Howard Stock Volatility

HBMD
 Stock
  

USD 23.30  0.00  0.00%   

Our standpoint towards determining 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-one technical indicators for Howard Bancorp, which you can use to evaluate the future volatility of the firm. Please check out Howard Bancorp Market Risk Adjusted Performance of (0.60), downside deviation of 2.09, and Risk Adjusted Performance of 0.1146 to validate if the risk estimate we provide is consistent with the expected return of 0.0%.
  
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Howard 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 Howard daily returns, and it is calculated using variance and standard deviation. We also use Howard's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Howard Bancorp volatility.

30 Days Market Risk

Very steady

Chance of Distress

Close to Average

30 Days Economic Sensitivity

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

Moving against Howard Bancorp

0.7ALRSAlerus Financial CorpPairCorr
0.58BANCBanc Of CaliforniaPairCorr
0.52ASBAssociated Banc CorpPairCorr
0.52BAPCredicorpPairCorr

Howard Bancorp Market Sensitivity And Downside Risk

Howard Bancorp's beta coefficient measures the volatility of Howard 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 Howard stock's returns against your selected market. In other words, Howard Bancorp's beta of -0.24 provides an investor with an approximation of how much risk Howard Bancorp stock can potentially add to one of your existing portfolios.
Let's try to break down what Howard's beta means in this case. As returns on the market increase, returns on owning Howard Bancorp are expected to decrease at a much lower rate. During the bear market, Howard Bancorp is likely to outperform the market.
3 Months Beta |Analyze Howard Bancorp Demand Trend
Check current 90 days Howard Bancorp correlation with market (DOW)

Howard Beta

    
  -0.24  
Howard 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

    
  0.0  
It is essential to understand the difference between upside risk (as represented by Howard Bancorp's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Howard Bancorp stock's daily returns or price. Since the actual investment returns on holding a position in Howard Bancorp 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 Howard Bancorp.

Howard Bancorp Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Howard Bancorp's fluctuations based on previous trends. It's commonly used to predict Howard 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 Howard Bancorp's current market price. This means that the stock will return to its initially predicted market price.
Transformation
We are not able to run technical analysis function on this symbol. We either do not have that equity or its historical data is not available at this time. Please try again later.

Howard Bancorp Projected Return Density Against Market

Given the investment horizon of 90 days Howard Bancorp has a beta of -0.2386 . This usually indicates as returns on benchmark increase, returns on holding Howard Bancorp are expected to decrease at a much lower rate. During the bear market, however, Howard Bancorp is likely to outperform the market.
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 Howard Bancorp 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 Howard Bancorp 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 Howard 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 0.1139, implying that it can generate a 0.11 percent excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 
Howard Bancorp's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Howard Bancorp 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.

Howard Bancorp Stock Return Volatility

Howard Bancorp historical daily return volatility represents how much Howard Bancorp stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The firm inherits 0.0% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 1.4543% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Howard Bancorp Volatility

Volatility is a rate at which the price of Howard 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 Howard Bancorp may increase or decrease. In other words, similar to Howard's beta indicator, it measures the risk of Howard Bancorp and helps estimate the fluctuations that may happen in a short period of time. So if prices of Howard 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.
Last ReportedProjected for 2022
Market Capitalization254.5 M212.3 M
Howard Bancorp, Inc. operates as the bank holding company for Howard Bank that provides commercial banking, mortgage banking, and consumer finance products and services to businesses, business owners, professionals, and other consumers. Howard Bancorp, Inc. was founded in 2004 and is headquartered in Baltimore, Maryland. Howard Bancorp operates under BanksRegional classification in the United States and is traded on NASDAQ Exchange. It employs 235 people.

Howard Bancorp Investment Opportunity

DOW has a standard deviation of returns of 1.45 and is 9.223372036854776E16 times more volatile than Howard Bancorp. of all equities and portfolios are less risky than Howard Bancorp. Compared to the overall equity markets, volatility of historical daily returns of Howard Bancorp is lower than 0 () of all global equities and portfolios over the last 90 days. Use Howard Bancorp to protect your portfolios against small market fluctuations. The stock experiences a normal downward trend, but the immediate impact on correlations cannot be determined at the moment . Check odds of Howard Bancorp to be traded at $23.07 in 90 days. . Let's try to break down what Howard's beta means in this case. As returns on the market increase, returns on owning Howard Bancorp are expected to decrease at a much lower rate. During the bear market, Howard Bancorp is likely to outperform the market.

Good diversification

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

Howard Bancorp Additional Risk Indicators

The analysis of Howard 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 Howard Bancorp's investment and either accepting that risk or mitigating it. Along with some common measures of Howard Bancorp 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 Performance0.1146
Market Risk Adjusted Performance(0.60)
Mean Deviation1.42
Semi Deviation1.91
Downside Deviation2.09
Coefficient Of Variation1265.57
Standard Deviation1.97
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.

Howard 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.
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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 Howard 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. Howard 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, Howard 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 Howard Bancorp.
Please check Risk vs Return Analysis. Note that the Howard Bancorp information on this page should be used as a complementary analysis to other Howard Bancorp'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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

Other Tools for Howard Stock

When running Howard Bancorp price analysis, check to measure Howard 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 Howard Bancorp is operating at the current time. Most of Howard Bancorp's value examination focuses on studying past and present price action to predict the probability of Howard Bancorp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Howard Bancorp's price. Additionally, you may evaluate how the addition of Howard Bancorp to your portfolios can decrease your overall portfolio volatility.
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