Titan Machinery Stock Volatility
| TITN Stock | USD 15.42 0.28 1.85% |
As of now, Titan Stock is not too volatile. Titan Machinery owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0508, which indicates the firm had a 0.0508% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Titan Machinery, which you can use to evaluate the volatility of the company. Please validate Titan Machinery's Coefficient Of Variation of 1680.55, risk adjusted performance of 0.0532, and Semi Deviation of 2.71 to confirm if the risk estimate we provide is consistent with the expected return of 0.16%. Key indicators related to Titan Machinery's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Titan Machinery 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 Titan daily returns, and it is calculated using variance and standard deviation. We also use Titan's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Titan Machinery volatility.
Titan |
ESG Sustainability
While most ESG disclosures are voluntary, Titan Machinery's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Titan Machinery's managers and investors.Environmental | Governance | Social |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Titan Machinery can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Titan Machinery at lower prices. For example, an investor can purchase Titan stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Titan Machinery's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Moving together with Titan Stock
| 0.69 | DSGR | Distribution Solutions | PairCorr |
| 0.64 | FERG | Ferguson Plc Earnings Call This Week | PairCorr |
| 0.61 | GWW | WW Grainger | PairCorr |
Titan Machinery Market Sensitivity And Downside Risk
Titan Machinery's beta coefficient measures the volatility of Titan 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 Titan stock's returns against your selected market. In other words, Titan Machinery's beta of 2.8 provides an investor with an approximation of how much risk Titan Machinery stock can potentially add to one of your existing portfolios. Titan Machinery currently demonstrates below-average downside deviation. It has Information Ratio of 0.02 and Jensen Alpha of -0.16. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Titan Machinery'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 Titan Machinery'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 Titan Machinery Demand TrendCheck current 90 days Titan Machinery correlation with market (Dow Jones Industrial)Titan Beta |
Titan 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 | 3.17 |
It is essential to understand the difference between upside risk (as represented by Titan Machinery's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Titan Machinery's daily returns or price. Since the actual investment returns on holding a position in titan 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 Titan Machinery.
Titan Machinery Stock Volatility Analysis
Volatility refers to the frequency at which Titan Machinery stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Titan Machinery's price changes. Investors will then calculate the volatility of Titan Machinery'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 Titan Machinery's volatility:
Historical Volatility
This type of stock volatility measures Titan Machinery's fluctuations based on previous trends. It's commonly used to predict Titan Machinery'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 Titan Machinery'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 Titan Machinery'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. Titan Machinery 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.
Titan Machinery Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 2.8012 . This usually implies as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Titan Machinery 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 Titan Machinery or Trading Companies & Distributors 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 Titan Machinery'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 Titan 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.
Titan Machinery 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 Titan Machinery 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.Titan Machinery Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Titan Machinery is 1969.15. The daily returns are distributed with a variance of 10.06 and standard deviation of 3.17. The mean deviation of Titan Machinery is currently at 2.16. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | -0.16 | |
β | Beta against Dow Jones | 2.80 | |
σ | Overall volatility | 3.17 | |
Ir | Information ratio | 0.02 |
Titan Machinery Stock Return Volatility
Titan Machinery historical daily return volatility represents how much of Titan Machinery stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 3.1712% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7762% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Titan Machinery Volatility
Volatility is a rate at which the price of Titan Machinery 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 Titan Machinery may increase or decrease. In other words, similar to Titan's beta indicator, it measures the risk of Titan Machinery and helps estimate the fluctuations that may happen in a short period of time. So if prices of Titan Machinery 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 | 241.2 M | 174.3 M |
Titan Machinery'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 Titan Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Titan Machinery's price varies over time.
3 ways to utilize Titan Machinery's volatility to invest better
Higher Titan Machinery's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Titan Machinery 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. Titan Machinery 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 Titan Machinery investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Titan Machinery'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 Titan Machinery's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Titan Machinery Investment Opportunity
Titan Machinery has a volatility of 3.17 and is 4.06 times more volatile than Dow Jones Industrial. 28 percent of all equities and portfolios are less risky than Titan Machinery. You can use Titan Machinery to enhance the returns of your portfolios. The stock experiences a large bullish trend. Check odds of Titan Machinery to be traded at $16.96 in 90 days.Poor diversification
The correlation between Titan Machinery and DJI is 0.68 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Titan Machinery and DJI in the same portfolio, assuming nothing else is changed.
Titan Machinery Additional Risk Indicators
The analysis of Titan Machinery'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 Titan Machinery's investment and either accepting that risk or mitigating it. Along with some common measures of Titan Machinery 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 | 0.0532 | |||
| Market Risk Adjusted Performance | 0.0734 | |||
| Mean Deviation | 2.18 | |||
| Semi Deviation | 2.71 | |||
| Downside Deviation | 2.88 | |||
| Coefficient Of Variation | 1680.55 | |||
| Standard Deviation | 3.15 |
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.
Titan Machinery 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 Titan Machinery 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. Titan Machinery'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, Titan Machinery'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 Titan Machinery.
When determining whether Titan Machinery offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Titan Machinery's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Titan Machinery Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Titan Machinery Stock: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Titan Machinery. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate. To learn how to invest in Titan Stock, please use our How to Invest in Titan Machinery guide.You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Is Trading Companies & Distributors 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 Titan Machinery. If investors know Titan 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 Titan Machinery 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 (0.66) | Earnings Share 2.59 | Revenue Per Share 124.573 | Quarterly Revenue Growth (0.01) | Return On Assets 0.0424 |
The market value of Titan Machinery is measured differently than its book value, which is the value of Titan that is recorded on the company's balance sheet. Investors also form their own opinion of Titan Machinery's value that differs from its market value or its book value, called intrinsic value, which is Titan Machinery'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 Titan Machinery's market value can be influenced by many factors that don't directly affect Titan Machinery'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 Titan Machinery's value and its price as these two are different measures arrived at by different means. Investors typically determine if Titan Machinery is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Titan Machinery'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.