Duck Creek Stock Volatility

DCT
 Stock
  

USD 11.57  0.15  1.28%   

Duck Creek Technologies secures Sharpe Ratio (or Efficiency) of -0.18, which denotes the company had -0.18% of return per unit of standard deviation over the last 3 months. Macroaxis philosophy in predicting 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. Duck Creek Technologies exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Duck Creek Technologies mean deviation of 2.3 to check the risk estimate we provide.
  
Duck Creek 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 Duck Creek daily returns, and it is calculated using variance and standard deviation. We also use Duck Creek's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Duck Creek volatility.

540 Days Market Risk

Not too volatile

Chance of Distress

Very Low

540 Days Economic Sensitivity

Follows the market closely
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Duck Creek 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 Duck Creek at lower prices. For example, an investor can purchase Duck Creek 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 Duck Creek'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 Duck Creek

+0.712881FUBON FINANCIAL HLDGPairCorr

Moving against Duck Creek

-0.73DIFTYDaito Trust ConstrucPairCorr
-0.7SMKUYSiam Makro PublicPairCorr
-0.62CLWClearwater Paper CorpPairCorr

Duck Creek Market Sensitivity And Downside Risk

Duck Creek's beta coefficient measures the volatility of Duck Creek 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 Duck Creek stock's returns against your selected market. In other words, Duck Creek's beta of 0.82 provides an investor with an approximation of how much risk Duck Creek stock can potentially add to one of your existing portfolios.
Duck Creek Technologies exhibits very low volatility with skewness of -1.24 and kurtosis of 11.94. However, we advise investors to further study Duck Creek Technologies 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 Duck Creek'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 Duck Creek'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 Duck Creek Technologies Demand Trend
Check current 90 days Duck Creek correlation with market (DOW)

Duck Creek Beta

    
  0.82  
Duck Creek 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

    
  3.74  
It is essential to understand the difference between upside risk (as represented by Duck Creek's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Duck Creek's daily returns or price. Since the actual investment returns on holding a position in duck creek 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 Duck Creek.

Using Duck Creek Put Option to Manage Risk

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

Duck Creek's PUT expiring on 2022-10-21

   Profit   
Share
       Duck Creek Price At Expiration  

Current Duck Creek Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2022-10-21 PUT at $30.0-0.85430.065422022-10-2117.1 - 18.78.8View
Put
2022-10-21 PUT at $22.5-0.70230.0407842022-10-219.6 - 11.911.0View
Put
2022-10-21 PUT at $20.0-0.75230.048742022-10-217.1 - 9.04.75View
Put
2022-10-21 PUT at $17.5-0.74790.060912022-10-214.5 - 6.41.95View
Put
2022-10-21 PUT at $15.0-0.78460.0939492022-10-212.55 - 3.63.1View
Put
2022-10-21 PUT at $12.5-0.60260.183292022-10-211.2 - 1.41.1View
View All Duck Creek Options

Duck Creek Technologies Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Duck Creek's fluctuations based on previous trends. It's commonly used to predict Duck Creek'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 Duck Creek'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 Duck Creek'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. Developed by Larry Williams, the Weighted Close is the average of Duck Creek Technologies high, low and close of a chart with the close values weighted twice. It can be used to smooth an indicator that normally takes only Duck Creek closing price as input.
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Duck Creek Projected Return Density Against Market

Considering the 90-day investment horizon Duck Creek has a beta of 0.8157 suggesting as returns on the market go up, Duck Creek average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Duck Creek Technologies 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 Duck Creek or Duck Creek Technologies 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 Duck Creek'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 Duck Creek 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. Duck Creek Technologies is significantly underperforming DOW.
   Predicted Return Density   
       Returns  
Duck Creek's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how duck creek 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 Duck Creek 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.

Duck Creek 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 Duck Creek or Duck Creek Technologies 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 Duck Creek'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 Duck Creek 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 Duck Creek is -563.58. The daily returns are distributed with a variance of 13.95 and standard deviation of 3.73. The mean deviation of Duck Creek Technologies is currently at 2.37. For similar time horizon, the selected benchmark (DOW) has volatility of 1.15
α
Alpha over DOW
-0.61
β
Beta against DOW0.82
σ
Overall volatility
3.73
Ir
Information ratio -0.16

Duck Creek Stock Return Volatility

Duck Creek historical daily return volatility represents how much of Duck Creek stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 3.735% on return distribution over 90 days investment horizon. By contrast, DOW inherits 1.1057% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About Duck Creek Volatility

Volatility is a rate at which the price of Duck Creek 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 Duck Creek may increase or decrease. In other words, similar to Duck Creek's beta indicator, it measures the risk of Duck Creek and helps estimate the fluctuations that may happen in a short period of time. So if prices of Duck Creek 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.
Duck Creek Technologies, Inc. provides software-as-a-service core systems to the property and casualty insurance industry in the United States and internationally. The company provides Duck Creek Policy, a solution that enables insurers to develop and launch new insurance products and manage various aspects of policy administration ranging from product definition to quoting, binding, and servicing Duck Creek Billing that provides payment and invoicing capabilities, such as billing and collections, commission processing, disbursement management, and general ledger capabilities for insurance lines and bill types and Duck Creek Claims that supports entire claims lifecycle from first notice of loss through investigation, payments, negotiations, reporting, and closure. It also offers Duck Creek Rating that allows carriers to develop new rates and models and deliver quotes in real-time based on the complex rating algorithms Duck Creek Insights, an insurance analytics solution that allows carriers to gather and analyze data from internal and external sources and facilitate analysis and reporting on a single system Duck Creek Digital Engagement that offer digital interactions between property and casualty insurers and their agents, brokers, and policyholders and Duck Creek Distribution Management that automates sales channel activities for agents and brokers, including producer onboarding, compliance, and compensation management. In addition, the company provides Duck Creek Reinsurance Management that automates financial and administrative functions and Duck Creek Industry Content that provides pre-built content, including base business rules, product designs, rating algorithms, data capture screens, and workflows for insurance lines of business, such as commercial auto, inland marine, and workers compensation. It has a partnership with Shift Technologies, Inc. to implement AI fraud detection. The company was founded in 2016 and is based in Boston, Massachusetts.

Duck Creek Investment Opportunity

Duck Creek Technologies has a volatility of 3.74 and is 3.37 times more volatile than DOW. 32  of all equities and portfolios are less risky than Duck Creek. Compared to the overall equity markets, volatility of historical daily returns of Duck Creek Technologies is lower than 32 () of all global equities and portfolios over the last 90 days. Use Duck Creek Technologies to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of Duck Creek to be traded at $11.22 in 90 days.

Modest diversification

The correlation between Duck Creek Technologies and DJI is 0.26 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Duck Creek Technologies and DJI in the same portfolio, assuming nothing else is changed.

Duck Creek Additional Risk Indicators

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

Duck Creek 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 Duck Creek 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. Duck Creek'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, Duck Creek'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 Duck Creek Technologies.
Continue to Investing Opportunities. Note that the Duck Creek Technologies information on this page should be used as a complementary analysis to other Duck Creek'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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

Complementary Tools for Duck Creek Stock analysis

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