Campbell Soup Stock Volatility

CPB Stock  USD 44.07  0.70  1.61%   
We consider Campbell Soup very steady. Campbell Soup secures Sharpe Ratio (or Efficiency) of 0.0399, which signifies that the company had a 0.0399% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Campbell Soup, which you can use to evaluate the volatility of the firm. Please confirm Campbell Soup's Mean Deviation of 1.02, downside deviation of 1.44, and Risk Adjusted Performance of 0.0338 to double-check if the risk estimate we provide is consistent with the expected return of 0.0544%. Key indicators related to Campbell Soup's volatility include:
420 Days Market Risk
Chance Of Distress
420 Days Economic Sensitivity
Campbell Soup 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 Campbell daily returns, and it is calculated using variance and standard deviation. We also use Campbell's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Campbell Soup volatility.
  

ESG Sustainability

While most ESG disclosures are voluntary, Campbell Soup's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Campbell Soup's 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 Campbell Soup 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 Campbell Soup at lower prices. For example, an investor can purchase Campbell 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 Campbell Soup'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 Campbell Stock

  0.63BOF BranchOut Food CommonPairCorr

Campbell Soup Market Sensitivity And Downside Risk

Campbell Soup's beta coefficient measures the volatility of Campbell 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 Campbell stock's returns against your selected market. In other words, Campbell Soup's beta of 0.0589 provides an investor with an approximation of how much risk Campbell Soup stock can potentially add to one of your existing portfolios. Campbell Soup has relatively low volatility with skewness of -0.19 and kurtosis of 0.02. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Campbell Soup'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 Campbell Soup'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 Campbell Soup Demand Trend
Check current 90 days Campbell Soup correlation with market (NYSE Composite)

Campbell Beta

    
  0.0589  
Campbell 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

    
  1.36  
It is essential to understand the difference between upside risk (as represented by Campbell Soup's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Campbell Soup's daily returns or price. Since the actual investment returns on holding a position in campbell 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 Campbell Soup.

Using Campbell Put Option to Manage Risk

Put options written on Campbell Soup grant holders of the option the right to sell a specified amount of Campbell Soup 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 Campbell Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Campbell Soup'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 Campbell Soup will be realized, the loss incurred will be offset by the profits made with the option trade.

Campbell Soup's PUT expiring on 2024-03-28

   Profit   
       Campbell Soup Price At Expiration  

Current Campbell Soup Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2024-03-28 PUT at $45.0-0.79750.259622024-03-280.8 - 1.151.05View
Put
2024-03-28 PUT at $44.0-0.41891.0883212024-03-280.05 - 0.150.11View
View All Campbell Soup Options

Campbell Soup Stock Volatility Analysis

Volatility refers to the frequency at which Campbell Soup stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Campbell Soup's price changes. Investors will then calculate the volatility of Campbell Soup'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 Campbell Soup's volatility:

Historical Volatility

This type of stock volatility measures Campbell Soup's fluctuations based on previous trends. It's commonly used to predict Campbell Soup'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 Campbell Soup'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 Campbell Soup'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. Campbell Soup 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.

Campbell Soup Projected Return Density Against Market

Considering the 90-day investment horizon Campbell Soup has a beta of 0.0589 suggesting as returns on the market go up, Campbell Soup average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Campbell Soup 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 Campbell Soup or Food Products 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 Campbell Soup'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 Campbell 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.
Campbell Soup has an alpha of 0.049, implying that it can generate a 0.049 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Campbell Soup's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how campbell stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Campbell Soup 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.

Campbell Soup Stock Risk Measures

Considering the 90-day investment horizon the coefficient of variation of Campbell Soup is 2503.6. The daily returns are distributed with a variance of 1.85 and standard deviation of 1.36. The mean deviation of Campbell Soup is currently at 1.07. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
0.05
β
Beta against NYSE Composite0.06
σ
Overall volatility
1.36
Ir
Information ratio -0.05

Campbell Soup Stock Return Volatility

Campbell Soup historical daily return volatility represents how much of Campbell Soup stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company has volatility of 1.362% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.5731% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Campbell Soup Volatility

Volatility is a rate at which the price of Campbell Soup 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 Campbell Soup may increase or decrease. In other words, similar to Campbell's beta indicator, it measures the risk of Campbell Soup and helps estimate the fluctuations that may happen in a short period of time. So if prices of Campbell Soup 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 ReportedProjected for 2024
Selling And Marketing Expenses729.9 M767.4 M
Campbell Soup'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 Campbell Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Campbell Soup's price varies over time.

3 ways to utilize Campbell Soup's volatility to invest better

Higher Campbell Soup's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Campbell Soup 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. Campbell Soup 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 Campbell Soup investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Campbell Soup'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 Campbell Soup's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Campbell Soup Investment Opportunity

Campbell Soup has a volatility of 1.36 and is 2.39 times more volatile than NYSE Composite. 12 percent of all equities and portfolios are less risky than Campbell Soup. You can use Campbell Soup to enhance the returns of your portfolios. The stock experiences a large bullish trend. Check odds of Campbell Soup to be traded at $48.48 in 90 days.

Significant diversification

The correlation between Campbell Soup and NYA is 0.02 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Campbell Soup and NYA in the same portfolio, assuming nothing else is changed.

Campbell Soup Additional Risk Indicators

The analysis of Campbell Soup'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 Campbell Soup's investment and either accepting that risk or mitigating it. Along with some common measures of Campbell Soup 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.
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.

Campbell Soup 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 Campbell Soup 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. Campbell Soup'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, Campbell Soup'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 Campbell Soup.
When determining whether Campbell Soup offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Campbell Soup'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 Campbell Soup Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Campbell Soup Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Campbell Soup. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in american community survey.
For information on how to trade Campbell Stock refer to our How to Trade Campbell Stock guide.
You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.

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When running Campbell Soup's price analysis, check to measure Campbell Soup's 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 Campbell Soup is operating at the current time. Most of Campbell Soup's value examination focuses on studying past and present price action to predict the probability of Campbell Soup's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Campbell Soup's price. Additionally, you may evaluate how the addition of Campbell Soup to your portfolios can decrease your overall portfolio volatility.
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Is Campbell Soup's 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 Campbell Soup. If investors know Campbell 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 Campbell Soup 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
(0.12)
Dividend Share
1.48
Earnings Share
2.55
Revenue Per Share
31.059
Quarterly Revenue Growth
(0.01)
The market value of Campbell Soup is measured differently than its book value, which is the value of Campbell that is recorded on the company's balance sheet. Investors also form their own opinion of Campbell Soup's value that differs from its market value or its book value, called intrinsic value, which is Campbell Soup'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 Campbell Soup's market value can be influenced by many factors that don't directly affect Campbell Soup'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 Campbell Soup's value and its price as these two are different measures arrived at by different means. Investors typically determine if Campbell Soup is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Campbell Soup'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.