Miller Industries Stock Volatility

MLR Stock  USD 50.10  0.05  0.1%   
Miller Industries appears to be very steady, given 3 months investment horizon. Miller Industries has Sharpe Ratio of 0.16, which conveys that the firm had a 0.16% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Miller Industries, which you can use to evaluate the volatility of the firm. Please exercise Miller Industries' Risk Adjusted Performance of 0.0755, downside deviation of 1.63, and Mean Deviation of 1.34 to check out if our risk estimates are consistent with your expectations. Key indicators related to Miller Industries' volatility include:
720 Days Market Risk
Chance Of Distress
720 Days Economic Sensitivity
Miller Industries 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 Miller daily returns, and it is calculated using variance and standard deviation. We also use Miller's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Miller Industries volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Miller Industries 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 Miller Industries at lower prices. For example, an investor can purchase Miller 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 Miller Industries' 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 Miller Stock

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Moving against Miller Stock

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  0.82MCOM Micromobility Symbol ChangePairCorr
  0.79CRESW Cresud SACIF YPairCorr
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  0.57RUN Sunrun Inc Aggressive PushPairCorr
  0.52PLOW Douglas Dynamics Financial Report 6th of May 2024 PairCorr
  0.5SHLS Shoals Technologies Financial Report 13th of May 2024 PairCorr

Miller Industries Market Sensitivity And Downside Risk

Miller Industries' beta coefficient measures the volatility of Miller 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 Miller stock's returns against your selected market. In other words, Miller Industries's beta of 2.13 provides an investor with an approximation of how much risk Miller Industries stock can potentially add to one of your existing portfolios. Miller Industries has relatively low volatility with skewness of 2.05 and kurtosis of 10.12. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Miller Industries' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Miller Industries' 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 Miller Industries Demand Trend
Check current 90 days Miller Industries correlation with market (NYSE Composite)

Miller Beta

    
  2.13  
Miller 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

    
  2.12  
It is essential to understand the difference between upside risk (as represented by Miller Industries's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Miller Industries' daily returns or price. Since the actual investment returns on holding a position in miller 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 Miller Industries.

Using Miller Put Option to Manage Risk

Put options written on Miller Industries grant holders of the option the right to sell a specified amount of Miller Industries 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 Miller Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Miller Industries' 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 Miller Industries will be realized, the loss incurred will be offset by the profits made with the option trade.

Miller Industries' PUT expiring on 2024-04-19

   Profit   
       Miller Industries Price At Expiration  

Miller Industries Stock Volatility Analysis

Volatility refers to the frequency at which Miller Industries stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Miller Industries' price changes. Investors will then calculate the volatility of Miller Industries' 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 Miller Industries' volatility:

Historical Volatility

This type of stock volatility measures Miller Industries' fluctuations based on previous trends. It's commonly used to predict Miller Industries' 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 Miller Industries' 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 Miller Industries' 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. Miller Industries 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.

Miller Industries Projected Return Density Against Market

Considering the 90-day investment horizon the stock has the beta coefficient of 2.1292 . 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, Miller Industries 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 Miller Industries 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 Miller Industries' 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 Miller 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.
Miller Industries has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming NYSE Composite.
   Predicted Return Density   
       Returns  
Miller Industries' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how miller stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Miller Industries 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.

Miller Industries Stock Risk Measures

Considering the 90-day investment horizon the coefficient of variation of Miller Industries is 630.36. The daily returns are distributed with a variance of 4.5 and standard deviation of 2.12. The mean deviation of Miller Industries is currently at 1.37. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
-0.02
β
Beta against NYSE Composite2.13
σ
Overall volatility
2.12
Ir
Information ratio 0.06

Miller Industries Stock Return Volatility

Miller Industries historical daily return volatility represents how much of Miller Industries stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The enterprise has volatility of 2.1224% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.573% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Miller Industries Volatility

Volatility is a rate at which the price of Miller Industries 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 Miller Industries may increase or decrease. In other words, similar to Miller's beta indicator, it measures the risk of Miller Industries and helps estimate the fluctuations that may happen in a short period of time. So if prices of Miller Industries 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.
Miller Industries, Inc., together with its subsidiaries, manufactures and sells towing and recovery equipment. The company was incorporated in 1990 and is based in Ooltewah, Tennessee. Miller Industries operates under Auto Parts classification in the United States and is traded on New York Stock Exchange. It employs 1421 people.
Miller Industries' 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 Miller Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Miller Industries' price varies over time.

3 ways to utilize Miller Industries' volatility to invest better

Higher Miller Industries' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Miller Industries 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. Miller Industries 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 Miller Industries investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Miller Industries' 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 Miller Industries' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Miller Industries Investment Opportunity

Miller Industries has a volatility of 2.12 and is 3.72 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Miller Industries is lower than 18 percent of all global equities and portfolios over the last 90 days. You can use Miller Industries to protect your portfolios against small market fluctuations. The stock experiences a normal downward trend and little activity. Check odds of Miller Industries to be traded at $49.6 in 90 days.

Very weak diversification

The correlation between Miller Industries and NYA is 0.57 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Miller Industries and NYA in the same portfolio, assuming nothing else is changed.

Miller Industries Additional Risk Indicators

The analysis of Miller Industries' 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 Miller Industries' investment and either accepting that risk or mitigating it. Along with some common measures of Miller Industries 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.
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.

Miller Industries 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 Miller Industries 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. Miller Industries' 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, Miller Industries' 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 Miller Industries.
When determining whether Miller Industries is a strong investment it is important to analyze Miller Industries' 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 Miller Industries' future performance. For an informed investment choice regarding Miller Stock, refer to the following important reports:
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Miller Industries. 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 economic analysis.
To learn how to invest in Miller Stock, please use our How to Invest in Miller Industries guide.
You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.

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When running Miller Industries' price analysis, check to measure Miller Industries' 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 Miller Industries is operating at the current time. Most of Miller Industries' value examination focuses on studying past and present price action to predict the probability of Miller Industries' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Miller Industries' price. Additionally, you may evaluate how the addition of Miller Industries to your portfolios can decrease your overall portfolio volatility.
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Is Miller Industries' 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 Miller Industries. If investors know Miller 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 Miller Industries 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
0.793
Dividend Share
0.72
Earnings Share
5.07
Revenue Per Share
100.827
Quarterly Revenue Growth
0.312
The market value of Miller Industries is measured differently than its book value, which is the value of Miller that is recorded on the company's balance sheet. Investors also form their own opinion of Miller Industries' value that differs from its market value or its book value, called intrinsic value, which is Miller Industries' 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 Miller Industries' market value can be influenced by many factors that don't directly affect Miller Industries' 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 Miller Industries' value and its price as these two are different measures arrived at by different means. Investors typically determine if Miller Industries is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Miller Industries' 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.