Optimumbank Holdings Stock Volatility
| OPHC Stock | USD 4.80 0.01 0.21% |
OptimumBank Holdings appears to be somewhat reliable, given 3 months investment horizon. OptimumBank Holdings maintains Sharpe Ratio (i.e., Efficiency) of 0.19, which implies the firm had a 0.19 % return per unit of risk over the last 3 months. We have found thirty technical indicators for OptimumBank Holdings, which you can use to evaluate the volatility of the company. Please evaluate OptimumBank Holdings' Semi Deviation of 0.7264, risk adjusted performance of 0.1443, and Coefficient Of Variation of 528.91 to confirm if our risk estimates are consistent with your expectations.
Sharpe Ratio = 0.1891
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Based on monthly moving average OptimumBank Holdings is performing at about 15% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of OptimumBank Holdings by adding it to a well-diversified portfolio.
Key indicators related to OptimumBank Holdings' volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
OptimumBank Holdings 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 OptimumBank daily returns, and it is calculated using variance and standard deviation. We also use OptimumBank's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of OptimumBank Holdings volatility.
OptimumBank | Build AI portfolio with OptimumBank Stock |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as OptimumBank Holdings can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game as hey may decide to buy additional stocks of OptimumBank Holdings at lower prices to lower their average cost per share. Similarly, when the prices of OptimumBank Holdings' stock rise, investors can sell out and invest the proceeds in other equities with better opportunities. Main indicators related to OptimumBank Holdings' market risk premium analysis include:
Beta 0.35 | Alpha 0.25 | Risk 1.51 | Sharpe Ratio 0.19 | Expected Return 0.29 |
Moving together with OptimumBank Stock
| 0.78 | FNWB | First Northwest Bancorp | PairCorr |
| 0.64 | FSEA | First Seacoast Bancorp | PairCorr |
| 0.63 | FUSB | First Bancshares | PairCorr |
| 0.7 | NSTS | NSTS Bancorp | PairCorr |
| 0.8 | SSBI | Summit State Bank | PairCorr |
| 0.62 | BBAR | BBVA Banco Frances | PairCorr |
| 0.81 | CASH | Meta Financial Group Earnings Call Tomorrow | PairCorr |
| 0.62 | CLST | Catalyst Bancorp | PairCorr |
| 0.89 | MARUF | Marubeni Earnings Call Next Week | PairCorr |
| 0.65 | YASKY | Yaskawa Electric Corp | PairCorr |
| 0.7 | SSRM | SSR Mining | PairCorr |
Moving against OptimumBank Stock
| 0.82 | GRAB | Grab Holdings Aggressive Push | PairCorr |
| 0.64 | NIO | Nio Class A | PairCorr |
| 0.54 | GRLF | Green Leaf Innovations | PairCorr |
OptimumBank Holdings Market Sensitivity And Downside Risk
OptimumBank Holdings' beta coefficient measures the volatility of OptimumBank 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 OptimumBank stock's returns against your selected market. In other words, OptimumBank Holdings's beta of 0.35 provides an investor with an approximation of how much risk OptimumBank Holdings stock can potentially add to one of your existing portfolios. OptimumBank Holdings has relatively low volatility with skewness of 2.46 and kurtosis of 13.7. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure OptimumBank Holdings' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact OptimumBank Holdings' 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.
| α | 0.25 | β | 0.35 | Check current 90 days OptimumBank Holdings correlation with market (Dow Jones Industrial)
OptimumBank Holdings Volatility and Downside Risk
OptimumBank 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.
OptimumBank Holdings Stock Volatility Analysis
Volatility refers to the frequency at which OptimumBank Holdings stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with OptimumBank Holdings' price changes. Investors will then calculate the volatility of OptimumBank Holdings' 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 OptimumBank Holdings' volatility:
Historical Volatility
This type of stock volatility measures OptimumBank Holdings' fluctuations based on previous trends. It's commonly used to predict OptimumBank Holdings' 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 OptimumBank Holdings' 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 OptimumBank Holdings' 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. OptimumBank Holdings 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.
OptimumBank Holdings Projected Return Density Against Market
Given the investment horizon of 90 days OptimumBank Holdings has a beta of 0.3522 . This indicates as returns on the market go up, OptimumBank Holdings average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding OptimumBank Holdings 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 OptimumBank Holdings or Banks 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 OptimumBank Holdings' 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 OptimumBank 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.
OptimumBank Holdings has an alpha of 0.2508, implying that it can generate a 0.25 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
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What Drives an OptimumBank Holdings 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.OptimumBank Holdings Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of OptimumBank Holdings is 528.91. The daily returns are distributed with a variance of 2.27 and standard deviation of 1.51. The mean deviation of OptimumBank Holdings is currently at 0.87. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.74
α | Alpha over Dow Jones | 0.25 | |
β | Beta against Dow Jones | 0.35 | |
σ | Overall volatility | 1.51 | |
Ir | Information ratio | 0.14 |
OptimumBank Holdings Stock Return Volatility
OptimumBank Holdings historical daily return volatility represents how much of OptimumBank Holdings stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 1.5081% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7494% volatility on return distribution over the 90 days horizon. Performance |
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Related Correlations Analysis
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
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Risk-Adjusted Indicators
There is a big difference between OptimumBank Stock performing well and OptimumBank Holdings Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze OptimumBank Holdings' multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| TECTP | 0.85 | (0.09) | 0.00 | (2.17) | 0.00 | 1.91 | 9.74 | |||
| ASRV | 1.37 | 0.09 | 0.01 | 0.55 | 1.78 | 2.89 | 8.63 | |||
| TCBS | 1.09 | 0.09 | 0.03 | 0.37 | 1.31 | 2.10 | 12.58 | |||
| PBBK | 1.08 | 0.03 | (0.02) | (0.15) | 1.66 | 2.40 | 10.00 | |||
| BAFN | 1.61 | (0.65) | 0.00 | (1.15) | 0.00 | 1.90 | 13.03 | |||
| STLE | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| HFBL | 2.89 | 0.51 | 0.09 | (1.47) | 3.79 | 7.17 | 21.76 | |||
| FSEA | 1.68 | 0.22 | 0.05 | (3.43) | 2.12 | 4.23 | 25.19 | |||
| CLST | 0.75 | 0.23 | 0.14 | 7.14 | 0.67 | 1.90 | 7.82 | |||
| TOP | 1.72 | (0.31) | 0.00 | (0.28) | 0.00 | 2.73 | 9.67 |
About OptimumBank Holdings Volatility
Volatility is a rate at which the price of OptimumBank Holdings 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 OptimumBank Holdings may increase or decrease. In other words, similar to OptimumBank's beta indicator, it measures the risk of OptimumBank Holdings and helps estimate the fluctuations that may happen in a short period of time. So if prices of OptimumBank Holdings 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.OptimumBank Holdings, Inc. operates as the bank holding company for OptimumBank that provides various consumer and commercial banking services to individuals and businesses. The company was founded in 2000 and is based in Fort Lauderdale, Florida. Optimumbank Hlds operates under BanksRegional classification in the United States and is traded on NASDAQ Exchange. It employs 38 people.
OptimumBank Holdings' 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 OptimumBank Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much OptimumBank Holdings' price varies over time.
3 ways to utilize OptimumBank Holdings' volatility to invest better
Higher OptimumBank Holdings' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of OptimumBank Holdings 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. OptimumBank Holdings 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 OptimumBank Holdings investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in OptimumBank Holdings' 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 OptimumBank Holdings' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
OptimumBank Holdings Investment Opportunity
OptimumBank Holdings has a volatility of 1.51 and is 2.01 times more volatile than Dow Jones Industrial. 13 percent of all equities and portfolios are less risky than OptimumBank Holdings. You can use OptimumBank Holdings to enhance the returns of your portfolios. The stock experiences a normal upward fluctuation. Check odds of OptimumBank Holdings to be traded at $5.04 in 90 days.Weak diversification
The correlation between OptimumBank Holdings and DJI is 0.39 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding OptimumBank Holdings and DJI in the same portfolio, assuming nothing else is changed.
OptimumBank Holdings Additional Risk Indicators
The analysis of OptimumBank Holdings' 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 OptimumBank Holdings' investment and either accepting that risk or mitigating it. Along with some common measures of OptimumBank Holdings 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 | 0.1443 | |||
| Market Risk Adjusted Performance | 0.7912 | |||
| Mean Deviation | 0.8677 | |||
| Semi Deviation | 0.7264 | |||
| Downside Deviation | 1.26 | |||
| Coefficient Of Variation | 528.91 | |||
| Standard Deviation | 1.51 |
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.
OptimumBank Holdings 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 OptimumBank Holdings 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. OptimumBank Holdings' 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, OptimumBank Holdings' 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 OptimumBank Holdings.
Complementary Tools for OptimumBank Stock analysis
When running OptimumBank Holdings' price analysis, check to measure OptimumBank Holdings' 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 OptimumBank Holdings is operating at the current time. Most of OptimumBank Holdings' value examination focuses on studying past and present price action to predict the probability of OptimumBank Holdings' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move OptimumBank Holdings' price. Additionally, you may evaluate how the addition of OptimumBank Holdings to your portfolios can decrease your overall portfolio volatility.
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