Smartfinancial Stock Volatility
| SMBK Stock | USD 37.74 0.32 0.84% |
As of now, SmartFinancial Stock is very steady. SmartFinancial owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.12, which indicates the firm had a 0.12 % return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for SmartFinancial, which you can use to evaluate the volatility of the company. Please validate SmartFinancial's Coefficient Of Variation of 808.33, semi deviation of 1.29, and Risk Adjusted Performance of 0.0972 to confirm if the risk estimate we provide is consistent with the expected return of 0.19%.
Sharpe Ratio = 0.1237
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Based on monthly moving average SmartFinancial is performing at about 9% of its full potential. 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 SmartFinancial by adding it to a well-diversified portfolio.
Key indicators related to SmartFinancial's volatility include:30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
SmartFinancial 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 SmartFinancial daily returns, and it is calculated using variance and standard deviation. We also use SmartFinancial's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of SmartFinancial volatility.
SmartFinancial | Build AI portfolio with SmartFinancial 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 SmartFinancial at lower prices. For example, an investor can purchase SmartFinancial 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 SmartFinancial's market risk premium analysis include:
Beta 0.14 | Alpha 0.17 | Risk 1.53 | Sharpe Ratio 0.12 | Expected Return 0.19 |
Moving together with SmartFinancial Stock
| 0.75 | BIRG | Bank of Ireland | PairCorr |
| 0.7 | EFSC | Enterprise Financial | PairCorr |
| 0.88 | FBNC | First Bancorp Normal Trading | PairCorr |
| 0.79 | AUB | Atlantic Union Bankshares Normal Trading | PairCorr |
| 0.81 | CCB | Coastal Financial Corp | PairCorr |
| 0.82 | FCF | First Commonwealth | PairCorr |
| 0.85 | FRME | First Merchants | PairCorr |
| 0.91 | FNB | FNB Corp | PairCorr |
| 0.87 | HTH | Hilltop Holdings | PairCorr |
| 0.86 | FVCB | FVCBankcorp | PairCorr |
| 0.9 | ONB | Old National Bancorp | PairCorr |
| 0.64 | SSB | SouthState | PairCorr |
| 0.92 | GABC | German American Bancorp | PairCorr |
| 0.95 | TMP | Tompkins Financial | PairCorr |
| 0.74 | 601187 | Xiamen Bank | PairCorr |
| 0.87 | NBHC | National Bank Holdings Normal Trading | PairCorr |
| 0.95 | NBTB | NBT Bancorp | PairCorr |
| 0.63 | VBNK | VersaBank | PairCorr |
| 0.8 | LB | Laurentian Bank | PairCorr |
| 0.76 | AFBI | Affinity Bancshares | PairCorr |
| 0.91 | SBFG | SB Financial Group | PairCorr |
| 0.83 | AROW | Arrow Financial | PairCorr |
Moving against SmartFinancial Stock
SmartFinancial Market Sensitivity And Downside Risk
SmartFinancial's beta coefficient measures the volatility of SmartFinancial 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 SmartFinancial stock's returns against your selected market. In other words, SmartFinancial's beta of 0.14 provides an investor with an approximation of how much risk SmartFinancial stock can potentially add to one of your existing portfolios. SmartFinancial has relatively low volatility with skewness of -0.26 and kurtosis of 1.36. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure SmartFinancial's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact SmartFinancial's 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 SmartFinancial Demand TrendCheck current 90 days SmartFinancial correlation with market (Dow Jones Industrial)SmartFinancial Volatility and Downside Risk
SmartFinancial 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.
SmartFinancial Stock Volatility Analysis
Volatility refers to the frequency at which SmartFinancial stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with SmartFinancial's price changes. Investors will then calculate the volatility of SmartFinancial'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 SmartFinancial's volatility:
Historical Volatility
This type of stock volatility measures SmartFinancial's fluctuations based on previous trends. It's commonly used to predict SmartFinancial'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 SmartFinancial'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 SmartFinancial'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. SmartFinancial 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.
SmartFinancial Projected Return Density Against Market
Given the investment horizon of 90 days SmartFinancial has a beta of 0.1418 . This usually implies as returns on the market go up, SmartFinancial average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding SmartFinancial 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 SmartFinancial 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 SmartFinancial'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 SmartFinancial 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.
SmartFinancial has an alpha of 0.1676, 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 |
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What Drives a SmartFinancial 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.SmartFinancial Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of SmartFinancial is 808.33. The daily returns are distributed with a variance of 2.35 and standard deviation of 1.53. The mean deviation of SmartFinancial is currently at 1.11. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.74
α | Alpha over Dow Jones | 0.17 | |
β | Beta against Dow Jones | 0.14 | |
σ | Overall volatility | 1.53 | |
Ir | Information ratio | 0.06 |
SmartFinancial Stock Return Volatility
SmartFinancial historical daily return volatility represents how much of SmartFinancial stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 1.5324% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.6973% volatility on return distribution over the 90 days horizon. Performance |
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Related Correlations Analysis
Risk-Adjusted Indicators
There is a big difference between SmartFinancial Stock performing well and SmartFinancial 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 SmartFinancial's 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| FCBC | 1.34 | 0.09 | (0.01) | (0.29) | 1.76 | 3.10 | 8.68 | |||
| SPFI | 1.17 | 0.07 | (0.02) | (0.68) | 1.39 | 2.80 | 7.69 | |||
| BWB | 1.36 | 0.09 | 0.01 | 1.36 | 1.53 | 3.50 | 9.89 | |||
| BCAL | 1.08 | 0.14 | 0.05 | 0.80 | 1.25 | 2.72 | 7.88 | |||
| SMBC | 1.25 | 0.29 | 0.12 | (4.18) | 1.36 | 3.00 | 7.89 | |||
| THFF | 1.42 | 0.26 | 0.11 | (5.12) | 1.39 | 3.55 | 10.03 | |||
| IBCP | 1.18 | 0.12 | 0.03 | 1.23 | 1.19 | 2.78 | 7.82 | |||
| GSBC | 1.15 | 0.07 | (0.01) | 2.79 | 2.25 | 2.88 | 13.60 | |||
| NBBK | 1.24 | 0.23 | 0.11 | 25.96 | 1.11 | 3.07 | 6.56 | |||
| HTBK | 1.28 | 0.44 | 0.22 | 5.22 | 1.12 | 2.85 | 12.43 |
About SmartFinancial Volatility
Volatility is a rate at which the price of SmartFinancial 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 SmartFinancial may increase or decrease. In other words, similar to SmartFinancial's beta indicator, it measures the risk of SmartFinancial and helps estimate the fluctuations that may happen in a short period of time. So if prices of SmartFinancial 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.SmartFinancial, Inc. operates as the bank holding company for SmartBank that provides various financial services to individuals and corporate customers. As of March 1, 2022, it had 41 full-service branches and 2 loan production offices in East and Middle Tennessee, Alabama, and the Florida Panhandle. Smartfinancial operates under BanksRegional classification in the United States and is traded on NASDAQ Exchange. It employs 5 people.
SmartFinancial'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 SmartFinancial Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much SmartFinancial's price varies over time.
3 ways to utilize SmartFinancial's volatility to invest better
Higher SmartFinancial's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of SmartFinancial 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. SmartFinancial 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 SmartFinancial investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in SmartFinancial'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 SmartFinancial's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
SmartFinancial Investment Opportunity
SmartFinancial has a volatility of 1.53 and is 2.19 times more volatile than Dow Jones Industrial. 13 percent of all equities and portfolios are less risky than SmartFinancial. You can use SmartFinancial to protect your portfolios against small market fluctuations. The stock experiences a moderate downward daily trend and can be a good diversifier. Check odds of SmartFinancial to be traded at $36.99 in 90 days.Significant diversification
The correlation between SmartFinancial and DJI is 0.07 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding SmartFinancial and DJI in the same portfolio, assuming nothing else is changed.
SmartFinancial Additional Risk Indicators
The analysis of SmartFinancial'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 SmartFinancial's investment and either accepting that risk or mitigating it. Along with some common measures of SmartFinancial 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 | 0.0972 | |||
| Market Risk Adjusted Performance | 1.28 | |||
| Mean Deviation | 1.11 | |||
| Semi Deviation | 1.29 | |||
| Downside Deviation | 1.54 | |||
| Coefficient Of Variation | 808.33 | |||
| Standard Deviation | 1.53 |
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.
SmartFinancial 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 SmartFinancial 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. SmartFinancial'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, SmartFinancial'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 SmartFinancial.
When determining whether SmartFinancial 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 SmartFinancial 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 Smartfinancial Stock. Highlighted below are key reports to facilitate an investment decision about Smartfinancial Stock: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in SmartFinancial. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics. For more information on how to buy SmartFinancial Stock please use our How to buy in SmartFinancial Stock guide.You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Is Regional Banks 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 SmartFinancial. If investors know SmartFinancial 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 SmartFinancial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of SmartFinancial is measured differently than its book value, which is the value of SmartFinancial that is recorded on the company's balance sheet. Investors also form their own opinion of SmartFinancial's value that differs from its market value or its book value, called intrinsic value, which is SmartFinancial'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 SmartFinancial's market value can be influenced by many factors that don't directly affect SmartFinancial'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 SmartFinancial's value and its price as these two are different measures arrived at by different means. Investors typically determine if SmartFinancial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, SmartFinancial'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.