Paylocity Holdng Stock Volatility

PCTY Stock  USD 191.91  1.16  0.61%   
Paylocity Holdng maintains Sharpe Ratio (i.e., Efficiency) of -0.0219, which implies the firm had a -0.0219 % return per unit of risk over the last 3 months. Paylocity Holdng exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check Paylocity Holdng's Risk Adjusted Performance of (0.04), coefficient of variation of (2,061), and Variance of 3.38 to confirm the risk estimate we provide. Key indicators related to Paylocity Holdng's volatility include:
90 Days Market Risk
Chance Of Distress
90 Days Economic Sensitivity
Paylocity Holdng 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 Paylocity daily returns, and it is calculated using variance and standard deviation. We also use Paylocity's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Paylocity Holdng volatility.
  

ESG Sustainability

While most ESG disclosures are voluntary, Paylocity Holdng's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Paylocity Holdng's managers and investors.
Environmental
Governance
Social
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Paylocity Holdng 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 Paylocity Holdng at lower prices. For example, an investor can purchase Paylocity 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 Paylocity Holdng's 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.

Moving together with Paylocity Stock

  0.89DT Dynatrace Holdings LLCPairCorr
  0.76DV DoubleVerify HoldingsPairCorr

Moving against Paylocity Stock

  0.49QH QuhuoPairCorr

Paylocity Holdng Market Sensitivity And Downside Risk

Paylocity Holdng's beta coefficient measures the volatility of Paylocity 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 Paylocity stock's returns against your selected market. In other words, Paylocity Holdng's beta of 0.95 provides an investor with an approximation of how much risk Paylocity Holdng stock can potentially add to one of your existing portfolios. Paylocity Holdng exhibits very low volatility with skewness of -0.61 and kurtosis of 0.02. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Paylocity Holdng'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 Paylocity Holdng'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 Paylocity Holdng Demand Trend
Check current 90 days Paylocity Holdng correlation with market (Dow Jones Industrial)

Paylocity Beta

    
  0.95  
Paylocity 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

    
  1.82  
It is essential to understand the difference between upside risk (as represented by Paylocity Holdng's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Paylocity Holdng's daily returns or price. Since the actual investment returns on holding a position in paylocity 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 Paylocity Holdng.

Using Paylocity Put Option to Manage Risk

Put options written on Paylocity Holdng grant holders of the option the right to sell a specified amount of Paylocity Holdng 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 Paylocity Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Paylocity Holdng'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 Paylocity Holdng will be realized, the loss incurred will be offset by the profits made with the option trade.

Paylocity Holdng's PUT expiring on 2025-05-16

   Profit   
       Paylocity Holdng Price At Expiration  

Current Paylocity Holdng Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
PCTY250516P00100000-0.0200227.32E-422025-05-160.0 - 1.10.0View
Put
PCTY250516P00105000-0.021438.31E-412025-05-160.0 - 1.10.0View
Put
PCTY250516P00115000-0.0254220.001099112025-05-160.0 - 1.150.0View
Put
PCTY250516P00120000-0.0448070.0016312025-05-160.0 - 2.40.0View
Put
PCTY250516P00125000-0.0294440.00144822025-05-160.0 - 1.150.0View
Put
PCTY250516P00130000-0.0346150.00175412025-05-160.1 - 1.20.0View
Put
PCTY250516P00145000-0.0697030.00344752025-05-160.0 - 2.60.0View
Put
PCTY250516P00150000-0.0763680.00408812025-05-160.45 - 2.150.0View
Put
PCTY250516P00155000-0.1032770.00517442025-05-160.6 - 3.10.0View
Put
PCTY250516P00160000-0.1321620.00635332025-05-161.55 - 3.30.0View
Put
PCTY250516P00165000-0.1664810.00766972025-05-162.15 - 4.10.0View
View All Paylocity Holdng Options

Paylocity Holdng Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Paylocity Holdng's fluctuations based on previous trends. It's commonly used to predict Paylocity Holdng'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 Paylocity Holdng'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 Paylocity Holdng'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. Paylocity Holdng 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.

Paylocity Holdng Projected Return Density Against Market

Given the investment horizon of 90 days Paylocity Holdng has a beta of 0.9464 indicating Paylocity Holdng market returns are sensitive to returns on the market. As the market goes up or down, Paylocity Holdng is expected to follow.
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 Paylocity Holdng 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 Paylocity Holdng'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 Paylocity 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.
Paylocity Holdng 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  
Paylocity Holdng's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how paylocity stock'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 Paylocity Holdng 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.

Paylocity Holdng Stock Risk Measures

Given the investment horizon of 90 days the coefficient of variation of Paylocity Holdng is -4574.42. The daily returns are distributed with a variance of 3.3 and standard deviation of 1.82. The mean deviation of Paylocity Holdng is currently at 1.46. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.89
α
Alpha over Dow Jones
-0.03
β
Beta against Dow Jones0.95
σ
Overall volatility
1.82
Ir
Information ratio -0.01

Paylocity Holdng Stock Return Volatility

Paylocity Holdng historical daily return volatility represents how much of Paylocity Holdng stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 1.8154% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8446% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Paylocity Holdng Volatility

Volatility is a rate at which the price of Paylocity Holdng 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 Paylocity Holdng may increase or decrease. In other words, similar to Paylocity's beta indicator, it measures the risk of Paylocity Holdng and helps estimate the fluctuations that may happen in a short period of time. So if prices of Paylocity Holdng 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 ReportedProjected for Next Year
Selling And Marketing Expenses385.2 M404.5 M
Market CapB7.4 B
Paylocity Holdng'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 Paylocity Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Paylocity Holdng's price varies over time.

3 ways to utilize Paylocity Holdng's volatility to invest better

Higher Paylocity Holdng's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Paylocity Holdng 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. Paylocity Holdng 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 Paylocity Holdng investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Paylocity Holdng'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 Paylocity Holdng'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.

Paylocity Holdng Investment Opportunity

Paylocity Holdng has a volatility of 1.82 and is 2.17 times more volatile than Dow Jones Industrial. 16 percent of all equities and portfolios are less risky than Paylocity Holdng. You can use Paylocity Holdng to enhance the returns of your portfolios. The stock experiences a moderate upward volatility. Check odds of Paylocity Holdng to be traded at $211.1 in 90 days.

Very weak diversification

The correlation between Paylocity Holdng and DJI is 0.46 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Paylocity Holdng and DJI in the same portfolio, assuming nothing else is changed.

Paylocity Holdng Additional Risk Indicators

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

Paylocity Holdng 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 Paylocity Holdng 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. Paylocity Holdng'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, Paylocity Holdng'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 Paylocity Holdng.

Additional Tools for Paylocity Stock Analysis

When running Paylocity Holdng's price analysis, check to measure Paylocity Holdng'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 Paylocity Holdng is operating at the current time. Most of Paylocity Holdng's value examination focuses on studying past and present price action to predict the probability of Paylocity Holdng's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Paylocity Holdng's price. Additionally, you may evaluate how the addition of Paylocity Holdng to your portfolios can decrease your overall portfolio volatility.