La-Z-Boy Stock Volatility

LZB
 Stock
  

USD 24.44  0.33  1.33%   

La-Z-Boy Incorporated retains Efficiency (Sharpe Ratio) of -0.0353, which conveys that the firm had -0.0353% of return per unit of price deviation over the last 3 months. Macroaxis approach into estimating 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. La-Z-Boy Incorporated exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to verify La-Z-Boy Incorporated Standard Deviation of 2.72, market risk adjusted performance of (0.038939), and Mean Deviation of 2.13 to check out the risk estimate we provide.
  
La-Z-Boy Incorporated 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 La-Z-Boy daily returns, and it is calculated using variance and standard deviation. We also use La-Z-Boy's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of La-Z-Boy Incorporated volatility.

720 Days Market Risk

Very steady

Chance of Distress

720 Days Economic Sensitivity

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

+0.84AMWDAmerican WoodmarkPairCorr
+0.85BSETBassett FurniturePairCorr
+0.73ETDEthan Allen InteriorsPairCorr
+0.67HBBHamilton Beach BrandsPairCorr

La-Z-Boy Incorporated Market Sensitivity And Downside Risk

La-Z-Boy Incorporated's beta coefficient measures the volatility of La-Z-Boy 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 La-Z-Boy stock's returns against your selected market. In other words, La-Z-Boy Incorporated's beta of 1.39 provides an investor with an approximation of how much risk La-Z-Boy Incorporated stock can potentially add to one of your existing portfolios.
La-Z-Boy Incorporated exhibits very low volatility with skewness of -0.18 and kurtosis of 0.72. However, we advise investors to further study La-Z-Boy Incorporated 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 La-Z-Boy Incorporated'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 La-Z-Boy Incorporated'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 La-Z-Boy Incorporated Demand Trend
Check current 90 days La-Z-Boy Incorporated correlation with market (NYSE Composite)

La-Z-Boy Beta

    
  1.39  
La-Z-Boy 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

    
  2.74  
It is essential to understand the difference between upside risk (as represented by La-Z-Boy Incorporated's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of La-Z-Boy Incorporated's daily returns or price. Since the actual investment returns on holding a position in la-z-boy 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 La-Z-Boy Incorporated.

Using La-Z-Boy Put Option to Manage Risk

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

La-Z-Boy Incorporated's PUT expiring on 2022-12-16

   Profit   
Share
       La-Z-Boy Incorporated Price At Expiration  

Current La-Z-Boy Incorporated Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2022-12-16 PUT at $25.0-0.58760.188322022-12-161.0 - 1.451.14View
View All La-Z-Boy Incorporated Options

La-Z-Boy Incorporated Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures La-Z-Boy Incorporated's fluctuations based on previous trends. It's commonly used to predict La-Z-Boy Incorporated'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 La-Z-Boy Incorporated'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 La-Z-Boy Incorporated'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. La-Z-Boy Incorporated 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.
.

La-Z-Boy Incorporated Projected Return Density Against Market

Considering the 90-day investment horizon the stock has the beta coefficient of 1.3923 . This 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, La-Z-Boy Incorporated 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 La-Z-Boy Incorporated or Household Durables 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 La-Z-Boy Incorporated'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 La-Z-Boy 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. La-Z-Boy Incorporated is significantly underperforming NYSE Composite.
   Predicted Return Density   
       Returns  
La-Z-Boy Incorporated's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how la-z-boy 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 La-Z-Boy Incorporated 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.

La-Z-Boy Incorporated 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 La-Z-Boy Incorporated or Household Durables 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 La-Z-Boy Incorporated'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 La-Z-Boy 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 La-Z-Boy Incorporated is -2829.67. The daily returns are distributed with a variance of 7.49 and standard deviation of 2.74. The mean deviation of La-Z-Boy Incorporated is currently at 2.15. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 1.49
α
Alpha over NYSE Composite
-0.17
β
Beta against NYSE Composite1.39
σ
Overall volatility
2.74
Ir
Information ratio -0.05

La-Z-Boy Incorporated Stock Return Volatility

La-Z-Boy Incorporated historical daily return volatility represents how much of La-Z-Boy Incorporated stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company has volatility of 2.7362% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 1.5166% volatility on return distribution over the 90 days horizon.
 Performance (%) 
       Timeline  

About La-Z-Boy Incorporated Volatility

Volatility is a rate at which the price of La-Z-Boy Incorporated 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 La-Z-Boy Incorporated may increase or decrease. In other words, similar to La-Z-Boy's beta indicator, it measures the risk of La-Z-Boy Incorporated and helps estimate the fluctuations that may happen in a short period of time. So if prices of La-Z-Boy Incorporated 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 Capitalization1.1 B1.3 B

La-Z-Boy Incorporated Investment Opportunity

La-Z-Boy Incorporated has a volatility of 2.74 and is 1.8 times more volatile than NYSE Composite. 23  of all equities and portfolios are less risky than La-Z-Boy Incorporated. Compared to the overall equity markets, volatility of historical daily returns of La-Z-Boy Incorporated is lower than 23 () of all global equities and portfolios over the last 90 days. Use La-Z-Boy Incorporated 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 La-Z-Boy Incorporated to be traded at $23.71 in 90 days.

Poor diversification

The correlation between La-Z-Boy Incorporated and NYA is 0.76 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding La-Z-Boy Incorporated and NYA in the same portfolio, assuming nothing else is changed.

La-Z-Boy Incorporated Additional Risk Indicators

The analysis of La-Z-Boy Incorporated'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 La-Z-Boy Incorporated's investment and either accepting that risk or mitigating it. Along with some common measures of La-Z-Boy Incorporated 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.

La-Z-Boy Incorporated 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 La-Z-Boy Incorporated 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. La-Z-Boy Incorporated'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, La-Z-Boy Incorporated'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 La-Z-Boy Incorporated.
Additionally, see Correlation Analysis. Note that the La-Z-Boy Incorporated information on this page should be used as a complementary analysis to other La-Z-Boy Incorporated'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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

Complementary Tools for La-Z-Boy Stock analysis

When running La-Z-Boy Incorporated price analysis, check to measure La-Z-Boy Incorporated'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 La-Z-Boy Incorporated is operating at the current time. Most of La-Z-Boy Incorporated's value examination focuses on studying past and present price action to predict the probability of La-Z-Boy Incorporated's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move La-Z-Boy Incorporated's price. Additionally, you may evaluate how the addition of La-Z-Boy Incorporated to your portfolios can decrease your overall portfolio volatility.
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Is La-Z-Boy Incorporated'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 La-Z-Boy Incorporated. If investors know La-Z-Boy 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 La-Z-Boy Incorporated 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
0.65
Market Capitalization
1.1 B
Quarterly Revenue Growth YOY
0.15
Return On Assets
0.0757
Return On Equity
0.21
The market value of La-Z-Boy Incorporated is measured differently than its book value, which is the value of La-Z-Boy that is recorded on the company's balance sheet. Investors also form their own opinion of La-Z-Boy Incorporated's value that differs from its market value or its book value, called intrinsic value, which is La-Z-Boy Incorporated'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 La-Z-Boy Incorporated's market value can be influenced by many factors that don't directly affect La-Z-Boy Incorporated'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 La-Z-Boy Incorporated's value and its price as these two are different measures arrived at by different means. Investors typically determine La-Z-Boy Incorporated value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, La-Z-Boy Incorporated'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.