TechnipFMC Stock Volatility

FTI
 Stock
  

USD 6.07  0.07  1.14%   

TechnipFMC Plc owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0676, which indicates the firm had -0.0676% of return per unit of risk over the last 3 months. Macroaxis standpoint towards measuring 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. TechnipFMC Plc exposes twenty-seven different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to validate TechnipFMC Plc risk adjusted performance of (0.1), and Coefficient Of Variation of (1,400) to confirm the risk estimate we provide.
  
Refresh
TechnipFMC Plc 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 TechnipFMC daily returns, and it is calculated using variance and standard deviation. We also use TechnipFMC's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of TechnipFMC Plc volatility.

90 Days Market Risk

Slightly risky

Chance of Distress

Close to Average

90 Days Economic Sensitivity

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

0.84BKRBaker Hughes APairCorr
0.8CHXChampionx CorpPairCorr
0.77CLBCore LaboratoriesPairCorr
0.75DRQDril-QuipPairCorr
0.77FETForum Energy TechnologiesPairCorr

TechnipFMC Plc Market Sensitivity And Downside Risk

TechnipFMC Plc's beta coefficient measures the volatility of TechnipFMC 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 TechnipFMC stock's returns against your selected market. In other words, TechnipFMC Plc's beta of 1.36 provides an investor with an approximation of how much risk TechnipFMC Plc stock can potentially add to one of your existing portfolios.
Let's try to break down what TechnipFMC'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, TechnipFMC Plc will likely underperform.
3 Months Beta |Analyze TechnipFMC Plc Demand Trend
Check current 90 days TechnipFMC Plc correlation with market (DOW)

TechnipFMC Beta

    
  1.36  
TechnipFMC 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

    
  4.03  
It is essential to understand the difference between upside risk (as represented by TechnipFMC Plc's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of TechnipFMC Plc stock's daily returns or price. Since the actual investment returns on holding a position in TechnipFMC Plc 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 TechnipFMC Plc.

TechnipFMC Plc Implied Volatility

    
  89.27  
TechnipFMC Plc's implied volatility exposes the market's sentiment of TechnipFMC Plc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if TechnipFMC Plc'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 TechnipFMC Plc stock will not fluctuate a lot when TechnipFMC Plc's options are near their expiration.

TechnipFMC Plc Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures TechnipFMC Plc's fluctuations based on previous trends. It's commonly used to predict TechnipFMC Plc'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 TechnipFMC Plc'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. The Median Price line plots median indexes of TechnipFMC Plc price series.
.

TechnipFMC Plc Projected Return Density Against Market

Considering the 90-day investment horizon the stock has the beta coefficient of 1.3608 . 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, TechnipFMC Plc 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 TechnipFMC Plc or Energy 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 TechnipFMC Plc 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 TechnipFMC 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. TechnipFMC Plc is significantly underperforming DOW.
 Predicted Return Density 
      Returns 
TechnipFMC Plc's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how TechnipFMC Plc 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.

TechnipFMC Plc 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 TechnipFMC Plc or Energy 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 TechnipFMC Plc 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 TechnipFMC 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 TechnipFMC Plc is -1479.87. The daily returns are distributed with a variance of 16.21 and standard deviation of 4.03. The mean deviation of TechnipFMC Plc is currently at 3.17. For similar time horizon, the selected benchmark (DOW) has volatility of 1.42
α
Alpha over DOW
-0.02
β
Beta against DOW1.36
σ
Overall volatility
4.03
Ir
Information ratio -0.02

TechnipFMC Plc Stock Return Volatility

TechnipFMC Plc historical daily return volatility represents how much TechnipFMC Plc stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The company has volatility of 4.0261% on return distribution over 90 days investment horizon. By contrast, DOW inherits 1.4607% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About TechnipFMC Plc Volatility

Volatility is a rate at which the price of TechnipFMC Plc 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 TechnipFMC Plc may increase or decrease. In other words, similar to TechnipFMC's beta indicator, it measures the risk of TechnipFMC Plc and helps estimate the fluctuations that may happen in a short period of time. So if prices of TechnipFMC Plc 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 Capitalization2.7 B2.7 B
TechnipFMC plc engages in the oil and gas projects, technologies, and systems and services businesses in Europe, Central Asia, North and Latin America, the Asia Pacific, Africa, and the Middle East. The company was founded in 1884 and is based in Newcastle Upon Tyne, the United Kingdom. TechnipFMC Plc operates under Oil Gas Equipment Services classification in the United States and is traded on New York Stock Exchange. It employs 20000 people.

TechnipFMC Plc Investment Opportunity

TechnipFMC Plc has a volatility of 4.03 and is 2.76 times more volatile than DOW. 34  of all equities and portfolios are less risky than TechnipFMC Plc. Compared to the overall equity markets, volatility of historical daily returns of TechnipFMC Plc is lower than 34 () of all global equities and portfolios over the last 90 days. Use TechnipFMC Plc 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 TechnipFMC Plc to be traded at $5.89 in 90 days. . Let's try to break down what TechnipFMC'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, TechnipFMC Plc will likely underperform.

Very weak diversification

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

TechnipFMC Plc Additional Risk Indicators

The analysis of TechnipFMC Plc'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 TechnipFMC Plc's investment and either accepting that risk or mitigating it. Along with some common measures of TechnipFMC Plc 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(0.1)
Market Risk Adjusted Performance(0.20)
Mean Deviation3.0
Coefficient Of Variation(1,400)
Standard Deviation3.88
Variance15.06
Information Ratio(0.023707)
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.

TechnipFMC Plc 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.
Erie Indemnity vs. TechnipFMC Plc
Bancfirst Corp vs. TechnipFMC Plc
MP Materials vs. TechnipFMC Plc
Albemarle Corp vs. TechnipFMC Plc
ATT vs. TechnipFMC Plc
Penn Natl vs. TechnipFMC Plc
Greenlight Cap vs. TechnipFMC Plc
Eastgroup Properties vs. TechnipFMC Plc
Ezcorp vs. TechnipFMC Plc
Freyr Battery vs. TechnipFMC Plc
Interactive Brokers vs. TechnipFMC Plc
Alpha Metallurgical vs. TechnipFMC Plc
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 TechnipFMC Plc 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. TechnipFMC Plc'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, TechnipFMC Plc'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 TechnipFMC Plc.
Please check Investing Opportunities. Note that the TechnipFMC Plc information on this page should be used as a complementary analysis to other TechnipFMC Plc'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 Commodity Channel Index module to use Commodity Channel Index to analyze current equity momentum.

Complementary Tools for TechnipFMC Stock analysis

When running TechnipFMC Plc price analysis, check to measure TechnipFMC Plc'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 TechnipFMC Plc is operating at the current time. Most of TechnipFMC Plc's value examination focuses on studying past and present price action to predict the probability of TechnipFMC Plc's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move TechnipFMC Plc's price. Additionally, you may evaluate how the addition of TechnipFMC Plc to your portfolios can decrease your overall portfolio volatility.
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go
Is TechnipFMC Plc'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 TechnipFMC Plc. If investors know TechnipFMC 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 TechnipFMC Plc 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
-0.88
Market Capitalization
2.8 B
Quarterly Revenue Growth YOY
-0.047
Return On Assets
0.005
Return On Equity
-0.1
The market value of TechnipFMC Plc is measured differently than its book value, which is the value of TechnipFMC that is recorded on the company's balance sheet. Investors also form their own opinion of TechnipFMC Plc's value that differs from its market value or its book value, called intrinsic value, which is TechnipFMC Plc'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 TechnipFMC Plc's market value can be influenced by many factors that don't directly affect TechnipFMC Plc'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 TechnipFMC Plc's value and its price as these two are different measures arrived at by different means. Investors typically determine TechnipFMC Plc value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, TechnipFMC Plc'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.