Terreno Realty Stock Volatility
| TRNO Stock | USD 67.86 1.05 1.57% |
Terreno Realty appears to be very steady, given 3 months investment horizon. Terreno Realty owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.14, which indicates the firm had a 0.14 % return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Terreno Realty, which you can use to evaluate the volatility of the company. Please review Terreno Realty's Coefficient Of Variation of 872.2, semi deviation of 1.03, and Risk Adjusted Performance of 0.0895 to confirm if our risk estimates are consistent with your expectations. Key indicators related to Terreno Realty's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Terreno Realty 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 Terreno daily returns, and it is calculated using variance and standard deviation. We also use Terreno's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Terreno Realty volatility.
Terreno |
ESG Sustainability
While most ESG disclosures are voluntary, Terreno Realty's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Terreno Realty's managers and investors.Environmental | Governance | Social |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Terreno Realty 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 Terreno Realty at lower prices. For example, an investor can purchase Terreno 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 Terreno Realty'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 Terreno Stock
Moving against Terreno Stock
| 0.67 | PK | Park Hotels Resorts | PairCorr |
| 0.64 | OZ | Belpointe PREP LLC | PairCorr |
| 0.58 | KW | Kennedy Wilson Holdings | PairCorr |
| 0.49 | UE | Urban Edge Properties | PairCorr |
| 0.42 | SLG | SL Green Realty | PairCorr |
| 0.41 | BXP | Boston Properties | PairCorr |
| 0.41 | RC | Ready Capital Corp | PairCorr |
| 0.4 | OPI | Office Properties Income | PairCorr |
| 0.35 | HR | Healthcare Realty Trust | PairCorr |
Terreno Realty Market Sensitivity And Downside Risk
Terreno Realty's beta coefficient measures the volatility of Terreno 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 Terreno stock's returns against your selected market. In other words, Terreno Realty's beta of 0.53 provides an investor with an approximation of how much risk Terreno Realty stock can potentially add to one of your existing portfolios. Terreno Realty has relatively low volatility with skewness of 1.13 and kurtosis of 6.46. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Terreno Realty'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 Terreno Realty'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 Terreno Realty Demand TrendCheck current 90 days Terreno Realty correlation with market (Dow Jones Industrial)Terreno Beta |
Terreno 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 | 1.56 |
It is essential to understand the difference between upside risk (as represented by Terreno Realty's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Terreno Realty's daily returns or price. Since the actual investment returns on holding a position in terreno 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 Terreno Realty.
Using Terreno Put Option to Manage Risk
Put options written on Terreno Realty grant holders of the option the right to sell a specified amount of Terreno Realty 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 Terreno Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Terreno Realty'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 Terreno Realty will be realized, the loss incurred will be offset by the profits made with the option trade.
Terreno Realty's PUT expiring on 2025-04-17
Profit |
| Terreno Realty Price At Expiration |
Terreno Realty Stock Volatility Analysis
Volatility refers to the frequency at which Terreno Realty stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Terreno Realty's price changes. Investors will then calculate the volatility of Terreno Realty'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 Terreno Realty's volatility:
Historical Volatility
This type of stock volatility measures Terreno Realty's fluctuations based on previous trends. It's commonly used to predict Terreno Realty'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 Terreno Realty'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 Terreno Realty'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. Terreno Realty 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.
Terreno Realty Projected Return Density Against Market
Given the investment horizon of 90 days Terreno Realty has a beta of 0.5318 . This usually implies as returns on the market go up, Terreno Realty average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Terreno Realty 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 Terreno Realty or Diversified REITs 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 Terreno Realty'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 Terreno 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.
Terreno Realty has an alpha of 0.1663, implying that it can generate a 0.17 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Terreno Realty 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.Terreno Realty Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Terreno Realty is 732.56. The daily returns are distributed with a variance of 2.43 and standard deviation of 1.56. The mean deviation of Terreno Realty is currently at 1.0. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.74
α | Alpha over Dow Jones | 0.17 | |
β | Beta against Dow Jones | 0.53 | |
σ | Overall volatility | 1.56 | |
Ir | Information ratio | 0.11 |
Terreno Realty Stock Return Volatility
Terreno Realty historical daily return volatility represents how much of Terreno Realty stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 1.5584% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7277% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Terreno Realty Volatility
Volatility is a rate at which the price of Terreno Realty 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 Terreno Realty may increase or decrease. In other words, similar to Terreno's beta indicator, it measures the risk of Terreno Realty and helps estimate the fluctuations that may happen in a short period of time. So if prices of Terreno Realty 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 | ||
| Market Cap | 5.6 B | 5.9 B |
Terreno Realty'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 Terreno Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Terreno Realty's price varies over time.
3 ways to utilize Terreno Realty's volatility to invest better
Higher Terreno Realty's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Terreno Realty 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. Terreno Realty 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 Terreno Realty investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Terreno Realty'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 Terreno Realty's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Terreno Realty Investment Opportunity
Terreno Realty has a volatility of 1.56 and is 2.14 times more volatile than Dow Jones Industrial. 13 percent of all equities and portfolios are less risky than Terreno Realty. You can use Terreno Realty to enhance the returns of your portfolios. The stock experiences a large bullish trend. Check odds of Terreno Realty to be traded at $74.65 in 90 days.Modest diversification
The correlation between Terreno Realty and DJI is 0.26 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Terreno Realty and DJI in the same portfolio, assuming nothing else is changed.
Terreno Realty Additional Risk Indicators
The analysis of Terreno Realty'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 Terreno Realty's investment and either accepting that risk or mitigating it. Along with some common measures of Terreno Realty 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 | 0.0895 | |||
| Market Risk Adjusted Performance | 0.3162 | |||
| Mean Deviation | 0.9682 | |||
| Semi Deviation | 1.03 | |||
| Downside Deviation | 1.25 | |||
| Coefficient Of Variation | 872.2 | |||
| Standard Deviation | 1.51 |
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.
Terreno Realty 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 Terreno Realty 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. Terreno Realty'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, Terreno Realty'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 Terreno Realty.
When determining whether Terreno Realty offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Terreno Realty's 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 Terreno Realty Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Terreno Realty Stock: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Terreno Realty. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. To learn how to invest in Terreno Stock, please use our How to Invest in Terreno Realty guide.You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Is Diversified REITs 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 Terreno Realty. If investors know Terreno 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 Terreno Realty listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.14 | Dividend Share 1.88 | Earnings Share 1.9 | Revenue Per Share | Quarterly Revenue Growth 0.199 |
The market value of Terreno Realty is measured differently than its book value, which is the value of Terreno that is recorded on the company's balance sheet. Investors also form their own opinion of Terreno Realty's value that differs from its market value or its book value, called intrinsic value, which is Terreno Realty's 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 Terreno Realty's market value can be influenced by many factors that don't directly affect Terreno Realty's 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 Terreno Realty's value and its price as these two are different measures arrived at by different means. Investors typically determine if Terreno Realty is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Terreno Realty's 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.