Southern Bancshares Nc Stock Volatility
| SBNC Stock | USD 7,250 24.99 0.35% |
Southern BancShares appears to be very steady, given 3 months investment horizon. Southern BancShares owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.14, which indicates the firm had a 0.14% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Southern BancShares NC, which you can use to evaluate the volatility of the company. Please review Southern BancShares' Semi Deviation of 1.01, risk adjusted performance of 0.1209, and Coefficient Of Variation of 667.38 to confirm if our risk estimates are consistent with your expectations. Key indicators related to Southern BancShares' volatility include:
540 Days Market Risk | Chance Of Distress | 540 Days Economic Sensitivity |
Southern BancShares 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 Southern daily returns, and it is calculated using variance and standard deviation. We also use Southern's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Southern BancShares volatility.
Southern |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Southern BancShares 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 Southern BancShares at lower prices to lower their average cost per share. Similarly, when the prices of Southern BancShares' stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving against Southern Pink Sheet
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| 0.83 | JNJ | Johnson Johnson Sell-off Trend | PairCorr |
| 0.76 | PPERF | Bank Mandiri Persero | PairCorr |
| 0.76 | PBCRY | Bank Central Asia | PairCorr |
| 0.72 | BKRKF | PT Bank Rakyat | PairCorr |
Southern BancShares Market Sensitivity And Downside Risk
Southern BancShares' beta coefficient measures the volatility of Southern 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 Southern pink sheet's returns against your selected market. In other words, Southern BancShares's beta of 0.88 provides an investor with an approximation of how much risk Southern BancShares pink sheet can potentially add to one of your existing portfolios. Southern BancShares NC currently demonstrates below-average downside deviation. It has Information Ratio of 0.09 and Jensen Alpha of 0.18. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Southern BancShares' 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 Southern BancShares' 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 Southern BancShares Demand TrendCheck current 90 days Southern BancShares correlation with market (Dow Jones Industrial)Southern Beta |
Southern 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 | 2.01 |
It is essential to understand the difference between upside risk (as represented by Southern BancShares's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Southern BancShares' daily returns or price. Since the actual investment returns on holding a position in southern 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 Southern BancShares.
Southern BancShares Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Southern BancShares pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Southern BancShares' price changes. Investors will then calculate the volatility of Southern BancShares' 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 Southern BancShares' volatility:
Historical Volatility
This type of pink sheet volatility measures Southern BancShares' fluctuations based on previous trends. It's commonly used to predict Southern BancShares' 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 Southern BancShares' 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 Southern BancShares' 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. Southern BancShares 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.
Southern BancShares Projected Return Density Against Market
Given the investment horizon of 90 days Southern BancShares has a beta of 0.8798 . This usually implies Southern BancShares NC market returns are highly-sensitive to returns on the market. As the market goes up or down, Southern BancShares 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 Southern BancShares or Banks 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 Southern BancShares' 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 Southern 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.
Southern BancShares NC has an alpha of 0.1832, implying that it can generate a 0.18 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Southern BancShares 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.Southern BancShares Pink Sheet Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Southern BancShares is 695.92. The daily returns are distributed with a variance of 4.04 and standard deviation of 2.01. The mean deviation of Southern BancShares NC is currently at 1.01. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 0.18 | |
β | Beta against Dow Jones | 0.88 | |
σ | Overall volatility | 2.01 | |
Ir | Information ratio | 0.09 |
Southern BancShares Pink Sheet Return Volatility
Southern BancShares historical daily return volatility represents how much of Southern BancShares pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 2.0094% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7444% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Southern BancShares Volatility
Volatility is a rate at which the price of Southern BancShares 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 Southern BancShares may increase or decrease. In other words, similar to Southern's beta indicator, it measures the risk of Southern BancShares and helps estimate the fluctuations that may happen in a short period of time. So if prices of Southern BancShares 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.Southern BancShares , Inc., through its subsidiary Southern Bank and Trust Company, provides banking services to consumers and businesses in North Carolina and southeastern Virginia. Southern BancShares , Inc. was founded in 1901 and is headquartered in Mount Olive, North Carolina. Southern Bancshares operates under BanksRegional classification in the United States and is traded on OTC Exchange.
Southern BancShares' 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 Southern Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Southern BancShares' price varies over time.
3 ways to utilize Southern BancShares' volatility to invest better
Higher Southern BancShares' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Southern BancShares 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. Southern BancShares 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 Southern BancShares investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Southern BancShares' 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 Southern BancShares' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Southern BancShares Investment Opportunity
Southern BancShares NC has a volatility of 2.01 and is 2.72 times more volatile than Dow Jones Industrial. 17 percent of all equities and portfolios are less risky than Southern BancShares. You can use Southern BancShares NC to enhance the returns of your portfolios. The pink sheet experiences a normal upward fluctuation. Check odds of Southern BancShares to be traded at $7612.5 in 90 days.Weak diversification
The correlation between Southern BancShares NC and DJI is 0.34 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Southern BancShares NC and DJI in the same portfolio, assuming nothing else is changed.
Southern BancShares Additional Risk Indicators
The analysis of Southern BancShares' 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 Southern BancShares' investment and either accepting that risk or mitigating it. Along with some common measures of Southern BancShares 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 | 0.1209 | |||
| Market Risk Adjusted Performance | 0.3336 | |||
| Mean Deviation | 0.9932 | |||
| Semi Deviation | 1.01 | |||
| Downside Deviation | 2.13 | |||
| Coefficient Of Variation | 667.38 | |||
| Standard Deviation | 1.97 |
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.
Southern BancShares 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 Southern BancShares 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. Southern BancShares' 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, Southern BancShares' 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 Southern BancShares NC.
Complementary Tools for Southern Pink Sheet analysis
When running Southern BancShares' price analysis, check to measure Southern BancShares' 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 Southern BancShares is operating at the current time. Most of Southern BancShares' value examination focuses on studying past and present price action to predict the probability of Southern BancShares' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Southern BancShares' price. Additionally, you may evaluate how the addition of Southern BancShares to your portfolios can decrease your overall portfolio volatility.
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