Community Bank Volatility

CBOBADelisted Stock  USD 13.95  0.10  0.72%   
At this point, Community Bank is very steady. Community Bank secures Sharpe Ratio (or Efficiency) of 0.3, which signifies that the company had a 0.3% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Community Bank, which you can use to evaluate the volatility of the firm. Please confirm Community Bank's Mean Deviation of 0.307, coefficient of variation of 342.9, and Risk Adjusted Performance of 0.2226 to double-check if the risk estimate we provide is consistent with the expected return of 0.15%. Key indicators related to Community Bank's volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
Community 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 Community daily returns, and it is calculated using variance and standard deviation. We also use Community's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Community Bank volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Community Bank 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 Community Bank at lower prices to lower their average cost per share. Similarly, when the prices of Community Bank's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.

Moving together with Community Pink Sheet

  0.87USB-PH US BancorpPairCorr

Moving against Community Pink Sheet

  0.93BBAS3 Banco do BrasilPairCorr
  0.92BKRKY Bank RakyatPairCorr
  0.92PPERY Bank Mandiri PerseroPairCorr
  0.86PPERF Bank Mandiri PerseroPairCorr
  0.85TLK Telkom Indonesia TbkPairCorr
  0.83BBDC4 Banco Bradesco SAPairCorr
  0.77BNPQY BNP Paribas SAPairCorr
  0.77BNPQF BNP Paribas SAPairCorr
  0.72BKRKF PT Bank RakyatPairCorr

Community Bank Market Sensitivity And Downside Risk

Community Bank's beta coefficient measures the volatility of Community 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 Community pink sheet's returns against your selected market. In other words, Community Bank's beta of -0.0113 provides an investor with an approximation of how much risk Community Bank pink sheet can potentially add to one of your existing portfolios. Community Bank exhibits very low volatility with skewness of 0.98 and kurtosis of 2.75. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Community 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 Community 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 Community Bank Demand Trend
Check current 90 days Community Bank correlation with market (Dow Jones Industrial)

Community Beta

    
  -0.0113  
Community 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

    
  0.51  
It is essential to understand the difference between upside risk (as represented by Community Bank's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Community Bank's daily returns or price. Since the actual investment returns on holding a position in community 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 Community Bank.

Community Bank Pink Sheet Volatility Analysis

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

Historical Volatility

This type of pink sheet volatility measures Community Bank's fluctuations based on previous trends. It's commonly used to predict Community 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 Community 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 Community Bank's to be redeemed at a future date.
Transformation
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Community Bank Projected Return Density Against Market

Assuming the 90 days horizon Community Bank has a beta of -0.0113 suggesting as returns on the benchmark increase, returns on holding Community Bank are expected to decrease at a much lower rate. During a bear market, however, Community 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 Community 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 Community 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 Community 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.
Community Bank has an alpha of 0.1157, implying that it can generate a 0.12 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Community Bank's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how community pink sheet'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 Community 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.

Community Bank Pink Sheet Risk Measures

Assuming the 90 days horizon the coefficient of variation of Community Bank is 333.67. The daily returns are distributed with a variance of 0.26 and standard deviation of 0.51. The mean deviation of Community Bank is currently at 0.35. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.79
α
Alpha over Dow Jones
0.12
β
Beta against Dow Jones-0.01
σ
Overall volatility
0.51
Ir
Information ratio 0.21

Community Bank Pink Sheet Return Volatility

Community Bank historical daily return volatility represents how much of Community Bank pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 0.5104% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.8065% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Community Bank Volatility

Volatility is a rate at which the price of Community 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 Community Bank may increase or decrease. In other words, similar to Community's beta indicator, it measures the risk of Community Bank and helps estimate the fluctuations that may happen in a short period of time. So if prices of Community 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.
Bay Community Bancorp operates as the bank holding company for Community Bank of the Bay that provides various banking services to individuals and businesses in the greater San Francisco Bay area. The company was founded in 1996 and is headquartered in Oakland, California. BAY COMMUNITY operates under BanksRegional classification in the United States and is traded on OTC Exchange.
Community 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 Community Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Community Bank's price varies over time.

3 ways to utilize Community Bank's volatility to invest better

Higher Community 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 Community 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. Community 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 Community Bank investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Community 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 Community Bank's 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.

Community Bank Investment Opportunity

Dow Jones Industrial has a standard deviation of returns of 0.81 and is 1.59 times more volatile than Community Bank. 4 percent of all equities and portfolios are less risky than Community Bank. You can use Community Bank to enhance the returns of your portfolios. The pink sheet experiences a moderate upward volatility. Check odds of Community Bank to be traded at $15.35 in 90 days.

Good diversification

The correlation between Community 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 Community Bank and DJI in the same portfolio, assuming nothing else is changed.

Community Bank Additional Risk Indicators

The analysis of Community 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 Community Bank's investment and either accepting that risk or mitigating it. Along with some common measures of Community 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.
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.

Community 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 Community 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. Community 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, Community 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 Community Bank.
Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics.
You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

Other Consideration for investing in Community Pink Sheet

If you are still planning to invest in Community Bank check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Community Bank's history and understand the potential risks before investing.
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