Babcock Volatility

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BW -- USA Stock  

USD 2.23  0.04  1.83%

Babcock Wilcox is risky given 3 months investment horizon. Babcock Wilcox Enter secures Sharpe Ratio (or Efficiency) of 0.17, which signifies that the company had 0.17% of return per unit of standard deviation over the last 3 months. Our philosophy in foreseeing the risk of a stock is to use both market data as well as company specific technical data. We were able to break down and interpolate data for twenty-one different technical indicators, which can help you to evaluate if expected returns of 1.59% are justified by taking the suggested risk. Use Babcock Wilcox mean deviation of 5.58, and risk adjusted performance of 0.3701 to evaluate company specific risk that cannot be diversified away.

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Babcock Wilcox 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 Babcock daily returns, and it is calculated using variance and standard deviation. We also use Babcock's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Babcock Wilcox volatility.

  Babcock Wilcox Interest Expense

90 Days Market Risk

Risky

Chance of Distress

Below Average

90 Days Economic Sensitivity

Slowly supersedes the market

Babcock Wilcox Market Sensitivity And Downside Risk

Babcock Wilcox Enter beta coefficient measures the volatility of Babcock stock compared to the systematic risk of the entire stock 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 Babcock stock's returns against your selected market. In other words, Babcock Wilcox's beta of 0.35 provides an investor with an approximation of how much risk Babcock Wilcox stock can potentially add to one of your existing portfolios. Let's try to break down what Babcock's beta means in this case. As returns on the market increase, Babcock Wilcox returns are expected to increase less than the market. However, during the bear market, the loss on holding Babcock Wilcox will be expected to be smaller as well.
3 Months Beta |Analyze Babcock Wilcox Enter Demand Trend
Check current 30 days Babcock Wilcox correlation with market (DOW)
β

Current Babcock Wilcox Beta Coefficient

 = 

Babcock Wilcox Central Daily Price Deviations

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

Babcock Wilcox Enter Volatility Analysis

Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Babcock Wilcox Enter 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. View also all equity analysis or get more info about average price price transform indicator.

Babcock Wilcox Projected Return Density Against Market

Allowing for the 30-days total investment horizon, Babcock Wilcox has a beta of 0.3539 suggesting as returns on the market go up, Babcock Wilcox average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Babcock Wilcox Enterprises will be expected to be much smaller as well. In addition to that, 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 Babcock Wilcox or Aggressive Defence 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 Babcock Wilcox stock'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 Babcock 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. The company has an alpha of 1.4389, implying that it can generate a 1.44 percent excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 

Babcock Wilcox Risk Measures

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 Babcock Wilcox or Aggressive Defence 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 Babcock Wilcox stock'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 Babcock 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. Allowing for the 30-days total investment horizon, the coefficient of variation of Babcock Wilcox is 585.66. The daily returns are destributed with a variance of 86.19 and standard deviation of 9.28. The mean deviation of Babcock Wilcox Enterprises is currently at 5.67. For similar time horizon, the selected benchmark (DOW) has volatility of 2.14
α
Alpha over DOW
=1.44
β
Beta against DOW=0.35
σ
Overall volatility
=9.28
Ir
Information ratio =0.14

Babcock Wilcox Return Volatility

Babcock Wilcox historical daily return volatility represents how much Babcock Wilcox stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The venture accepts 9.2837% volatility on return distribution over the 30 days horizon. By contrast, DOW inherits 1.8495% risk (volatility on return distribution) over the 30 days horizon.
 Performance (%) 
      Timeline 

About Babcock Wilcox Volatility

Volatility is a rate at which the price of Babcock Wilcox 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 Babcock Wilcox may increase or decrease. In other words, similar to Babcock's beta indicator, it measures the risk of Babcock Wilcox and helps estimate the fluctuations that may happen in a short period of time. So if prices of Babcock Wilcox 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 2020
Market Capitalization168.7 M173.1 M
Babcock Wilcox Enterprises, Inc. provides fossil and renewable power generation and environmental equipment for the power and industrial markets worldwide. Babcock Wilcox Enterprises, Inc. was founded in 1867 and is headquartered in Akron, Ohio. Babcock Wilcox operates under Electrical Equipment Parts classification in the United States and is traded on BATS Exchange. It employs 2400 people.

Babcock Wilcox Investment Opportunity

Babcock Wilcox Enterprises has a volatility of 9.28 and is 5.02 times more volatile than DOW. 80  of all equities and portfolios are less risky than Babcock Wilcox. Compared to the overall equity markets, volatility of historical daily returns of Babcock Wilcox Enterprises is higher than 80 () of all global equities and portfolios over the last 30 days. Use Babcock Wilcox Enterprises to enhance returns of your portfolios. The stock experiences a large bullish trend. Check odds of Babcock Wilcox to be traded at $2.45 in 30 days. . Let's try to break down what Babcock's beta means in this case. As returns on the market increase, Babcock Wilcox returns are expected to increase less than the market. However, during the bear market, the loss on holding Babcock Wilcox will be expected to be smaller as well.

Babcock Wilcox correlation with market

correlation synergy
Significant diversification
Overlapping area represents the amount of risk that can be diversified away by holding Babcock Wilcox Enterprises I and equity matching DJI index in the same portfolio.

Babcock Wilcox Additional Risk Indicators

The analysis of various secondary risk indicators of Babcock Wilcox is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Babcock Wilcox investment, and either accepting that risk or mitigating it. Along with some common measures of Babcock Wilcox stock 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 your existing portfolio. Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stock investments, we recommend comparing the like to determine which investment holds the most risk.
Risk Adjusted Performance0.3701
Market Risk Adjusted Performance4.34
Mean Deviation5.58
Semi Deviation3.87
Downside Deviation4.64
Coefficient Of Variation589.67
Standard Deviation9.09

Babcock Wilcox 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.
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