Travel Leisure Co Stock Volatility
| TNL Stock | USD 54.96 0.80 1.48% |
Travel Leisure appears to be very steady, given 3 months investment horizon. Travel Leisure owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.26, which indicates the firm had a 0.26% return per unit of risk over the last 3 months. We have found thirty technical indicators for Travel Leisure Co, which you can use to evaluate the volatility of the company. Please review Travel Leisure's Coefficient Of Variation of 374.51, semi deviation of 1.04, and Risk Adjusted Performance of 0.2098 to confirm if our risk estimates are consistent with your expectations. Key indicators related to Travel Leisure's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Travel Leisure 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 Travel daily returns, and it is calculated using variance and standard deviation. We also use Travel's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Travel Leisure volatility.
Travel |
ESG Sustainability
While most ESG disclosures are voluntary, Travel Leisure's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Travel Leisure's managers and investors.Environmental | Governance | Social |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Travel Leisure at lower prices. For example, an investor can purchase Travel 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.
Moving together with Travel Stock
| 0.71 | BH | Biglari Holdings | PairCorr |
| 0.63 | SG | Sweetgreen | PairCorr |
| 0.95 | WH | Wyndham Hotels Resorts | PairCorr |
| 0.65 | DKNG | DraftKings Aggressive Push | PairCorr |
Moving against Travel Stock
Travel Leisure Market Sensitivity And Downside Risk
Travel Leisure's beta coefficient measures the volatility of Travel 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 Travel stock's returns against your selected market. In other words, Travel Leisure's beta of 1.19 provides an investor with an approximation of how much risk Travel Leisure stock can potentially add to one of your existing portfolios. Travel Leisure Co has relatively low volatility with skewness of 0.26 and kurtosis of 0.61. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Travel Leisure'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 Travel Leisure'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 Travel Leisure Demand TrendCheck current 90 days Travel Leisure correlation with market (Dow Jones Industrial)Travel Beta |
Travel 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 | 1.53 |
It is essential to understand the difference between upside risk (as represented by Travel Leisure's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Travel Leisure's daily returns or price. Since the actual investment returns on holding a position in travel 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 Travel Leisure.
Travel Leisure Stock Volatility Analysis
Volatility refers to the frequency at which Travel Leisure stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Travel Leisure's price changes. Investors will then calculate the volatility of Travel Leisure'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 Travel Leisure's volatility:
Historical Volatility
This type of stock volatility measures Travel Leisure's fluctuations based on previous trends. It's commonly used to predict Travel Leisure'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 Travel Leisure'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 Travel Leisure'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. Travel Leisure 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.
Travel Leisure Projected Return Density Against Market
Considering the 90-day investment horizon the stock has the beta coefficient of 1.1893 . 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, Travel Leisure 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 Travel Leisure or Hotels, Restaurants & Leisure 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 Travel Leisure'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 Travel 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.
Travel Leisure Co has an alpha of 0.2603, implying that it can generate a 0.26 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Travel Leisure 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.Travel Leisure Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Travel Leisure is 390.88. The daily returns are distributed with a variance of 2.33 and standard deviation of 1.53. The mean deviation of Travel Leisure Co is currently at 1.18. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 0.26 | |
β | Beta against Dow Jones | 1.19 | |
σ | Overall volatility | 1.53 | |
Ir | Information ratio | 0.18 |
Travel Leisure Stock Return Volatility
Travel Leisure historical daily return volatility represents how much of Travel Leisure stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company has volatility of 1.5263% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7685% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Travel Leisure Volatility
Volatility is a rate at which the price of Travel Leisure 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 Travel Leisure may increase or decrease. In other words, similar to Travel's beta indicator, it measures the risk of Travel Leisure and helps estimate the fluctuations that may happen in a short period of time. So if prices of Travel Leisure 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 | 507 M | 521.3 M | |
| Market Cap | 3.3 B | 3.7 B |
Travel Leisure'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 Travel Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Travel Leisure's price varies over time.
3 ways to utilize Travel Leisure's volatility to invest better
Higher Travel Leisure's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Travel Leisure 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. Travel Leisure 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 Travel Leisure investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Travel Leisure'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 Travel Leisure's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Travel Leisure Investment Opportunity
Travel Leisure Co has a volatility of 1.53 and is 1.99 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Travel Leisure Co is lower than 13 percent of all global equities and portfolios over the last 90 days. You can use Travel Leisure Co to enhance the returns of your portfolios. The stock experiences a large bullish trend. Check odds of Travel Leisure to be traded at $60.46 in 90 days.Very weak diversification
The correlation between Travel Leisure Co and DJI is 0.59 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Travel Leisure Co and DJI in the same portfolio, assuming nothing else is changed.
Travel Leisure Additional Risk Indicators
The analysis of Travel Leisure'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 Travel Leisure's investment and either accepting that risk or mitigating it. Along with some common measures of Travel Leisure 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 | 0.2098 | |||
| Market Risk Adjusted Performance | 0.3496 | |||
| Mean Deviation | 1.21 | |||
| Semi Deviation | 1.04 | |||
| Downside Deviation | 1.36 | |||
| Coefficient Of Variation | 374.51 | |||
| Standard Deviation | 1.55 |
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.
Travel Leisure 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 Travel Leisure 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. Travel Leisure'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, Travel Leisure'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 Travel Leisure Co.
When determining whether Travel Leisure is a strong investment it is important to analyze Travel Leisure'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 Travel Leisure's future performance. For an informed investment choice regarding Travel Stock, refer to the following important reports: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Travel Leisure Co. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Is Hotels, Resorts & Cruise Lines 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 Travel Leisure. If investors know Travel 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 Travel Leisure 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 (0.07) | Dividend Share 1.95 | Earnings Share 5.41 | Revenue Per Share 53.892 | Quarterly Revenue Growth 0.007 |
The market value of Travel Leisure is measured differently than its book value, which is the value of Travel that is recorded on the company's balance sheet. Investors also form their own opinion of Travel Leisure's value that differs from its market value or its book value, called intrinsic value, which is Travel Leisure'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 Travel Leisure's market value can be influenced by many factors that don't directly affect Travel Leisure'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 Travel Leisure's value and its price as these two are different measures arrived at by different means. Investors typically determine if Travel Leisure is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Travel Leisure'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.