Duke Energy Stock Volatility

DUK Stock  USD 96.71  0.62  0.65%   
We consider Duke Energy very steady. Duke Energy secures Sharpe Ratio (or Efficiency) of 0.0052, which denotes the company had a 0.0052% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Duke Energy, which you can use to evaluate the volatility of the firm. Please confirm Duke Energy's Mean Deviation of 0.7823, downside deviation of 1.07, and Coefficient Of Variation of 5149.3 to check if the risk estimate we provide is consistent with the expected return of 0.0056%. Key indicators related to Duke Energy's volatility include:
720 Days Market Risk
Chance Of Distress
720 Days Economic Sensitivity
Duke Energy 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 Duke daily returns, and it is calculated using variance and standard deviation. We also use Duke's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Duke Energy volatility.
  

ESG Sustainability

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

  0.89ED Consolidated Edison Financial Report 2nd of May 2024 PairCorr
  0.87SO Southern Financial Report 25th of April 2024 PairCorr

Moving against Duke Stock

  0.64PCG-PG Pacific Gas AndPairCorr
  0.59PCG-PE Pacific Gas AndPairCorr
  0.58PCG-PH Pacific Gas AndPairCorr
  0.58PCG-PD Pacific Gas AndPairCorr
  0.56PCG-PI Pacific Gas AndPairCorr
  0.55PCG-PB Pacific Gas AndPairCorr
  0.52PCG-PA Pacific Gas AndPairCorr
  0.47CMS-PC CMS EnergyPairCorr

Duke Energy Market Sensitivity And Downside Risk

Duke Energy's beta coefficient measures the volatility of Duke 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 Duke stock's returns against your selected market. In other words, Duke Energy's beta of 0.63 provides an investor with an approximation of how much risk Duke Energy stock can potentially add to one of your existing portfolios. Duke Energy has relatively low volatility with skewness of -0.15 and kurtosis of 0.76. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Duke Energy'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 Duke Energy'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 Duke Energy Demand Trend
Check current 90 days Duke Energy correlation with market (NYSE Composite)

Duke Beta

    
  0.63  
Duke 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

    
  1.07  
It is essential to understand the difference between upside risk (as represented by Duke Energy's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Duke Energy's daily returns or price. Since the actual investment returns on holding a position in duke 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 Duke Energy.

Using Duke Put Option to Manage Risk

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

Duke Energy's PUT expiring on 2024-04-19

   Profit   
       Duke Energy Price At Expiration  

Current Duke Energy Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2024-04-19 PUT at $105.0-0.95210.021112024-04-196.3 - 10.49.7View
Put
2024-04-19 PUT at $100.0-0.8850.073752024-04-193.1 - 5.43.4View
Put
2024-04-19 PUT at $95.0-0.28740.103919602024-04-190.55 - 0.650.6View
Put
2024-04-19 PUT at $90.0-0.05290.024527282024-04-190.1 - 0.150.1View
Put
2024-04-19 PUT at $85.0-0.02110.00817732024-04-190.0 - 0.050.05View
Put
2024-04-19 PUT at $80.0-0.00440.00186472024-04-190.0 - 0.050.01View
View All Duke Energy Options

Duke Energy Stock Volatility Analysis

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

Historical Volatility

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

Duke Energy Projected Return Density Against Market

Considering the 90-day investment horizon Duke Energy has a beta of 0.6326 suggesting as returns on the market go up, Duke Energy average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Duke Energy 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 Duke Energy or Electric Utilities 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 Duke Energy'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 Duke 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.
Duke Energy has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming NYSE Composite.
   Predicted Return Density   
       Returns  
Duke Energy's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how duke 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 Duke Energy 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.

Duke Energy Stock Risk Measures

Considering the 90-day investment horizon the coefficient of variation of Duke Energy is 19074.59. The daily returns are distributed with a variance of 1.13 and standard deviation of 1.07. The mean deviation of Duke Energy is currently at 0.81. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
-0.07
β
Beta against NYSE Composite0.63
σ
Overall volatility
1.07
Ir
Information ratio -0.11

Duke Energy Stock Return Volatility

Duke Energy historical daily return volatility represents how much of Duke Energy stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company has volatility of 1.0654% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.573% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Duke Energy Volatility

Volatility is a rate at which the price of Duke Energy 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 Duke Energy may increase or decrease. In other words, similar to Duke's beta indicator, it measures the risk of Duke Energy and helps estimate the fluctuations that may happen in a short period of time. So if prices of Duke Energy 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.
Duke Energy Corporation, together with its subsidiaries, operates as an energy company in the United States. The company was founded in 1904 and is headquartered in Charlotte, North Carolina. Duke Energy operates under UtilitiesRegulated Electric classification in the United States and is traded on New York Stock Exchange. It employs 27605 people.
Duke Energy'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 Duke Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Duke Energy's price varies over time.

3 ways to utilize Duke Energy's volatility to invest better

Higher Duke Energy's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Duke Energy 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. Duke Energy 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 Duke Energy investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Duke Energy'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 Duke Energy'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.

Duke Energy Investment Opportunity

Duke Energy has a volatility of 1.07 and is 1.88 times more volatile than NYSE Composite. 9 percent of all equities and portfolios are less risky than Duke Energy. You can use Duke Energy to enhance the returns of your portfolios. The stock experiences a moderate upward volatility. Check odds of Duke Energy to be traded at $106.38 in 90 days.

Weak diversification

The correlation between Duke Energy and NYA is 0.34 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Duke Energy and NYA in the same portfolio, assuming nothing else is changed.

Duke Energy Additional Risk Indicators

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

Duke Energy 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 Duke Energy 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. Duke Energy'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, Duke Energy'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 Duke Energy.
When determining whether Duke Energy 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 Duke 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 Duke Energy Stock. Highlighted below are key reports to facilitate an investment decision about Duke Energy Stock:
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Duke Energy. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in employment.
For more information on how to buy Duke Stock please use our How to buy in Duke Stock guide.
You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

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When running Duke Energy's price analysis, check to measure Duke Energy'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 Duke Energy is operating at the current time. Most of Duke Energy's value examination focuses on studying past and present price action to predict the probability of Duke Energy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Duke Energy's price. Additionally, you may evaluate how the addition of Duke Energy to your portfolios can decrease your overall portfolio volatility.
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Is Duke Energy'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 Duke Energy. If investors know Duke 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 Duke Energy 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
4.06
Earnings Share
5.35
Revenue Per Share
37.097
Quarterly Revenue Growth
(0.02)
The market value of Duke Energy is measured differently than its book value, which is the value of Duke that is recorded on the company's balance sheet. Investors also form their own opinion of Duke Energy's value that differs from its market value or its book value, called intrinsic value, which is Duke Energy'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 Duke Energy's market value can be influenced by many factors that don't directly affect Duke Energy'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 Duke Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Duke Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Duke Energy'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.