Traditions Bank Stock Volatility
| TRBK Stock | USD 34.99 2.19 6.68% |
Traditions Bank appears to be very steady, given 3 months investment horizon. Traditions Bank owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.16, which indicates the firm had a 0.16% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Traditions Bank, which you can use to evaluate the volatility of the company. Please review Traditions Bank's Coefficient Of Variation of 659.19, semi deviation of 0.4676, and Risk Adjusted Performance of 0.123 to confirm if our risk estimates are consistent with your expectations. Key indicators related to Traditions Bank's volatility include:
180 Days Market Risk | Chance Of Distress | 180 Days Economic Sensitivity |
Traditions Bank 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 Traditions daily returns, and it is calculated using variance and standard deviation. We also use Traditions's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Traditions Bank volatility.
Traditions |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Traditions Bank at lower prices. For example, an investor can purchase Traditions 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 Traditions Pink Sheet
Moving against Traditions Pink Sheet
| 0.8 | BBDC4 | Banco Bradesco SA | PairCorr |
| 0.77 | JNJ | Johnson Johnson Fiscal Year End 28th of January 2025 | PairCorr |
| 0.74 | BNPQY | BNP Paribas SA | PairCorr |
| 0.71 | PFE | Pfizer Inc Aggressive Push | PairCorr |
| 0.7 | BBAS3 | Banco do Brasil | PairCorr |
| 0.7 | BNPQF | BNP Paribas SA | PairCorr |
| 0.68 | MRK | Merck Company Fiscal Year End 6th of February 2025 | PairCorr |
| 0.66 | KO | Coca Cola Sell-off Trend | PairCorr |
Traditions Bank Market Sensitivity And Downside Risk
Traditions Bank's beta coefficient measures the volatility of Traditions 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 Traditions pink sheet's returns against your selected market. In other words, Traditions Bank's beta of -0.0712 provides an investor with an approximation of how much risk Traditions Bank pink sheet can potentially add to one of your existing portfolios. Traditions Bank has relatively low volatility with skewness of 4.48 and kurtosis of 25.79. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Traditions Bank'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 Traditions Bank'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 Traditions Bank Demand TrendCheck current 90 days Traditions Bank correlation with market (Dow Jones Industrial)Traditions Beta |
Traditions 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 | 2.58 |
It is essential to understand the difference between upside risk (as represented by Traditions Bank's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Traditions Bank's daily returns or price. Since the actual investment returns on holding a position in traditions 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 Traditions Bank.
Traditions Bank Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Traditions Bank pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Traditions Bank's price changes. Investors will then calculate the volatility of Traditions Bank'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 Traditions Bank's volatility:
Historical Volatility
This type of pink sheet volatility measures Traditions Bank's fluctuations based on previous trends. It's commonly used to predict Traditions Bank'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 Traditions Bank'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 Traditions Bank'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. Traditions Bank 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.
Traditions Bank Projected Return Density Against Market
Given the investment horizon of 90 days Traditions Bank has a beta of -0.0712 . This usually implies as returns on the benchmark increase, returns on holding Traditions Bank are expected to decrease at a much lower rate. During a bear market, however, Traditions Bank is likely to outperform the market.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 Traditions Bank 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 Traditions Bank'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 Traditions 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.
Traditions Bank has an alpha of 0.3858, implying that it can generate a 0.39 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Traditions Bank 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.Traditions Bank Pink Sheet Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Traditions Bank is 613.32. The daily returns are distributed with a variance of 6.68 and standard deviation of 2.58. The mean deviation of Traditions Bank is currently at 1.19. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.39 | |
β | Beta against Dow Jones | -0.07 | |
σ | Overall volatility | 2.58 | |
Ir | Information ratio | 0.10 |
Traditions Bank Pink Sheet Return Volatility
Traditions Bank historical daily return volatility represents how much of Traditions Bank pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 2.5846% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7734% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Traditions Bank Volatility
Volatility is a rate at which the price of Traditions Bank 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 Traditions Bank may increase or decrease. In other words, similar to Traditions's beta indicator, it measures the risk of Traditions Bank and helps estimate the fluctuations that may happen in a short period of time. So if prices of Traditions Bank 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.Traditions Bancorp Inc. operates as a holding company for Traditions Bank that provides various banking services in Central Pennsylvania market. Traditions Bancorp Inc. was incorporated in 2002 and is headquartered in York, Pennsylvania. Traditions Bancorp operates under BanksRegional classification in the United States and is traded on OTC Exchange.
Traditions Bank'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 Traditions Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Traditions Bank's price varies over time.
3 ways to utilize Traditions Bank's volatility to invest better
Higher Traditions Bank's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Traditions Bank 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. Traditions Bank 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 Traditions Bank investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Traditions Bank'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 Traditions Bank's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Traditions Bank Investment Opportunity
Traditions Bank has a volatility of 2.58 and is 3.35 times more volatile than Dow Jones Industrial. 23 percent of all equities and portfolios are less risky than Traditions Bank. You can use Traditions Bank to enhance the returns of your portfolios. The pink sheet experiences a very speculative upward sentiment. The trend is possibly hyped up. Check odds of Traditions Bank to be traded at $43.74 in 90 days.Good diversification
The correlation between Traditions Bank and DJI is -0.02 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Traditions Bank and DJI in the same portfolio, assuming nothing else is changed.
Traditions Bank Additional Risk Indicators
The analysis of Traditions Bank'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 Traditions Bank's investment and either accepting that risk or mitigating it. Along with some common measures of Traditions Bank 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 | 0.123 | |||
| Market Risk Adjusted Performance | (5.29) | |||
| Mean Deviation | 1.16 | |||
| Semi Deviation | 0.4676 | |||
| Downside Deviation | 1.78 | |||
| Coefficient Of Variation | 659.19 | |||
| Standard Deviation | 2.55 |
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.
Traditions Bank 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 Traditions Bank 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. Traditions Bank'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, Traditions Bank'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 Traditions Bank.
Other Information on Investing in Traditions Pink Sheet
Traditions Bank financial ratios help investors to determine whether Traditions Pink Sheet is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Traditions with respect to the benefits of owning Traditions Bank security.