Hamilton Beach Brands Stock Volatility

HBB Stock  USD 24.36  0.22  0.90%   
Hamilton Beach appears to be somewhat reliable, given 3 months investment horizon. Hamilton Beach Brands holds Efficiency (Sharpe) Ratio of 0.17, which attests that the entity had a 0.17% return per unit of risk over the last 3 months. By evaluating Hamilton Beach's technical indicators, you can evaluate if the expected return of 0.61% is justified by implied risk. Please utilize Hamilton Beach's Downside Deviation of 3.11, risk adjusted performance of 0.1089, and Market Risk Adjusted Performance of 2.51 to validate if our risk estimates are consistent with your expectations. Key indicators related to Hamilton Beach's volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
Hamilton Beach 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 Hamilton daily returns, and it is calculated using variance and standard deviation. We also use Hamilton's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Hamilton Beach volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Hamilton Beach 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 Hamilton Beach at lower prices. For example, an investor can purchase Hamilton 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 Hamilton Beach'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 Hamilton Stock

  0.76SN SharkNinjaPairCorr

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Hamilton Beach Market Sensitivity And Downside Risk

Hamilton Beach's beta coefficient measures the volatility of Hamilton 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 Hamilton stock's returns against your selected market. In other words, Hamilton Beach's beta of 0.25 provides an investor with an approximation of how much risk Hamilton Beach stock can potentially add to one of your existing portfolios. Hamilton Beach Brands shows above-average downside volatility for the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Hamilton Beach'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 Hamilton Beach'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 Hamilton Beach Brands Demand Trend
Check current 90 days Hamilton Beach correlation with market (NYSE Composite)

Hamilton Beta

    
  0.25  
Hamilton 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

    
  3.64  
It is essential to understand the difference between upside risk (as represented by Hamilton Beach's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Hamilton Beach's daily returns or price. Since the actual investment returns on holding a position in hamilton 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 Hamilton Beach.

Using Hamilton Put Option to Manage Risk

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

Hamilton Beach's PUT expiring on 2024-04-19

   Profit   
       Hamilton Beach Price At Expiration  

Hamilton Beach Brands Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Hamilton Beach's fluctuations based on previous trends. It's commonly used to predict Hamilton Beach'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 Hamilton Beach'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 Hamilton Beach'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. Hamilton Beach Brands 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.

Hamilton Beach Projected Return Density Against Market

Considering the 90-day investment horizon Hamilton Beach has a beta of 0.2538 . This usually indicates as returns on the market go up, Hamilton Beach average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Hamilton Beach Brands 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 Hamilton Beach or Household Durables 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 Hamilton Beach'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 Hamilton 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.
Hamilton Beach Brands has an alpha of 0.6023, implying that it can generate a 0.6 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Hamilton Beach's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how hamilton 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 Hamilton Beach 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.

Hamilton Beach Stock Risk Measures

Considering the 90-day investment horizon the coefficient of variation of Hamilton Beach is 596.42. The daily returns are distributed with a variance of 13.22 and standard deviation of 3.64. The mean deviation of Hamilton Beach Brands is currently at 2.58. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
0.60
β
Beta against NYSE Composite0.25
σ
Overall volatility
3.64
Ir
Information ratio 0.14

Hamilton Beach Stock Return Volatility

Hamilton Beach historical daily return volatility represents how much of Hamilton Beach stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company has volatility of 3.6361% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.5689% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Hamilton Beach Volatility

Volatility is a rate at which the price of Hamilton Beach 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 Hamilton Beach may increase or decrease. In other words, similar to Hamilton's beta indicator, it measures the risk of Hamilton Beach and helps estimate the fluctuations that may happen in a short period of time. So if prices of Hamilton Beach 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.
Hamilton Beach Brands Holding Company, together with its subsidiaries, designs, markets, and distributes small electric household and specialty housewares appliances in the United States and internationally. Hamilton Beach Brands Holding Company was founded in 1904 and is headquartered in Glen Allen, Virginia. Hamilton Beach operates under Furnishings, Fixtures Appliances classification in the United States and is traded on New York Stock Exchange. It employs 685 people.
Hamilton Beach'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 Hamilton Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Hamilton Beach's price varies over time.

3 ways to utilize Hamilton Beach's volatility to invest better

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

Hamilton Beach Investment Opportunity

Hamilton Beach Brands has a volatility of 3.64 and is 6.39 times more volatile than NYSE Composite. 32 percent of all equities and portfolios are less risky than Hamilton Beach. You can use Hamilton Beach Brands 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 Hamilton Beach to be traded at $23.87 in 90 days.

Significant diversification

The correlation between Hamilton Beach Brands and NYA is 0.04 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Beach Brands and NYA in the same portfolio, assuming nothing else is changed.

Hamilton Beach Additional Risk Indicators

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

Hamilton Beach 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 Hamilton Beach 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. Hamilton Beach'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, Hamilton Beach'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 Hamilton Beach Brands.
When determining whether Hamilton Beach Brands offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Hamilton Beach'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 Hamilton Beach Brands Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Hamilton Beach Brands Stock:
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Hamilton Beach Brands. 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.
Note that the Hamilton Beach Brands information on this page should be used as a complementary analysis to other Hamilton Beach's 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

Complementary Tools for Hamilton Stock analysis

When running Hamilton Beach's price analysis, check to measure Hamilton Beach'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 Hamilton Beach is operating at the current time. Most of Hamilton Beach's value examination focuses on studying past and present price action to predict the probability of Hamilton Beach's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Hamilton Beach's price. Additionally, you may evaluate how the addition of Hamilton Beach to your portfolios can decrease your overall portfolio volatility.
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Is Hamilton Beach'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 Hamilton Beach. If investors know Hamilton 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 Hamilton Beach 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
1.744
Dividend Share
0.435
Earnings Share
1.8
Revenue Per Share
44.573
Quarterly Revenue Growth
0.053
The market value of Hamilton Beach Brands is measured differently than its book value, which is the value of Hamilton that is recorded on the company's balance sheet. Investors also form their own opinion of Hamilton Beach's value that differs from its market value or its book value, called intrinsic value, which is Hamilton Beach'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 Hamilton Beach's market value can be influenced by many factors that don't directly affect Hamilton Beach'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 Hamilton Beach's value and its price as these two are different measures arrived at by different means. Investors typically determine if Hamilton Beach is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hamilton Beach'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.