Helgeland Sparebank (Norway) Volatility
| HELG Stock | NOK 162.06 2.94 1.78% |
Helgeland Sparebank appears to be very steady, given 3 months investment horizon. Helgeland Sparebank holds Efficiency (Sharpe) Ratio of 0.15, which attests that the entity had a 0.15 % return per unit of risk over the last 3 months. We have found thirty technical indicators for Helgeland Sparebank, which you can use to evaluate the volatility of the firm. Please utilize Helgeland Sparebank's Risk Adjusted Performance of 0.0897, downside deviation of 1.48, and Market Risk Adjusted Performance of 2.12 to validate if our risk estimates are consistent with your expectations. Key indicators related to Helgeland Sparebank's volatility include:
60 Days Market Risk | Chance Of Distress | 60 Days Economic Sensitivity |
Helgeland Sparebank 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 Helgeland daily returns, and it is calculated using variance and standard deviation. We also use Helgeland's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Helgeland Sparebank volatility.
Helgeland |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Helgeland Sparebank at lower prices. For example, an investor can purchase Helgeland stock that has halved in price over a short period. This will lower their average cost per share, thereby improving the overall portfolio performance when market normalizes.
Moving together with Helgeland Stock
Moving against Helgeland Stock
| 0.84 | ELO | Elopak AS | PairCorr |
| 0.75 | SCHA | Schibsted ASA A | PairCorr |
| 0.71 | SCHB | Schibsted ASA B | PairCorr |
| 0.62 | BAKKA | Pf Bakkafrost | PairCorr |
| 0.43 | WEST | Western Bulk Chartering | PairCorr |
Helgeland Sparebank Market Sensitivity And Downside Risk
Helgeland Sparebank's beta coefficient measures the volatility of Helgeland 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 Helgeland stock's returns against your selected market. In other words, Helgeland Sparebank's beta of 0.0866 provides an investor with an approximation of how much risk Helgeland Sparebank stock can potentially add to one of your existing portfolios. Helgeland Sparebank has relatively low volatility with skewness of 0.7 and kurtosis of 1.04. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Helgeland Sparebank'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 Helgeland Sparebank'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 Helgeland Sparebank Demand TrendCheck current 90 days Helgeland Sparebank correlation with market (Dow Jones Industrial)Helgeland Beta |
Helgeland 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 | 1.71 |
It is essential to understand the difference between upside risk (as represented by Helgeland Sparebank's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Helgeland Sparebank's daily returns or price. Since the actual investment returns on holding a position in helgeland 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 Helgeland Sparebank.
Helgeland Sparebank Stock Volatility Analysis
Volatility refers to the frequency at which Helgeland Sparebank stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Helgeland Sparebank's price changes. Investors will then calculate the volatility of Helgeland Sparebank'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 Helgeland Sparebank's volatility:
Historical Volatility
This type of stock volatility measures Helgeland Sparebank's fluctuations based on previous trends. It's commonly used to predict Helgeland Sparebank'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 Helgeland Sparebank'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 Helgeland Sparebank'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. Helgeland Sparebank 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.
Helgeland Sparebank Projected Return Density Against Market
Assuming the 90 days trading horizon Helgeland Sparebank has a beta of 0.0866 . This usually indicates as returns on the market go up, Helgeland Sparebank average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Helgeland Sparebank will be expected to be much smaller as well.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 Helgeland Sparebank or Banks 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 Helgeland Sparebank'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 Helgeland 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.
Helgeland Sparebank has an alpha of 0.1837, implying that it can generate a 0.18 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Helgeland Sparebank 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.Helgeland Sparebank Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Helgeland Sparebank is 650.02. The daily returns are distributed with a variance of 2.91 and standard deviation of 1.71. The mean deviation of Helgeland Sparebank is currently at 1.28. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.74
α | Alpha over Dow Jones | 0.18 | |
β | Beta against Dow Jones | 0.09 | |
σ | Overall volatility | 1.71 | |
Ir | Information ratio | 0.11 |
Helgeland Sparebank Stock Return Volatility
Helgeland Sparebank historical daily return volatility represents how much of Helgeland Sparebank stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 1.7063% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.732% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Helgeland Sparebank Volatility
Volatility is a rate at which the price of Helgeland Sparebank 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 Helgeland Sparebank may increase or decrease. In other words, similar to Helgeland's beta indicator, it measures the risk of Helgeland Sparebank and helps estimate the fluctuations that may happen in a short period of time. So if prices of Helgeland Sparebank 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.SpareBank 1 Helgeland provides various financial products and services to retail customers, small and medium enterprises, municipal authorities, and institutions in Norway. The company was founded in 1860 and is headquartered in Mo i Rana, Norway. SPAREBANK operates under BanksRegional classification in Norway and is traded on Oslo Stock Exchange. It employs 141 people.
Helgeland Sparebank'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 Helgeland Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Helgeland Sparebank's price varies over time.
3 ways to utilize Helgeland Sparebank's volatility to invest better
Higher Helgeland Sparebank's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Helgeland Sparebank 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. Helgeland Sparebank 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 Helgeland Sparebank investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Helgeland Sparebank'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 Helgeland Sparebank's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Helgeland Sparebank Investment Opportunity
Helgeland Sparebank has a volatility of 1.71 and is 2.34 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Helgeland Sparebank is lower than 15 percent of all global equities and portfolios over the last 90 days. You can use Helgeland Sparebank to protect your portfolios against small market fluctuations. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of Helgeland Sparebank to be traded at 157.2 in 90 days.Significant diversification
The correlation between Helgeland Sparebank and DJI is 0.04 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Helgeland Sparebank and DJI in the same portfolio, assuming nothing else is changed.
Helgeland Sparebank Additional Risk Indicators
The analysis of Helgeland Sparebank'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 Helgeland Sparebank's investment and either accepting that risk or mitigating it. Along with some common measures of Helgeland Sparebank 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 | 0.0897 | |||
| Market Risk Adjusted Performance | 2.12 | |||
| Mean Deviation | 1.28 | |||
| Semi Deviation | 1.2 | |||
| Downside Deviation | 1.48 | |||
| Coefficient Of Variation | 875.63 | |||
| Standard Deviation | 1.69 |
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.
Helgeland Sparebank 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 Helgeland Sparebank 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. Helgeland Sparebank'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, Helgeland Sparebank'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 Helgeland Sparebank.
Other Information on Investing in Helgeland Stock
Helgeland Sparebank financial ratios help investors to determine whether Helgeland 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 Helgeland with respect to the benefits of owning Helgeland Sparebank security.