Norwegian Stock Volatility

NCLH
 Stock
  

USD 11.33  0.21  1.89%   

Norwegian Cruise Ord has Sharpe Ratio of -0.16, which conveys that the firm had -0.16% of return per unit of risk over the last 3 months. Macroaxis standpoint towards 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. Norwegian Cruise exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to verify Norwegian Cruise Ord risk adjusted performance of (0.20), and Mean Deviation of 3.91 to check out the risk estimate we provide.
  
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Norwegian Cruise 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 Norwegian daily returns, and it is calculated using variance and standard deviation. We also use Norwegian's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Norwegian Cruise volatility.

180 Days Market Risk

Somewhat reliable

Chance of Distress

Average

180 Days Economic Sensitivity

Hyperactively responds to market trends

ESG Sustainability

While most ESG disclosures are voluntary, Norwegian Cruise's sustainability indicators can be used to identify a proper investment strutegies using environmental, social, and governance scores that are crucial to Norwegian Cruise's managers and investors.
Environment Score
Governance Score
Social Score
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Norwegian Cruise 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 Norwegian Cruise at lower prices. For example, an investor can purchase Norwegian 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 Norwegian Cruise'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 Norwegian Cruise

0.87NCTYThe9 Ltd ADRPairCorr
0.99RCLRoyal Caribbean CruisesPairCorr
0.95SKYWSkywestPairCorr
0.9TRIPTripadvisorPairCorr

Moving against Norwegian Cruise

0.77RGCRegencell BiosciencePairCorr

Norwegian Cruise Market Sensitivity And Downside Risk

Norwegian Cruise's beta coefficient measures the volatility of Norwegian 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 Norwegian stock's returns against your selected market. In other words, Norwegian Cruise's beta of 2.51 provides an investor with an approximation of how much risk Norwegian Cruise stock can potentially add to one of your existing portfolios.
Let's try to break down what Norwegian'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, Norwegian Cruise will likely underperform.
3 Months Beta |Analyze Norwegian Cruise Ord Demand Trend
Check current 90 days Norwegian Cruise correlation with market (DOW)

Norwegian Beta

    
  2.51  
Norwegian 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

    
  5.53  
It is essential to understand the difference between upside risk (as represented by Norwegian Cruise's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Norwegian Cruise stock's daily returns or price. Since the actual investment returns on holding a position in Norwegian Cruise 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 Norwegian Cruise.

Norwegian Cruise Implied Volatility

    
  83.33  
Norwegian Cruise's implied volatility exposes the market's sentiment of Norwegian Cruise Ord stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Norwegian Cruise'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 Norwegian Cruise stock will not fluctuate a lot when Norwegian Cruise's options are near their expiration.

Norwegian Cruise Ord Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Norwegian Cruise's fluctuations based on previous trends. It's commonly used to predict Norwegian Cruise'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 Norwegian Cruise'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. Developed by Larry Williams, the Weighted Close is the average of Norwegian Cruise Ord high, low and close of a chart with the close values weighted twice. It can be used to smooth an indicator that normally takes only Norwegian Cruise closing price as input.
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Norwegian Cruise Projected Return Density Against Market

Given the investment horizon of 90 days the stock has the beta coefficient of 2.5064 . 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, Norwegian Cruise 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 Norwegian Cruise 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 Norwegian Cruise 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 Norwegian 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. Norwegian Cruise Ord is significantly underperforming DOW.
 Predicted Return Density 
      Returns 
Norwegian Cruise's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Norwegian Cruise 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.

Norwegian Cruise 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 Norwegian Cruise 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 Norwegian Cruise 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 Norwegian 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 Norwegian Cruise is -617.41. The daily returns are distributed with a variance of 30.53 and standard deviation of 5.52. The mean deviation of Norwegian Cruise Ord is currently at 4.0. For similar time horizon, the selected benchmark (DOW) has volatility of 1.42
α
Alpha over DOW
-0.33
β
Beta against DOW2.51
σ
Overall volatility
5.53
Ir
Information ratio -0.11

Norwegian Cruise Stock Return Volatility

Norwegian Cruise historical daily return volatility represents how much Norwegian Cruise 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 5.525% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 1.4395% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Norwegian Cruise Volatility

Volatility is a rate at which the price of Norwegian Cruise 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 Norwegian Cruise may increase or decrease. In other words, similar to Norwegian's beta indicator, it measures the risk of Norwegian Cruise and helps estimate the fluctuations that may happen in a short period of time. So if prices of Norwegian Cruise 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.
Norwegian Cruise Line Holdings Ltd., together with its subsidiaries, operates as a cruise company in North America, Europe, the Asia-Pacific, and internationally. Norwegian Cruise Line Holdings Ltd. was founded in 1966 and is based in Miami, Florida. Norwegian Cruise operates under Travel Services classification in the United States and is traded on New York Stock Exchange. It employs 34700 people.

Norwegian Cruise Investment Opportunity

Norwegian Cruise Ord has a volatility of 5.53 and is 3.84 times more volatile than DOW. 47  of all equities and portfolios are less risky than Norwegian Cruise. Compared to the overall equity markets, volatility of historical daily returns of Norwegian Cruise Ord is lower than 47 () of all global equities and portfolios over the last 90 days. Use Norwegian Cruise Ord to enhance the returns of your portfolios. The stock experiences a large bullish trend. Check odds of Norwegian Cruise to be traded at $12.46 in 90 days. . Let's try to break down what Norwegian'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, Norwegian Cruise will likely underperform.

Poor diversification

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

Norwegian Cruise Additional Risk Indicators

The analysis of Norwegian Cruise'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 Norwegian Cruise's investment and either accepting that risk or mitigating it. Along with some common measures of Norwegian Cruise 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(0.20)
Market Risk Adjusted Performance(0.31)
Mean Deviation3.91
Coefficient Of Variation(679.57)
Standard Deviation5.42
Variance29.4
Information Ratio(0.11)
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.

Norwegian Cruise 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 Norwegian Cruise 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. Norwegian Cruise'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, Norwegian Cruise'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 Norwegian Cruise Ord.
Additionally, see Stocks Correlation. Note that the Norwegian Cruise Ord information on this page should be used as a complementary analysis to other Norwegian Cruise'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 Global Correlations module to find global opportunities by holding instruments from different markets.

Complementary Tools for Norwegian Stock analysis

When running Norwegian Cruise Ord price analysis, check to measure Norwegian Cruise'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 Norwegian Cruise is operating at the current time. Most of Norwegian Cruise's value examination focuses on studying past and present price action to predict the probability of Norwegian Cruise's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Norwegian Cruise's price. Additionally, you may evaluate how the addition of Norwegian Cruise to your portfolios can decrease your overall portfolio volatility.
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Is Norwegian Cruise'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 Norwegian Cruise. If investors know Norwegian 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 Norwegian Cruise 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
-0.009
Market Capitalization
4.7 B
Quarterly Revenue Growth YOY
167.37
Return On Assets
-0.0873
Return On Equity
-1.4
The market value of Norwegian Cruise Ord is measured differently than its book value, which is the value of Norwegian that is recorded on the company's balance sheet. Investors also form their own opinion of Norwegian Cruise's value that differs from its market value or its book value, called intrinsic value, which is Norwegian Cruise'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 Norwegian Cruise's market value can be influenced by many factors that don't directly affect Norwegian Cruise'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 Norwegian Cruise's value and its price as these two are different measures arrived at by different means. Investors typically determine Norwegian Cruise value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Norwegian Cruise'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.