Gibraltar Industries Stock Volatility
| ROCK Stock | USD 53.08 1.39 2.69% |
Gibraltar Industries holds Efficiency (Sharpe) Ratio of -0.0273, which attests that the entity had a -0.0273 % return per unit of standard deviation over the last 3 months. Gibraltar Industries exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check out Gibraltar Industries' market risk adjusted performance of (0.05), and Risk Adjusted Performance of (0.01) to validate the risk estimate we provide.
Sharpe Ratio = -0.0273
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Based on monthly moving average Gibraltar Industries is not performing at its full potential. However, 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 Gibraltar Industries by adding Gibraltar Industries to a well-diversified portfolio.
Key indicators related to Gibraltar Industries' volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Gibraltar 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 Gibraltar daily returns, and it is calculated using variance and standard deviation. We also use Gibraltar's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Gibraltar Industries volatility.
Gibraltar | Build AI portfolio with Gibraltar Stock |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Gibraltar Industries at lower prices. For example, an investor can purchase Gibraltar 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 Gibraltar Industries' market risk premium analysis include:
Beta 1.9 | Alpha (0.22) | Risk 3.92 | Sharpe Ratio (0.03) | Expected Return (0.11) |
Moving against Gibraltar Stock
Gibraltar Industries Market Sensitivity And Downside Risk
Gibraltar Industries' beta coefficient measures the volatility of Gibraltar 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 Gibraltar stock's returns against your selected market. In other words, Gibraltar Industries's beta of 1.9 provides an investor with an approximation of how much risk Gibraltar Industries stock can potentially add to one of your existing portfolios. Gibraltar Industries exhibits very low volatility with skewness of -2.55 and kurtosis of 12.03. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Gibraltar 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 Gibraltar 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.
| α | -0.22 | β | 1.90 | Check current 90 days Gibraltar Industries correlation with market (Dow Jones Industrial)
Gibraltar Industries Volatility and Downside Risk
Gibraltar 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.
Gibraltar Industries Stock Volatility Analysis
Volatility refers to the frequency at which Gibraltar Industries stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Gibraltar Industries' price changes. Investors will then calculate the volatility of Gibraltar 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 Gibraltar Industries' volatility:
Historical Volatility
This type of stock volatility measures Gibraltar Industries' fluctuations based on previous trends. It's commonly used to predict Gibraltar 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 Gibraltar 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 Gibraltar 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. Gibraltar 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.
Gibraltar Industries Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 1.8968 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, Gibraltar Industries 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 Gibraltar Industries or Building Products 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 Gibraltar 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 Gibraltar 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 Gibraltar 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.Gibraltar Industries Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Gibraltar Industries is -3657.04. The daily returns are distributed with a variance of 15.34 and standard deviation of 3.92. The mean deviation of Gibraltar Industries is currently at 2.33. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.74
α | Alpha over Dow Jones | -0.22 | |
β | Beta against Dow Jones | 1.90 | |
σ | Overall volatility | 3.92 | |
Ir | Information ratio | -0.04 |
Gibraltar Industries Stock Return Volatility
Gibraltar Industries historical daily return volatility represents how much of Gibraltar Industries stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 3.9165% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.747% 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 Gibraltar Stock performing well and Gibraltar 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 Gibraltar 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| HNI | 1.07 | 0.36 | 0.34 | 0.59 | 0.53 | 2.93 | 6.56 | |||
| PBI | 1.28 | 0.04 | 0.02 | 0.11 | 1.41 | 2.65 | 9.16 | |||
| SCS | 0.53 | 0.09 | 0.06 | 1.96 | 0.42 | 1.69 | 3.28 | |||
| CMBT | 2.02 | 0.44 | 0.18 | (24.59) | 1.85 | 4.58 | 13.21 | |||
| ZIM | 2.54 | 0.56 | 0.19 | 0.41 | 2.61 | 6.15 | 20.91 | |||
| DXPE | 2.19 | 0.48 | 0.16 | 0.30 | 3.00 | 4.42 | 14.41 | |||
| CECO | 1.95 | 0.52 | 0.18 | 0.55 | 2.33 | 4.25 | 13.46 | |||
| VVX | 1.48 | 0.19 | 0.11 | 0.25 | 1.53 | 3.81 | 11.60 | |||
| KMT | 1.55 | 0.59 | 0.48 | 0.53 | 0.64 | 4.67 | 9.90 |
About Gibraltar Industries Volatility
Volatility is a rate at which the price of Gibraltar 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 Gibraltar Industries may increase or decrease. In other words, similar to Gibraltar's beta indicator, it measures the risk of Gibraltar Industries and helps estimate the fluctuations that may happen in a short period of time. So if prices of Gibraltar 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.Gibraltar Industries, Inc. manufactures and distributes building products for the renewable energy, residential, agtech, and infrastructure markets in North America and Asia. Gibraltar Industries, Inc. was founded in 1972 and is headquartered in Buffalo, New York. Gibraltar Ind operates under Building Products Equipment classification in the United States and is traded on NASDAQ Exchange. It employs 2011 people.
Gibraltar 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 Gibraltar Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Gibraltar Industries' price varies over time.
3 ways to utilize Gibraltar Industries' volatility to invest better
Higher Gibraltar Industries' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Gibraltar 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. Gibraltar 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 Gibraltar Industries investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Gibraltar 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 Gibraltar Industries' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Gibraltar Industries Investment Opportunity
Gibraltar Industries has a volatility of 3.92 and is 5.23 times more volatile than Dow Jones Industrial. 35 percent of all equities and portfolios are less risky than Gibraltar Industries. You can use Gibraltar Industries to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Gibraltar Industries to be traded at $63.7 in 90 days.Average diversification
The correlation between Gibraltar Industries and DJI is 0.19 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Gibraltar Industries and DJI in the same portfolio, assuming nothing else is changed.
Gibraltar Industries Additional Risk Indicators
The analysis of Gibraltar 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 Gibraltar Industries' investment and either accepting that risk or mitigating it. Along with some common measures of Gibraltar 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 | (0.01) | |||
| Market Risk Adjusted Performance | (0.05) | |||
| Mean Deviation | 2.33 | |||
| Coefficient Of Variation | (3,657) | |||
| Standard Deviation | 3.92 | |||
| Variance | 15.34 | |||
| Information Ratio | (0.04) |
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.
Gibraltar 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 Gibraltar 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. Gibraltar 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, Gibraltar 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 Gibraltar Industries.
When determining whether Gibraltar Industries is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Gibraltar Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Gibraltar Industries Stock. Highlighted below are key reports to facilitate an investment decision about Gibraltar Industries Stock: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Gibraltar 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 private. For more information on how to buy Gibraltar Stock please use our How to buy in Gibraltar Stock guide.You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Is Building Products 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 Gibraltar Industries. Anticipated expansion of Gibraltar 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 Gibraltar Industries assessment requires weighing all these inputs, though not all factors influence outcomes equally.
Understanding Gibraltar Industries requires distinguishing between market price and book value, where the latter reflects Gibraltar's accounting equity. The concept of intrinsic value - what Gibraltar Industries' is actually worth based on fundamentals - guides informed investors toward better entry and exit points. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Market sentiment, economic cycles, and investor behavior can push Gibraltar Industries' price substantially above or below its fundamental value.
It's important to distinguish between Gibraltar Industries' intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Gibraltar Industries should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. In contrast, Gibraltar Industries' trading price reflects the actual exchange value where willing buyers and sellers reach mutual agreement.