Rpm International Stock Volatility
| RPM Stock | USD 140.26 2.39 1.73% |
RPM International appears to be very steady, given 3 months investment horizon. RPM International maintains Sharpe Ratio (i.e., Efficiency) of 0.24, which implies the firm had a 0.24% return per unit of volatility over the last 3 months. We have found twenty-nine technical indicators for RPM International, which you can use to evaluate the volatility of the company. Please evaluate RPM International's risk adjusted performance of 0.1729, and Semi Deviation of 0.7078 to confirm if our risk estimates are consistent with your expectations. Key indicators related to RPM International's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
RPM International 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 RPM daily returns, and it is calculated using variance and standard deviation. We also use RPM's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of RPM International volatility.
RPM |
ESG Sustainability
While most ESG disclosures are voluntary, RPM International's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to RPM International's managers and investors.Environmental | Governance | Social |
RPM International Stock Volatility Analysis
Volatility refers to the frequency at which RPM International stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with RPM International's price changes. Investors will then calculate the volatility of RPM International'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 RPM International's volatility:
Historical Volatility
This type of stock volatility measures RPM International's fluctuations based on previous trends. It's commonly used to predict RPM International'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 RPM International'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 RPM International'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. RPM International 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.
RPM International Projected Return Density Against Market
Considering the 90-day investment horizon RPM International has a beta of 0.9975 indicating RPM International market returns are highly reactive to returns on the market. As the market goes up or down, RPM International is expected to follow.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 RPM International or Chemicals 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 RPM International'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 RPM 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.
RPM International has an alpha of 0.1687, implying that it can generate a 0.17 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a RPM International 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.RPM International Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of RPM International is 414.11. The daily returns are distributed with a variance of 1.78 and standard deviation of 1.34. The mean deviation of RPM International is currently at 1.0. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 0.17 | |
β | Beta against Dow Jones | 1.00 | |
σ | Overall volatility | 1.34 | |
Ir | Information ratio | 0.12 |
RPM International Stock Return Volatility
RPM International historical daily return volatility represents how much of RPM International stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 1.3359% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7762% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About RPM International Volatility
Volatility is a rate at which the price of RPM International 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 RPM International may increase or decrease. In other words, similar to RPM's beta indicator, it measures the risk of RPM International and helps estimate the fluctuations that may happen in a short period of time. So if prices of RPM International 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 | 64.7 M | 78.7 M | |
| Market Cap | 8.6 B | 9 B |
RPM International'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 RPM Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much RPM International's price varies over time.
3 ways to utilize RPM International's volatility to invest better
Higher RPM International's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of RPM International 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. RPM International 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 RPM International investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in RPM International'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 RPM International's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
RPM International Investment Opportunity
RPM International has a volatility of 1.34 and is 1.72 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of RPM International is lower than 11 percent of all global equities and portfolios over the last 90 days. You can use RPM International to enhance the returns of your portfolios. The stock experiences a large bullish trend. Check odds of RPM International to be traded at $154.29 in 90 days.Very weak diversification
The correlation between RPM International and DJI is 0.56 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding RPM International and DJI in the same portfolio, assuming nothing else is changed.
RPM International Additional Risk Indicators
The analysis of RPM International'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 RPM International's investment and either accepting that risk or mitigating it. Along with some common measures of RPM International 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 | 0.1729 | |||
| Market Risk Adjusted Performance | 0.2999 | |||
| Mean Deviation | 1.03 | |||
| Semi Deviation | 0.7078 | |||
| Downside Deviation | 0.9285 | |||
| Coefficient Of Variation | 454.97 | |||
| Standard Deviation | 1.36 |
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.
RPM International 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 RPM International 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. RPM International'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, RPM International'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 RPM International.
When determining whether RPM International is a strong investment it is important to analyze RPM International'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 RPM International's future performance. For an informed investment choice regarding RPM 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 RPM International. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in american community survey. To learn how to invest in RPM Stock, please use our How to Invest in RPM International guide.You can also try the Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Is Specialty Chemicals 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 RPM International. If investors know RPM 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 RPM International 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 0.132 | Dividend Share 1.84 | Earnings Share 4.77 | Revenue Per Share 57.068 | Quarterly Revenue Growth (0.02) |
The market value of RPM International is measured differently than its book value, which is the value of RPM that is recorded on the company's balance sheet. Investors also form their own opinion of RPM International's value that differs from its market value or its book value, called intrinsic value, which is RPM International's 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 RPM International's market value can be influenced by many factors that don't directly affect RPM International's 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 RPM International's value and its price as these two are different measures arrived at by different means. Investors typically determine if RPM International is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, RPM International'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.