Capital Bancorp Stock Volatility
| CBNK Stock | USD 35.07 0.27 0.76% |
Capital Bancorp appears to be very steady, given 3 months investment horizon. Capital Bancorp secures Sharpe Ratio (or Efficiency) of 0.22, which signifies that the company had a 0.22 % return per unit of risk over the last 3 months. We have found thirty technical indicators for Capital Bancorp, which you can use to evaluate the volatility of the firm. Please makes use of Capital Bancorp's Risk Adjusted Performance of 0.2079, downside deviation of 1.47, and Mean Deviation of 1.26 to double-check if our risk estimates are consistent with your expectations. Key indicators related to Capital Bancorp's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Capital Bancorp 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 Capital daily returns, and it is calculated using variance and standard deviation. We also use Capital's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Capital Bancorp volatility.
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Capital Bancorp at lower prices. For example, an investor can purchase Capital stock that has halved in price over a short period. This will lower their average cost per share, thereby improving the overall portfolio performance when market normalizes.
Moving together with Capital Stock
| 0.64 | AX | Axos Financial Earnings Call This Week | PairCorr |
| 0.61 | PB | Prosperity Bancshares Earnings Call This Week | PairCorr |
| 0.63 | RF | Regions Financial Buyout Trend | PairCorr |
Capital Bancorp Market Sensitivity And Downside Risk
Capital Bancorp's beta coefficient measures the volatility of Capital 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 Capital stock's returns against your selected market. In other words, Capital Bancorp's beta of 0.21 provides an investor with an approximation of how much risk Capital Bancorp stock can potentially add to one of your existing portfolios. Capital Bancorp has relatively low volatility with skewness of 0.97 and kurtosis of 2.79. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Capital Bancorp'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 Capital Bancorp'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 Capital Bancorp Demand TrendCheck current 90 days Capital Bancorp correlation with market (Dow Jones Industrial)Capital Beta |
Capital 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 | 1.72 |
It is essential to understand the difference between upside risk (as represented by Capital Bancorp's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Capital Bancorp's daily returns or price. Since the actual investment returns on holding a position in capital 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 Capital Bancorp.
Capital Bancorp Stock Volatility Analysis
Volatility refers to the frequency at which Capital Bancorp stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Capital Bancorp's price changes. Investors will then calculate the volatility of Capital Bancorp'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 Capital Bancorp's volatility:
Historical Volatility
This type of stock volatility measures Capital Bancorp's fluctuations based on previous trends. It's commonly used to predict Capital Bancorp'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 Capital Bancorp'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 Capital Bancorp'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. Capital Bancorp 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.
Capital Bancorp Projected Return Density Against Market
Given the investment horizon of 90 days Capital Bancorp has a beta of 0.2118 suggesting as returns on the market go up, Capital Bancorp average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Capital Bancorp will be expected to be much smaller as well.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 Capital Bancorp 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 Capital Bancorp'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 Capital 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.
Capital Bancorp has an alpha of 0.3364, implying that it can generate a 0.34 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Capital Bancorp 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.Capital Bancorp Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Capital Bancorp is 459.36. The daily returns are distributed with a variance of 2.95 and standard deviation of 1.72. The mean deviation of Capital Bancorp is currently at 1.26. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.93
α | Alpha over Dow Jones | 0.34 | |
β | Beta against Dow Jones | 0.21 | |
σ | Overall volatility | 1.72 | |
Ir | Information ratio | 0.14 |
Capital Bancorp Stock Return Volatility
Capital Bancorp historical daily return volatility represents how much of Capital Bancorp stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 1.7183% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7819% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Capital Bancorp Volatility
Volatility is a rate at which the price of Capital Bancorp 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 Capital Bancorp may increase or decrease. In other words, similar to Capital's beta indicator, it measures the risk of Capital Bancorp and helps estimate the fluctuations that may happen in a short period of time. So if prices of Capital Bancorp 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.Capital Bancorp, Inc. operates as the bank holding company for Capital Bank, N.A. that provides various banking products and services to businesses, not-for-profit associations, and entrepreneurs in the United States. The company was founded in 1974 and is headquartered in Rockville, Maryland. Capital Bancorp operates under BanksRegional classification in the United States and is traded on NASDAQ Exchange. It employs 257 people.
Capital Bancorp'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 Capital Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Capital Bancorp's price varies over time.
3 ways to utilize Capital Bancorp's volatility to invest better
Higher Capital Bancorp's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Capital Bancorp 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. Capital Bancorp 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 Capital Bancorp investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Capital Bancorp'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 Capital Bancorp's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Capital Bancorp Investment Opportunity
Capital Bancorp has a volatility of 1.72 and is 2.21 times more volatile than Dow Jones Industrial. 15 percent of all equities and portfolios are less risky than Capital Bancorp. You can use Capital Bancorp 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 Capital Bancorp to be traded at $34.37 in 90 days.Average diversification
The correlation between Capital Bancorp and DJI is 0.12 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Capital Bancorp and DJI in the same portfolio, assuming nothing else is changed.
Capital Bancorp Additional Risk Indicators
The analysis of Capital Bancorp'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 Capital Bancorp's investment and either accepting that risk or mitigating it. Along with some common measures of Capital Bancorp 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 | 0.2079 | |||
| Market Risk Adjusted Performance | 1.73 | |||
| Mean Deviation | 1.26 | |||
| Semi Deviation | 1.1 | |||
| Downside Deviation | 1.47 | |||
| Coefficient Of Variation | 459.36 | |||
| Standard Deviation | 1.72 |
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.
Capital Bancorp 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.
| Visa vs. Capital Bancorp | ||
| Alphabet vs. Capital Bancorp | ||
| Dupont De vs. Capital Bancorp | ||
| Microsoft vs. Capital Bancorp | ||
| GM vs. Capital Bancorp | ||
| SentinelOne vs. Capital Bancorp | ||
| Walker Dunlop vs. Capital Bancorp |
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 Capital Bancorp 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. Capital Bancorp'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, Capital Bancorp'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 Capital Bancorp.
When determining whether Capital Bancorp 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 Capital 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 Capital Bancorp Stock. Highlighted below are key reports to facilitate an investment decision about Capital Bancorp Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Capital Bancorp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. For more information on how to buy Capital Stock please use our How to buy in Capital Stock guide.You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Is Regional Banks space 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 Capital Bancorp. If investors know Capital 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 Capital Bancorp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Capital Bancorp is measured differently than its book value, which is the value of Capital that is recorded on the company's balance sheet. Investors also form their own opinion of Capital Bancorp's value that differs from its market value or its book value, called intrinsic value, which is Capital Bancorp'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 Capital Bancorp's market value can be influenced by many factors that don't directly affect Capital Bancorp'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 Capital Bancorp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Capital Bancorp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Capital Bancorp'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.