Mcgrath Rentcorp Stock Volatility
| MGRC Stock | USD 113.92 3.19 2.72% |
At this point, McGrath RentCorp is very steady. McGrath RentCorp has Sharpe Ratio of 0.12, which conveys that the firm had a 0.12 % return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for McGrath RentCorp, which you can use to evaluate the volatility of the firm. Please verify McGrath RentCorp's mean deviation of 1.27, and Risk Adjusted Performance of 0.0796 to check out if the risk estimate we provide is consistent with the expected return of 0.18%. Key indicators related to McGrath RentCorp's volatility include:
720 Days Market Risk | Chance Of Distress | 720 Days Economic Sensitivity |
McGrath RentCorp 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 McGrath daily returns, and it is calculated using variance and standard deviation. We also use McGrath's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of McGrath RentCorp volatility.
ESG Sustainability
While most ESG disclosures are voluntary, McGrath RentCorp's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to McGrath RentCorp's managers and investors.Environmental | Governance | Social |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as McGrath RentCorp can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game as hey may decide to buy additional stocks of McGrath RentCorp at lower prices to lower their average cost per share. Similarly, when the prices of McGrath RentCorp's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.
Moving together with McGrath Stock
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| 0.92 | AL | Air Lease | PairCorr |
| 0.87 | AER | AerCap Holdings NV | PairCorr |
| 0.8 | CAR | Avis Budget Group | PairCorr |
| 0.64 | FTAI | Fortress Transp Infra Earnings Call This Week | PairCorr |
| 0.84 | HRI | Herc Holdings Earnings Call This Week | PairCorr |
Moving against McGrath Stock
McGrath RentCorp Market Sensitivity And Downside Risk
McGrath RentCorp's beta coefficient measures the volatility of McGrath 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 McGrath stock's returns against your selected market. In other words, McGrath RentCorp's beta of 0.95 provides an investor with an approximation of how much risk McGrath RentCorp stock can potentially add to one of your existing portfolios. McGrath RentCorp has relatively low volatility with skewness of 0.06 and kurtosis of -0.63. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure McGrath RentCorp'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 McGrath RentCorp'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 McGrath RentCorp Demand TrendCheck current 90 days McGrath RentCorp correlation with market (Dow Jones Industrial)McGrath Beta |
McGrath 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 | 1.53 |
It is essential to understand the difference between upside risk (as represented by McGrath RentCorp's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of McGrath RentCorp's daily returns or price. Since the actual investment returns on holding a position in mcgrath 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 McGrath RentCorp.
Using McGrath Put Option to Manage Risk
Put options written on McGrath RentCorp grant holders of the option the right to sell a specified amount of McGrath RentCorp 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 McGrath Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge McGrath RentCorp'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 McGrath RentCorp will be realized, the loss incurred will be offset by the profits made with the option trade.
McGrath RentCorp's PUT expiring on 2025-09-19
Profit |
| McGrath RentCorp Price At Expiration |
Current McGrath RentCorp Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | MGRC250919P00090000 | -0.218495 | 0.004871 | 1 | 2025-09-19 | 0.0 - 20.0 | 0.0 | View |
Put | MGRC250919P00095000 | -0.243555 | 0.005808 | 5 | 2025-09-19 | 0.0 - 20.0 | 0.0 | View |
McGrath RentCorp Stock Volatility Analysis
Volatility refers to the frequency at which McGrath RentCorp stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with McGrath RentCorp's price changes. Investors will then calculate the volatility of McGrath RentCorp'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 McGrath RentCorp's volatility:
Historical Volatility
This type of stock volatility measures McGrath RentCorp's fluctuations based on previous trends. It's commonly used to predict McGrath RentCorp'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 McGrath RentCorp'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 McGrath RentCorp'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. McGrath RentCorp 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.
McGrath RentCorp Projected Return Density Against Market
Given the investment horizon of 90 days McGrath RentCorp has a beta of 0.9454 . This indicates McGrath RentCorp market returns are highly-sensitive to returns on the market. As the market goes up or down, McGrath RentCorp is expected to follow.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 McGrath RentCorp or Trading Companies & Distributors 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 McGrath RentCorp'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 McGrath 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.
McGrath RentCorp has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives a McGrath RentCorp 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.McGrath RentCorp Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of McGrath RentCorp is 830.15. The daily returns are distributed with a variance of 2.33 and standard deviation of 1.53. The mean deviation of McGrath RentCorp is currently at 1.29. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.93
α | Alpha over Dow Jones | -0.01 | |
β | Beta against Dow Jones | 0.95 | |
σ | Overall volatility | 1.53 | |
Ir | Information ratio | -0.01 |
McGrath RentCorp Stock Return Volatility
McGrath RentCorp historical daily return volatility represents how much of McGrath RentCorp stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 1.5263% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8415% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About McGrath RentCorp Volatility
Volatility is a rate at which the price of McGrath RentCorp 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 McGrath RentCorp may increase or decrease. In other words, similar to McGrath's beta indicator, it measures the risk of McGrath RentCorp and helps estimate the fluctuations that may happen in a short period of time. So if prices of McGrath RentCorp 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 | 6.8 M | 3.9 M | |
| Market Cap | 1.7 B | 1.8 B |
McGrath RentCorp'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 McGrath Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much McGrath RentCorp's price varies over time.
3 ways to utilize McGrath RentCorp's volatility to invest better
Higher McGrath RentCorp's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of McGrath RentCorp 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. McGrath RentCorp 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 McGrath RentCorp investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in McGrath RentCorp'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 McGrath RentCorp's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
McGrath RentCorp Investment Opportunity
McGrath RentCorp has a volatility of 1.53 and is 1.82 times more volatile than Dow Jones Industrial. 13 percent of all equities and portfolios are less risky than McGrath RentCorp. You can use McGrath RentCorp to protect your portfolios against small market fluctuations. The stock experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of McGrath RentCorp to be traded at $109.36 in 90 days.Very weak diversification
The correlation between McGrath RentCorp and DJI is 0.59 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding McGrath RentCorp and DJI in the same portfolio, assuming nothing else is changed.
McGrath RentCorp Additional Risk Indicators
The analysis of McGrath RentCorp'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 McGrath RentCorp's investment and either accepting that risk or mitigating it. Along with some common measures of McGrath RentCorp 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 | 0.0796 | |||
| Market Risk Adjusted Performance | 0.1289 | |||
| Mean Deviation | 1.27 | |||
| Semi Deviation | 1.34 | |||
| Downside Deviation | 1.45 | |||
| Coefficient Of Variation | 1232.51 | |||
| Standard Deviation | 1.51 |
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.
McGrath RentCorp 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 McGrath RentCorp 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. McGrath RentCorp'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, McGrath RentCorp'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 McGrath RentCorp.
Complementary Tools for McGrath Stock analysis
When running McGrath RentCorp's price analysis, check to measure McGrath RentCorp'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 McGrath RentCorp is operating at the current time. Most of McGrath RentCorp's value examination focuses on studying past and present price action to predict the probability of McGrath RentCorp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move McGrath RentCorp's price. Additionally, you may evaluate how the addition of McGrath RentCorp to your portfolios can decrease your overall portfolio volatility.
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