Grand Canyon Education Stock Volatility
| LOPE Stock | USD 178.18 1.21 0.67% |
At this point, Grand Canyon is very steady. Grand Canyon Education holds Efficiency (Sharpe) Ratio of 0.0935, which attests that the entity had a 0.0935 % return per unit of standard deviation over the last 3 months. We have found twenty-nine technical indicators for Grand Canyon Education, which you can use to evaluate the volatility of the firm. Please check out Grand Canyon's market risk adjusted performance of (0.56), and Risk Adjusted Performance of 0.0976 to validate if the risk estimate we provide is consistent with the expected return of 0.11%. Key indicators related to Grand Canyon's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Grand Canyon 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 Grand daily returns, and it is calculated using variance and standard deviation. We also use Grand's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Grand Canyon volatility.
Grand |
ESG Sustainability
While most ESG disclosures are voluntary, Grand Canyon's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Grand Canyon's managers and investors.Environmental | Governance | Social |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Grand Canyon 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 Grand Canyon at lower prices to lower their average cost per share. Similarly, when the prices of Grand Canyon's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with Grand Stock
Moving against Grand Stock
| 0.73 | GNS | Genius Group | PairCorr |
| 0.71 | MYND | Myndai, | PairCorr |
| 0.68 | EDU | New Oriental Education | PairCorr |
| 0.58 | EEIQ | Elite Education Group | PairCorr |
| 0.31 | GV | Visionary Education | PairCorr |
Grand Canyon Market Sensitivity And Downside Risk
Grand Canyon's beta coefficient measures the volatility of Grand 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 Grand stock's returns against your selected market. In other words, Grand Canyon's beta of -0.26 provides an investor with an approximation of how much risk Grand Canyon stock can potentially add to one of your existing portfolios. Grand Canyon Education has relatively low volatility with skewness of -0.35 and kurtosis of 0.61. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Grand Canyon'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 Grand Canyon'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 Grand Canyon Education Demand TrendCheck current 90 days Grand Canyon correlation with market (Dow Jones Industrial)Grand Beta |
Grand 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 | 1.23 |
It is essential to understand the difference between upside risk (as represented by Grand Canyon's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Grand Canyon's daily returns or price. Since the actual investment returns on holding a position in grand 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 Grand Canyon.
Using Grand Put Option to Manage Risk
Put options written on Grand Canyon grant holders of the option the right to sell a specified amount of Grand Canyon 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 Grand Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Grand Canyon's 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 Grand Canyon will be realized, the loss incurred will be offset by the profits made with the option trade.
Grand Canyon's PUT expiring on 2025-04-17
Profit |
| Grand Canyon Price At Expiration |
Current Grand Canyon Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | LOPE250417P00195000 | -0.823195 | 0.017789 | 1 | 2025-04-17 | 15.5 - 16.6 | 0.0 | View |
Put | LOPE250417P00180000 | -0.469051 | 0.02497 | 1 | 2025-04-17 | 5.6 - 6.6 | 0.0 | View |
Grand Canyon Education Stock Volatility Analysis
Volatility refers to the frequency at which Grand Canyon stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Grand Canyon's price changes. Investors will then calculate the volatility of Grand Canyon'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 Grand Canyon's volatility:
Historical Volatility
This type of stock volatility measures Grand Canyon's fluctuations based on previous trends. It's commonly used to predict Grand Canyon'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 Grand Canyon'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 Grand Canyon'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. Grand Canyon Education 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.
Grand Canyon Projected Return Density Against Market
Given the investment horizon of 90 days Grand Canyon Education has a beta of -0.2597 . This indicates as returns on the benchmark increase, returns on holding Grand Canyon are expected to decrease at a much lower rate. During a bear market, however, Grand Canyon Education 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 Grand Canyon or Diversified Consumer 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 Grand Canyon'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 Grand 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.
Grand Canyon Education has an alpha of 0.1416, implying that it can generate a 0.14 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Grand Canyon 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.Grand Canyon Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Grand Canyon is 1069.9. The daily returns are distributed with a variance of 1.5 and standard deviation of 1.23. The mean deviation of Grand Canyon Education is currently at 0.92. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.74
α | Alpha over Dow Jones | 0.14 | |
β | Beta against Dow Jones | -0.26 | |
σ | Overall volatility | 1.23 | |
Ir | Information ratio | 0.14 |
Grand Canyon Stock Return Volatility
Grand Canyon historical daily return volatility represents how much of Grand Canyon stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 1.2257% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7503% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Grand Canyon Volatility
Volatility is a rate at which the price of Grand Canyon 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 Grand Canyon may increase or decrease. In other words, similar to Grand's beta indicator, it measures the risk of Grand Canyon and helps estimate the fluctuations that may happen in a short period of time. So if prices of Grand Canyon 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 | 212.4 M | 140.1 M | |
| Market Cap | 3.6 B | 2.1 B |
Grand Canyon'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 Grand Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Grand Canyon's price varies over time.
3 ways to utilize Grand Canyon's volatility to invest better
Higher Grand Canyon's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Grand Canyon Education 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. Grand Canyon Education 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 Grand Canyon Education investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Grand Canyon'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 Grand Canyon's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Grand Canyon Investment Opportunity
Grand Canyon Education has a volatility of 1.23 and is 1.64 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Grand Canyon Education is lower than 10 percent of all global equities and portfolios over the last 90 days. You can use Grand Canyon Education to protect your portfolios against small market fluctuations. The stock experiences a moderate downward daily trend and can be a good diversifier. Check odds of Grand Canyon to be traded at $174.62 in 90 days.Good diversification
The correlation between Grand Canyon Education and DJI is -0.15 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Grand Canyon Education and DJI in the same portfolio, assuming nothing else is changed.
Grand Canyon Additional Risk Indicators
The analysis of Grand Canyon'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 Grand Canyon's investment and either accepting that risk or mitigating it. Along with some common measures of Grand Canyon 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 | 0.0976 | |||
| Market Risk Adjusted Performance | (0.56) | |||
| Mean Deviation | 0.9452 | |||
| Semi Deviation | 1.14 | |||
| Downside Deviation | 1.32 | |||
| Coefficient Of Variation | 786.98 | |||
| Standard Deviation | 1.24 |
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.
Grand Canyon 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 Grand Canyon 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. Grand Canyon'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, Grand Canyon'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 Grand Canyon Education.
Complementary Tools for Grand Stock analysis
When running Grand Canyon's price analysis, check to measure Grand Canyon's 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 Grand Canyon is operating at the current time. Most of Grand Canyon's value examination focuses on studying past and present price action to predict the probability of Grand Canyon's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Grand Canyon's price. Additionally, you may evaluate how the addition of Grand Canyon to your portfolios can decrease your overall portfolio volatility.
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