Sabra Healthcare Reit Stock Volatility
| SBRA Stock | USD 14.22 0.29 2.08% |
Sabra Healthcare appears to be very steady, given 3 months investment horizon. Sabra Healthcare REIT owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.16, which indicates the firm had a 0.16% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Sabra Healthcare REIT, which you can use to evaluate the volatility of the company. Please review Sabra Healthcare's Semi Deviation of 1.15, coefficient of variation of 1197.04, and Risk Adjusted Performance of 0.0589 to confirm if our risk estimates are consistent with your expectations. Key indicators related to Sabra Healthcare's volatility include:
720 Days Market Risk | Chance Of Distress | 720 Days Economic Sensitivity |
Sabra Healthcare 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 Sabra daily returns, and it is calculated using variance and standard deviation. We also use Sabra's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Sabra Healthcare volatility.
Sabra |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Sabra Healthcare 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 Sabra Healthcare at lower prices. For example, an investor can purchase Sabra 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 Sabra Healthcare'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 Sabra Stock
Moving against Sabra Stock
| 0.65 | HR | Healthcare Realty Trust Earnings Call This Week | PairCorr |
| 0.59 | KW | Kennedy Wilson Holdings Earnings Call This Week | PairCorr |
| 0.55 | ROIC | Retail Opportunity | PairCorr |
Sabra Healthcare Market Sensitivity And Downside Risk
Sabra Healthcare's beta coefficient measures the volatility of Sabra 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 Sabra stock's returns against your selected market. In other words, Sabra Healthcare's beta of 1.14 provides an investor with an approximation of how much risk Sabra Healthcare stock can potentially add to one of your existing portfolios. Sabra Healthcare REIT has relatively low volatility with skewness of -0.02 and kurtosis of 0.87. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Sabra Healthcare'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 Sabra Healthcare'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 Sabra Healthcare REIT Demand TrendCheck current 90 days Sabra Healthcare correlation with market (NYSE Composite)Sabra Beta |
Sabra 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 | 1.29 |
It is essential to understand the difference between upside risk (as represented by Sabra Healthcare's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Sabra Healthcare's daily returns or price. Since the actual investment returns on holding a position in sabra 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 Sabra Healthcare.
Using Sabra Put Option to Manage Risk
Put options written on Sabra Healthcare grant holders of the option the right to sell a specified amount of Sabra Healthcare 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 Sabra Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Sabra Healthcare'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 Sabra Healthcare will be realized, the loss incurred will be offset by the profits made with the option trade.
Sabra Healthcare's PUT expiring on 2024-05-17
Profit |
| Sabra Healthcare Price At Expiration |
Current Sabra Healthcare Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | 2024-05-17 PUT at $15.0 | -0.7016 | 0.259 | 13 | 2024-05-17 | 0.7 - 1.15 | 1.03 | View |
Sabra Healthcare REIT Stock Volatility Analysis
Volatility refers to the frequency at which Sabra Healthcare stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Sabra Healthcare's price changes. Investors will then calculate the volatility of Sabra Healthcare'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 Sabra Healthcare's volatility:
Historical Volatility
This type of stock volatility measures Sabra Healthcare's fluctuations based on previous trends. It's commonly used to predict Sabra Healthcare'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 Sabra Healthcare'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 Sabra Healthcare'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. Sabra Healthcare REIT 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.
Sabra Healthcare Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 1.1444 . This usually implies Sabra Healthcare REIT market returns are sensitive to returns on the market. As the market goes up or down, Sabra Healthcare is expected to follow.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 Sabra Healthcare or Diversified REITs 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 Sabra Healthcare'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 Sabra 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.
Sabra Healthcare REIT has an alpha of 0.0496, implying that it can generate a 0.0496 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Sabra Healthcare 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.Sabra Healthcare Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Sabra Healthcare is 644.05. The daily returns are distributed with a variance of 1.65 and standard deviation of 1.29. The mean deviation of Sabra Healthcare REIT is currently at 0.96. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.64
α | Alpha over NYSE Composite | 0.05 | |
β | Beta against NYSE Composite | 1.14 | |
σ | Overall volatility | 1.29 | |
Ir | Information ratio | 0.04 |
Sabra Healthcare Stock Return Volatility
Sabra Healthcare historical daily return volatility represents how much of Sabra Healthcare stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 1.2851% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.6266% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Sabra Healthcare Volatility
Volatility is a rate at which the price of Sabra Healthcare 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 Sabra Healthcare may increase or decrease. In other words, similar to Sabra's beta indicator, it measures the risk of Sabra Healthcare and helps estimate the fluctuations that may happen in a short period of time. So if prices of Sabra Healthcare 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 | ||
| Market Cap | 3.3 B | 3.5 B |
Sabra Healthcare'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 Sabra Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Sabra Healthcare's price varies over time.
3 ways to utilize Sabra Healthcare's volatility to invest better
Higher Sabra Healthcare's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Sabra Healthcare REIT 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. Sabra Healthcare REIT 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 Sabra Healthcare REIT investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Sabra Healthcare'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 Sabra Healthcare's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Sabra Healthcare Investment Opportunity
Sabra Healthcare REIT has a volatility of 1.29 and is 2.05 times more volatile than NYSE Composite. 11 percent of all equities and portfolios are less risky than Sabra Healthcare. You can use Sabra Healthcare REIT to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Sabra Healthcare to be traded at $17.06 in 90 days.Very weak diversification
The correlation between Sabra Healthcare REIT and NYA is 0.55 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Sabra Healthcare REIT and NYA in the same portfolio, assuming nothing else is changed.
Sabra Healthcare Additional Risk Indicators
The analysis of Sabra Healthcare'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 Sabra Healthcare's investment and either accepting that risk or mitigating it. Along with some common measures of Sabra Healthcare 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 | 0.0589 | |||
| Market Risk Adjusted Performance | 0.0985 | |||
| Mean Deviation | 0.9969 | |||
| Semi Deviation | 1.15 | |||
| Downside Deviation | 1.31 | |||
| Coefficient Of Variation | 1197.04 | |||
| Standard Deviation | 1.33 |
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.
Sabra Healthcare 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 Sabra Healthcare 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. Sabra Healthcare'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, Sabra Healthcare'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 Sabra Healthcare REIT.
When determining whether Sabra Healthcare REIT offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Sabra Healthcare'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 Sabra Healthcare Reit Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Sabra Healthcare Reit Stock: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Sabra Healthcare REIT. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in metropolitan statistical area. You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Complementary Tools for Sabra Stock analysis
When running Sabra Healthcare's price analysis, check to measure Sabra Healthcare'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 Sabra Healthcare is operating at the current time. Most of Sabra Healthcare's value examination focuses on studying past and present price action to predict the probability of Sabra Healthcare's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Sabra Healthcare's price. Additionally, you may evaluate how the addition of Sabra Healthcare to your portfolios can decrease your overall portfolio volatility.
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Is Sabra Healthcare'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 Sabra Healthcare. If investors know Sabra 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 Sabra Healthcare 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 0.286 | Dividend Share 1.2 | Earnings Share 0.06 | Revenue Per Share 2.788 | Quarterly Revenue Growth 0.933 |
The market value of Sabra Healthcare REIT is measured differently than its book value, which is the value of Sabra that is recorded on the company's balance sheet. Investors also form their own opinion of Sabra Healthcare's value that differs from its market value or its book value, called intrinsic value, which is Sabra Healthcare'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 Sabra Healthcare's market value can be influenced by many factors that don't directly affect Sabra Healthcare'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 Sabra Healthcare's value and its price as these two are different measures arrived at by different means. Investors typically determine if Sabra Healthcare is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sabra Healthcare'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.