Regional Management Corp Stock Volatility
| RM Stock | USD 30.84 0.12 0.39% |
Regional Management Corp maintains Sharpe Ratio (i.e., Efficiency) of -0.0342, which implies the firm had a -0.0342% return per unit of risk over the last 3 months. Regional Management Corp exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check Regional Management's Coefficient Of Variation of (7,272), variance of 6.09, and insignificant Risk Adjusted Performance to confirm the risk estimate we provide. Key indicators related to Regional Management's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Regional Management 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 Regional daily returns, and it is calculated using variance and standard deviation. We also use Regional's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Regional Management volatility.
Regional |
ESG Sustainability
While most ESG disclosures are voluntary, Regional Management's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Regional Management's managers and investors.Environmental | Governance | Social |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Regional Management 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 Regional Management at lower prices. For example, an investor can purchase Regional 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 Regional Management'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 against Regional Stock
| 0.65 | LX | Lexinfintech Holdings Trending | PairCorr |
| 0.6 | CG | Carlyle Group | PairCorr |
| 0.59 | QD | Qudian Inc | PairCorr |
| 0.57 | AB | AllianceBernstein | PairCorr |
| 0.57 | AC | Associated Capital | PairCorr |
| 0.57 | LC | LendingClub Corp | PairCorr |
| 0.57 | MS | Morgan Stanley Sell-off Trend | PairCorr |
| 0.57 | TW | Tradeweb Markets | PairCorr |
| 0.56 | SF | Stifel Financial Fiscal Year End 22nd of January 2025 | PairCorr |
Regional Management Market Sensitivity And Downside Risk
Regional Management's beta coefficient measures the volatility of Regional 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 Regional stock's returns against your selected market. In other words, Regional Management's beta of 2.13 provides an investor with an approximation of how much risk Regional Management stock can potentially add to one of your existing portfolios. Regional Management Corp exhibits very low volatility with skewness of 1.09 and kurtosis of 5.16. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Regional Management'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 Regional Management'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 Regional Management Corp Demand TrendCheck current 90 days Regional Management correlation with market (Dow Jones Industrial)Regional Beta |
Regional 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 | 2.48 |
It is essential to understand the difference between upside risk (as represented by Regional Management's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Regional Management's daily returns or price. Since the actual investment returns on holding a position in regional 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 Regional Management.
Regional Management Corp Stock Volatility Analysis
Volatility refers to the frequency at which Regional Management stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Regional Management's price changes. Investors will then calculate the volatility of Regional Management'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 Regional Management's volatility:
Historical Volatility
This type of stock volatility measures Regional Management's fluctuations based on previous trends. It's commonly used to predict Regional Management'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 Regional Management'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 Regional Management'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. Regional Management Corp 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.
Regional Management Projected Return Density Against Market
Allowing for the 90-day total investment horizon the stock has the beta coefficient of 2.1305 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, Regional Management 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 Regional Management or Consumer Finance 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 Regional Management'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 Regional 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.
Regional Management Corp 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 Regional Management 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.Regional Management Stock Risk Measures
Allowing for the 90-day total investment horizon the coefficient of variation of Regional Management is -2925.56. The daily returns are distributed with a variance of 6.16 and standard deviation of 2.48. The mean deviation of Regional Management Corp is currently at 1.74. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | -0.29 | |
β | Beta against Dow Jones | 2.13 | |
σ | Overall volatility | 2.48 | |
Ir | Information ratio | -0.06 |
Regional Management Stock Return Volatility
Regional Management historical daily return volatility represents how much of Regional Management stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm accepts 2.4818% volatility on return distribution over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7717% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Regional Management Volatility
Volatility is a rate at which the price of Regional Management 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 Regional Management may increase or decrease. In other words, similar to Regional's beta indicator, it measures the risk of Regional Management and helps estimate the fluctuations that may happen in a short period of time. So if prices of Regional Management 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 | 15.8 M | 8.2 M | |
| Market Cap | 235.7 M | 177.8 M |
Regional Management'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 Regional Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Regional Management's price varies over time.
3 ways to utilize Regional Management's volatility to invest better
Higher Regional Management's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Regional Management Corp 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. Regional Management Corp 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 Regional Management Corp investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Regional Management'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 Regional Management's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Regional Management Investment Opportunity
Regional Management Corp has a volatility of 2.48 and is 3.22 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Regional Management Corp is lower than 22 percent of all global equities and portfolios over the last 90 days. You can use Regional Management Corp to enhance the returns of your portfolios. The stock experiences a normal upward fluctuation. Check odds of Regional Management to be traded at $32.38 in 90 days.Poor diversification
The correlation between Regional Management Corp and DJI is 0.66 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Regional Management Corp and DJI in the same portfolio, assuming nothing else is changed.
Regional Management Additional Risk Indicators
The analysis of Regional Management'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 Regional Management's investment and either accepting that risk or mitigating it. Along with some common measures of Regional Management 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) | |||
| Market Risk Adjusted Performance | (0.01) | |||
| Mean Deviation | 1.74 | |||
| Coefficient Of Variation | (7,272) | |||
| Standard Deviation | 2.47 | |||
| Variance | 6.09 | |||
| Information Ratio | (0.06) |
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.
Regional Management 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 Regional Management 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. Regional Management'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, Regional Management'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 Regional Management Corp.
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Regional Management Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population. You can also try the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Is Consumer Finance 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 Regional Management. If investors know Regional 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 Regional Management 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 (0.17) | Dividend Share 1.2 | Earnings Share 2.37 | Revenue Per Share 58.139 | Quarterly Revenue Growth 0.036 |
The market value of Regional Management Corp is measured differently than its book value, which is the value of Regional that is recorded on the company's balance sheet. Investors also form their own opinion of Regional Management's value that differs from its market value or its book value, called intrinsic value, which is Regional Management'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 Regional Management's market value can be influenced by many factors that don't directly affect Regional Management'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 Regional Management's value and its price as these two are different measures arrived at by different means. Investors typically determine if Regional Management is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Regional Management'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.