Mondelez International Stock Volatility
| MDLZ Stock | USD 70.75 1.34 1.93% |
Mondelez International has Sharpe Ratio of -0.0663, which conveys that the firm had a -0.0663% return per unit of risk over the last 3 months. Mondelez International exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify Mondelez International's Risk Adjusted Performance of (0.03), standard deviation of 1.0, and Mean Deviation of 0.8088 to check out the risk estimate we provide. Key indicators related to Mondelez International's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Mondelez International 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 Mondelez daily returns, and it is calculated using variance and standard deviation. We also use Mondelez's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Mondelez International volatility.
Mondelez |
ESG Sustainability
While most ESG disclosures are voluntary, Mondelez International's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Mondelez International'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 Mondelez International 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 Mondelez International at lower prices. For example, an investor can purchase Mondelez 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 Mondelez International'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 Mondelez Stock
| 0.74 | BUD | Anheuser Busch Inbev Financial Report 2nd of May 2024 | PairCorr |
Moving against Mondelez Stock
| 0.86 | BG | Bunge Limited Earnings Call This Week | PairCorr |
| 0.65 | ADM | Archer Daniels Midland | PairCorr |
| 0.65 | TSN | Tyson Foods Financial Report 13th of May 2024 | PairCorr |
| 0.63 | TAP | Molson Coors Brewing Earnings Call This Week | PairCorr |
| 0.6 | TPB | Turning Point Brands Financial Report 1st of May 2024 | PairCorr |
| 0.54 | FDP | Fresh Del Monte Earnings Call This Week | PairCorr |
| 0.5 | DOLE | Dole PLC Financial Report 16th of May 2024 | PairCorr |
Mondelez International Market Sensitivity And Downside Risk
Mondelez International's beta coefficient measures the volatility of Mondelez 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 Mondelez stock's returns against your selected market. In other words, Mondelez International's beta of 0.6 provides an investor with an approximation of how much risk Mondelez International stock can potentially add to one of your existing portfolios. Mondelez International exhibits very low volatility with skewness of -0.22 and kurtosis of -0.43. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Mondelez International'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 Mondelez International'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 Mondelez International Demand TrendCheck current 90 days Mondelez International correlation with market (NYSE Composite)Mondelez Beta |
Mondelez 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 | 1.03 |
It is essential to understand the difference between upside risk (as represented by Mondelez International's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Mondelez International's daily returns or price. Since the actual investment returns on holding a position in mondelez 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 Mondelez International.
Using Mondelez Put Option to Manage Risk
Put options written on Mondelez International grant holders of the option the right to sell a specified amount of Mondelez International 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 Mondelez Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Mondelez International'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 Mondelez International will be realized, the loss incurred will be offset by the profits made with the option trade.
Mondelez International's PUT expiring on 2024-04-26
Profit |
| Mondelez International Price At Expiration |
Current Mondelez International Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | 2024-04-26 PUT at $73.0 | -0.9311 | 0.0573 | 2 | 2024-04-26 | 1.6 - 5.7 | 3.3 | View |
Put | 2024-04-26 PUT at $71.0 | -0.8295 | 0.157 | 2 | 2024-04-26 | 1.05 - 2.4 | 2.65 | View |
Put | 2024-04-26 PUT at $69.0 | -0.3701 | 0.2862 | 23 | 2024-04-26 | 0.25 - 0.35 | 0.34 | View |
Put | 2024-04-26 PUT at $68.0 | -0.1425 | 0.1658 | 498 | 2024-04-26 | 0.1 - 0.15 | 0.1 | View |
Put | 2024-04-26 PUT at $67.0 | -0.0676 | 0.0785 | 99 | 2024-04-26 | 0.0 - 0.1 | 0.05 | View |
Put | 2024-04-26 PUT at $66.0 | -0.0532 | 0.0493 | 210 | 2024-04-26 | 0.0 - 0.15 | 0.05 | View |
Put | 2024-04-26 PUT at $65.0 | -0.0379 | 0.0317 | 37 | 2024-04-26 | 0.0 - 0.05 | 0.04 | View |
Mondelez International Stock Volatility Analysis
Volatility refers to the frequency at which Mondelez International stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Mondelez International's price changes. Investors will then calculate the volatility of Mondelez International'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 Mondelez International's volatility:
Historical Volatility
This type of stock volatility measures Mondelez International's fluctuations based on previous trends. It's commonly used to predict Mondelez International'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 Mondelez International'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 Mondelez International'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. Mondelez International 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.
Mondelez International Projected Return Density Against Market
Given the investment horizon of 90 days Mondelez International has a beta of 0.6045 . This indicates as returns on the market go up, Mondelez International average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Mondelez International 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 Mondelez International 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 Mondelez International'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 Mondelez 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.
Mondelez International 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 Mondelez International 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.Mondelez International Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Mondelez International is -1508.43. The daily returns are distributed with a variance of 1.06 and standard deviation of 1.03. The mean deviation of Mondelez International is currently at 0.83. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | -0.12 | |
β | Beta against NYSE Composite | 0.60 | |
σ | Overall volatility | 1.03 | |
Ir | Information ratio | -0.15 |
Mondelez International Stock Return Volatility
Mondelez International historical daily return volatility represents how much of Mondelez International stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 1.0298% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.6371% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Mondelez International Volatility
Volatility is a rate at which the price of Mondelez International 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 Mondelez International may increase or decrease. In other words, similar to Mondelez's beta indicator, it measures the risk of Mondelez International and helps estimate the fluctuations that may happen in a short period of time. So if prices of Mondelez International 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 Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 1.9 B | 1.6 B | |
| Market Cap | 98.7 B | 103.7 B |
Mondelez International'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 Mondelez Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Mondelez International's price varies over time.
3 ways to utilize Mondelez International's volatility to invest better
Higher Mondelez International's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Mondelez International 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. Mondelez International 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 Mondelez International investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Mondelez International'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 Mondelez International's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Mondelez International Investment Opportunity
Mondelez International has a volatility of 1.03 and is 1.61 times more volatile than NYSE Composite. 9 percent of all equities and portfolios are less risky than Mondelez International. You can use Mondelez International to enhance the returns of your portfolios. The stock experiences a large bullish trend. Check odds of Mondelez International to be traded at $77.83 in 90 days.Weak diversification
The correlation between Mondelez International and NYA is 0.37 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Mondelez International and NYA in the same portfolio, assuming nothing else is changed.
Mondelez International Additional Risk Indicators
The analysis of Mondelez International'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 Mondelez International's investment and either accepting that risk or mitigating it. Along with some common measures of Mondelez International 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 | (0.03) | |||
| Market Risk Adjusted Performance | (0.11) | |||
| Mean Deviation | 0.8088 | |||
| Coefficient Of Variation | (1,658) | |||
| Standard Deviation | 1.0 | |||
| Variance | 1.0 | |||
| Information Ratio | (0.15) |
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.
Mondelez International 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 Mondelez International 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. Mondelez International'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, Mondelez International'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 Mondelez International.
When determining whether Mondelez International offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Mondelez International'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 Mondelez International Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Mondelez International Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Mondelez International. 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 economic analysis. For more information on how to buy Mondelez Stock please use our How to Invest in Mondelez International guide.You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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When running Mondelez International's price analysis, check to measure Mondelez International'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 Mondelez International is operating at the current time. Most of Mondelez International's value examination focuses on studying past and present price action to predict the probability of Mondelez International's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Mondelez International's price. Additionally, you may evaluate how the addition of Mondelez International to your portfolios can decrease your overall portfolio volatility.
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Is Mondelez International'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 Mondelez International. If investors know Mondelez 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 Mondelez International 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 0.669 | Dividend Share 1.62 | Earnings Share 3.62 | Revenue Per Share 26.424 | Quarterly Revenue Growth 0.071 |
The market value of Mondelez International is measured differently than its book value, which is the value of Mondelez that is recorded on the company's balance sheet. Investors also form their own opinion of Mondelez International's value that differs from its market value or its book value, called intrinsic value, which is Mondelez International'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 Mondelez International's market value can be influenced by many factors that don't directly affect Mondelez International'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 Mondelez International's value and its price as these two are different measures arrived at by different means. Investors typically determine if Mondelez International is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Mondelez International'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.