Interactive Brokers Group Stock Volatility
| IBKR Stock | USD 191.09 0.03 0.02% |
Interactive Brokers appears to be very steady, given 3 months investment horizon. Interactive Brokers holds Efficiency (Sharpe) Ratio of 0.33, which attests that the entity had a 0.33% return per unit of risk over the last 3 months. By evaluating Interactive Brokers' technical indicators, you can evaluate if the expected return of 0.67% is justified by implied risk. Please utilize Interactive Brokers' Risk Adjusted Performance of 0.2578, market risk adjusted performance of 0.4323, and Downside Deviation of 1.56 to validate if our risk estimates are consistent with your expectations. Key indicators related to Interactive Brokers' volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Interactive Brokers 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 Interactive daily returns, and it is calculated using variance and standard deviation. We also use Interactive's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Interactive Brokers volatility.
Interactive |
ESG Sustainability
While most ESG disclosures are voluntary, Interactive Brokers' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Interactive Brokers' managers and investors.Environmental | Governance | Social |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Interactive Brokers 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 Interactive Brokers at lower prices. For example, an investor can purchase Interactive 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 Interactive Brokers' 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 Interactive Stock
| 0.85 | V | Visa Class A | PairCorr |
| 0.94 | DIST | Distoken Acquisition | PairCorr |
| 0.89 | MA | Mastercard | PairCorr |
| 0.84 | MC | Moelis | PairCorr |
| 0.96 | MS | Morgan Stanley Fiscal Year End 21st of January 2025 | PairCorr |
| 0.96 | SF | Stifel Financial Fiscal Year End 22nd of January 2025 | PairCorr |
| 0.77 | TW | Tradeweb Markets | PairCorr |
Moving against Interactive Stock
| 0.78 | WU | Western Union Sell-off Trend | PairCorr |
| 0.63 | BRACU | Broad Capital Acquisition | PairCorr |
| 0.57 | PT | Pintec Technology | PairCorr |
| 0.5 | RC | Ready Capital Corp | PairCorr |
| 0.37 | PWUPW | PowerUp Acquisition Corp | PairCorr |
| 0.37 | TETEW | Technology Telecommunicatio | PairCorr |
Interactive Brokers Market Sensitivity And Downside Risk
Interactive Brokers' beta coefficient measures the volatility of Interactive 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 Interactive stock's returns against your selected market. In other words, Interactive Brokers's beta of 1.52 provides an investor with an approximation of how much risk Interactive Brokers stock can potentially add to one of your existing portfolios. Interactive Brokers Group has relatively low volatility with skewness of 2.04 and kurtosis of 10.48. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Interactive Brokers' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Interactive Brokers' 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 Interactive Brokers Demand TrendCheck current 90 days Interactive Brokers correlation with market (Dow Jones Industrial)Interactive Beta |
Interactive 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 | 2.01 |
It is essential to understand the difference between upside risk (as represented by Interactive Brokers's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Interactive Brokers' daily returns or price. Since the actual investment returns on holding a position in interactive 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 Interactive Brokers.
Using Interactive Put Option to Manage Risk
Put options written on Interactive Brokers grant holders of the option the right to sell a specified amount of Interactive Brokers 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 Interactive Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Interactive Brokers' 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 Interactive Brokers will be realized, the loss incurred will be offset by the profits made with the option trade.
Interactive Brokers' PUT expiring on 2024-12-20
Profit |
| Interactive Brokers Price At Expiration |
Current Interactive Brokers Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | IBKR Option Put 20-12-2024 190 | 0.0 | 0.0 | 97 | 2024-12-20 | 3.9 - 4.3 | 4.2 | View |
Put | IBKR Option Put 20-12-2024 160 | 0.0 | 0.0 | 1180 | 2024-12-20 | 0.1 - 0.2 | 0.1 | View |
Put | IBKR Option Put 20-12-2024 150 | 0.0 | 0.0 | 266 | 2024-12-20 | 0.0 - 0.45 | 0.08 | View |
Put | IBKR Option Put 20-12-2024 140 | 0.0 | 0.0 | 128 | 2024-12-20 | 0.0 - 0.15 | 0.05 | View |
Put | IBKR Option Put 20-12-2024 130 | 0.0 | 0.0 | 436 | 2024-12-20 | 0.0 - 0.2 | 0.15 | View |
Put | IBKR Option Put 20-12-2024 120 | 0.0 | 0.0 | 167 | 2024-12-20 | 0.0 - 0.2 | 0.3 | View |
Put | IBKR Option Put 20-12-2024 105 | 0.0 | 0.0 | 103 | 2024-12-20 | 0.0 - 0.1 | 0.08 | View |
Put | IBKR Option Put 20-12-2024 95 | 0.0 | 0.0 | 462 | 2024-12-20 | 0.0 - 0.3 | 0.11 | View |
Put | IBKR Option Put 20-12-2024 85 | 0.0 | 0.0 | 108 | 2024-12-20 | 0.0 - 0.05 | 0.05 | View |
Put | IBKR Option Put 20-12-2024 75 | 0.0 | 0.0 | 4 | 2024-12-20 | 0.0 - 2.3 | 0.45 | View |
Put | IBKR Option Put 20-12-2024 60 | 0.0 | 0.0 | 4 | 2024-12-20 | 0.0 - 1.55 | 0.15 | View |
Interactive Brokers Stock Volatility Analysis
Volatility refers to the frequency at which Interactive Brokers stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Interactive Brokers' price changes. Investors will then calculate the volatility of Interactive Brokers' 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 Interactive Brokers' volatility:
Historical Volatility
This type of stock volatility measures Interactive Brokers' fluctuations based on previous trends. It's commonly used to predict Interactive Brokers' 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 Interactive Brokers' 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 Interactive Brokers' 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. Interactive Brokers 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.
Interactive Brokers Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 1.5223 . This usually indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Interactive Brokers will likely underperform.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 Interactive Brokers or Capital Markets 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 Interactive Brokers' 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 Interactive 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.
Interactive Brokers Group has an alpha of 0.4486, implying that it can generate a 0.45 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Interactive Brokers 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.Interactive Brokers Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Interactive Brokers is 301.86. The daily returns are distributed with a variance of 4.05 and standard deviation of 2.01. The mean deviation of Interactive Brokers Group is currently at 1.27. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.45 | |
β | Beta against Dow Jones | 1.52 | |
σ | Overall volatility | 2.01 | |
Ir | Information ratio | 0.26 |
Interactive Brokers Stock Return Volatility
Interactive Brokers historical daily return volatility represents how much of Interactive Brokers stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The enterprise inherits 2.0136% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7502% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Interactive Brokers Volatility
Volatility is a rate at which the price of Interactive Brokers 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 Interactive Brokers may increase or decrease. In other words, similar to Interactive's beta indicator, it measures the risk of Interactive Brokers and helps estimate the fluctuations that may happen in a short period of time. So if prices of Interactive Brokers 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 | 728 M | 394.5 M | |
| Market Cap | 6.5 B | 6.9 B |
Interactive Brokers' 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 Interactive Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Interactive Brokers' price varies over time.
3 ways to utilize Interactive Brokers' volatility to invest better
Higher Interactive Brokers' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Interactive Brokers 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. Interactive Brokers 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 Interactive Brokers investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Interactive Brokers' 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 Interactive Brokers' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Interactive Brokers Investment Opportunity
Interactive Brokers Group has a volatility of 2.01 and is 2.68 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Interactive Brokers Group is lower than 17 percent of all global equities and portfolios over the last 90 days. You can use Interactive Brokers Group to enhance the returns of your portfolios. The stock experiences a normal upward fluctuation. Check odds of Interactive Brokers to be traded at $200.64 in 90 days.Very weak diversification
The correlation between Interactive Brokers Group and DJI is 0.59 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Interactive Brokers Group and DJI in the same portfolio, assuming nothing else is changed.
Interactive Brokers Additional Risk Indicators
The analysis of Interactive Brokers' 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 Interactive Brokers' investment and either accepting that risk or mitigating it. Along with some common measures of Interactive Brokers 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 | 0.2578 | |||
| Market Risk Adjusted Performance | 0.4323 | |||
| Mean Deviation | 1.26 | |||
| Semi Deviation | 0.8382 | |||
| Downside Deviation | 1.56 | |||
| Coefficient Of Variation | 303.76 | |||
| Standard Deviation | 1.98 |
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.
Interactive Brokers 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 Interactive Brokers 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. Interactive Brokers' 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, Interactive Brokers' 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 Interactive Brokers Group.
Additional Tools for Interactive Stock Analysis
When running Interactive Brokers' price analysis, check to measure Interactive Brokers' 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 Interactive Brokers is operating at the current time. Most of Interactive Brokers' value examination focuses on studying past and present price action to predict the probability of Interactive Brokers' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Interactive Brokers' price. Additionally, you may evaluate how the addition of Interactive Brokers to your portfolios can decrease your overall portfolio volatility.