Babcock Wilcox Enterprises Stock Volatility

BW Stock  USD 0.78  0.21  21.21%   
Babcock Wilcox Enter secures Sharpe Ratio (or Efficiency) of -0.11, which signifies that the company had -0.11% return per unit of standard deviation over the last 3 months. Our philosophy in foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Babcock Wilcox Enterprises exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its stock price that cannot be diversified away. Please confirm Babcock Wilcox's mean deviation of 5.21, and Risk Adjusted Performance of (0.04) to double-check the risk estimate we provide. Key indicators related to Babcock Wilcox's volatility include:
540 Days Market Risk
Chance Of Distress
540 Days Economic Sensitivity
Babcock Wilcox 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 Babcock daily returns, and it is calculated using variance and standard deviation. We also use Babcock's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Babcock Wilcox volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Babcock Wilcox 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 Babcock Wilcox at lower prices. For example, an investor can purchase Babcock 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 Babcock Wilcox'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 against Babcock Stock

  0.54CR Crane Company Symbol ChangePairCorr
  0.47IR Ingersoll Rand Financial Report 1st of May 2024 PairCorr
  0.47PH Parker-Hannifin Financial Report 2nd of May 2024 PairCorr
  0.43CXT Crane NXT Symbol ChangePairCorr
  0.41GE General Electric Fiscal Quarter End 31st of March 2024 PairCorr

Babcock Wilcox Market Sensitivity And Downside Risk

Babcock Wilcox's beta coefficient measures the volatility of Babcock stock compared to the systematic risk of the entire stock 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 Babcock stock's returns against your selected market. In other words, Babcock Wilcox's beta of 5.74 provides an investor with an approximation of how much risk Babcock Wilcox stock can potentially add to one of your existing portfolios.
Babcock Wilcox Enterprises is displaying above-average volatility over the selected time horizon. Investors should scrutinize Babcock Wilcox Enterprises independently to ensure intended market timing strategies are aligned with expectations about Babcock Wilcox volatility. Babcock Wilcox Enterprises is a potential penny stock. Although Babcock Wilcox may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Babcock Wilcox Enterprises. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Babcock instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.
3 Months Beta |Analyze Babcock Wilcox Enter Demand Trend
Check current 90 days Babcock Wilcox correlation with market (NYSE Composite)

Babcock Beta

    
  5.74  
Babcock standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity 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

    
  7.41  
It is essential to understand the difference between upside risk (as represented by Babcock Wilcox's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Babcock Wilcox's daily returns or price. Since the actual investment returns on holding a position in babcock 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 Babcock Wilcox.

Using Babcock Put Option to Manage Risk

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

Babcock Wilcox's PUT expiring on 2024-04-19

   Profit   
       Babcock Wilcox Price At Expiration  

Current Babcock Wilcox Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2024-04-19 PUT at $1.5-0.35430.277660002024-04-190.4 - 0.90.5View
Put
2024-04-19 PUT at $1.0-0.40560.7803292024-04-190.05 - 0.350.2View
View All Babcock Wilcox Options

Babcock Wilcox Enter Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Babcock Wilcox's fluctuations based on previous trends. It's commonly used to predict Babcock Wilcox'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 Babcock Wilcox'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 Babcock Wilcox'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. Babcock Wilcox Enter 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.

Babcock Wilcox Projected Return Density Against Market

Allowing for the 90-day total investment horizon the stock has the beta coefficient of 5.7424 suggesting as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Babcock Wilcox will likely underperform.
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 Babcock Wilcox or Electrical Equipment 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 Babcock Wilcox'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 Babcock 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.
The company has a negative alpha, implying that the risk taken by holding this instrument is not justified. Babcock Wilcox Enter is significantly underperforming NYSE Composite.
   Predicted Return Density   
       Returns  
Babcock Wilcox's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how babcock 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 Babcock Wilcox 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.

Babcock Wilcox Stock Risk Measures

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 Babcock Wilcox or Electrical Equipment 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 Babcock Wilcox'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 Babcock 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. Allowing for the 90-day total investment horizon the coefficient of variation of Babcock Wilcox is -927.2. The daily returns are distributed with a variance of 54.96 and standard deviation of 7.41. The mean deviation of Babcock Wilcox Enterprises is currently at 5.37. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.63
α
Alpha over NYSE Composite
-1.3
β
Beta against NYSE Composite5.74
σ
Overall volatility
7.41
Ir
Information ratio -0.1

Babcock Wilcox Stock Return Volatility

Babcock Wilcox historical daily return volatility represents how much of Babcock Wilcox stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The venture accepts 7.4132% volatility on return distribution over the 90 days horizon. By contrast, NYSE Composite accepts 0.5953% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Babcock Wilcox Volatility

Volatility is a rate at which the price of Babcock Wilcox 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 Babcock Wilcox may increase or decrease. In other words, similar to Babcock's beta indicator, it measures the risk of Babcock Wilcox and helps estimate the fluctuations that may happen in a short period of time. So if prices of Babcock Wilcox 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 ReportedProjected for 2024
Selling And Marketing Expenses7.7 M6.8 M
Babcock Wilcox'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 Babcock Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Babcock Wilcox's price varies over time.

3 ways to utilize Babcock Wilcox's volatility to invest better

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

Babcock Wilcox Investment Opportunity

Babcock Wilcox Enterprises has a volatility of 7.41 and is 12.35 times more volatile than NYSE Composite. 65  of all equities and portfolios are less risky than Babcock Wilcox. Compared to the overall equity markets, volatility of historical daily returns of Babcock Wilcox Enterprises is higher than 65 () of all global equities and portfolios over the last 90 days. Use Babcock Wilcox Enterprises to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a very speculative upward sentiment. Check odds of Babcock Wilcox to be traded at $0.741 in 90 days.

Very weak diversification

The correlation between Babcock Wilcox Enterprises and NYA is 0.52 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Babcock Wilcox Enterprises and NYA in the same portfolio, assuming nothing else is changed.

Babcock Wilcox Additional Risk Indicators

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

Babcock Wilcox 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 Babcock Wilcox 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. Babcock Wilcox'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, Babcock Wilcox'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 Babcock Wilcox Enterprises.
When determining whether Babcock Wilcox Enter offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Babcock Wilcox'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 Babcock Wilcox Enterprises Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Babcock Wilcox Enterprises Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Babcock Wilcox Enterprises. Also, note that the market value of any Company could be tightly coupled with the direction of predictive economic indicators such as signals in housing.
You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.

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When running Babcock Wilcox's price analysis, check to measure Babcock Wilcox'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 Babcock Wilcox is operating at the current time. Most of Babcock Wilcox's value examination focuses on studying past and present price action to predict the probability of Babcock Wilcox's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Babcock Wilcox's price. Additionally, you may evaluate how the addition of Babcock Wilcox to your portfolios can decrease your overall portfolio volatility.
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Is Babcock Wilcox'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 Babcock Wilcox. If investors know Babcock 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 Babcock Wilcox 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
(0.94)
Earnings Share
(0.49)
Revenue Per Share
11.227
Quarterly Revenue Growth
(0.04)
Return On Assets
(0.01)
The market value of Babcock Wilcox Enter is measured differently than its book value, which is the value of Babcock that is recorded on the company's balance sheet. Investors also form their own opinion of Babcock Wilcox's value that differs from its market value or its book value, called intrinsic value, which is Babcock Wilcox'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 Babcock Wilcox's market value can be influenced by many factors that don't directly affect Babcock Wilcox'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 Babcock Wilcox's value and its price as these two are different measures arrived at by different means. Investors typically determine if Babcock Wilcox is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Babcock Wilcox'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.