Werner Enterprises Stock Volatility
| WERN Stock | USD 35.08 0.31 0.88% |
Werner Enterprises shows Sharpe Ratio of -0.13, which attests that the company had a -0.13% return per unit of risk over the last 3 months. Werner Enterprises exposes nineteen different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check out Werner Enterprises' Coefficient Of Variation of (1,116), variance of 2.82, and Mean Deviation of 1.32 to validate the risk estimate we provide. Key indicators related to Werner Enterprises' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Werner Enterprises 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 Werner daily returns, and it is calculated using variance and standard deviation. We also use Werner's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Werner Enterprises volatility.
Werner |
Using Werner Put Option to Manage Risk
Put options written on Werner Enterprises grant holders of the option the right to sell a specified amount of Werner Enterprises 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 Werner Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Werner Enterprises' 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 Werner Enterprises will be realized, the loss incurred will be offset by the profits made with the option trade.
Werner Enterprises' PUT expiring on 2024-05-17
Profit |
| Werner Enterprises Price At Expiration |
Current Werner Enterprises Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | 2024-05-17 PUT at $35.0 | -0.4219 | 0.1335 | 17 | 2024-05-17 | 0.8 - 1.2 | 0.95 | View |
Werner Enterprises Stock Volatility Analysis
Volatility refers to the frequency at which Werner Enterprises stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Werner Enterprises' price changes. Investors will then calculate the volatility of Werner Enterprises' 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 Werner Enterprises' volatility:
Historical Volatility
This type of stock volatility measures Werner Enterprises' fluctuations based on previous trends. It's commonly used to predict Werner Enterprises' 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 Werner Enterprises' 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 Werner Enterprises' 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. Werner Enterprises 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.
Werner Enterprises Projected Return Density Against Market
Given the investment horizon of 90 days Werner Enterprises has a beta that is very close to zero . This entails the returns on NYSE COMPOSITE and Werner Enterprises do not appear to be highly reactive.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 Werner Enterprises or Ground Transportation 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 Werner Enterprises' 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 Werner 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.
It does not look like Werner Enterprises' alpha can have any bearing on the current valuation. Predicted Return Density |
| Returns |
What Drives a Werner Enterprises 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.Werner Enterprises Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Werner Enterprises is -754.38. The daily returns are distributed with a variance of 2.64 and standard deviation of 1.62. The mean deviation of Werner Enterprises is currently at 1.31. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 0.00 | |
β | Beta against NYSE Composite | 0.00 | |
σ | Overall volatility | 1.62 | |
Ir | Information ratio | -0.14 |
Werner Enterprises Stock Return Volatility
Werner Enterprises historical daily return volatility represents how much of Werner Enterprises stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 1.6242% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.635% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Werner Enterprises Volatility
Volatility is a rate at which the price of Werner Enterprises 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 Werner Enterprises may increase or decrease. In other words, similar to Werner's beta indicator, it measures the risk of Werner Enterprises and helps estimate the fluctuations that may happen in a short period of time. So if prices of Werner Enterprises 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 Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 124.7 M | 110.8 M | |
| Market Cap | 1.9 B | 2 B |
Werner Enterprises' 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 Werner Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Werner Enterprises' price varies over time.
3 ways to utilize Werner Enterprises' volatility to invest better
Higher Werner Enterprises' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Werner Enterprises 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. Werner Enterprises 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 Werner Enterprises investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Werner Enterprises' 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 Werner Enterprises' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Werner Enterprises Investment Opportunity
Werner Enterprises has a volatility of 1.62 and is 2.53 times more volatile than NYSE Composite. 14 percent of all equities and portfolios are less risky than Werner Enterprises. You can use Werner Enterprises to protect your portfolios against small market fluctuations. The stock experiences a moderate downward daily trend and can be a good diversifier. Check odds of Werner Enterprises to be traded at $34.38 in 90 days.Werner Enterprises Additional Risk Indicators
The analysis of Werner Enterprises' 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 Werner Enterprises' investment and either accepting that risk or mitigating it. Along with some common measures of Werner Enterprises 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 | (0.05) | |||
| Mean Deviation | 1.32 | |||
| Coefficient Of Variation | (1,116) | |||
| Standard Deviation | 1.68 | |||
| Variance | 2.82 | |||
| Information Ratio | (0.14) | |||
| Total Risk Alpha | (0.37) |
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.
Werner Enterprises 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 Werner Enterprises 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. Werner Enterprises' 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, Werner Enterprises' 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 Werner Enterprises.
When determining whether Werner Enterprises offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Werner Enterprises' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Werner Enterprises Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Werner Enterprises Stock: Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Werner Enterprises. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in metropolitan statistical area. To learn how to invest in Werner Stock, please use our How to Invest in Werner Enterprises guide.You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Complementary Tools for Werner Stock analysis
When running Werner Enterprises' price analysis, check to measure Werner Enterprises' 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 Werner Enterprises is operating at the current time. Most of Werner Enterprises' value examination focuses on studying past and present price action to predict the probability of Werner Enterprises' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Werner Enterprises' price. Additionally, you may evaluate how the addition of Werner Enterprises to your portfolios can decrease your overall portfolio volatility.
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Is Werner Enterprises' 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 Werner Enterprises. If investors know Werner 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 Werner Enterprises 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 (0.61) | Dividend Share 0.55 | Earnings Share 1.76 | Revenue Per Share 51.811 | Quarterly Revenue Growth (0.05) |
The market value of Werner Enterprises is measured differently than its book value, which is the value of Werner that is recorded on the company's balance sheet. Investors also form their own opinion of Werner Enterprises' value that differs from its market value or its book value, called intrinsic value, which is Werner Enterprises' 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 Werner Enterprises' market value can be influenced by many factors that don't directly affect Werner Enterprises' 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 Werner Enterprises' value and its price as these two are different measures arrived at by different means. Investors typically determine if Werner Enterprises is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Werner Enterprises' 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.