# Banc Of Stock Volatility

BANC | Stock | ## USD 16.42 0.45 2.82% |

Banc Of California secures Sharpe Ratio (or Efficiency) of -0.0947, which signifies that the company had -0.0947% of return per unit of risk over the last 3 months. Macroaxis standpoint towards foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Banc Of California exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Banc Of California mean deviation of 1.11, and Risk Adjusted Performance of (0.09) to double-check the risk estimate we provide.

Banc Of |

Banc Of 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 Banc Of daily returns, and it is calculated using variance and standard deviation. We also use Banc Of's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Banc Of volatility.

### 30 Days Market Risk

### Chance of Distress

### 30 Days Economic Sensitivity

Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Banc Of 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 Banc Of at lower prices. For example, an investor can purchase Banc Of 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 Banc Of'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 together with Banc Of

## Moving against Banc Of

## Banc Of Market Sensitivity And Downside Risk

Banc Of's beta coefficient measures the volatility of Banc Of 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 Banc Of stock's returns against your selected market. In other words, Banc Of's beta of 0.86 provides an investor with an approximation of how much risk Banc Of stock can potentially add to one of your existing portfolios.

Banc Of California exhibits very low volatility with skewness of -0.82 and kurtosis of 1.51. However, we advise investors to further study Banc Of California 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 Banc Of'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 Banc Of'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 stocks as prices fall. 3 Months Beta |Analyze Banc Of California Demand TrendCheck current 90 days Banc Of correlation with market (DOW)## Banc Of Beta |

Banc Of 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 | 1.51 |

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

## Using Banc Of Put Option to Manage Risk

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

### Banc Of's PUT expiring on 2022-10-21

Profit |

Share

Banc Of Price At Expiration |

### Current Banc Of Insurance Chain

Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||

Put | 2022-10-21 PUT at $20.0 | -0.7971 | 0.0749 | 39 | 2022-10-21 | 2.4 - 4.4 | 2.9 | View |

Put | 2022-10-21 PUT at $17.5 | -0.7289 | 0.1548 | 5 | 2022-10-21 | 1.05 - 1.85 | 1.1 | View |

## Banc Of California Stock Volatility Analysis

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

### Historical Volatility

This type of stock volatility measures Banc Of's fluctuations based on previous trends. It's commonly used to predict Banc Of'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 Banc Of'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 Banc Of'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. The Median Price line plots median indexes of Banc Of California price series..

## Banc Of Projected Return Density Against Market

Given the investment horizon of 90 days Banc Of has a beta of 0.862 suggesting Banc Of California market returns are sensitive to returns on the market. As the market goes up or down, Banc Of 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 Banc Of or Financial Services 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 Banc Of'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 Banc Of 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. Banc Of California is significantly underperforming DOW. Predicted Return Density |

Returns |

## What Drives a Banc Of 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.## Banc Of 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 Banc Of or Financial Services 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 Banc Of'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 Banc Of 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. Given the investment horizon of 90 days the coefficient of variation of Banc Of is -1055.62. The daily returns are distributed with a variance of 2.29 and standard deviation of 1.51. The mean deviation of Banc Of California is currently at 1.11. For similar time horizon, the selected benchmark (DOW) has volatility of 1.14

α | Alpha over DOW | -0.03 | |

β | Beta against DOW | 0.86 | |

σ | Overall volatility | 1.51 | |

Ir | Information ratio | -0.0097 |

## Banc Of Stock Return Volatility

Banc Of historical daily return volatility represents how much of Banc Of stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 1.5143% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 1.1539% risk (volatility on return distribution) over the 90 days horizon. Performance (%) |

Timeline |

## About Banc Of Volatility

Volatility is a rate at which the price of Banc Of 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 Banc Of may increase or decrease. In other words, similar to Banc Of's beta indicator, it measures the risk of Banc Of and helps estimate the fluctuations that may happen in a short period of time. So if prices of Banc Of 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.Banc of California, Inc. operates as the bank holding company for Banc of California, National Association that provides banking products and services in the United States. Banc of California, Inc. was founded in 1941 and is headquartered in Santa Ana, California. Banc Of operates under BanksRegional classification in the United States and is traded on New York Stock Exchange. It employs 673 people.

## Banc Of Investment Opportunity

Banc Of California has a volatility of 1.51 and is 1.31 times more volatile than DOW.**13**of all equities and portfolios are less risky than Banc Of. Compared to the overall equity markets, volatility of historical daily returns of Banc Of California is lower than

**13 ()**of all global equities and portfolios over the last 90 days. Use Banc Of California to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Banc Of to be traded at $19.7 in 90 days.

### Poor diversification

The correlation between Banc Of California Inc and DJI is

**0.66**(i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Banc Of California Inc and DJI in the same portfolio, assuming nothing else is changed.## Banc Of Additional Risk Indicators

The analysis of Banc Of'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 Banc Of's investment and either accepting that risk or mitigating it. Along with some common measures of Banc Of 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 | (0.09) | |||

Market Risk Adjusted Performance | (0.15) | |||

Mean Deviation | 1.11 | |||

Coefficient Of Variation | (1,197) | |||

Standard Deviation | 1.49 | |||

Variance | 2.23 | |||

Information Ratio | (0.009654) |

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.

## Banc Of 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 Banc Of 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. Banc Of'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, Banc Of'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 Banc Of California.

Continue to Trending Equities. You can also try Focused Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

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When running Banc Of California price analysis, check to measure Banc Of'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 Banc Of is operating at the current time. Most of Banc Of's value examination focuses on studying past and present price action to predict the probability of Banc Of's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Banc Of's price. Additionally, you may evaluate how the addition of Banc Of to your portfolios can decrease your overall portfolio volatility.

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Is Banc Of'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 Banc Of. If investors know Banc Of 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 Banc Of 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 Banc Of California is measured differently than its book value, which is the value of Banc Of that is recorded on the company's balance sheet. Investors also form their own opinion of Banc Of's value that differs from its market value or its book value, called intrinsic value, which is Banc Of'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 Banc Of's market value can be influenced by many factors that don't directly affect Banc Of'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 Banc Of's value and its price as these two are different measures arrived at by different means. Investors typically determine Banc Of value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Banc Of'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.