Carver Stock Volatility

CARV
 Stock
  

USD 4.08  0.07  1.75%   

Carver Bancorp secures Sharpe Ratio (or Efficiency) of -0.0151, which signifies that the company had -0.0151% of return per unit of risk over the last month. 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. Carver Bancorp exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Carver Bancorp Risk Adjusted Performance of 0.0866, mean deviation of 2.31, and Downside Deviation of 3.98 to double-check the risk estimate we provide.
  
Carver Bancorp 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 Carver daily returns, and it is calculated using variance and standard deviation. We also use Carver's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Carver Bancorp volatility.

90 Days Market Risk

Unstable

Chance of Distress

Below Average

90 Days Economic Sensitivity

Almost mirrors the market
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Carver Bancorp 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 Carver Bancorp at lower prices. For example, an investor can purchase Carver 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 Carver Bancorp'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.

Carver Bancorp Market Sensitivity And Downside Risk

Carver Bancorp's beta coefficient measures the volatility of Carver 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 Carver stock's returns against your selected market. In other words, Carver Bancorp's beta of 0.0774 provides an investor with an approximation of how much risk Carver Bancorp stock can potentially add to one of your existing portfolios.
Carver Bancorp shows above-average downside volatility for the selected time horizon. We advise investors to inspect Carver Bancorp further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Carver Bancorp future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Carver Bancorp'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 Carver Bancorp'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.
One Month Beta |Analyze Carver Bancorp Demand Trend
Check current 90 days Carver Bancorp correlation with market (NYSE Composite)

Carver Beta

    
  0.0774  
Carver 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

    
  3.22  
It is essential to understand the difference between upside risk (as represented by Carver Bancorp's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Carver Bancorp's daily returns or price. Since the actual investment returns on holding a position in carver 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 Carver Bancorp.

Carver Bancorp Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Carver Bancorp's fluctuations based on previous trends. It's commonly used to predict Carver Bancorp'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 Carver Bancorp'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 Carver Bancorp'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 seventeen. Carver Bancorp Typical Price indicator is an average of each day price and can be used instead of closing price when creating different Carver Bancorp moving average lines.
.

Carver Bancorp Projected Return Density Against Market

Given the investment horizon of 90 days Carver Bancorp has a beta of 0.0774 suggesting as returns on the market go up, Carver Bancorp average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Carver Bancorp 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 Carver Bancorp or Thrifts & Mortgage Finance 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 Carver Bancorp'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 Carver 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 0.1577, implying that it can generate a 0.16 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Carver Bancorp's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how carver 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 Carver Bancorp 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.

Carver Bancorp 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 Carver Bancorp or Thrifts & Mortgage Finance 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 Carver Bancorp'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 Carver 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 Carver Bancorp is -6630.09. The daily returns are distributed with a variance of 10.4 and standard deviation of 3.22. The mean deviation of Carver Bancorp is currently at 2.32. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 1.4
α
Alpha over NYSE Composite
0.16
β
Beta against NYSE Composite0.08
σ
Overall volatility
3.22
Ir
Information ratio -0.0053

Carver Bancorp Stock Return Volatility

Carver Bancorp historical daily return volatility represents how much of Carver Bancorp stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The venture inherits 3.2243% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 1.4003% volatility on return distribution over the 90 days horizon.
 Performance (%) 
       Timeline  

About Carver Bancorp Volatility

Volatility is a rate at which the price of Carver Bancorp 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 Carver Bancorp may increase or decrease. In other words, similar to Carver's beta indicator, it measures the risk of Carver Bancorp and helps estimate the fluctuations that may happen in a short period of time. So if prices of Carver Bancorp 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.
Carver Bancorp, Inc. operates as the holding company for Carver Federal Savings Bank that provides consumer and commercial banking services for consumers, businesses, non-profit organizations, and governmental and quasi-governmental agencies primarily in New York. Carver Bancorp, Inc. was founded in 1948 and is headquartered in New York, New York. Carver Bancorp operates under BanksRegional classification in the United States and is traded on NASDAQ Exchange. It employs 109 people.

Carver Bancorp Investment Opportunity

Carver Bancorp has a volatility of 3.22 and is 2.3 times more volatile than NYSE Composite. 28  of all equities and portfolios are less risky than Carver Bancorp. Compared to the overall equity markets, volatility of historical daily returns of Carver Bancorp is lower than 28 () of all global equities and portfolios over the last 90 days. Use Carver Bancorp to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a large bullish trend. Check odds of Carver Bancorp to be traded at $4.49 in 90 days.

Significant diversification

The correlation between Carver Bancorp and NYA is 0.03 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Carver Bancorp and NYA in the same portfolio, assuming nothing else is changed.

Carver Bancorp Additional Risk Indicators

The analysis of Carver Bancorp'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 Carver Bancorp's investment and either accepting that risk or mitigating it. Along with some common measures of Carver Bancorp 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.
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.

Carver Bancorp 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 Carver Bancorp 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. Carver Bancorp'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, Carver Bancorp'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 Carver Bancorp.
Continue to Trending Equities. You can also try Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

Complementary Tools for analysis

When running Carver Bancorp price analysis, check to measure Carver Bancorp'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 Carver Bancorp is operating at the current time. Most of Carver Bancorp's value examination focuses on studying past and present price action to predict the probability of Carver Bancorp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Carver Bancorp's price. Additionally, you may evaluate how the addition of Carver Bancorp to your portfolios can decrease your overall portfolio volatility.
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Is Carver Bancorp'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 Carver Bancorp. If investors know Carver 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 Carver Bancorp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
18.2 M
Quarterly Revenue Growth YOY
(0.16) 
Return On Assets
(0.0014) 
Return On Equity
(0.0193) 
The market value of Carver Bancorp is measured differently than its book value, which is the value of Carver that is recorded on the company's balance sheet. Investors also form their own opinion of Carver Bancorp's value that differs from its market value or its book value, called intrinsic value, which is Carver Bancorp'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 Carver Bancorp's market value can be influenced by many factors that don't directly affect Carver Bancorp'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 Carver Bancorp's value and its price as these two are different measures arrived at by different means. Investors typically determine Carver Bancorp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Carver Bancorp'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.