Duke Energy Preferred Stock Volatility
| DUK-PA Preferred Stock | USD 24.79 0.03 0.12% |
We consider Duke Energy very steady. Duke Energy secures Sharpe Ratio (or Efficiency) of 0.0062, which denotes the company had a 0.0062% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Duke Energy, which you can use to evaluate the volatility of the firm. Please confirm Duke Energy's Downside Deviation of 0.5822, coefficient of variation of 5526.95, and Mean Deviation of 0.3877 to check if the risk estimate we provide is consistent with the expected return of 0.0033%. Key indicators related to Duke Energy's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Duke Energy Preferred 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 Duke daily returns, and it is calculated using variance and standard deviation. We also use Duke's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Duke Energy volatility.
Duke |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Duke Energy 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 Duke Energy at lower prices. For example, an investor can purchase Duke 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 Duke Energy'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.
Duke Energy Market Sensitivity And Downside Risk
Duke Energy's beta coefficient measures the volatility of Duke preferred 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 Duke preferred stock's returns against your selected market. In other words, Duke Energy's beta of 0.3 provides an investor with an approximation of how much risk Duke Energy preferred stock can potentially add to one of your existing portfolios. Duke Energy exhibits very low volatility with skewness of -0.7 and kurtosis of 1.75. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Duke Energy's preferred stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Duke Energy's preferred 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 Duke Energy Demand TrendCheck current 90 days Duke Energy correlation with market (NYSE Composite)Duke Beta |
Duke 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 | 0.52 |
It is essential to understand the difference between upside risk (as represented by Duke Energy's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Duke Energy's daily returns or price. Since the actual investment returns on holding a position in duke preferred 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 Duke Energy.
Duke Energy Preferred Stock Volatility Analysis
Volatility refers to the frequency at which Duke Energy preferred stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Duke Energy's price changes. Investors will then calculate the volatility of Duke Energy's preferred stock to predict their future moves. A preferred stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A preferred stock with relatively stable price changes has low volatility. A highly volatile preferred 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 Duke Energy's volatility:
Historical Volatility
This type of preferred stock volatility measures Duke Energy's fluctuations based on previous trends. It's commonly used to predict Duke Energy's future behavior based on its past. However, it cannot conclusively determine the future direction of the preferred stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Duke Energy's current market price. This means that the preferred stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Duke Energy'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. Duke Energy 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.
Duke Energy Projected Return Density Against Market
Assuming the 90 days trading horizon Duke Energy has a beta of 0.303 suggesting as returns on the market go up, Duke Energy average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Duke Energy 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 Duke Energy or Utilities 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 Duke Energy's price will be affected by overall preferred 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 Duke preferred 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.
Duke Energy 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 Duke Energy Price Volatility?
Several factors can influence a preferred 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.Duke Energy Preferred Stock Risk Measures
Assuming the 90 days trading horizon the coefficient of variation of Duke Energy is 16001.27. The daily returns are distributed with a variance of 0.27 and standard deviation of 0.52. The mean deviation of Duke Energy is currently at 0.4. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | -0.02 | |
β | Beta against NYSE Composite | 0.30 | |
σ | Overall volatility | 0.52 | |
Ir | Information ratio | -0.16 |
Duke Energy Preferred Stock Return Volatility
Duke Energy historical daily return volatility represents how much of Duke Energy preferred stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company assumes 0.5232% volatility of returns over the 90 days investment horizon. By contrast, NYSE Composite accepts 0.6294% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Duke Energy Volatility
Volatility is a rate at which the price of Duke Energy 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 Duke Energy may increase or decrease. In other words, similar to Duke's beta indicator, it measures the risk of Duke Energy and helps estimate the fluctuations that may happen in a short period of time. So if prices of Duke Energy 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.Duke Energy Corporation, together with its subsidiaries, operates as an energy company in the United States. The company was incorporated in 2005 and is headquartered in Charlotte, North Carolina. Duke Energy operates under UtilitiesRegulated Electric classification in the United States and is traded on NYQ Exchange. It employs 29000 people.
Duke Energy'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 Duke Preferred Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Duke Energy's price varies over time.
3 ways to utilize Duke Energy's volatility to invest better
Higher Duke Energy's preferred stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Duke Energy preferred 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. Duke Energy preferred 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 Duke Energy investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Duke Energy's preferred 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 Duke Energy's preferred stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Duke Energy Investment Opportunity
NYSE Composite has a standard deviation of returns of 0.63 and is 1.21 times more volatile than Duke Energy. 4 percent of all equities and portfolios are less risky than Duke Energy. You can use Duke Energy to protect your portfolios against small market fluctuations. The preferred stock experiences a normal downward trend and little activity. Check odds of Duke Energy to be traded at $24.54 in 90 days.Weak diversification
The correlation between Duke Energy 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 Duke Energy and NYA in the same portfolio, assuming nothing else is changed.
Duke Energy Additional Risk Indicators
The analysis of Duke Energy'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 Duke Energy's investment and either accepting that risk or mitigating it. Along with some common measures of Duke Energy preferred 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 | 0.0091 | |||
| Market Risk Adjusted Performance | 0.0076 | |||
| Mean Deviation | 0.3877 | |||
| Semi Deviation | 0.5447 | |||
| Downside Deviation | 0.5822 | |||
| Coefficient Of Variation | 5526.95 | |||
| Standard Deviation | 0.5118 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential preferred stocks, we recommend comparing similar preferred stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Duke Energy 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.
| SentinelOne vs. Duke Energy | ||
| Ford vs. Duke Energy | ||
| Alphabet vs. Duke Energy | ||
| Bank of America vs. Duke Energy | ||
| Dupont De vs. Duke Energy | ||
| Citigroup vs. Duke Energy | ||
| GM vs. Duke Energy | ||
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 Duke Energy 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. Duke Energy'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, Duke Energy'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 Duke Energy.
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Duke Energy. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors. For information on how to trade Duke Preferred Stock refer to our How to Trade Duke Preferred Stock guide.You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Complementary Tools for Duke Preferred Stock analysis
When running Duke Energy's price analysis, check to measure Duke Energy'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 Duke Energy is operating at the current time. Most of Duke Energy's value examination focuses on studying past and present price action to predict the probability of Duke Energy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Duke Energy's price. Additionally, you may evaluate how the addition of Duke Energy to your portfolios can decrease your overall portfolio volatility.
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |