Clearwater Analytics Holdings Stock Volatility
| CWAN Stock | USD 27.60 0.53 1.96% |
As of now, Clearwater Stock is very steady. Clearwater Analytics secures Sharpe Ratio (or Efficiency) of close to zero, which signifies that the company had a close to zero % return per unit of standard deviation over the last 3 months. We have found twenty-four technical indicators for Clearwater Analytics Holdings, which you can use to evaluate the volatility of the firm. Please confirm Clearwater Analytics' mean deviation of 1.83, and Risk Adjusted Performance of (0.02) to double-check if the risk estimate we provide is consistent with the expected return of 0.0051%. Key indicators related to Clearwater Analytics' volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Clearwater Analytics 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 Clearwater daily returns, and it is calculated using variance and standard deviation. We also use Clearwater's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Clearwater Analytics volatility.
Clearwater |
ESG Sustainability
While most ESG disclosures are voluntary, Clearwater Analytics' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Clearwater Analytics' managers and investors.Environmental | Governance | Social |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Clearwater Analytics 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 Clearwater Analytics at lower prices. For example, an investor can purchase Clearwater 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 Clearwater Analytics' 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.
Clearwater Analytics Market Sensitivity And Downside Risk
Clearwater Analytics' beta coefficient measures the volatility of Clearwater 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 Clearwater stock's returns against your selected market. In other words, Clearwater Analytics's beta of -0.6 provides an investor with an approximation of how much risk Clearwater Analytics stock can potentially add to one of your existing portfolios. Clearwater Analytics Holdings exhibits very low volatility with skewness of 1.11 and kurtosis of 4.24. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Clearwater Analytics' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Clearwater Analytics' 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 Clearwater Analytics Demand TrendCheck current 90 days Clearwater Analytics correlation with market (Dow Jones Industrial)Clearwater Beta |
Clearwater 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 | 2.48 |
It is essential to understand the difference between upside risk (as represented by Clearwater Analytics's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Clearwater Analytics' daily returns or price. Since the actual investment returns on holding a position in clearwater 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 Clearwater Analytics.
Using Clearwater Put Option to Manage Risk
Put options written on Clearwater Analytics grant holders of the option the right to sell a specified amount of Clearwater Analytics 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 Clearwater Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Clearwater Analytics' 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 Clearwater Analytics will be realized, the loss incurred will be offset by the profits made with the option trade.
Clearwater Analytics' PUT expiring on 2025-06-20
Profit |
| Clearwater Analytics Price At Expiration |
Current Clearwater Analytics Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | CWAN250620P00020000 | -0.108221 | 0.023223 | 16 | 2025-06-20 | 0.1 - 0.85 | 0.0 | View |
Put | CWAN250620P00022500 | -0.152068 | 0.039281 | 36 | 2025-06-20 | 0.45 - 0.6 | 0.0 | View |
Put | CWAN250620P00025000 | -0.280645 | 0.062229 | 4120 | 2025-06-20 | 1.0 - 1.1 | 0.0 | View |
Put | CWAN250620P00030000 | -0.651207 | 0.07379 | 116 | 2025-06-20 | 3.4 - 3.7 | 0.0 | View |
Put | CWAN250620P00035000 | -0.834589 | 0.040469 | 9 | 2025-06-20 | 7.7 - 8.4 | 0.0 | View |
Clearwater Analytics Stock Volatility Analysis
Volatility refers to the frequency at which Clearwater Analytics stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Clearwater Analytics' price changes. Investors will then calculate the volatility of Clearwater Analytics' 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 Clearwater Analytics' volatility:
Historical Volatility
This type of stock volatility measures Clearwater Analytics' fluctuations based on previous trends. It's commonly used to predict Clearwater Analytics' 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 Clearwater Analytics' 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 Clearwater Analytics' 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. Clearwater Analytics 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.
Clearwater Analytics Projected Return Density Against Market
Given the investment horizon of 90 days Clearwater Analytics Holdings has a beta of -0.5993 suggesting as returns on the benchmark increase, returns on holding Clearwater Analytics are expected to decrease at a much lower rate. During a bear market, however, Clearwater Analytics Holdings 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 Clearwater Analytics or Software 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 Clearwater Analytics' 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 Clearwater 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.
Clearwater Analytics Holdings 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 Clearwater Analytics 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.Clearwater Analytics Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Clearwater Analytics is 48448.21. The daily returns are distributed with a variance of 6.16 and standard deviation of 2.48. The mean deviation of Clearwater Analytics Holdings is currently at 1.8. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.84
α | Alpha over Dow Jones | -0.08 | |
β | Beta against Dow Jones | -0.6 | |
σ | Overall volatility | 2.48 | |
Ir | Information ratio | -0.03 |
Clearwater Analytics Stock Return Volatility
Clearwater Analytics historical daily return volatility represents how much of Clearwater Analytics stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 2.4822% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8592% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Clearwater Analytics Volatility
Volatility is a rate at which the price of Clearwater Analytics 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 Clearwater Analytics may increase or decrease. In other words, similar to Clearwater's beta indicator, it measures the risk of Clearwater Analytics and helps estimate the fluctuations that may happen in a short period of time. So if prices of Clearwater Analytics 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 | 67.3 M | 45.5 M | |
| Market Cap | 4.6 B | 5.2 B |
Clearwater Analytics' 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 Clearwater Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Clearwater Analytics' price varies over time.
3 ways to utilize Clearwater Analytics' volatility to invest better
Higher Clearwater Analytics' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Clearwater Analytics 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. Clearwater Analytics 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 Clearwater Analytics investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Clearwater Analytics' 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 Clearwater Analytics' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Clearwater Analytics Investment Opportunity
Clearwater Analytics Holdings has a volatility of 2.48 and is 2.88 times more volatile than Dow Jones Industrial. 22 percent of all equities and portfolios are less risky than Clearwater Analytics. You can use Clearwater Analytics Holdings to enhance the returns of your portfolios. The stock experiences a large bullish trend. Check odds of Clearwater Analytics to be traded at $30.36 in 90 days.Good diversification
The correlation between Clearwater Analytics Holdings and DJI is -0.2 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Clearwater Analytics Holdings and DJI in the same portfolio, assuming nothing else is changed.
Clearwater Analytics Additional Risk Indicators
The analysis of Clearwater Analytics' 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 Clearwater Analytics' investment and either accepting that risk or mitigating it. Along with some common measures of Clearwater Analytics 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 | (0.02) | |||
| Market Risk Adjusted Performance | 0.1481 | |||
| Mean Deviation | 1.83 | |||
| Coefficient Of Variation | (3,453) | |||
| Standard Deviation | 2.51 | |||
| Variance | 6.31 | |||
| Information Ratio | (0.03) |
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.
Clearwater Analytics 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 Clearwater Analytics 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. Clearwater Analytics' 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, Clearwater Analytics' 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 Clearwater Analytics Holdings.
When determining whether Clearwater Analytics offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Clearwater Analytics' 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 Clearwater Analytics Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Clearwater Analytics Holdings Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Clearwater Analytics Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Is Application Software space 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 Clearwater Analytics. If investors know Clearwater 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 Clearwater Analytics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share 1.68 | Revenue Per Share | Quarterly Revenue Growth 0.277 | Return On Assets | Return On Equity |
The market value of Clearwater Analytics is measured differently than its book value, which is the value of Clearwater that is recorded on the company's balance sheet. Investors also form their own opinion of Clearwater Analytics' value that differs from its market value or its book value, called intrinsic value, which is Clearwater Analytics' 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 Clearwater Analytics' market value can be influenced by many factors that don't directly affect Clearwater Analytics' 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 Clearwater Analytics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Clearwater Analytics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Clearwater Analytics' 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.