Magna International Stock Volatility
| MGA Stock | USD 47.85 0.01 0.02% |
Magna International has Sharpe Ratio of -0.0994, which conveys that the firm had a -0.0994% return per unit of risk over the last 3 months. Magna International exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify Magna International's Risk Adjusted Performance of (0.06), standard deviation of 1.77, and Mean Deviation of 1.29 to check out the risk estimate we provide. Key indicators related to Magna International's volatility include:
180 Days Market Risk | Chance Of Distress | 180 Days Economic Sensitivity |
Magna International 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 Magna daily returns, and it is calculated using variance and standard deviation. We also use Magna's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Magna International volatility.
Magna |
ESG Sustainability
While most ESG disclosures are voluntary, Magna International's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Magna International's managers and investors.Environment Score | Governance Score | Social Score |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Magna International 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 Magna International at lower prices. For example, an investor can purchase Magna 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 Magna International'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 Magna Stock
| 0.75 | VC | Visteon Corp Earnings Call This Week | PairCorr |
| 0.67 | DAN | Dana Inc Financial Report 26th of April 2024 | PairCorr |
Moving against Magna Stock
| 0.64 | XOSWW | Xos Equity Warrants | PairCorr |
| 0.48 | MOD | Modine Manufacturing Financial Report 22nd of May 2024 | PairCorr |
| 0.41 | TM | Toyota Motor Financial Report 8th of May 2024 | PairCorr |
Magna International Market Sensitivity And Downside Risk
Magna International's beta coefficient measures the volatility of Magna 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 Magna stock's returns against your selected market. In other words, Magna International's beta of 1.74 provides an investor with an approximation of how much risk Magna International stock can potentially add to one of your existing portfolios. Magna International exhibits very low volatility with skewness of -0.71 and kurtosis of 2.48. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Magna International'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 Magna International'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 Magna International Demand TrendCheck current 90 days Magna International correlation with market (NYSE Composite)Magna Beta |
Magna 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 | 1.79 |
It is essential to understand the difference between upside risk (as represented by Magna International's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Magna International's daily returns or price. Since the actual investment returns on holding a position in magna 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 Magna International.
Using Magna Put Option to Manage Risk
Put options written on Magna International grant holders of the option the right to sell a specified amount of Magna International at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Magna Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Magna International's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Magna International will be realized, the loss incurred will be offset by the profits made with the option trade.
Magna International's PUT expiring on 2024-04-19
Profit |
| Magna International Price At Expiration |
Current Magna International Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | 2024-04-19 PUT at $55.0 | -0.8958 | 0.0355 | 668 | 2024-04-19 | 6.8 - 7.4 | 7.4 | View |
Put | 2024-04-19 PUT at $52.5 | -0.8693 | 0.0555 | 73 | 2024-04-19 | 2.75 - 5.0 | 4.9 | View |
Put | 2024-04-19 PUT at $50.0 | -0.888 | 0.1114 | 166 | 2024-04-19 | 1.9 - 4.2 | 2.25 | View |
Put | 2024-04-19 PUT at $47.5 | -0.3766 | 0.3352 | 602 | 2024-04-19 | 0.3 - 0.4 | 0.3 | View |
Magna International Stock Volatility Analysis
Volatility refers to the frequency at which Magna International stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Magna International's price changes. Investors will then calculate the volatility of Magna International'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 Magna International's volatility:
Historical Volatility
This type of stock volatility measures Magna International's fluctuations based on previous trends. It's commonly used to predict Magna International'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 Magna International'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 Magna 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. Magna 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.
Magna International Projected Return Density Against Market
Considering the 90-day investment horizon the stock has the beta coefficient of 1.7428 . This indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Magna International 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 Magna International or Automobile Components 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 Magna International'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 Magna 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.
Magna International 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 a Magna International 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.Magna International Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Magna International is -1006.18. The daily returns are distributed with a variance of 3.22 and standard deviation of 1.79. The mean deviation of Magna International is currently at 1.29. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.63
α | Alpha over NYSE Composite | -0.29 | |
β | Beta against NYSE Composite | 1.74 | |
σ | Overall volatility | 1.79 | |
Ir | Information ratio | -0.14 |
Magna International Stock Return Volatility
Magna International historical daily return volatility represents how much of Magna International stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company has volatility of 1.7948% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.6171% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Magna International Volatility
Volatility is a rate at which the price of Magna 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 Magna International may increase or decrease. In other words, similar to Magna's beta indicator, it measures the risk of Magna International and helps estimate the fluctuations that may happen in a short period of time. So if prices of Magna 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.| Last Reported | Projected for Next Year | ||
| Market Cap | 14.1 B | 14.8 B |
Magna International'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 Magna Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Magna International's price varies over time.
3 ways to utilize Magna International's volatility to invest better
Higher Magna International's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Magna International 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. Magna International 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 Magna International investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Magna International'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 Magna International's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Magna International Investment Opportunity
Magna International has a volatility of 1.79 and is 2.89 times more volatile than NYSE Composite. 15 percent of all equities and portfolios are less risky than Magna International. You can use Magna International to enhance the returns of your portfolios. The stock experiences a normal upward fluctuation. Check odds of Magna International to be traded at $50.24 in 90 days.Poor diversification
The correlation between Magna International and NYA is 0.62 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Magna International and NYA in the same portfolio, assuming nothing else is changed.
Magna International Additional Risk Indicators
The analysis of Magna 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 Magna International's investment and either accepting that risk or mitigating it. Along with some common measures of Magna International 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 | (0.06) | |||
| Market Risk Adjusted Performance | (0.11) | |||
| Mean Deviation | 1.29 | |||
| Coefficient Of Variation | (904.32) | |||
| Standard Deviation | 1.77 | |||
| Variance | 3.15 | |||
| Information Ratio | (0.14) |
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.
Magna 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 Magna 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. Magna 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, Magna 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 Magna International.
When determining whether Magna International offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Magna International'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 Magna International Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Magna International Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Magna International. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in price. For information on how to trade Magna Stock refer to our How to Trade Magna Stock guide.Note that the Magna International information on this page should be used as a complementary analysis to other Magna International's 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 AI Investment Finder module to use AI to screen and filter profitable investment opportunities.
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When running Magna International's price analysis, check to measure Magna 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 Magna International is operating at the current time. Most of Magna International's value examination focuses on studying past and present price action to predict the probability of Magna 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 Magna International's price. Additionally, you may evaluate how the addition of Magna International to your portfolios can decrease your overall portfolio volatility.
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Is Magna International's 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 Magna International. If investors know Magna 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 Magna International 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 1.882 | Dividend Share 1.855 | Earnings Share 4.23 | Revenue Per Share 149.535 | Quarterly Revenue Growth 0.093 |
The market value of Magna International is measured differently than its book value, which is the value of Magna that is recorded on the company's balance sheet. Investors also form their own opinion of Magna International's value that differs from its market value or its book value, called intrinsic value, which is Magna International'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 Magna International's market value can be influenced by many factors that don't directly affect Magna International'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 Magna International's value and its price as these two are different measures arrived at by different means. Investors typically determine if Magna International is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Magna International'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.