# Balchem Stock Volatility

BCPC | Stock | ## USD 138.16 1.20 0.88% |

Balchem Cp appears to be very steady, given 3 months investment horizon. Balchem Cp secures Sharpe Ratio (or Efficiency) of 0.13, which signifies that the company had 0.13% of return per unit of risk over the last 3 months. Our standpoint towards 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-eight technical indicators for Balchem Cp, which you can use to evaluate the future volatility of the firm. Please makes use of Balchem Cp's Mean Deviation of 1.32, risk adjusted performance of 0.1638, and Downside Deviation of 2.0 to double-check if our risk estimates are consistent with your expectations.

Balchem |

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

### 720 Days Market Risk

### Chance of Distress

### 720 Days Economic Sensitivity

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

## Balchem Cp Market Sensitivity And Downside Risk

Balchem Cp's beta coefficient measures the volatility of Balchem 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 Balchem stock's returns against your selected market. In other words, Balchem Cp's beta of 0.92 provides an investor with an approximation of how much risk Balchem Cp stock can potentially add to one of your existing portfolios.

Balchem Cp has relatively low volatility with skewness of -0.53 and kurtosis of 1.57. However, we advise all investors to independently investigate Balchem Cp to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Balchem Cp'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 Balchem Cp'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.

Balchem 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.

### Balchem Cp Implied Volatility

Balchem Cp's implied volatility exposes the market's sentiment of Balchem Cp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Balchem Cp's 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 Balchem Cp stock will not fluctuate a lot when Balchem Cp's options are near their expiration.

3 Months Beta |Analyze Balchem Cp Demand TrendCheck current 90 days Balchem Cp correlation with market (DOW)## Balchem Beta |

## Standard Deviation | 1.79 |

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

## Using Balchem Put Option to Manage Risk

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

### Balchem Cp's PUT expiring on 2022-08-19

Profit |

Share

Balchem Cp Price At Expiration |

### Current Balchem Cp Insurance Chain

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

Put | 2022-08-19 PUT at $160.0 | -0.8002 | 0.0122 | 9 | 2022-08-19 | 20.5 - 25.4 | 14.4 | View |

Put | 2022-08-19 PUT at $150.0 | -0.7704 | 0.0194 | 6 | 2022-08-19 | 10.5 - 15.0 | 11.5 | View |

Put | 2022-08-19 PUT at $145.0 | -0.7247 | 0.0274 | 6 | 2022-08-19 | 5.5 - 10.0 | 9.3 | View |

Put | 2022-08-19 PUT at $140.0 | -0.6285 | 0.0452 | 30 | 2022-08-19 | 0.6 - 5.1 | 6.6 | View |

## Balchem Cp Stock Volatility Analysis

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

### Historical Volatility

This type of stock volatility measures Balchem Cp's fluctuations based on previous trends. It's commonly used to predict Balchem Cp'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 Balchem Cp's 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. Balchem Cp 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..

## Balchem Cp Projected Return Density Against Market

Given the investment horizon of 90 days Balchem Cp has a beta of 0.9204 suggesting Balchem Cp market returns are sensitive to returns on the market. As the market goes up or down, Balchem Cp 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 Balchem Cp or Basic Materials 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 Balchem Cp'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 Balchem 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 an alpha of 0.1468, implying that it can generate a 0.15 percent excess return over DOW after adjusting for the inherited market risk (beta). Predicted Return Density |

Returns |

## What Drives a Balchem Cp 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.## Balchem Cp 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 Balchem Cp or Basic Materials 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 Balchem Cp'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 Balchem 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 Balchem Cp is 766.19. The daily returns are distributed with a variance of 3.22 and standard deviation of 1.79. The mean deviation of Balchem Cp is currently at 1.33. For similar time horizon, the selected benchmark (DOW) has volatility of 1.24

α | Alpha over DOW | 0.15 | |

β | Beta against DOW | 0.92 | |

σ | Overall volatility | 1.79 | |

Ir | Information ratio | 0.08 |

## Balchem Cp Stock Return Volatility

Balchem Cp historical daily return volatility represents how much of Balchem Cp stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 1.7948% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 1.1715% risk (volatility on return distribution) over the 90 days horizon. Performance (%) |

Timeline |

## About Balchem Cp Volatility

Volatility is a rate at which the price of Balchem Cp 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 Balchem Cp may increase or decrease. In other words, similar to Balchem's beta indicator, it measures the risk of Balchem Cp and helps estimate the fluctuations that may happen in a short period of time. So if prices of Balchem Cp 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 2022 | |

Market Capitalization | 5.5 B | 4.4 B |

## Balchem Cp Investment Opportunity

Balchem Cp has a volatility of 1.79 and is 1.53 times more volatile than DOW.**15**of all equities and portfolios are less risky than Balchem Cp. Compared to the overall equity markets, volatility of historical daily returns of Balchem Cp is lower than

**15 ()**of all global equities and portfolios over the last 90 days.

Use Balchem Cp to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a moderate upward volatility. Check odds of Balchem Cp to be traded at $151.98 in 90 days. .

### Poor diversification

The correlation between Balchem Cp and DJI is

**Poor diversification**for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Balchem Cp and DJI in the same portfolio, assuming nothing else is changed.## Balchem Cp Additional Risk Indicators

The analysis of Balchem Cp'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 Balchem Cp's investment and either accepting that risk or mitigating it. Along with some common measures of Balchem Cp 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 | 0.1638 | |||

Market Risk Adjusted Performance | 0.2488 | |||

Mean Deviation | 1.32 | |||

Semi Deviation | 1.79 | |||

Downside Deviation | 2.0 | |||

Coefficient Of Variation | 769.19 | |||

Standard Deviation | 1.77 |

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.

## Balchem Cp 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 Balchem Cp 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. Balchem Cp'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, Balchem Cp'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 Balchem Cp.

Continue to Trending Equities. Note that the Balchem Cp information on this page should be used as a complementary analysis to other Balchem Cp's 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

## Complementary Tools for Balchem Stock analysis

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

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Is Balchem Cp'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 Balchem Cp. If investors know Balchem 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 Balchem Cp 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 0.31 | Market Capitalization 4.4 B | Quarterly Revenue Growth YOY 0.17 | Return On Assets 0.0652 | Return On Equity 0.12 |

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