Eagle Financial Services Stock Volatility

EFSI Stock  USD 29.80  0.05  0.17%   
We consider Eagle Financial very steady. Eagle Financial Services secures Sharpe Ratio (or Efficiency) of 0.0111, which denotes the company had a 0.0111% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Eagle Financial Services, which you can use to evaluate the volatility of the firm. Please confirm Eagle Financial's Downside Deviation of 1.38, coefficient of variation of 242178.14, and Mean Deviation of 0.3772 to check if the risk estimate we provide is consistent with the expected return of 0.0082%. Key indicators related to Eagle Financial's volatility include:
720 Days Market Risk
Chance Of Distress
720 Days Economic Sensitivity
Eagle Financial OTC 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 Eagle daily returns, and it is calculated using variance and standard deviation. We also use Eagle's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Eagle Financial volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Eagle Financial 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 Eagle Financial at lower prices. For example, an investor can purchase Eagle 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 Eagle Financial'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.

Eagle Financial Market Sensitivity And Downside Risk

Eagle Financial's beta coefficient measures the volatility of Eagle otc 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 Eagle otc stock's returns against your selected market. In other words, Eagle Financial's beta of -0.22 provides an investor with an approximation of how much risk Eagle Financial otc stock can potentially add to one of your existing portfolios. Eagle Financial Services has relatively low volatility with skewness of -0.36 and kurtosis of 5.85. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Eagle Financial's otc stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Eagle Financial's otc 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 Eagle Financial Services Demand Trend
Check current 90 days Eagle Financial correlation with market (NYSE Composite)

Eagle Beta

    
  -0.22  
Eagle 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

    
  0.74  
It is essential to understand the difference between upside risk (as represented by Eagle Financial's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Eagle Financial's daily returns or price. Since the actual investment returns on holding a position in eagle otc 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 Eagle Financial.

Eagle Financial Services OTC Stock Volatility Analysis

Volatility refers to the frequency at which Eagle Financial otc price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Eagle Financial's price changes. Investors will then calculate the volatility of Eagle Financial's otc stock to predict their future moves. A otc that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A otc stock with relatively stable price changes has low volatility. A highly volatile otc 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 Eagle Financial's volatility:

Historical Volatility

This type of otc volatility measures Eagle Financial's fluctuations based on previous trends. It's commonly used to predict Eagle Financial's future behavior based on its past. However, it cannot conclusively determine the future direction of the otc stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Eagle Financial's current market price. This means that the otc will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Eagle Financial'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. Eagle Financial Services 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.

Eagle Financial Projected Return Density Against Market

Given the investment horizon of 90 days Eagle Financial Services has a beta of -0.2216 suggesting as returns on benchmark increase, returns on holding Eagle Financial are expected to decrease at a much lower rate. During the bear market, however, Eagle Financial Services is likely to outperform the market.
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 Eagle Financial or Banks 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 Eagle Financial's price will be affected by overall otc 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 Eagle otc'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.
Eagle Financial Services has an alpha of 0.0179, implying that it can generate a 0.0179 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Eagle Financial's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how eagle otc 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 an Eagle Financial Price Volatility?

Several factors can influence a otc'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.

Eagle Financial OTC Stock Risk Measures

Given the investment horizon of 90 days the coefficient of variation of Eagle Financial is 9006.52. The daily returns are distributed with a variance of 0.54 and standard deviation of 0.74. The mean deviation of Eagle Financial Services is currently at 0.34. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
0.02
β
Beta against NYSE Composite-0.22
σ
Overall volatility
0.74
Ir
Information ratio -0.18

Eagle Financial OTC Stock Return Volatility

Eagle Financial historical daily return volatility represents how much of Eagle Financial otc's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 0.7376% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.5731% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Eagle Financial Volatility

Volatility is a rate at which the price of Eagle Financial 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 Eagle Financial may increase or decrease. In other words, similar to Eagle's beta indicator, it measures the risk of Eagle Financial and helps estimate the fluctuations that may happen in a short period of time. So if prices of Eagle Financial 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.
Eagle Financial Services, Inc. operates as the bank holding company for Bank of Clarke County that provides various retail and commercial banking products and services in the Shenandoah Valley and Northern Virginia. Eagle Financial Services, Inc. was founded in 1881 and is headquartered in Berryville, Virginia. Eagle Fincl operates under BanksRegional classification in the United States and is traded on OTC Exchange. It employs 227 people.
Eagle Financial'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 Eagle OTC Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Eagle Financial's price varies over time.

3 ways to utilize Eagle Financial's volatility to invest better

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

Eagle Financial Investment Opportunity

Eagle Financial Services has a volatility of 0.74 and is 1.3 times more volatile than NYSE Composite. 6 percent of all equities and portfolios are less risky than Eagle Financial. You can use Eagle Financial Services to protect your portfolios against small market fluctuations. The otc stock experiences a normal downward fluctuation but is a risky buy. Check odds of Eagle Financial to be traded at $29.5 in 90 days.

Good diversification

The correlation between Eagle Financial Services and NYA is -0.16 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Financial Services and NYA in the same portfolio, assuming nothing else is changed.

Eagle Financial Additional Risk Indicators

The analysis of Eagle Financial'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 Eagle Financial's investment and either accepting that risk or mitigating it. Along with some common measures of Eagle Financial otc 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 otc stocks, we recommend comparing similar otcs with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Eagle Financial 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 Eagle Financial 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. Eagle Financial'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, Eagle Financial'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 Eagle Financial Services.
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Eagle Financial Services. Also, note that the market value of any otc stock could be tightly coupled with the direction of predictive economic indicators such as signals in state.
You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.

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When running Eagle Financial's price analysis, check to measure Eagle Financial'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 Eagle Financial is operating at the current time. Most of Eagle Financial's value examination focuses on studying past and present price action to predict the probability of Eagle Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Eagle Financial's price. Additionally, you may evaluate how the addition of Eagle Financial to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between Eagle Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Eagle Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Eagle Financial'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.