Focus Stock Volatility

FOCS -  USA Stock  

USD 36.91  2.83  8.30%

We consider Focus Financial very steady. Focus Financial Partners secures Sharpe Ratio (or Efficiency) of 0.0302, which denotes the company had 0.0302% of return per unit of standard deviation over the last month. Our philosophy in 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-eight technical indicators for Focus Financial Partners, which you can use to evaluate the future volatility of the firm. Please confirm Focus Financial Partners mean deviation of 1.77 to check if the risk estimate we provide is consistent with the expected return of 0.0997%.
  
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Focus Financial 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 Focus daily returns, and it is calculated using variance and standard deviation. We also use Focus's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Focus Financial volatility.

60 Days Market Risk

Very steady

Chance of Distress

Quite High

60 Days Economic Sensitivity

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

Focus Financial Market Sensitivity And Downside Risk

Focus Financial's beta coefficient measures the volatility of Focus 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 Focus stock's returns against your selected market. In other words, Focus Financial's beta of 1.54 provides an investor with an approximation of how much risk Focus Financial stock can potentially add to one of your existing portfolios.
Let's try to break down what Focus's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Focus Financial will likely underperform.
One Month Beta |Analyze Focus Financial Partners Demand Trend
Check current 90 days Focus Financial correlation with market (DOW)

Focus Beta

    
  1.54  
Focus 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

    
  3.3  
It is essential to understand the difference between upside risk (as represented by Focus Financial's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Focus Financial stock's daily returns or price. Since the actual investment returns on holding a position in Focus Financial 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 Focus Financial.

Focus Financial Implied Volatility

    
  4.59  
Focus Financial's implied volatility exposes the market's sentiment of Focus Financial Partners stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Focus Financial'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 Focus Financial stock will not fluctuate a lot when Focus Financial's options are near their expiration.

Focus Financial Partners Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Focus Financial's fluctuations based on previous trends. It's commonly used to predict Focus Financial'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 Focus Financial'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 seventeen. Focus Financial Partners 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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Focus Financial Projected Return Density Against Market

Given the investment horizon of 90 days the stock has the beta coefficient of 1.5417 . This usually indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Focus Financial will likely underperform.
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 Focus Financial 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 Focus Financial 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 Focus 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. Focus Financial Partners is significantly underperforming DOW.
 Predicted Return Density 
      Returns 
Focus Financial's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Focus Financial 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.

Focus Financial 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 Focus Financial 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 Focus Financial 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 Focus 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 Focus Financial is 3310.61. The daily returns are distributed with a variance of 10.9 and standard deviation of 3.3. The mean deviation of Focus Financial Partners is currently at 2.22. For similar time horizon, the selected benchmark (DOW) has volatility of 1.41
α
Alpha over DOW
-0.06
β
Beta against DOW1.54
σ
Overall volatility
3.30
Ir
Information ratio -0.06

Focus Financial Stock Return Volatility

Focus Financial historical daily return volatility represents how much Focus Financial stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The enterprise inherits 3.3013% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 1.5204% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Focus Financial Volatility

Volatility is a rate at which the price of Focus Financial 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 Focus Financial may increase or decrease. In other words, similar to Focus's beta indicator, it measures the risk of Focus Financial and helps estimate the fluctuations that may happen in a short period of time. So if prices of Focus Financial 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 Capitalization4.3 B3.9 B
Focus Financial Partners Inc. provides wealth management services to primarily ultra-high and high net worth individuals, families, and business entities. Focus Financial Partners Inc. was founded in 2006 and is headquartered in New York, New York. Focus Financial operates under Asset Management classification in the United States and is traded on NASDAQ Exchange. It employs 4400 people.

Nearest Focus long CALL Option Payoff at Expiration

Focus Financial's implied volatility is one of the determining factors in the pricing options written on Focus Financial Partners. Implied volatility approximates the future value of Focus Financialusing the option's current value. Options with high implied volatility have higher premiums and can be used to hedge the downside of investing in Focus Financial Partners over a specific time period.
View All Focus options
2022-07-15 CALL at $20.0 is a CALL option contract on Focus Financial's common stock with a strick price of 20.0 expiring on 2022-07-15. The contract was not traded in recent days and, as of today, has 21 days remaining before the expiration. The option is currently trading at a bid price of $11.6, and an ask price of $16.5. The implied volatility as of the 24th of June is 292.8135.
 Profit 
Share
      Focus Financial Price At Expiration 

Focus Financial Investment Opportunity

Focus Financial Partners has a volatility of 3.3 and is 2.17 times more volatile than DOW. 28  of all equities and portfolios are less risky than Focus Financial. Compared to the overall equity markets, volatility of historical daily returns of Focus Financial Partners is lower than 28 () of all global equities and portfolios over the last 90 days. Use Focus Financial Partners to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Focus Financial to be traded at $46.14 in 90 days. . Let's try to break down what Focus's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Focus Financial will likely underperform.

Very poor diversification

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

Focus Financial Additional Risk Indicators

The analysis of Focus Financial'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 Focus Financial's investment and either accepting that risk or mitigating it. Along with some common measures of Focus Financial 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(0.17)
Market Risk Adjusted Performance(0.21)
Mean Deviation1.77
Coefficient Of Variation(823.19)
Standard Deviation2.65
Variance7.02
Information Ratio(0.06)
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.

Focus Financial 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 Focus Financial 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. Focus Financial'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, Focus Financial'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 Focus Financial Partners.
Please check Investing Opportunities. Note that the Focus Financial Partners information on this page should be used as a complementary analysis to other Focus Financial'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 Fund Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

Complementary Tools for Focus Stock analysis

When running Focus Financial Partners price analysis, check to measure Focus Financial'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 Focus Financial is operating at the current time. Most of Focus Financial's value examination focuses on studying past and present price action to predict the probability of Focus Financial's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Focus Financial's price. Additionally, you may evaluate how the addition of Focus Financial to your portfolios can decrease your overall portfolio volatility.
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Is Focus Financial'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 Focus Financial. If investors know Focus 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 Focus Financial 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
89.52
Market Capitalization
2.1 B
Quarterly Revenue Growth YOY
0.36
Return On Assets
0.0377
Return On Equity
0.0593
The market value of Focus Financial Partners is measured differently than its book value, which is the value of Focus that is recorded on the company's balance sheet. Investors also form their own opinion of Focus Financial's value that differs from its market value or its book value, called intrinsic value, which is Focus Financial'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 Focus Financial's market value can be influenced by many factors that don't directly affect Focus Financial'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 Focus Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine Focus Financial value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Focus Financial'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.