Bank Of Nova Stock Volatility

BNS Stock  USD 51.81  0.65  1.27%   
We consider Bank of Nova Scotia very steady. Bank of Nova Scotia secures Sharpe Ratio (or Efficiency) of 0.11, which signifies that the company had a 0.11% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Bank Of Nova, which you can use to evaluate the volatility of the firm. Please confirm Bank of Nova Scotia's Downside Deviation of 1.08, risk adjusted performance of 0.0856, and Mean Deviation of 0.7801 to double-check if the risk estimate we provide is consistent with the expected return of 0.11%. Key indicators related to Bank of Nova Scotia's volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
Bank of Nova Scotia 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 Bank daily returns, and it is calculated using variance and standard deviation. We also use Bank's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Bank of Nova Scotia volatility.
  

ESG Sustainability

While most ESG disclosures are voluntary, Bank of Nova Scotia's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Bank of Nova Scotia's managers and investors.
Environment Score
Governance Score
Social Score
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Bank of Nova Scotia 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 Bank of Nova Scotia at lower prices. For example, an investor can purchase Bank 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 Bank of Nova Scotia'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 Bank Stock

  0.82C Citigroup Aggressive PushPairCorr
  0.91CM Canadian Imperial Bank Financial Report 23rd of May 2024 PairCorr
  0.81NU Nu Holdings Financial Report 20th of May 2024 PairCorr
  0.77MUFG Mitsubishi UFJ Financial Financial Report 20th of May 2024 PairCorr
  0.7BML-PG Bank Of AmericaPairCorr
  0.76BML-PH Bank Of AmericaPairCorr
  0.8BML-PJ Bank Of AmericaPairCorr

Bank of Nova Scotia Market Sensitivity And Downside Risk

Bank of Nova Scotia's beta coefficient measures the volatility of Bank 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 Bank stock's returns against your selected market. In other words, Bank of Nova Scotia's beta of 1.12 provides an investor with an approximation of how much risk Bank of Nova Scotia stock can potentially add to one of your existing portfolios. Bank Of Nova has relatively low volatility with skewness of 0.03 and kurtosis of 0.28. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Bank of Nova Scotia'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 Bank of Nova Scotia'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 Bank of Nova Scotia Demand Trend
Check current 90 days Bank of Nova Scotia correlation with market (NYSE Composite)

Bank Beta

    
  1.12  
Bank 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

    
  1.03  
It is essential to understand the difference between upside risk (as represented by Bank of Nova Scotia's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Bank of Nova Scotia's daily returns or price. Since the actual investment returns on holding a position in bank 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 Bank of Nova Scotia.

Using Bank Put Option to Manage Risk

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

Bank of Nova Scotia's PUT expiring on 2024-04-19

   Profit   
       Bank of Nova Scotia Price At Expiration  

Current Bank of Nova Scotia Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2024-04-19 PUT at $50.0-0.30920.14341992024-04-190.45 - 0.50.5View
View All Bank of Nova Scotia Options

Bank of Nova Scotia Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Bank of Nova Scotia's fluctuations based on previous trends. It's commonly used to predict Bank of Nova Scotia'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 Bank of Nova Scotia'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 Bank of Nova Scotia'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. Bank of Nova Scotia 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.

Bank of Nova Scotia Projected Return Density Against Market

Considering the 90-day investment horizon the stock has the beta coefficient of 1.1163 suggesting Bank Of Nova market returns are related to returns on the market. As the market goes up or down, Bank of Nova Scotia 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 Bank of Nova Scotia 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 Bank of Nova Scotia'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 Bank 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.
Bank Of Nova has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming NYSE Composite.
   Predicted Return Density   
       Returns  
Bank of Nova Scotia's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how bank 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 Bank of Nova Scotia 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.

Bank of Nova Scotia Stock Risk Measures

Considering the 90-day investment horizon the coefficient of variation of Bank of Nova Scotia is 908.92. The daily returns are distributed with a variance of 1.07 and standard deviation of 1.03. The mean deviation of Bank Of Nova is currently at 0.81. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
-0.0026
β
Beta against NYSE Composite1.12
σ
Overall volatility
1.03
Ir
Information ratio 0.01

Bank of Nova Scotia Stock Return Volatility

Bank of Nova Scotia historical daily return volatility represents how much of Bank of Nova Scotia stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 1.0322% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.5731% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Bank of Nova Scotia Volatility

Volatility is a rate at which the price of Bank of Nova Scotia 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 Bank of Nova Scotia may increase or decrease. In other words, similar to Bank's beta indicator, it measures the risk of Bank of Nova Scotia and helps estimate the fluctuations that may happen in a short period of time. So if prices of Bank of Nova Scotia 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 Expenses662.4 M485.7 M
Bank of Nova Scotia'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 Bank Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Bank of Nova Scotia's price varies over time.

3 ways to utilize Bank of Nova Scotia's volatility to invest better

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

Bank of Nova Scotia Investment Opportunity

Bank Of Nova has a volatility of 1.03 and is 1.81 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Bank Of Nova is lower than 9 percent of all global equities and portfolios over the last 90 days. You can use Bank Of Nova to enhance the returns of your portfolios. The stock experiences a large bullish trend. Check odds of Bank of Nova Scotia to be traded at $56.99 in 90 days.

Poor diversification

The correlation between Bank Of Nova and NYA is 0.62 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Bank Of Nova and NYA in the same portfolio, assuming nothing else is changed.

Bank of Nova Scotia Additional Risk Indicators

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

Bank of Nova Scotia 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 Bank of Nova Scotia 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. Bank of Nova Scotia'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, Bank of Nova Scotia'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 Bank Of Nova.
When determining whether Bank of Nova Scotia is a strong investment it is important to analyze Bank of Nova Scotia's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Bank of Nova Scotia's future performance. For an informed investment choice regarding Bank Stock, refer to the following important reports:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Bank Of Nova. 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.
You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

Complementary Tools for Bank Stock analysis

When running Bank of Nova Scotia's price analysis, check to measure Bank of Nova Scotia'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 Bank of Nova Scotia is operating at the current time. Most of Bank of Nova Scotia's value examination focuses on studying past and present price action to predict the probability of Bank of Nova Scotia's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Bank of Nova Scotia's price. Additionally, you may evaluate how the addition of Bank of Nova Scotia to your portfolios can decrease your overall portfolio volatility.
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Is Bank of Nova Scotia'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 Bank of Nova Scotia. If investors know Bank 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 Bank of Nova Scotia 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
0.246
Dividend Share
4.21
Earnings Share
4.49
Revenue Per Share
24.448
Quarterly Revenue Growth
0.02
The market value of Bank of Nova Scotia is measured differently than its book value, which is the value of Bank that is recorded on the company's balance sheet. Investors also form their own opinion of Bank of Nova Scotia's value that differs from its market value or its book value, called intrinsic value, which is Bank of Nova Scotia'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 Bank of Nova Scotia's market value can be influenced by many factors that don't directly affect Bank of Nova Scotia'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 Bank of Nova Scotia's value and its price as these two are different measures arrived at by different means. Investors typically determine if Bank of Nova Scotia is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bank of Nova Scotia'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.