Gibraltar Industries Stock Volatility
| ROCK Stock | USD 69.72 0.80 1.16% |
As of now, Gibraltar Stock is very steady. Gibraltar Industries holds Efficiency (Sharpe) Ratio of 0.0194, which attests that the entity had a 0.0194% return per unit of standard deviation over the last 3 months. We have found twenty-nine technical indicators for Gibraltar Industries, which you can use to evaluate the volatility of the firm. Please check out Gibraltar Industries' risk adjusted performance of 0.0482, and Market Risk Adjusted Performance of 0.0773 to validate if the risk estimate we provide is consistent with the expected return of 0.035%. Key indicators related to Gibraltar Industries' volatility include:
30 Days Market Risk | Chance Of Distress | 30 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 |
ESG Sustainability
While most ESG disclosures are voluntary, Gibraltar Industries' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Gibraltar 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 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.
Moving against Gibraltar Stock
| 0.41 | APT | Alpha Pro Tech | PairCorr |
| 0.34 | AEHL | Antelope Enterprise | PairCorr |
| 0.33 | JBI | Janus International | PairCorr |
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 1.42 provides an investor with an approximation of how much risk Gibraltar Industries stock can potentially add to one of your existing portfolios. Gibraltar Industries has relatively low volatility with skewness of 0.33 and kurtosis of 0.79. 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.
3 Months Beta |Analyze Gibraltar Industries Demand TrendCheck current 90 days Gibraltar Industries correlation with market (Dow Jones Industrial)Gibraltar Beta |
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.
Standard Deviation | 1.81 |
It is essential to understand the difference between upside risk (as represented by Gibraltar Industries's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Gibraltar Industries' daily returns or price. Since the actual investment returns on holding a position in gibraltar 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 Gibraltar Industries.
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 1.4182 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.
Gibraltar Industries 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 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 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.Gibraltar Industries Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Gibraltar Industries is 5167.81. The daily returns are distributed with a variance of 3.27 and standard deviation of 1.81. The mean deviation of Gibraltar Industries is currently at 1.39. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.75
α | Alpha over Dow Jones | -0.03 | |
β | Beta against Dow Jones | 1.42 | |
σ | Overall volatility | 1.81 | |
Ir | Information ratio | 0.01 |
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 1.8075% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7608% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
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.| Last Reported | Projected for Next Year | ||
| Market Cap | 1.3 B | 1.4 B |
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 1.81 and is 2.38 times more volatile than Dow Jones Industrial. 16 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 a large bullish trend. Check odds of Gibraltar Industries to be traded at $76.69 in 90 days.Very weak diversification
The correlation between Gibraltar Industries and DJI is 0.57 (i.e., Very weak 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 | 0.0482 | |||
| Market Risk Adjusted Performance | 0.0773 | |||
| Mean Deviation | 1.46 | |||
| Semi Deviation | 1.62 | |||
| Downside Deviation | 1.73 | |||
| Coefficient Of Variation | 1786.56 | |||
| Standard Deviation | 1.88 |
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 main economic indicators. For more information on how to buy Gibraltar Stock please use our How to buy in Gibraltar Stock guide.You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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. If investors know Gibraltar will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Gibraltar Industries listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.13) | Earnings Share 3.59 | Revenue Per Share 43.686 | Quarterly Revenue Growth (0.08) | Return On Assets 0.075 |
The market value of Gibraltar Industries is measured differently than its book value, which is the value of Gibraltar that is recorded on the company's balance sheet. Investors also form their own opinion of Gibraltar Industries' value that differs from its market value or its book value, called intrinsic value, which is Gibraltar 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 Gibraltar Industries' market value can be influenced by many factors that don't directly affect Gibraltar Industries' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Gibraltar Industries' value and its price as these two are different measures arrived at by different means. Investors typically determine if Gibraltar Industries is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Gibraltar Industries' 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.