EBay Stock Volatility

EBAY -  USA Stock  

USD 75.97  1.25  1.67%

We consider EBay very steady. EBay Inc secures Sharpe Ratio (or Efficiency) of 0.0843, which denotes the company had 0.0843% of return per unit of standard deviation over the last 24 months. Our approach into predicting 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-seven technical indicators for EBay Inc, which you can use to evaluate the future volatility of the entity. Please confirm EBay Inc Downside Deviation of 2.29, semi deviation of 2.16, and Mean Deviation of 1.58 to check if the risk estimate we provide is consistent with the expected return of 0.18%.

EBay Volatility 

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

450 Days Market Risk

Very steady

Chance of Distress

Below Average

450 Days Economic Sensitivity

Almost mirrors the market

EBay Market Sensitivity And Downside Risk

EBay's beta coefficient measures the volatility of EBay 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 EBay stock's returns against your selected market. In other words, EBay's beta of 0.57 provides an investor with an approximation of how much risk EBay stock can potentially add to one of your existing portfolios.
Let's try to break down what EBay's beta means in this case. As returns on the market increase, EBay returns are expected to increase less than the market. However, during the bear market, the loss on holding EBay will be expected to be smaller as well.
24 Months Beta |Analyze EBay Inc Demand Trend
Check current 90 days EBay correlation with market (DOW)

EBay Beta

    
  0.57  
EBay 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

    
  2.18  
It is essential to understand the difference between upside risk (as represented by EBay's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of EBay stock's daily returns or price. Since the actual investment returns on holding a position in EBay 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 EBay.

EBay Implied Volatility

    
  26.43  
EBay's implied volatility exposes the market's sentiment of EBay Inc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if EBay'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 EBay stock will not fluctuate a lot when EBay's options near their expiration.

EBay Inc Stock Volatility Analysis

Transformation
The output start index for this execution was zero with a total number of output elements of five hundred twenty-three. EBay Typical Price indicator is an average of each day price and can be used instead of closing price when creating different EBay Inc moving average lines. View also all equity analysis or get more info about typical price price transform indicator.

EBay Projected Return Density Against Market

Given the investment horizon of 90 days EBay has a beta of 0.571 suggesting as returns on the market go up, EBay average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding EBay Inc 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 EBay or Consumer Cyclical 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 EBay 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 EBay 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 0.0992, implying that it can generate a 0.0992 percent excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 

EBay 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 EBay or Consumer Cyclical 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 EBay 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 EBay 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 EBay is 1186.42. The daily returns are distributed with a variance of 4.73 and standard deviation of 2.18. The mean deviation of EBay Inc is currently at 1.59. For similar time horizon, the selected benchmark (DOW) has volatility of 1.69
α
Alpha over DOW
0.1
β
Beta against DOW0.57
σ
Overall volatility
2.18
Ir
Information ratio 0.0347

EBay Stock Return Volatility

EBay historical daily return volatility represents how much EBay stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The company inherits 2.1755% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 1.7318% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About EBay Volatility

Volatility is a rate at which the price of EBay 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 EBay may increase or decrease. In other words, similar to EBay's beta indicator, it measures the risk of EBay and helps estimate the fluctuations that may happen in a short period of time. So if prices of EBay 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 2021
Market Capitalization34.6 B36.6 B
eBay Inc. operates marketplace platforms that connect buyers and sellers worldwide. The company was founded in 1995 and is headquartered in San Jose, California. EBay operates under Internet Retail classification in the United States and is traded on NASDAQ Exchange. It employs 12700 people.

Nearest EBay long CALL Option Payoff at Expiration

EBay's implied volatility is one of the determining factors in the pricing options written on EBay Inc. Implied volatility approximates the future value of EBayusing the option's current value. Options with high implied volatility have higher premiums and can be used to hedge the downside of investing in EBay Inc over a specific time period.
View All EBay options
2021-10-22 CALL at $40.0 is a CALL option contract on EBay's common stock with a strick price of 40.0 expiring on 2021-10-22. The contract was not traded in recent days and, as of today, has 2 days remaining before the expiration. The option is currently trading at a bid price of $34.4, and an ask price of $35.1. The implied volatility as of the 20th of October is 282.055.
 Profit 
Share
      EBay Price At Expiration 

EBay Investment Opportunity

EBay Inc has a volatility of 2.18 and is 1.26 times more volatile than DOW. 18  of all equities and portfolios are less risky than EBay. Compared to the overall equity markets, volatility of historical daily returns of EBay Inc is lower than 18 () of all global equities and portfolios over the last 90 days. Use EBay Inc to enhance returns of your portfolios. The stock experiences a large bullish trend. Check odds of EBay to be traded at $83.57 in 90 days. . Let's try to break down what EBay's beta means in this case. As returns on the market increase, EBay returns are expected to increase less than the market. However, during the bear market, the loss on holding EBay will be expected to be smaller as well.

Very weak diversification

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

EBay Additional Risk Indicators

The analysis of EBay'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 EBay's investment and either accepting that risk or mitigating it. Along with some common measures of EBay 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 Performance0.1112
Market Risk Adjusted Performance0.2386
Mean Deviation1.58
Semi Deviation2.16
Downside Deviation2.29
Coefficient Of Variation1551.25
Standard Deviation2.18
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.

EBay 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.
Citigroup vs. EBay
Square vs. EBay
Walker Dunlop vs. EBay
High Dividend vs. EBay
Upstart Holdings vs. EBay
Main Street vs. EBay
Flowers Foods vs. EBay
Vmware vs. EBay
Facebook vs. EBay
Sentinelone Inc vs. EBay
Salesforce vs. EBay
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 EBay 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. EBay'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, EBay'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 EBay Inc.
Continue to Investing Opportunities. Note that the EBay Inc information on this page should be used as a complementary analysis to other EBay'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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

Complementary Tools for EBay Stock analysis

When running EBay Inc price analysis, check to measure EBay'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 EBay is operating at the current time. Most of EBay's value examination focuses on studying past and present price action to predict the probability of EBay's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move EBay's price. Additionally, you may evaluate how the addition of EBay to your portfolios can decrease your overall portfolio volatility.
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
The market value of EBay Inc is measured differently than its book value, which is the value of EBay that is recorded on the company's balance sheet. Investors also form their own opinion of EBay's value that differs from its market value or its book value, called intrinsic value, which is EBay'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 EBay's market value can be influenced by many factors that don't directly affect EBay Inc underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between EBay's value and its price as these two are different measures arrived at by different means. Investors typically determine EBay value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, EBay'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.