1st Capital Bank Stock Volatility
| FISB Stock | USD 10.70 0.09 0.85% |
1st Capital Bank secures Sharpe Ratio (or Efficiency) of -0.2, which signifies that the company had a -0.2% return per unit of standard deviation over the last 3 months. 1st Capital Bank exposes twenty-one different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm 1st Capital's mean deviation of 0.3755, and Risk Adjusted Performance of (0.10) to double-check the risk estimate we provide. Key indicators related to 1st Capital's volatility include:
60 Days Market Risk | Chance Of Distress | 60 Days Economic Sensitivity |
1st Capital 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 1st daily returns, and it is calculated using variance and standard deviation. We also use 1st's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of 1st Capital volatility.
1st |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as 1st Capital 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 1st Capital at lower prices. For example, an investor can purchase 1st 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 1st Capital'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 1st OTC Stock
| 0.79 | TLK | Telkom Indonesia Tbk Financial Report 26th of April 2024 | PairCorr |
Moving against 1st OTC Stock
| 0.83 | GE | GE Aerospace Earnings Call This Week | PairCorr |
| 0.82 | XOM | Exxon Mobil Corp Earnings Call This Week | PairCorr |
| 0.82 | CAT | Caterpillar Earnings Call This Week | PairCorr |
| 0.76 | CVX | Chevron Corp Earnings Call This Week | PairCorr |
| 0.68 | DIS | Walt Disney Report 8th of May 2024 | PairCorr |
| 0.67 | AA | Alcoa Corp Financial Report 17th of July 2024 | PairCorr |
| 0.66 | WMT | Walmart Financial Report 16th of May 2024 | PairCorr |
| 0.63 | BAC | Bank of America Financial Report 16th of July 2024 | PairCorr |
| 0.51 | TRV | The Travelers Companies Financial Report 18th of July 2024 | PairCorr |
1st Capital Market Sensitivity And Downside Risk
1st Capital's beta coefficient measures the volatility of 1st 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 1st otc stock's returns against your selected market. In other words, 1st Capital's beta of 0.26 provides an investor with an approximation of how much risk 1st Capital otc stock can potentially add to one of your existing portfolios. 1st Capital Bank exhibits very low volatility with skewness of -3.03 and kurtosis of 14.81. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure 1st Capital'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 1st Capital'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 1st Capital Bank Demand TrendCheck current 90 days 1st Capital correlation with market (NYSE Composite)1st Beta |
1st 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 | 0.79 |
It is essential to understand the difference between upside risk (as represented by 1st Capital's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of 1st Capital's daily returns or price. Since the actual investment returns on holding a position in 1st 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 1st Capital.
1st Capital Bank OTC Stock Volatility Analysis
Volatility refers to the frequency at which 1st Capital otc price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with 1st Capital's price changes. Investors will then calculate the volatility of 1st Capital'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 1st Capital's volatility:
Historical Volatility
This type of otc volatility measures 1st Capital's fluctuations based on previous trends. It's commonly used to predict 1st Capital'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 1st Capital'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 1st Capital'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. 1st Capital Bank 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.
1st Capital Projected Return Density Against Market
Given the investment horizon of 90 days 1st Capital has a beta of 0.2559 . This usually indicates as returns on the market go up, 1st Capital average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding 1st Capital Bank 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 1st Capital 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 1st Capital'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 1st 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.
1st Capital Bank 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 a 1st Capital 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.1st Capital OTC Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of 1st Capital is -509.33. The daily returns are distributed with a variance of 0.62 and standard deviation of 0.79. The mean deviation of 1st Capital Bank is currently at 0.39. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | -0.16 | |
β | Beta against NYSE Composite | 0.26 | |
σ | Overall volatility | 0.79 | |
Ir | Information ratio | -0.26 |
1st Capital OTC Stock Return Volatility
1st Capital historical daily return volatility represents how much of 1st Capital otc's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 0.7875% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.6214% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About 1st Capital Volatility
Volatility is a rate at which the price of 1st Capital 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 1st Capital may increase or decrease. In other words, similar to 1st's beta indicator, it measures the risk of 1st Capital and helps estimate the fluctuations that may happen in a short period of time. So if prices of 1st Capital 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.1st Capital Bancorp operates as the bank holding company for 1st Capital Bank that provides various banking products and services for businesses, professionals, real estate investors, family commercial entities, and individuals in the Central Coast region of California. The company was founded in 2007 and is headquartered in Salinas, California. 1ST CAP operates under BanksRegional classification in the United States and is traded on OTC Exchange.
1st Capital'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 1st OTC Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much 1st Capital's price varies over time.
3 ways to utilize 1st Capital's volatility to invest better
Higher 1st Capital's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of 1st Capital Bank 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. 1st Capital Bank 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 1st Capital Bank investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in 1st Capital'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 1st Capital's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
1st Capital Investment Opportunity
1st Capital Bank has a volatility of 0.79 and is 1.27 times more volatile than NYSE Composite. 6 percent of all equities and portfolios are less risky than 1st Capital. You can use 1st Capital Bank to enhance the returns of your portfolios. The otc stock experiences a moderate upward volatility. Check odds of 1st Capital to be traded at $11.77 in 90 days.Modest diversification
The correlation between 1st Capital Bank and NYA is 0.2 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding 1st Capital Bank and NYA in the same portfolio, assuming nothing else is changed.
1st Capital Additional Risk Indicators
The analysis of 1st Capital'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 1st Capital's investment and either accepting that risk or mitigating it. Along with some common measures of 1st Capital 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.
| Risk Adjusted Performance | (0.10) | |||
| Market Risk Adjusted Performance | (0.55) | |||
| Mean Deviation | 0.3755 | |||
| Coefficient Of Variation | (584.67) | |||
| Standard Deviation | 0.7734 | |||
| Variance | 0.5982 | |||
| Information Ratio | (0.26) |
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.
1st Capital 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 1st Capital 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. 1st Capital'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, 1st Capital'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 1st Capital Bank.
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in 1st Capital Bank. 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Complementary Tools for 1st OTC Stock analysis
When running 1st Capital's price analysis, check to measure 1st Capital'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 1st Capital is operating at the current time. Most of 1st Capital's value examination focuses on studying past and present price action to predict the probability of 1st Capital's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move 1st Capital's price. Additionally, you may evaluate how the addition of 1st Capital to your portfolios can decrease your overall portfolio volatility.
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