Knight Transportation Stock Volatility
KNX Stock | USD 57.10 0.65 1.15% |
At this stage we consider Knight Stock to be very steady. Knight Transportation has Sharpe Ratio of 0.0659, which conveys that the firm had a 0.0659% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Knight Transportation, which you can use to evaluate the volatility of the firm. Please verify Knight Transportation's Downside Deviation of 1.77, risk adjusted performance of 0.0664, and Mean Deviation of 1.5 to check out if the risk estimate we provide is consistent with the expected return of 0.13%. Key indicators related to Knight Transportation's volatility include:
330 Days Market Risk | Chance Of Distress | 330 Days Economic Sensitivity |
Knight Transportation 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 Knight daily returns, and it is calculated using variance and standard deviation. We also use Knight's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Knight Transportation volatility.
Knight |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Knight Transportation 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 Knight Transportation at lower prices. For example, an investor can purchase Knight 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 Knight Transportation'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 Knight Stock
Moving against Knight Stock
0.42 | MESA | Mesa Air Group Fiscal Year End 24th of January 2025 | PairCorr |
0.4 | CP | Canadian Pacific Railway | PairCorr |
0.35 | AIRT | Air T Inc Upward Rally | PairCorr |
0.33 | FLYX | flyExclusive, | PairCorr |
0.31 | CNI | Canadian National Railway Sell-off Trend | PairCorr |
Knight Transportation Market Sensitivity And Downside Risk
Knight Transportation's beta coefficient measures the volatility of Knight 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 Knight stock's returns against your selected market. In other words, Knight Transportation's beta of 1.31 provides an investor with an approximation of how much risk Knight Transportation stock can potentially add to one of your existing portfolios. Knight Transportation has relatively low volatility with skewness of 0.56 and kurtosis of 1.43. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Knight Transportation'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 Knight Transportation'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 Knight Transportation Demand TrendCheck current 90 days Knight Transportation correlation with market (Dow Jones Industrial)Knight Beta |
Knight 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 | 1.95 |
It is essential to understand the difference between upside risk (as represented by Knight Transportation's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Knight Transportation's daily returns or price. Since the actual investment returns on holding a position in knight 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 Knight Transportation.
Knight Transportation Stock Volatility Analysis
Volatility refers to the frequency at which Knight Transportation stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Knight Transportation's price changes. Investors will then calculate the volatility of Knight Transportation'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 Knight Transportation's volatility:
Historical Volatility
This type of stock volatility measures Knight Transportation's fluctuations based on previous trends. It's commonly used to predict Knight Transportation'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 Knight Transportation'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 Knight Transportation'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. Knight Transportation 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.
Knight Transportation Projected Return Density Against Market
Considering the 90-day investment horizon the stock has the beta coefficient of 1.3087 . This indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Knight Transportation 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 Knight Transportation or Ground Transportation 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 Knight Transportation'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 Knight 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.
Knight Transportation has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
Returns |
What Drives a Knight Transportation 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.Knight Transportation Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Knight Transportation is 1516.47. The daily returns are distributed with a variance of 3.8 and standard deviation of 1.95. The mean deviation of Knight Transportation is currently at 1.51. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | -0.05 | |
β | Beta against Dow Jones | 1.31 | |
σ | Overall volatility | 1.95 | |
Ir | Information ratio | -0.0007 |
Knight Transportation Stock Return Volatility
Knight Transportation historical daily return volatility represents how much of Knight Transportation stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company has volatility of 1.9489% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7613% volatility on return distribution over the 90 days horizon. Performance |
Timeline |
About Knight Transportation Volatility
Volatility is a rate at which the price of Knight Transportation 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 Knight Transportation may increase or decrease. In other words, similar to Knight's beta indicator, it measures the risk of Knight Transportation and helps estimate the fluctuations that may happen in a short period of time. So if prices of Knight Transportation 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.Knight-Swift Transportation Holdings Inc., together with its subsidiaries, provides truckload transportation services in the United States, Mexico, and Canada. Knight-Swift Transportation Holdings Inc. was incorporated in 1989 and is headquartered in Phoenix, Arizona. Knight-Swift Transporation operates under Trucking classification in the United States and is traded on New York Stock Exchange. It employs 27400 people.
Knight Transportation'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 Knight Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Knight Transportation's price varies over time.
3 ways to utilize Knight Transportation's volatility to invest better
Higher Knight Transportation's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Knight Transportation 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. Knight Transportation 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 Knight Transportation investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Knight Transportation'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 Knight Transportation's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Knight Transportation Investment Opportunity
Knight Transportation has a volatility of 1.95 and is 2.57 times more volatile than Dow Jones Industrial. 17 percent of all equities and portfolios are less risky than Knight Transportation. You can use Knight Transportation to enhance the returns of your portfolios. The stock experiences a large bullish trend. Check odds of Knight Transportation to be traded at $62.81 in 90 days.Very weak diversification
The correlation between Knight Transportation and DJI is 0.51 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Knight Transportation and DJI in the same portfolio, assuming nothing else is changed.
Knight Transportation Additional Risk Indicators
The analysis of Knight Transportation'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 Knight Transportation's investment and either accepting that risk or mitigating it. Along with some common measures of Knight Transportation 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 | 0.0664 | |||
Market Risk Adjusted Performance | 0.1197 | |||
Mean Deviation | 1.5 | |||
Semi Deviation | 1.64 | |||
Downside Deviation | 1.77 | |||
Coefficient Of Variation | 1262.34 | |||
Standard Deviation | 1.94 |
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.
Knight Transportation 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 Knight Transportation 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. Knight Transportation'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, Knight Transportation'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 Knight Transportation.
Additional Tools for Knight Stock Analysis
When running Knight Transportation's price analysis, check to measure Knight Transportation'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 Knight Transportation is operating at the current time. Most of Knight Transportation's value examination focuses on studying past and present price action to predict the probability of Knight Transportation's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Knight Transportation's price. Additionally, you may evaluate how the addition of Knight Transportation to your portfolios can decrease your overall portfolio volatility.