Albertsons Stock Volatility

ACI
 Stock
  

USD 28.07  0.62  2.16%   

We consider Albertsons Companies very steady. Albertsons Companies secures Sharpe Ratio (or Efficiency) of 0.0615, which signifies that the company had 0.0615% of return per unit of standard deviation over the last 3 months. Our philosophy in foreseeing 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 Albertsons Companies, which you can use to evaluate the future volatility of the firm. Please confirm Albertsons Companies mean deviation of 1.48, and Risk Adjusted Performance of (0.017758) to double-check if the risk estimate we provide is consistent with the expected return of 0.12%.
  
Albertsons Companies 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 Albertsons daily returns, and it is calculated using variance and standard deviation. We also use Albertsons's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Albertsons Companies volatility.

60 Days Market Risk

Very steady

Chance of Distress

Very Small

60 Days Economic Sensitivity

Ignores market trends
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Albertsons Companies 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 Albertsons Companies at lower prices. For example, an investor can purchase Albertsons 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 Albertsons Companies' 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 Albertsons Companies

0.68GOGrocery Outlet HoldingPairCorr
0.61IFMKIfresh IncPairCorr

Albertsons Companies Market Sensitivity And Downside Risk

Albertsons Companies' beta coefficient measures the volatility of Albertsons 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 Albertsons stock's returns against your selected market. In other words, Albertsons Companies's beta of 0.81 provides an investor with an approximation of how much risk Albertsons Companies stock can potentially add to one of your existing portfolios.
Albertsons Companies exhibits very low volatility with skewness of -0.6 and kurtosis of 2.04. However, we advise investors to further study Albertsons Companies technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Albertsons Companies' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Albertsons Companies' 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 stocks as prices fall.

Albertsons Companies Implied Volatility

Albertsons Companies' implied volatility exposes the market's sentiment of Albertsons Companies stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Albertsons Companies' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Albertsons Companies stock will not fluctuate a lot when Albertsons Companies' options are near their expiration.
3 Months Beta |Analyze Albertsons Companies Demand Trend
Check current 90 days Albertsons Companies correlation with market (DOW)

Albertsons Beta

    
  0.81  
Albertsons standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity 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

    
  1.96  
It is essential to understand the difference between upside risk (as represented by Albertsons Companies's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Albertsons Companies' daily returns or price. Since the actual investment returns on holding a position in albertsons 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 Albertsons Companies.

Using Albertsons Put Option to Manage Risk

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

Albertsons Companies' PUT expiring on 2022-08-19

   Profit   
Share
       Albertsons Companies Price At Expiration  

Current Albertsons Companies Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2022-08-19 PUT at $32.0-0.9470.056972022-08-193.2 - 3.55.36View
Put
2022-08-19 PUT at $31.0-0.71440.096132022-08-192.2 - 3.65.09View
Put
2022-08-19 PUT at $30.0-0.83020.1932982022-08-191.25 - 1.61.71View
Put
2022-08-19 PUT at $29.0-0.59550.33091532022-08-190.05 - 1.40.64View
Put
2022-08-19 PUT at $28.0-0.25740.29157062022-08-190.1 - 0.250.35View
Put
2022-08-19 PUT at $27.0-0.1110.12982122022-08-190.05 - 0.20.08View
Put
2022-08-19 PUT at $26.0-0.06060.06454332022-08-190.0 - 0.050.05View
Put
2022-08-19 PUT at $25.0-0.04790.04097512022-08-190.0 - 0.750.05View
View All Albertsons Companies Options

Albertsons Companies Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Albertsons Companies' fluctuations based on previous trends. It's commonly used to predict Albertsons Companies' 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 Albertsons Companies' current market price. This means that the stock will return to its initially predicted market price.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Albertsons Companies 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.
.

Albertsons Companies Projected Return Density Against Market

Considering the 90-day investment horizon Albertsons Companies has a beta of 0.8139 . This suggests as returns on the market go up, Albertsons Companies average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Albertsons Companies 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 Albertsons Companies or Consumer Defensive 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 Albertsons Companies' 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 Albertsons 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 instrument is not justified. Albertsons Companies is significantly underperforming DOW.
   Predicted Return Density   
       Returns  
Albertsons Companies' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how albertsons 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 an Albertsons Companies Price Volatility?

Several factors can influence a Stock's stock 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.

Albertsons Companies Stock 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 Albertsons Companies or Consumer Defensive 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 Albertsons Companies' 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 Albertsons 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 90-day investment horizon the coefficient of variation of Albertsons Companies is 1627.03. The daily returns are distributed with a variance of 3.83 and standard deviation of 1.96. The mean deviation of Albertsons Companies is currently at 1.43. For similar time horizon, the selected benchmark (DOW) has volatility of 1.25
α
Alpha over DOW
-0.14
β
Beta against DOW0.81
σ
Overall volatility
1.96
Ir
Information ratio -0.07

Albertsons Companies Stock Return Volatility

Albertsons Companies historical daily return volatility represents how much of Albertsons Companies stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company has volatility of 1.9564% on return distribution over 90 days investment horizon. By contrast, DOW inherits 1.1776% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About Albertsons Companies Volatility

Volatility is a rate at which the price of Albertsons Companies 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 Albertsons Companies may increase or decrease. In other words, similar to Albertsons's beta indicator, it measures the risk of Albertsons Companies and helps estimate the fluctuations that may happen in a short period of time. So if prices of Albertsons Companies 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 2022
Market Capitalization14.4 B11.5 B
Albertsons Companies, Inc., through its subsidiaries, engages in the operation of food and drug stores in the United States. The company was founded in 1860 and is headquartered in Boise, Idaho. Albertsons Companies operates under Grocery Stores classification in the United States and is traded on New York Stock Exchange. It employs 101500 people.

Albertsons Companies Investment Opportunity

Albertsons Companies has a volatility of 1.96 and is 1.66 times more volatile than DOW. 16  of all equities and portfolios are less risky than Albertsons Companies. Compared to the overall equity markets, volatility of historical daily returns of Albertsons Companies is lower than 16 () of all global equities and portfolios over the last 90 days.
Use Albertsons Companies to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of Albertsons Companies to be traded at $26.95 in 90 days. .

Very weak diversification

The correlation between Albertsons Companies Inc and DJI is Very weak diversification for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Albertsons Companies Inc and DJI in the same portfolio, assuming nothing else is changed.

Albertsons Companies Additional Risk Indicators

The analysis of Albertsons Companies' 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 Albertsons Companies' investment and either accepting that risk or mitigating it. Along with some common measures of Albertsons Companies 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(0.017758)
Market Risk Adjusted Performance(0.047678)
Mean Deviation1.48
Coefficient Of Variation(5,704)
Standard Deviation2.11
Variance4.44
Information Ratio(0.07)
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.

Albertsons Companies 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.
Citigroup vs. Albertsons Companies
Sentinelone Inc vs. Albertsons Companies
Alphabet vs. Albertsons Companies
Main Street vs. Albertsons Companies
Lam Research vs. Albertsons Companies
Johnson Johnson vs. Albertsons Companies
Salesforce vs. Albertsons Companies
Goldman Sachs vs. Albertsons Companies
B of A vs. Albertsons Companies
Nio Inc vs. Albertsons Companies
Zimmer Biomet vs. Albertsons Companies
Bristol-Myers Squibb vs. Albertsons Companies
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 Albertsons Companies 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. Albertsons Companies' 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, Albertsons Companies' 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 Albertsons Companies.
Please continue to Trending Equities. Note that the Albertsons Companies information on this page should be used as a complementary analysis to other Albertsons Companies' 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

Complementary Tools for Albertsons Stock analysis

When running Albertsons Companies price analysis, check to measure Albertsons Companies' 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 Albertsons Companies is operating at the current time. Most of Albertsons Companies' value examination focuses on studying past and present price action to predict the probability of Albertsons Companies' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Albertsons Companies' price. Additionally, you may evaluate how the addition of Albertsons Companies to your portfolios can decrease your overall portfolio volatility.
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Go
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Shere Portfolio
Track or share privately all of your investments from the convenience of any device
Go
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Go
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Is Albertsons Companies' 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 Albertsons Companies. If investors know Albertsons 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 Albertsons Companies 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 YOY
0.079
Market Capitalization
15 B
Quarterly Revenue Growth YOY
0.096
Return On Assets
0.059
Return On Equity
0.41
The market value of Albertsons Companies is measured differently than its book value, which is the value of Albertsons that is recorded on the company's balance sheet. Investors also form their own opinion of Albertsons Companies' value that differs from its market value or its book value, called intrinsic value, which is Albertsons Companies' 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 Albertsons Companies' market value can be influenced by many factors that don't directly affect Albertsons Companies' 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 Albertsons Companies' value and its price as these two are different measures arrived at by different means. Investors typically determine Albertsons Companies value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Albertsons Companies' 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.