Bank of New York Stock Volatility

BK
 Stock
  

USD 41.71  0.70  1.65%   

Bank of New York 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. 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. Bank Of New exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Bank of New York risk adjusted performance of (0.24), and Mean Deviation of 1.53 to double-check the risk estimate we provide.
  
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Bank of New York 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 Bank of New York daily returns, and it is calculated using variance and standard deviation. We also use Bank of New York's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Bank of New York volatility.

300 Days Market Risk

Very steady

Chance of Distress

Average

300 Days Economic Sensitivity

Almost mirrors the market

ESG Sustainability

While most ESG disclosures are voluntary, Bank of New York's sustainability indicators can be used to identify a proper investment strutegies using environmental, social, and governance scores that are crucial to Bank of New York's managers and investors.
Environment Score
Governance Score
Social Score
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Bank of New York 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 Bank of New York at lower prices. For example, an investor can purchase Bank of New York 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 Bank of New York'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 Bank of New York

0.71AAMCAltisource Asset ManPairCorr
0.78ABAlliancebernsteinPairCorr
0.74AINVApollo InvestmentPairCorr
0.88AMGAffiliated ManagersPairCorr
0.89AMKAssetmark FinancialPairCorr
0.91AMPAmeriprise FinancialPairCorr

Bank of New York Market Sensitivity And Downside Risk

Bank of New York's beta coefficient measures the volatility of Bank of New York 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 Bank of New York stock's returns against your selected market. In other words, Bank of New York's beta of 1.13 provides an investor with an approximation of how much risk Bank of New York stock can potentially add to one of your existing portfolios.
Let's try to break down what Bank of New York's beta means in this case. Bank of New York returns are very sensitive to returns on the market. As the market goes up or down, Bank of New York is expected to follow.
3 Months Beta |Analyze Bank of New York Demand Trend
Check current 90 days Bank of New York correlation with market (DOW)

Bank of New York Beta

    
  1.13  
Bank of New York 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

    
  1.87  
It is essential to understand the difference between upside risk (as represented by Bank of New York's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Bank of New York stock's daily returns or price. Since the actual investment returns on holding a position in Bank of New York 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 Bank of New York.

Bank of New York Implied Volatility

    
  49.49  
Bank of New York's implied volatility exposes the market's sentiment of Bank Of New stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Bank of New York'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 Bank of New York stock will not fluctuate a lot when Bank of New York's options are near their expiration.

Bank of New York Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Bank of New York's fluctuations based on previous trends. It's commonly used to predict Bank of New York'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 Bank of New York'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. Bank of New York 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.
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Bank of New York Projected Return Density Against Market

Allowing for the 90-day total investment horizon the stock has the beta coefficient of 1.1302 suggesting Bank Of New market returns are responsive to returns on the market. As the market goes up or down, Bank of New York 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 Bank of New York 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 Bank of New York stock'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 Bank of New York 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. Bank of New York is significantly underperforming DOW.
 Predicted Return Density 
      Returns 
Bank of New York's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Bank of New York 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 a Company's Stock Price Volatility?

Several factors can influence a company'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.

Bank of New York 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 Bank of New York 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 Bank of New York stock'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 Bank of New York 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.
Allowing for the 90-day total investment horizon the coefficient of variation of Bank of New York is -764.95. The daily returns are distributed with a variance of 3.49 and standard deviation of 1.87. The mean deviation of Bank Of New is currently at 1.54. For similar time horizon, the selected benchmark (DOW) has volatility of 1.42
α
Alpha over DOW
-0.11
β
Beta against DOW1.13
σ
Overall volatility
1.87
Ir
Information ratio -0.07

Bank of New York Stock Return Volatility

Bank of New York historical daily return volatility represents how much Bank of New York stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The firm accepts 1.8686% volatility on return distribution over the 90 days horizon. By contrast, DOW inherits 1.4438% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Bank of New York Volatility

Volatility is a rate at which the price of Bank of New York 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 Bank of New York may increase or decrease. In other words, similar to Bank of New York's beta indicator, it measures the risk of Bank of New York and helps estimate the fluctuations that may happen in a short period of time. So if prices of Bank of New York 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 Capitalization48 B49.9 B
The Bank of New York Mellon Corporation provides a range of financial products and services in the United States and internationally. The company was founded in 1784 and is headquartered in New York, New York. Bank of New York operates under Asset Management classification in the United States and is traded on New York Stock Exchange. It employs 49600 people.

Bank of New York Investment Opportunity

Bank Of New has a volatility of 1.87 and is 1.3 times more volatile than DOW. 16  of all equities and portfolios are less risky than Bank of New York. Compared to the overall equity markets, volatility of historical daily returns of Bank Of New is lower than 16 () of all global equities and portfolios over the last 90 days. Use Bank Of New to protect your portfolios against small market fluctuations. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of Bank of New York to be traded at $40.46 in 90 days. . Let's try to break down what Bank of New York's beta means in this case. Bank of New York returns are very sensitive to returns on the market. As the market goes up or down, Bank of New York is expected to follow.

Very poor diversification

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

Bank of New York Additional Risk Indicators

The analysis of Bank of New York'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 Bank of New York's investment and either accepting that risk or mitigating it. Along with some common measures of Bank of New York stock 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(0.24)
Market Risk Adjusted Performance(0.28)
Mean Deviation1.53
Coefficient Of Variation(591.66)
Standard Deviation1.89
Variance3.56
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 stock investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Bank of New York 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.
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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 Bank of New York 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. Bank of New York'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, Bank of New York'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 Bank Of New.
Continue to Trending Equities. Note that the Bank of New York information on this page should be used as a complementary analysis to other Bank of New York'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.

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When running Bank of New York price analysis, check to measure Bank of New York'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 Bank of New York is operating at the current time. Most of Bank of New York's value examination focuses on studying past and present price action to predict the probability of Bank of New York's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Bank of New York's price. Additionally, you may evaluate how the addition of Bank of New York to your portfolios can decrease your overall portfolio volatility.
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Is Bank of New York'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 Bank of New York. If investors know Bank of New York 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 Bank of New York 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
-0.11
Market Capitalization
34.3 B
Quarterly Revenue Growth YOY
-0.02
Return On Assets
0.0077
Return On Equity
0.0823
The market value of Bank of New York is measured differently than its book value, which is the value of Bank of New York that is recorded on the company's balance sheet. Investors also form their own opinion of Bank of New York's value that differs from its market value or its book value, called intrinsic value, which is Bank of New York'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 Bank of New York's market value can be influenced by many factors that don't directly affect Bank of New York'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 Bank of New York's value and its price as these two are different measures arrived at by different means. Investors typically determine Bank of New York value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bank of New York'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.