Medtronic Plc Stock Volatility

MDT Stock  USD 87.15  0.23  0.26%   
We consider Medtronic PLC very steady. Medtronic PLC has Sharpe Ratio of 0.11, which conveys that the firm had a 0.11% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Medtronic PLC, which you can use to evaluate the volatility of the firm. Please verify Medtronic PLC's Mean Deviation of 0.6519, downside deviation of 0.9599, and Risk Adjusted Performance of 0.0502 to check out if the risk estimate we provide is consistent with the expected return of 0.11%. Key indicators related to Medtronic PLC's volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
Medtronic PLC 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 Medtronic daily returns, and it is calculated using variance and standard deviation. We also use Medtronic's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Medtronic PLC volatility.
  

ESG Sustainability

While most ESG disclosures are voluntary, Medtronic PLC's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Medtronic PLC'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 Medtronic PLC 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 Medtronic PLC at lower prices. For example, an investor can purchase Medtronic 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 Medtronic PLC'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 against Medtronic Stock

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Medtronic PLC Market Sensitivity And Downside Risk

Medtronic PLC's beta coefficient measures the volatility of Medtronic 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 Medtronic stock's returns against your selected market. In other words, Medtronic PLC's beta of -0.0668 provides an investor with an approximation of how much risk Medtronic PLC stock can potentially add to one of your existing portfolios. Medtronic PLC has low volatility with Treynor Ratio of -0.95, Maximum Drawdown of 4.7 and kurtosis of 0.64. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Medtronic PLC'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 Medtronic PLC'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 Medtronic PLC Demand Trend
Check current 90 days Medtronic PLC correlation with market (NYSE Composite)

Medtronic Beta

    
  -0.0668  
Medtronic 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

    
  1.0  
It is essential to understand the difference between upside risk (as represented by Medtronic PLC's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Medtronic PLC's daily returns or price. Since the actual investment returns on holding a position in medtronic 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 Medtronic PLC.

Using Medtronic Put Option to Manage Risk

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

Medtronic PLC's PUT expiring on 2024-03-28

   Profit   
       Medtronic PLC Price At Expiration  

Current Medtronic PLC Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2024-03-28 PUT at $79.0-0.00840.00663612024-03-280.0 - 2.130.01View
Put
2024-03-28 PUT at $80.0-0.00950.00828862024-03-280.0 - 2.130.01View
Put
2024-03-28 PUT at $81.0-0.01080.0106103052024-03-280.0 - 0.010.01View
Put
2024-03-28 PUT at $82.0-0.01250.01422892024-03-280.01 - 0.380.01View
Put
2024-03-28 PUT at $83.0-0.05510.04391802024-03-280.01 - 0.370.06View
Put
2024-03-28 PUT at $84.0-0.03160.04411872024-03-280.0 - 0.470.02View
Put
2024-03-28 PUT at $85.0-0.07910.1063542024-03-280.0 - 0.570.05View
Put
2024-03-28 PUT at $86.0-0.17970.256842024-03-280.01 - 0.240.1View
Put
2024-03-28 PUT at $87.0-0.52110.3173202024-03-280.21 - 0.970.54View
Put
2024-03-28 PUT at $88.0-0.630.1234982024-03-280.53 - 3.154.95View
Put
2024-03-28 PUT at $89.0-0.76830.11141202024-03-280.83 - 4.055.95View
View All Medtronic PLC Options

Medtronic PLC Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Medtronic PLC's fluctuations based on previous trends. It's commonly used to predict Medtronic PLC'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 Medtronic PLC'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 Medtronic PLC'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. Medtronic PLC 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.

Medtronic PLC Projected Return Density Against Market

Considering the 90-day investment horizon Medtronic PLC has a beta of -0.0668 . This indicates as returns on benchmark increase, returns on holding Medtronic PLC are expected to decrease at a much lower rate. During the bear market, however, Medtronic PLC is likely to outperform the market.
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 Medtronic PLC or Health Care Equipment & Supplies 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 Medtronic PLC'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 Medtronic 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.
Medtronic PLC has an alpha of 0.0715, implying that it can generate a 0.0715 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Medtronic PLC's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how medtronic 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 Medtronic PLC 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.

Medtronic PLC Stock Risk Measures

Considering the 90-day investment horizon the coefficient of variation of Medtronic PLC is 915.38. The daily returns are distributed with a variance of 1.0 and standard deviation of 1.0. The mean deviation of Medtronic PLC is currently at 0.71. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
0.07
β
Beta against NYSE Composite-0.07
σ
Overall volatility
1.00
Ir
Information ratio -0.07

Medtronic PLC Stock Return Volatility

Medtronic PLC historical daily return volatility represents how much of Medtronic PLC stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 0.9986% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.5689% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Medtronic PLC Volatility

Volatility is a rate at which the price of Medtronic PLC 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 Medtronic PLC may increase or decrease. In other words, similar to Medtronic's beta indicator, it measures the risk of Medtronic PLC and helps estimate the fluctuations that may happen in a short period of time. So if prices of Medtronic PLC 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.
Medtronic plc develops, manufactures, and sells device-based medical therapies to healthcare systems, physicians, clinicians, and patients worldwide. The company was founded in 1949 and is headquartered in Dublin, Ireland. Medtronic operates under Medical Devices classification in the United States and is traded on New York Stock Exchange. It employs 95000 people.
Medtronic PLC'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 Medtronic Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Medtronic PLC's price varies over time.

3 ways to utilize Medtronic PLC's volatility to invest better

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

Medtronic PLC Investment Opportunity

Medtronic PLC has a volatility of 1.0 and is 1.75 times more volatile than NYSE Composite. 8 percent of all equities and portfolios are less risky than Medtronic PLC. You can use Medtronic PLC to enhance the returns of your portfolios. The stock experiences a normal upward fluctuation. Check odds of Medtronic PLC to be traded at $91.51 in 90 days.

Good diversification

The correlation between Medtronic PLC and NYA is -0.04 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Medtronic PLC and NYA in the same portfolio, assuming nothing else is changed.

Medtronic PLC Additional Risk Indicators

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

Medtronic PLC 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 Medtronic PLC 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. Medtronic PLC'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, Medtronic PLC'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 Medtronic PLC.
When determining whether Medtronic PLC is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Medtronic Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Medtronic Plc Stock. Highlighted below are key reports to facilitate an investment decision about Medtronic Plc Stock:
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Medtronic PLC. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in unemployment.
For more information on how to buy Medtronic Stock please use our How to Invest in Medtronic PLC guide.
Note that the Medtronic PLC information on this page should be used as a complementary analysis to other Medtronic PLC's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

Complementary Tools for Medtronic Stock analysis

When running Medtronic PLC's price analysis, check to measure Medtronic PLC'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 Medtronic PLC is operating at the current time. Most of Medtronic PLC's value examination focuses on studying past and present price action to predict the probability of Medtronic PLC's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Medtronic PLC's price. Additionally, you may evaluate how the addition of Medtronic PLC to your portfolios can decrease your overall portfolio volatility.
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Is Medtronic PLC'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 Medtronic PLC. If investors know Medtronic 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 Medtronic PLC 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
0.078
Dividend Share
2.75
Earnings Share
3.15
Revenue Per Share
24.298
Quarterly Revenue Growth
0.047
The market value of Medtronic PLC is measured differently than its book value, which is the value of Medtronic that is recorded on the company's balance sheet. Investors also form their own opinion of Medtronic PLC's value that differs from its market value or its book value, called intrinsic value, which is Medtronic PLC'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 Medtronic PLC's market value can be influenced by many factors that don't directly affect Medtronic PLC'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 Medtronic PLC's value and its price as these two are different measures arrived at by different means. Investors typically determine if Medtronic PLC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Medtronic PLC'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.