Huntington Bancshares Incorporated Preferred Stock Volatility
| HBANM Preferred Stock | USD 24.00 0.17 0.71% |
As of now, Huntington Preferred Stock is very steady. Huntington Bancshares holds Efficiency (Sharpe) Ratio of 0.0201, which attests that the entity had a 0.0201% return per unit of risk over the last 3 months. We have found twenty-six technical indicators for Huntington Bancshares, which you can use to evaluate the volatility of the firm. Please check out Huntington Bancshares' Coefficient Of Variation of 2774.13, risk adjusted performance of 0.0283, and Mean Deviation of 0.641 to validate if the risk estimate we provide is consistent with the expected return of 0.0168%. Key indicators related to Huntington Bancshares' volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Huntington Bancshares Preferred 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 Huntington daily returns, and it is calculated using variance and standard deviation. We also use Huntington's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Huntington Bancshares volatility.
Huntington |
ESG Sustainability
While most ESG disclosures are voluntary, Huntington Bancshares' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Huntington Bancshares' managers and investors.Environmental | Governance | Social |
Huntington Bancshares Preferred Stock Volatility Analysis
Volatility refers to the frequency at which Huntington Bancshares preferred stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Huntington Bancshares' price changes. Investors will then calculate the volatility of Huntington Bancshares' preferred stock to predict their future moves. A preferred stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A preferred stock with relatively stable price changes has low volatility. A highly volatile preferred 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 Huntington Bancshares' volatility:
Historical Volatility
This type of preferred stock volatility measures Huntington Bancshares' fluctuations based on previous trends. It's commonly used to predict Huntington Bancshares' future behavior based on its past. However, it cannot conclusively determine the future direction of the preferred stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Huntington Bancshares' current market price. This means that the preferred stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Huntington 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. Huntington 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.
Huntington Bancshares Projected Return Density Against Market
Assuming the 90 days horizon Huntington Bancshares has a beta that is very close to zero . This usually indicates the returns on DOW JONES INDUSTRIAL and Huntington Bancshares do not appear to be highly reactive.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 Huntington Bancshares 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 Huntington Bancshares' price will be affected by overall preferred 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 Huntington preferred 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.
It does not look like Huntington Bancshares' alpha can have any bearing on the current valuation. Predicted Return Density |
| Returns |
What Drives a Huntington Bancshares Price Volatility?
Several factors can influence a preferred 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.Huntington Bancshares Preferred Stock Risk Measures
Assuming the 90 days horizon the coefficient of variation of Huntington Bancshares is 4968.63. The daily returns are distributed with a variance of 0.7 and standard deviation of 0.84. The mean deviation of Huntington Bancshares Incorporated is currently at 0.65. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 0.00 | |
β | Beta against Dow Jones | 0.00 | |
σ | Overall volatility | 0.84 | |
Ir | Information ratio | -0.12 |
Huntington Bancshares Preferred Stock Return Volatility
Huntington Bancshares historical daily return volatility represents how much of Huntington Bancshares preferred stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm shows 0.8352% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7444% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Huntington Bancshares Volatility
Volatility is a rate at which the price of Huntington 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 Huntington Bancshares may increase or decrease. In other words, similar to Huntington's beta indicator, it measures the risk of Huntington Bancshares and helps estimate the fluctuations that may happen in a short period of time. So if prices of Huntington 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.Huntington Bancshares Incorporated operates as the bank holding company for The Huntington National Bank that provides commercial, consumer, and mortgage banking services in the United States. Huntington Bancshares Incorporated was founded in 1866 and is headquartered in Columbus, Ohio. Huntington Bancshares operates under BanksRegional classification in the United States and is traded on NASDAQ Exchange. It employs 19997 people.
Huntington 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 Huntington Preferred Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Huntington Bancshares' price varies over time.
3 ways to utilize Huntington Bancshares' volatility to invest better
Higher Huntington Bancshares' preferred stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Huntington Bancshares preferred 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. Huntington Bancshares preferred 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 Huntington Bancshares investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Huntington Bancshares' preferred 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 Huntington Bancshares' preferred stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Huntington Bancshares Investment Opportunity
Huntington Bancshares Incorporated has a volatility of 0.84 and is 1.14 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Huntington Bancshares Incorporated is lower than 7 percent of all global equities and portfolios over the last 90 days. You can use Huntington Bancshares Incorporated to enhance the returns of your portfolios. The preferred stock experiences a moderate upward volatility. Check odds of Huntington Bancshares to be traded at $26.4 in 90 days.Huntington Bancshares Additional Risk Indicators
The analysis of Huntington 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 Huntington Bancshares' investment and either accepting that risk or mitigating it. Along with some common measures of Huntington Bancshares preferred 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 | 0.0283 | |||
| Mean Deviation | 0.641 | |||
| Semi Deviation | 0.7708 | |||
| Downside Deviation | 0.8163 | |||
| Coefficient Of Variation | 2774.13 | |||
| Standard Deviation | 0.8217 | |||
| Variance | 0.6752 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential preferred stocks, we recommend comparing similar preferred stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Huntington 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 Huntington 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. Huntington 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, Huntington 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 Huntington Bancshares Incorporated.
Other Information on Investing in Huntington Preferred Stock
Huntington Bancshares financial ratios help investors to determine whether Huntington Preferred Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Huntington with respect to the benefits of owning Huntington Bancshares security.