Nu Skin Stock Volatility

NUS
 Stock
  

USD 43.30  0.59  1.34%   

Nu Skin Enterprises retains Efficiency (Sharpe Ratio) of -0.0648, which conveys that the firm had -0.0648% of return per unit of price deviation 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. Nu Skin exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to verify Nu Skin Enterprises Standard Deviation of 2.43, market risk adjusted performance of (0.10), and Mean Deviation of 1.87 to check out the risk estimate we provide.
  
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Nu Skin 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 Nu Skin daily returns, and it is calculated using variance and standard deviation. We also use Nu Skin's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Nu Skin volatility.

60 Days Market Risk

Very steady

Chance of Distress

60 Days Economic Sensitivity

Almost mirrors the market

Nu Skin Enterprises Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Nu Skin's fluctuations based on previous trends. It's commonly used to predict Nu Skin'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 Nu Skin'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. Nu Skin Enterprises 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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Nu Skin Projected Return Density Against Market

Considering the 90-day investment horizon the stock has the beta coefficient of 1.0005 . This indicates Nu Skin Enterprises market returns are sensible to returns on the market. As the market goes up or down, Nu Skin is expected to follow.
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 Nu Skin or Consumer Defensive 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 Nu Skin 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 Nu Skin 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 0.079, implying that it can generate a 0.079 percent excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 
Nu Skin's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Nu Skin 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.

Nu Skin 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 Nu Skin or Consumer Defensive 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 Nu Skin 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 Nu Skin 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 Nu Skin is -1543.91. The daily returns are distributed with a variance of 6.04 and standard deviation of 2.46. The mean deviation of Nu Skin Enterprises is currently at 1.88. For similar time horizon, the selected benchmark (DOW) has volatility of 1.42
α
Alpha over DOW
0.08
β
Beta against DOW1.00
σ
Overall volatility
2.46
Ir
Information ratio 0.0325

Nu Skin Stock Return Volatility

Nu Skin historical daily return volatility represents how much Nu Skin stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The enterprise has volatility of 2.4579% on return distribution over 90 days investment horizon. By contrast, DOW inherits 1.4427% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Nu Skin Volatility

Volatility is a rate at which the price of Nu Skin 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 Nu Skin may increase or decrease. In other words, similar to Nu Skin's beta indicator, it measures the risk of Nu Skin and helps estimate the fluctuations that may happen in a short period of time. So if prices of Nu Skin 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 Capitalization2.5 B2.6 B
Nu Skin Enterprises, Inc. develops and distributes beauty and wellness products worldwide. Nu Skin Enterprises, Inc. was founded in 1984 and is headquartered in Provo, Utah. Nu Skin operates under Household Personal Products classification in the United States and is traded on New York Stock Exchange. It employs 4600 people.

Nu Skin Investment Opportunity

Nu Skin Enterprises has a volatility of 2.46 and is 1.71 times more volatile than DOW. 21  of all equities and portfolios are less risky than Nu Skin. Compared to the overall equity markets, volatility of historical daily returns of Nu Skin Enterprises is lower than 21 () of all global equities and portfolios over the last 90 days. Use Nu Skin Enterprises 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 Nu Skin to be traded at $42.0 in 90 days. . Let's try to break down what Nu Skin's beta means in this case. Nu Skin returns are very sensitive to returns on the market. As the market goes up or down, Nu Skin is expected to follow.

Very weak diversification

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

Nu Skin Additional Risk Indicators

The analysis of Nu Skin'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 Nu Skin's investment and either accepting that risk or mitigating it. Along with some common measures of Nu Skin 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(0.06)
Market Risk Adjusted Performance(0.10)
Mean Deviation1.87
Coefficient Of Variation(2,338)
Standard Deviation2.43
Variance5.91
Information Ratio0.0325
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.

Nu Skin 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 Nu Skin 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. Nu Skin'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, Nu Skin'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 Nu Skin Enterprises.
Additionally, see Stocks Correlation. Note that the Nu Skin Enterprises information on this page should be used as a complementary analysis to other Nu Skin'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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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When running Nu Skin Enterprises price analysis, check to measure Nu Skin'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 Nu Skin is operating at the current time. Most of Nu Skin's value examination focuses on studying past and present price action to predict the probability of Nu Skin's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Nu Skin's price. Additionally, you may evaluate how the addition of Nu Skin to your portfolios can decrease your overall portfolio volatility.
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Is Nu Skin'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 Nu Skin. If investors know Nu Skin 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 Nu Skin 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
-0.16
Market Capitalization
2.2 B
Quarterly Revenue Growth YOY
-0.11
Return On Assets
0.0916
Return On Equity
0.15
The market value of Nu Skin Enterprises is measured differently than its book value, which is the value of Nu Skin that is recorded on the company's balance sheet. Investors also form their own opinion of Nu Skin's value that differs from its market value or its book value, called intrinsic value, which is Nu Skin'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 Nu Skin's market value can be influenced by many factors that don't directly affect Nu Skin'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 Nu Skin's value and its price as these two are different measures arrived at by different means. Investors typically determine Nu Skin value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nu Skin'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.