Equity Bancshares Stock Volatility
| EQBK Stock | USD 32.42 1.29 4.14% |
Equity Bancshares secures Sharpe Ratio (or Efficiency) of -0.0127, which denotes the company had a -0.0127% return per unit of risk over the last 3 months. Equity Bancshares exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Equity Bancshares' Standard Deviation of 1.84, variance of 3.39, and Mean Deviation of 1.37 to check the risk estimate we provide. Key indicators related to Equity Bancshares' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Equity Bancshares 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 Equity daily returns, and it is calculated using variance and standard deviation. We also use Equity's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Equity Bancshares volatility.
Equity |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Equity Bancshares 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 Equity Bancshares at lower prices. For example, an investor can purchase Equity 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 Equity Bancshares' 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 Equity Stock
| 0.66 | AX | Axos Financial Financial Report 25th of April 2024 | PairCorr |
| 0.73 | PB | Prosperity Bancshares Earnings Call This Week | PairCorr |
Equity Bancshares Market Sensitivity And Downside Risk
Equity Bancshares' beta coefficient measures the volatility of Equity 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 Equity stock's returns against your selected market. In other words, Equity Bancshares's beta of 1.58 provides an investor with an approximation of how much risk Equity Bancshares stock can potentially add to one of your existing portfolios. Equity Bancshares exhibits very low volatility with skewness of -0.09 and kurtosis of 1.23. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Equity Bancshares' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Equity Bancshares' 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 Equity Bancshares Demand TrendCheck current 90 days Equity Bancshares correlation with market (NYSE Composite)Equity Beta |
Equity 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 | 1.92 |
It is essential to understand the difference between upside risk (as represented by Equity Bancshares's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Equity Bancshares' daily returns or price. Since the actual investment returns on holding a position in equity 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 Equity Bancshares.
Equity Bancshares Stock Volatility Analysis
Volatility refers to the frequency at which Equity Bancshares stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Equity Bancshares' price changes. Investors will then calculate the volatility of Equity Bancshares' 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 Equity Bancshares' volatility:
Historical Volatility
This type of stock volatility measures Equity Bancshares' fluctuations based on previous trends. It's commonly used to predict Equity Bancshares' 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 Equity Bancshares' 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 Equity Bancshares' 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. Equity Bancshares 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.
Equity Bancshares Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 1.577 suggesting as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Equity Bancshares 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 Equity Bancshares 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 Equity Bancshares' 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 Equity 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.
Equity Bancshares has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the NYSE Composite. Predicted Return Density |
| Returns |
What Drives an Equity Bancshares 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.Equity Bancshares Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Equity Bancshares is -7859.7. The daily returns are distributed with a variance of 3.68 and standard deviation of 1.92. The mean deviation of Equity Bancshares is currently at 1.43. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | -0.12 | |
β | Beta against NYSE Composite | 1.58 | |
σ | Overall volatility | 1.92 | |
Ir | Information ratio | -0.05 |
Equity Bancshares Stock Return Volatility
Equity Bancshares historical daily return volatility represents how much of Equity Bancshares stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 1.9176% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.6179% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Equity Bancshares Volatility
Volatility is a rate at which the price of Equity Bancshares 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 Equity Bancshares may increase or decrease. In other words, similar to Equity's beta indicator, it measures the risk of Equity Bancshares and helps estimate the fluctuations that may happen in a short period of time. So if prices of Equity Bancshares 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 | 5.4 M | 2.9 M | |
| Market Cap | 525.7 M | 270.7 M |
Equity Bancshares' 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 Equity Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Equity Bancshares' price varies over time.
3 ways to utilize Equity Bancshares' volatility to invest better
Higher Equity Bancshares' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Equity Bancshares 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. Equity Bancshares 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 Equity Bancshares investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Equity Bancshares' 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 Equity Bancshares' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Equity Bancshares Investment Opportunity
Equity Bancshares has a volatility of 1.92 and is 3.1 times more volatile than NYSE Composite. 16 percent of all equities and portfolios are less risky than Equity Bancshares. You can use Equity Bancshares to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Equity Bancshares to be traded at $40.53 in 90 days.Very weak diversification
The correlation between Equity Bancshares and NYA is 0.53 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Equity Bancshares and NYA in the same portfolio, assuming nothing else is changed.
Equity Bancshares Additional Risk Indicators
The analysis of Equity Bancshares' 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 Equity Bancshares' investment and either accepting that risk or mitigating it. Along with some common measures of Equity Bancshares 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 | 2.0E-4 | |||
| Market Risk Adjusted Performance | (0.01) | |||
| Mean Deviation | 1.37 | |||
| Coefficient Of Variation | (9,526) | |||
| Standard Deviation | 1.84 | |||
| Variance | 3.39 | |||
| Information Ratio | (0.05) |
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.
Equity Bancshares 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 Equity Bancshares 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. Equity Bancshares' 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, Equity Bancshares' 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 Equity Bancshares.
When determining whether Equity Bancshares 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 Equity 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 Equity Bancshares Stock. Highlighted below are key reports to facilitate an investment decision about Equity Bancshares Stock: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Equity Bancshares. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of labor statistics. For more information on how to buy Equity Stock please use our How to buy in Equity Stock guide.Note that the Equity Bancshares information on this page should be used as a complementary analysis to other Equity Bancshares' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Complementary Tools for Equity Stock analysis
When running Equity Bancshares' price analysis, check to measure Equity Bancshares' 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 Equity Bancshares is operating at the current time. Most of Equity Bancshares' value examination focuses on studying past and present price action to predict the probability of Equity Bancshares' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Equity Bancshares' price. Additionally, you may evaluate how the addition of Equity Bancshares to your portfolios can decrease your overall portfolio volatility.
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Is Equity Bancshares' industry 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 Equity Bancshares. If investors know Equity 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 Equity Bancshares 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 0.169 | Dividend Share 0.46 | Earnings Share 0.5 | Revenue Per Share 9.316 | Quarterly Revenue Growth 0.105 |
The market value of Equity Bancshares is measured differently than its book value, which is the value of Equity that is recorded on the company's balance sheet. Investors also form their own opinion of Equity Bancshares' value that differs from its market value or its book value, called intrinsic value, which is Equity Bancshares' 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 Equity Bancshares' market value can be influenced by many factors that don't directly affect Equity Bancshares' 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 Equity Bancshares' value and its price as these two are different measures arrived at by different means. Investors typically determine if Equity Bancshares is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Equity Bancshares' 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.