Triton International Limited Preferred Stock Volatility
| TRTN-PE Preferred Stock | 22.14 0.21 0.96% |
At this point, Triton International is very steady. Triton International owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0388, which indicates the firm had a 0.0388% return per unit of risk over the last 3 months. We have found thirty technical indicators for Triton International Limited, which you can use to evaluate the volatility of the company. Please validate Triton International's Semi Deviation of 1.17, risk adjusted performance of 0.0288, and Coefficient Of Variation of 2978.84 to confirm if the risk estimate we provide is consistent with the expected return of 0.0443%. Key indicators related to Triton International's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Triton International Preferred 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 Triton daily returns, and it is calculated using variance and standard deviation. We also use Triton's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Triton International volatility.
Triton |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Triton International 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 Triton International at lower prices to lower their average cost per share. Similarly, when the prices of Triton International's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving against Triton Preferred Stock
| 0.42 | ZCARW | Zoomcar Holdings Symbol Change | PairCorr |
Triton International Market Sensitivity And Downside Risk
Triton International's beta coefficient measures the volatility of Triton preferred 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 Triton preferred stock's returns against your selected market. In other words, Triton International's beta of 0.54 provides an investor with an approximation of how much risk Triton International preferred stock can potentially add to one of your existing portfolios. Triton International Limited has relatively low volatility with skewness of -0.3 and kurtosis of 1.24. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Triton International's preferred stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Triton International's preferred 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 Triton International Demand TrendCheck current 90 days Triton International correlation with market (Dow Jones Industrial)Triton Beta |
Triton 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 | 1.14 |
It is essential to understand the difference between upside risk (as represented by Triton International's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Triton International's daily returns or price. Since the actual investment returns on holding a position in triton preferred 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 Triton International.
Triton International Preferred Stock Volatility Analysis
Volatility refers to the frequency at which Triton International preferred stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Triton International's price changes. Investors will then calculate the volatility of Triton International's preferred stock to predict their future moves. A preferred stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A preferred stock with relatively stable price changes has low volatility. A highly volatile preferred 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 Triton International's volatility:
Historical Volatility
This type of preferred stock volatility measures Triton International's fluctuations based on previous trends. It's commonly used to predict Triton International's future behavior based on its past. However, it cannot conclusively determine the future direction of the preferred stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Triton International's current market price. This means that the preferred stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Triton International'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. Triton International 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.
Triton International Projected Return Density Against Market
Assuming the 90 days trading horizon Triton International has a beta of 0.535 . This usually implies as returns on the market go up, Triton International average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Triton International Limited 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 Triton International or Machinery 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 Triton International's price will be affected by overall preferred 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 Triton preferred 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.
Triton International Limited 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 Triton International Price Volatility?
Several factors can influence a preferred 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.Triton International Preferred Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Triton International is 2578.74. The daily returns are distributed with a variance of 1.3 and standard deviation of 1.14. The mean deviation of Triton International Limited is currently at 0.85. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | -0.03 | |
β | Beta against Dow Jones | 0.54 | |
σ | Overall volatility | 1.14 | |
Ir | Information ratio | -0.06 |
Triton International Preferred Stock Return Volatility
Triton International historical daily return volatility represents how much of Triton International preferred stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm accepts 1.1423% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7685% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Triton International Volatility
Volatility is a rate at which the price of Triton International 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 Triton International may increase or decrease. In other words, similar to Triton's beta indicator, it measures the risk of Triton International and helps estimate the fluctuations that may happen in a short period of time. So if prices of Triton International 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.3 ways to utilize Triton International's volatility to invest better
Higher Triton International's preferred stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Triton International preferred 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. Triton International preferred 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 Triton International investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Triton International's preferred 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 Triton International's preferred stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Triton International Investment Opportunity
Triton International Limited has a volatility of 1.14 and is 1.48 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Triton International Limited is lower than 10 percent of all global equities and portfolios over the last 90 days. You can use Triton International Limited to enhance the returns of your portfolios. The preferred stock experiences a moderate upward volatility. Check odds of Triton International to be traded at 24.35 in 90 days.Weak diversification
The correlation between Triton International Limited and DJI is 0.36 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Triton International Limited and DJI in the same portfolio, assuming nothing else is changed.
Triton International Additional Risk Indicators
The analysis of Triton International'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 Triton International's investment and either accepting that risk or mitigating it. Along with some common measures of Triton International preferred 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 | 0.0288 | |||
| Market Risk Adjusted Performance | 0.0616 | |||
| Mean Deviation | 0.819 | |||
| Semi Deviation | 1.17 | |||
| Downside Deviation | 1.21 | |||
| Coefficient Of Variation | 2978.84 | |||
| Standard Deviation | 1.12 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential preferred stocks, we recommend comparing similar preferred stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Triton International 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 Triton International 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. Triton International'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, Triton International'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 Triton International Limited.
Complementary Tools for Triton Preferred Stock analysis
When running Triton International's price analysis, check to measure Triton International's 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 Triton International is operating at the current time. Most of Triton International's value examination focuses on studying past and present price action to predict the probability of Triton International's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Triton International's price. Additionally, you may evaluate how the addition of Triton International to your portfolios can decrease your overall portfolio volatility.
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