River Valley Community Stock Volatility
| RVCB Stock | USD 24.10 0.40 1.63% |
River Valley Community maintains Sharpe Ratio (i.e., Efficiency) of -0.0445, which implies the firm had a -0.0445 % return per unit of risk over the last 3 months. River Valley Community exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check River Valley's Risk Adjusted Performance of (0.03), coefficient of variation of (2,167), and Variance of 2.52 to confirm the risk estimate we provide. Key indicators related to River Valley's volatility include:
360 Days Market Risk | Chance Of Distress | 360 Days Economic Sensitivity |
River Valley Pink Sheet 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 River daily returns, and it is calculated using variance and standard deviation. We also use River's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of River Valley volatility.
River |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as River Valley can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game as hey may decide to buy additional stocks of River Valley at lower prices to lower their average cost per share. Similarly, when the prices of River Valley's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with River Pink Sheet
Moving against River Pink Sheet
| 0.59 | CIHHF | China Merchants Bank | PairCorr |
| 0.56 | CIHKY | China Merchants Bank | PairCorr |
| 0.52 | BRK-B | Berkshire Hathaway | PairCorr |
| 0.48 | MFG | Mizuho Financial | PairCorr |
| 0.46 | HYMTF | Hyundai Motor | PairCorr |
| 0.41 | BBDC4 | Banco Bradesco SA | PairCorr |
| 0.4 | HDB | HDFC Bank Limited | PairCorr |
| 0.37 | SWZNF | Schweizerische Nationalbank | PairCorr |
River Valley Market Sensitivity And Downside Risk
River Valley's beta coefficient measures the volatility of River pink sheet 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 River pink sheet's returns against your selected market. In other words, River Valley's beta of 0.34 provides an investor with an approximation of how much risk River Valley pink sheet can potentially add to one of your existing portfolios. River Valley Community exhibits very low volatility with skewness of 1.15 and kurtosis of 18.79. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure River Valley's pink sheet risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact River Valley's pink sheet 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 River Valley Community Demand TrendCheck current 90 days River Valley correlation with market (Dow Jones Industrial)River Beta |
River 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 | 1.62 |
It is essential to understand the difference between upside risk (as represented by River Valley's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of River Valley's daily returns or price. Since the actual investment returns on holding a position in river pink sheet 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 River Valley.
River Valley Community Pink Sheet Volatility Analysis
Volatility refers to the frequency at which River Valley pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with River Valley's price changes. Investors will then calculate the volatility of River Valley's pink sheet to predict their future moves. A pink sheet that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A pink sheet with relatively stable price changes has low volatility. A highly volatile pink sheet 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 River Valley's volatility:
Historical Volatility
This type of pink sheet volatility measures River Valley's fluctuations based on previous trends. It's commonly used to predict River Valley's future behavior based on its past. However, it cannot conclusively determine the future direction of the pink sheet.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for River Valley's current market price. This means that the pink sheet will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on River Valley'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. The Median Price line plots median indexes of River Valley Community price series.
River Valley Projected Return Density Against Market
Given the investment horizon of 90 days River Valley has a beta of 0.3425 indicating as returns on the market go up, River Valley average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding River Valley Community will be expected to be much smaller as well.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 River Valley or Financial Services 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 River Valley's price will be affected by overall pink sheet 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 River pink sheet'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.
River Valley Community 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 River Valley Price Volatility?
Several factors can influence a pink sheet'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.River Valley Pink Sheet Risk Measures
Given the investment horizon of 90 days the coefficient of variation of River Valley is -2244.99. The daily returns are distributed with a variance of 2.64 and standard deviation of 1.62. The mean deviation of River Valley Community is currently at 0.6. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.7
α | Alpha over Dow Jones | -0.11 | |
β | Beta against Dow Jones | 0.34 | |
σ | Overall volatility | 1.62 | |
Ir | Information ratio | -0.1 |
River Valley Pink Sheet Return Volatility
River Valley historical daily return volatility represents how much of River Valley pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 1.6244% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.716% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About River Valley Volatility
Volatility is a rate at which the price of River Valley 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 River Valley may increase or decrease. In other words, similar to River's beta indicator, it measures the risk of River Valley and helps estimate the fluctuations that may happen in a short period of time. So if prices of River Valley 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.River Valley Community Bancorp, through its subsidiary, River Valley Community Bank provides various banking products and services in the United States. River Valley Community Bancorp was founded in 2006 and is headquartered in Yuba City, California. Riverton Community operates under BanksRegional classification in the United States and is traded on OTC Exchange.
River Valley'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 River Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much River Valley's price varies over time.
3 ways to utilize River Valley's volatility to invest better
Higher River Valley's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of River Valley Community 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. River Valley Community 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 River Valley Community investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in River Valley'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 River Valley's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
River Valley Investment Opportunity
River Valley Community has a volatility of 1.62 and is 2.25 times more volatile than Dow Jones Industrial. 14 percent of all equities and portfolios are less risky than River Valley. You can use River Valley Community to protect your portfolios against small market fluctuations. The pink sheet experiences a bearish sentiment with high volatility. Check odds of River Valley to be traded at $23.38 in 90 days.Average diversification
The correlation between River Valley Community and DJI is 0.15 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding River Valley Community and DJI in the same portfolio, assuming nothing else is changed.
River Valley Additional Risk Indicators
The analysis of River Valley'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 River Valley's investment and either accepting that risk or mitigating it. Along with some common measures of River Valley pink sheet'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 | (0.03) | |||
| Market Risk Adjusted Performance | (0.23) | |||
| Mean Deviation | 0.5794 | |||
| Coefficient Of Variation | (2,167) | |||
| Standard Deviation | 1.59 | |||
| Variance | 2.52 | |||
| Information Ratio | (0.1) |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential pink sheets, we recommend comparing similar pink sheets with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
River Valley 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 River Valley 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. River Valley'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, River Valley'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 River Valley Community.
Complementary Tools for River Pink Sheet analysis
When running River Valley's price analysis, check to measure River Valley's 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 River Valley is operating at the current time. Most of River Valley's value examination focuses on studying past and present price action to predict the probability of River Valley's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move River Valley's price. Additionally, you may evaluate how the addition of River Valley to your portfolios can decrease your overall portfolio volatility.
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