Hamilton Volatility

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HBB -- USA Stock  

Report: 29th of July 2020  

Hamilton Beach appears to be slightly risky, given 3 months investment horizon. Hamilton Beach Brands holds Efficiency (Sharpe) Ratio of 0.0594, which attests that the entity had 0.0594% of return per unit of risk over the last 3 months. Our standpoint towards determining the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Hamilton Beach Brands, which you can use to evaluate future volatility of the firm. Please utilize Hamilton Beach market risk adjusted performance of 0.2634, downside deviation of 5.6, and risk adjusted performance of 0.1542 to validate if our risk estimates are consistent with your expectations.

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

  Hamilton Beach Interest Expense

90 Days Market Risk

Slightly risky

Chance of Distress

Below Average

90 Days Economic Sensitivity

Actively responds to the market

Hamilton Beach Market Sensitivity And Downside Risk

Hamilton Beach Brands beta coefficient measures the volatility of Hamilton 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 Hamilton stock's returns against your selected market. In other words, Hamilton Beach's beta of 1.79 provides an investor with an approximation of how much risk Hamilton Beach stock can potentially add to one of your existing portfolios. Let's try to break down what Hamilton's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Hamilton Beach will likely underperform.
3 Months Beta |Analyze Hamilton Beach Brands Demand Trend
Check current 30 days Hamilton Beach correlation with market (DOW)
β

Current Hamilton Beach Beta Coefficient

 = 

Hamilton Beach Central Daily Price Deviations

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

Hamilton Beach Brands Volatility Analysis

Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Developed by Larry Williams, the Weighted Close is the average of Hamilton Beach Brands high, low and close of a chart with the close values weighted twice. It can be used to smooth an indicator that normally takes only Hamilton Beach closing price as input. View also all equity analysis or get more info about weighted close price price transform indicator.

Hamilton Beach Projected Return Density Against Market

Considering the 30-days investment horizon, the stock has the beta coefficient of 1.786 . This usually indicates as the benchmark fluctuates upward, the company is expected to outperform it on average . However, if the benchmark returns are expected to be negative, Hamilton Beach will likely underperform. Additionally, 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 Hamilton Beach or Consumer Goods 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 Hamilton Beach 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 Hamilton 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 a negative alpha, implying that the risk taken by holding this equity is not justified. Hamilton Beach Brands is significantly underperforming DOW.
 Predicted Return Density 
      Returns 

Hamilton Beach 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 Hamilton Beach or Consumer Goods 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 Hamilton Beach 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 Hamilton 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. Considering the 30-days investment horizon, the coefficient of variation of Hamilton Beach is 1683.51. The daily returns are destributed with a variance of 37.81 and standard deviation of 6.15. The mean deviation of Hamilton Beach Brands is currently at 4.9. For similar time horizon, the selected benchmark (DOW) has volatility of 2.14
α
Alpha over DOW
=-0.01
β
Beta against DOW=1.79
σ
Overall volatility
=6.15
Ir
Information ratio =0.0285

Hamilton Beach Return Volatility

Hamilton Beach historical daily return volatility represents how much Hamilton Beach stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The company has volatility of 6.1489% on return distribution over 30 days investment horizon. By contrast, DOW inherits 1.8495% risk (volatility on return distribution) over the 30 days horizon.
 Performance (%) 
      Timeline 

About Hamilton Beach Volatility

Volatility is a rate at which the price of Hamilton Beach 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 Hamilton Beach may increase or decrease. In other words, similar to Hamilton's beta indicator, it measures the risk of Hamilton Beach and helps estimate the fluctuations that may happen in a short period of time. So if prices of Hamilton Beach 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 Capitalization258.2 M266.6 M
Hamilton Beach Brands Holding Company, together with its subsidiaries, designs, markets, and distributes small electric household and specialty housewares appliances. Hamilton Beach Brands Holding Company was founded in 1904 and is headquartered in Glen Allen, Virginia. Hamilton Beach operates under Consumer Electronics classification in the United States and is traded on BATS Exchange. It employs 680 people.

Hamilton Beach Investment Opportunity

Hamilton Beach Brands has a volatility of 6.15 and is 3.32 times more volatile than DOW. 53  of all equities and portfolios are less risky than Hamilton Beach. Compared to the overall equity markets, volatility of historical daily returns of Hamilton Beach Brands is higher than 53 () of all global equities and portfolios over the last 30 days. Use Hamilton Beach Brands to protect your portfolios against small markets fluctuations. The stock experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of Hamilton Beach to be traded at $10.74 in 30 days. . Let's try to break down what Hamilton's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Hamilton Beach will likely underperform.

Hamilton Beach correlation with market

correlation synergy
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Beach Brands Holding and equity matching DJI index in the same portfolio.

Hamilton Beach Additional Risk Indicators

The analysis of various secondary risk indicators of Hamilton Beach is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Hamilton Beach investment, and either accepting that risk or mitigating it. Along with some common measures of Hamilton Beach 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 Performance0.1542
Market Risk Adjusted Performance0.2634
Mean Deviation5.3
Semi Deviation5.32
Downside Deviation5.6
Coefficient Of Variation1449.99
Standard Deviation6.71

Hamilton Beach 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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Please check Risk vs Return Analysis. Please also try Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.
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