Abbott Laboratories Stock Volatility
| ABT Stock | USD 106.89 0.70 0.65% |
Abbott Laboratories secures Sharpe Ratio (or Efficiency) of -0.0518, which signifies that the company had a -0.0518% return per unit of standard deviation over the last 3 months. Abbott Laboratories exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Abbott Laboratories' risk adjusted performance of (0.04), and Mean Deviation of 0.9415 to double-check the risk estimate we provide. Key indicators related to Abbott Laboratories' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Abbott Laboratories 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 Abbott daily returns, and it is calculated using variance and standard deviation. We also use Abbott's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Abbott Laboratories volatility.
Abbott |
ESG Sustainability
While most ESG disclosures are voluntary, Abbott Laboratories' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Abbott Laboratories' managers and investors.Environment Score | Governance Score | Social Score |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Abbott Laboratories 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 Abbott Laboratories at lower prices. For example, an investor can purchase Abbott 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 Abbott Laboratories' 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 Abbott Stock
| 0.73 | EVH | Evolent Health Financial Report 1st of May 2024 | PairCorr |
| 0.72 | NRC | National Research Corp | PairCorr |
Moving against Abbott Stock
| 0.51 | NXL | Nexalin Technology | PairCorr |
| 0.51 | IRIX | IRIDEX Financial Report 9th of May 2024 | PairCorr |
| 0.44 | DSGN | Design Therapeutics Financial Report 14th of May 2024 | PairCorr |
Abbott Laboratories Market Sensitivity And Downside Risk
Abbott Laboratories' beta coefficient measures the volatility of Abbott 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 Abbott stock's returns against your selected market. In other words, Abbott Laboratories's beta of 0.9 provides an investor with an approximation of how much risk Abbott Laboratories stock can potentially add to one of your existing portfolios. Abbott Laboratories exhibits very low volatility with skewness of -0.35 and kurtosis of 0.07. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Abbott Laboratories' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Abbott Laboratories' 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 Abbott Laboratories Demand TrendCheck current 90 days Abbott Laboratories correlation with market (NYSE Composite)Abbott Beta |
Abbott 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 | 1.17 |
It is essential to understand the difference between upside risk (as represented by Abbott Laboratories's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Abbott Laboratories' daily returns or price. Since the actual investment returns on holding a position in abbott 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 Abbott Laboratories.
Using Abbott Put Option to Manage Risk
Put options written on Abbott Laboratories grant holders of the option the right to sell a specified amount of Abbott Laboratories 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 Abbott Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Abbott Laboratories' 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 Abbott Laboratories will be realized, the loss incurred will be offset by the profits made with the option trade.
Abbott Laboratories' PUT expiring on 2024-04-26
Profit |
| Abbott Laboratories Price At Expiration |
Current Abbott Laboratories Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | 2024-04-26 PUT at $115.0 | -0.9362 | 0.0271 | 1 | 2024-04-26 | 5.5 - 9.55 | 8.41 | View |
Put | 2024-04-26 PUT at $113.0 | -0.7021 | 0.0378 | 15 | 2024-04-26 | 3.85 - 7.05 | 5.4 | View |
Put | 2024-04-26 PUT at $112.0 | -0.767 | 0.0553 | 4 | 2024-04-26 | 4.0 - 6.3 | 4.93 | View |
Put | 2024-04-26 PUT at $111.0 | -0.774 | 0.0695 | 89 | 2024-04-26 | 3.3 - 4.6 | 3.12 | View |
Put | 2024-04-26 PUT at $110.0 | -0.8194 | 0.1028 | 326 | 2024-04-26 | 2.37 - 2.92 | 2.78 | View |
Put | 2024-04-26 PUT at $109.0 | -0.6911 | 0.1309 | 173 | 2024-04-26 | 1.53 - 2.32 | 1.43 | View |
Put | 2024-04-26 PUT at $108.0 | -0.5757 | 0.1991 | 165 | 2024-04-26 | 0.97 - 1.03 | 1.07 | View |
Put | 2024-04-26 PUT at $107.0 | -0.3772 | 0.1898 | 280 | 2024-04-26 | 0.49 - 0.56 | 0.53 | View |
Put | 2024-04-26 PUT at $106.0 | -0.2233 | 0.1386 | 171 | 2024-04-26 | 0.24 - 0.29 | 0.28 | View |
Put | 2024-04-26 PUT at $105.0 | -0.1174 | 0.0879 | 194 | 2024-04-26 | 0.12 - 0.15 | 0.13 | View |
Put | 2024-04-26 PUT at $104.0 | -0.0587 | 0.0496 | 289 | 2024-04-26 | 0.02 - 0.09 | 0.06 | View |
Abbott Laboratories Stock Volatility Analysis
Volatility refers to the frequency at which Abbott Laboratories stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Abbott Laboratories' price changes. Investors will then calculate the volatility of Abbott Laboratories' 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 Abbott Laboratories' volatility:
Historical Volatility
This type of stock volatility measures Abbott Laboratories' fluctuations based on previous trends. It's commonly used to predict Abbott Laboratories' 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 Abbott Laboratories' 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 Abbott Laboratories' 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. Abbott Laboratories 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.
Abbott Laboratories Projected Return Density Against Market
Considering the 90-day investment horizon Abbott Laboratories has a beta of 0.8977 . This suggests Abbott Laboratories market returns are related to returns on the market. As the market goes up or down, Abbott Laboratories 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 Abbott Laboratories or Health Care Equipment & Supplies 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 Abbott Laboratories' 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 Abbott 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.
Abbott Laboratories has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the NYSE Composite. Predicted Return Density |
| Returns |
What Drives an Abbott Laboratories 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.Abbott Laboratories Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Abbott Laboratories is -1930.84. The daily returns are distributed with a variance of 1.37 and standard deviation of 1.17. The mean deviation of Abbott Laboratories is currently at 0.93. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | -0.17 | |
β | Beta against NYSE Composite | 0.90 | |
σ | Overall volatility | 1.17 | |
Ir | Information ratio | -0.15 |
Abbott Laboratories Stock Return Volatility
Abbott Laboratories historical daily return volatility represents how much of Abbott Laboratories stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 1.1724% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.6372% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Abbott Laboratories Volatility
Volatility is a rate at which the price of Abbott Laboratories 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 Abbott Laboratories may increase or decrease. In other words, similar to Abbott's beta indicator, it measures the risk of Abbott Laboratories and helps estimate the fluctuations that may happen in a short period of time. So if prices of Abbott Laboratories 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 | 569.2 K | 476.3 K | |
| Market Cap | 224.8 B | 236.1 B |
Abbott Laboratories' 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 Abbott Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Abbott Laboratories' price varies over time.
3 ways to utilize Abbott Laboratories' volatility to invest better
Higher Abbott Laboratories' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Abbott Laboratories 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. Abbott Laboratories 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 Abbott Laboratories investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Abbott Laboratories' 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 Abbott Laboratories' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Abbott Laboratories Investment Opportunity
Abbott Laboratories has a volatility of 1.17 and is 1.83 times more volatile than NYSE Composite. 10 percent of all equities and portfolios are less risky than Abbott Laboratories. You can use Abbott Laboratories to protect your portfolios against small market fluctuations. The stock experiences a moderate downward daily trend and can be a good diversifier. Check odds of Abbott Laboratories to be traded at $104.75 in 90 days.Very weak diversification
The correlation between Abbott Laboratories and NYA is 0.47 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Abbott Laboratories and NYA in the same portfolio, assuming nothing else is changed.
Abbott Laboratories Additional Risk Indicators
The analysis of Abbott Laboratories' 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 Abbott Laboratories' investment and either accepting that risk or mitigating it. Along with some common measures of Abbott Laboratories 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 | (0.04) | |||
| Market Risk Adjusted Performance | (0.09) | |||
| Mean Deviation | 0.9415 | |||
| Coefficient Of Variation | (1,465) | |||
| Standard Deviation | 1.2 | |||
| Variance | 1.45 | |||
| Information Ratio | (0.15) |
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.
Abbott Laboratories 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 Abbott Laboratories 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. Abbott Laboratories' 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, Abbott Laboratories' 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 Abbott Laboratories.
When determining whether Abbott Laboratories is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Abbott Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Abbott Laboratories Stock. Highlighted below are key reports to facilitate an investment decision about Abbott Laboratories Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Abbott Laboratories. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of labor statistics. For more information on how to buy Abbott Stock please use our How to Invest in Abbott Laboratories guide.Note that the Abbott Laboratories information on this page should be used as a complementary analysis to other Abbott Laboratories' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Complementary Tools for Abbott Stock analysis
When running Abbott Laboratories' price analysis, check to measure Abbott Laboratories' 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 Abbott Laboratories is operating at the current time. Most of Abbott Laboratories' value examination focuses on studying past and present price action to predict the probability of Abbott Laboratories' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Abbott Laboratories' price. Additionally, you may evaluate how the addition of Abbott Laboratories to your portfolios can decrease your overall portfolio volatility.
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Is Abbott Laboratories' industry 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 Abbott Laboratories. If investors know Abbott 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 Abbott Laboratories 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 (0.07) | Dividend Share 2.12 | Earnings Share 3.21 | Revenue Per Share 23.183 | Quarterly Revenue Growth 0.022 |
The market value of Abbott Laboratories is measured differently than its book value, which is the value of Abbott that is recorded on the company's balance sheet. Investors also form their own opinion of Abbott Laboratories' value that differs from its market value or its book value, called intrinsic value, which is Abbott Laboratories' 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 Abbott Laboratories' market value can be influenced by many factors that don't directly affect Abbott Laboratories' 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 Abbott Laboratories' value and its price as these two are different measures arrived at by different means. Investors typically determine if Abbott Laboratories is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Abbott Laboratories' 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.