freightcar America to be traded at $16.16 in 90 days.Almost no diversification
The correlation between Freightcar America and DJI is 0.91 (i.e., Almost no diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Freightcar America and DJI in the same portfolio, assuming nothing else is changed.
Freightcar America Additional Risk Indicators
The analysis of Freightcar America'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 Freightcar America's investment and either accepting that risk or mitigating it. Along with some common measures of Freightcar America 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 | 0.1522 | |||
| Market Risk Adjusted Performance | 0.4468 | |||
| Mean Deviation | 3.01 | |||
| Semi Deviation | 2.51 | |||
| Downside Deviation | 2.98 | |||
| Coefficient Of Variation | 555.71 | |||
| Standard Deviation | 4.24 |
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.
Freightcar America 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 Freightcar America 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. Freightcar America'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, Freightcar America'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 Freightcar America.
When determining whether Freightcar America is a strong investment it is important to analyze Freightcar America'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 Freightcar America's future performance. For an informed investment choice regarding Freightcar Stock, refer to the following important reports: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Freightcar America. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product. For more information on how to buy Freightcar Stock please use our How to buy in Freightcar Stock guide.You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Is Construction Machinery & Heavy Transportation Equipment 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 Freightcar America. Anticipated expansion of Freightcar 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 Freightcar America assessment requires weighing all these inputs, though not all factors influence outcomes equally.
Quarterly Earnings Growth 2.079 | Earnings Share 2.61 | Revenue Per Share | Quarterly Revenue Growth 0.417 | Return On Assets |
Freightcar America's market price often diverges from its book value, the accounting figure shown on Freightcar's balance sheet. Smart investors calculate Freightcar America's intrinsic value - its true economic worth - which may differ significantly from both market price and book value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Since Freightcar America's trading price responds to investor sentiment, macroeconomic conditions, and market psychology, it can swing far from fundamental value.
It's important to distinguish between Freightcar America's intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Freightcar America should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. However, Freightcar America'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.