Prog Holdings Stock Volatility
| PRG Stock | USD 48.21 0.93 1.89% |
At this point, PROG Holdings is very steady. PROG Holdings maintains Sharpe Ratio (i.e., Efficiency) of 0.0336, which implies the firm had a 0.0336% return per unit of volatility over the last 3 months. We have found twenty-seven technical indicators for PROG Holdings, which you can use to evaluate the volatility of the company. Please check PROG Holdings' risk adjusted performance of 0.0363, and Semi Deviation of 2.3 to confirm if the risk estimate we provide is consistent with the expected return of 0.0797%. Key indicators related to PROG Holdings' volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
PROG Holdings 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 PROG daily returns, and it is calculated using variance and standard deviation. We also use PROG's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of PROG Holdings volatility.
PROG |
ESG Sustainability
While most ESG disclosures are voluntary, PROG Holdings' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to PROG Holdings' managers and investors.Environmental | Governance | Social |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as PROG Holdings 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 PROG Holdings at lower prices to lower their average cost per share. Similarly, when the prices of PROG Holdings' stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
PROG Holdings Market Sensitivity And Downside Risk
PROG Holdings' beta coefficient measures the volatility of PROG 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 PROG stock's returns against your selected market. In other words, PROG Holdings's beta of 1.98 provides an investor with an approximation of how much risk PROG Holdings stock can potentially add to one of your existing portfolios. PROG Holdings currently demonstrates below-average downside deviation. It has Information Ratio of -0.02 and Jensen Alpha of -0.16. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure PROG Holdings' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact PROG Holdings' 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 PROG Holdings Demand TrendCheck current 90 days PROG Holdings correlation with market (Dow Jones Industrial)PROG Beta |
PROG 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 | 2.37 |
It is essential to understand the difference between upside risk (as represented by PROG Holdings's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of PROG Holdings' daily returns or price. Since the actual investment returns on holding a position in prog 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 PROG Holdings.
PROG Holdings Stock Volatility Analysis
Volatility refers to the frequency at which PROG Holdings stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with PROG Holdings' price changes. Investors will then calculate the volatility of PROG Holdings' 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 PROG Holdings' volatility:
Historical Volatility
This type of stock volatility measures PROG Holdings' fluctuations based on previous trends. It's commonly used to predict PROG Holdings' 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 PROG Holdings' 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 PROG Holdings' 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. PROG Holdings 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.
PROG Holdings Projected Return Density Against Market
Considering the 90-day investment horizon the stock has the beta coefficient of 1.9757 indicating as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, PROG Holdings 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 PROG Holdings or Machinery 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 PROG Holdings' 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 PROG 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.
PROG Holdings 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 |
What Drives a PROG Holdings 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.PROG Holdings Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of PROG Holdings is 2978.87. The daily returns are distributed with a variance of 5.64 and standard deviation of 2.37. The mean deviation of PROG Holdings is currently at 1.69. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | -0.16 | |
β | Beta against Dow Jones | 1.98 | |
σ | Overall volatility | 2.37 | |
Ir | Information ratio | -0.02 |
PROG Holdings Stock Return Volatility
PROG Holdings historical daily return volatility represents how much of PROG Holdings stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company has volatility of 2.3747% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7777% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About PROG Holdings Volatility
Volatility is a rate at which the price of PROG Holdings 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 PROG Holdings may increase or decrease. In other words, similar to PROG's beta indicator, it measures the risk of PROG Holdings and helps estimate the fluctuations that may happen in a short period of time. So if prices of PROG Holdings 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 | 17.2 M | 25.5 M | |
| Market Cap | 2.7 B | 2.8 B |
PROG Holdings' 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 PROG Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much PROG Holdings' price varies over time.
3 ways to utilize PROG Holdings' volatility to invest better
Higher PROG Holdings' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of PROG Holdings 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. PROG Holdings 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 PROG Holdings investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in PROG Holdings' 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 PROG Holdings' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
PROG Holdings Investment Opportunity
PROG Holdings has a volatility of 2.37 and is 3.04 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of PROG Holdings is lower than 21 percent of all global equities and portfolios over the last 90 days. You can use PROG Holdings 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 PROG Holdings to be traded at $46.76 in 90 days.Poor diversification
The correlation between PROG Holdings and DJI is 0.65 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding PROG Holdings and DJI in the same portfolio, assuming nothing else is changed.
PROG Holdings Additional Risk Indicators
The analysis of PROG Holdings' 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 PROG Holdings' investment and either accepting that risk or mitigating it. Along with some common measures of PROG Holdings 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 | 0.0363 | |||
| Market Risk Adjusted Performance | 0.0506 | |||
| Mean Deviation | 1.63 | |||
| Semi Deviation | 2.3 | |||
| Downside Deviation | 2.43 | |||
| Coefficient Of Variation | 2580.43 | |||
| Standard Deviation | 2.33 |
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.
PROG Holdings 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 PROG Holdings 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. PROG Holdings' 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, PROG Holdings' 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 PROG Holdings.
Complementary Tools for PROG Stock analysis
When running PROG Holdings' price analysis, check to measure PROG Holdings' 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 PROG Holdings is operating at the current time. Most of PROG Holdings' value examination focuses on studying past and present price action to predict the probability of PROG Holdings' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move PROG Holdings' price. Additionally, you may evaluate how the addition of PROG Holdings to your portfolios can decrease your overall portfolio volatility.
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