OceanFirst Stock Volatility

OCFC
 Stock
  

USD 20.75  0.10  0.48%   

We consider OceanFirst Financial very steady. OceanFirst Financial Corp maintains Sharpe Ratio (i.e., Efficiency) of 0.13, which implies the firm had 0.13% of return per unit of risk over the last 3 months. Our standpoint towards forecasting 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 OceanFirst Financial Corp, which you can use to evaluate the future volatility of the company. Please check OceanFirst Financial Corp Semi Deviation of 1.21, coefficient of variation of 834.35, and Risk Adjusted Performance of 0.1515 to confirm if the risk estimate we provide is consistent with the expected return of 0.19%.
  
OceanFirst Financial 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 OceanFirst daily returns, and it is calculated using variance and standard deviation. We also use OceanFirst's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of OceanFirst Financial volatility.

720 Days Market Risk

Very steady

Chance of Distress

Below Average

720 Days Economic Sensitivity

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

0.8FITBPFifth Third BancorpPairCorr
0.83HDBHdfc BankPairCorr
0.64BBAS3BRASIL ON NMPairCorr
0.89IBNIcici BankPairCorr

Moving against OceanFirst Financial

0.73LPHMLEE PHARMACEUTICALSPairCorr

OceanFirst Financial Market Sensitivity And Downside Risk

OceanFirst Financial's beta coefficient measures the volatility of OceanFirst 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 OceanFirst stock's returns against your selected market. In other words, OceanFirst Financial's beta of 0.73 provides an investor with an approximation of how much risk OceanFirst Financial stock can potentially add to one of your existing portfolios.
OceanFirst Financial Corp has relatively low volatility with skewness of 0.24 and kurtosis of 0.37. However, we advise all investors to independently investigate OceanFirst Financial Corp to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure OceanFirst Financial's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact OceanFirst Financial'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.

OceanFirst Financial Implied Volatility

OceanFirst Financial's implied volatility exposes the market's sentiment of OceanFirst Financial Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if OceanFirst Financial'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 OceanFirst Financial stock will not fluctuate a lot when OceanFirst Financial's options are near their expiration.
3 Months Beta |Analyze OceanFirst Financial Corp Demand Trend
Check current 90 days OceanFirst Financial correlation with market (DOW)

OceanFirst Beta

    
  0.73  
OceanFirst 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

    
  1.46  
It is essential to understand the difference between upside risk (as represented by OceanFirst Financial's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of OceanFirst Financial stock's daily returns or price. Since the actual investment returns on holding a position in OceanFirst Financial 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 OceanFirst Financial.

Using OceanFirst Put Option to Manage Risk

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

OceanFirst Financial's PUT expiring on 2022-08-19

   Profit   
Share
       OceanFirst Financial Price At Expiration  

Current OceanFirst Financial Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2022-08-19 PUT at $17.5-0.13760.0604102022-08-190.05 - 0.50.1View
View All OceanFirst Financial Options

OceanFirst Financial Corp Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures OceanFirst Financial's fluctuations based on previous trends. It's commonly used to predict OceanFirst Financial'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 OceanFirst Financial'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. OceanFirst Financial Typical Price indicator is an average of each day price and can be used instead of closing price when creating different OceanFirst Financial Corp moving average lines.
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OceanFirst Financial Projected Return Density Against Market

Given the investment horizon of 90 days OceanFirst Financial has a beta of 0.7269 . This indicates as returns on the market go up, OceanFirst Financial average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding OceanFirst Financial Corp will be expected to be much smaller as well.
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 OceanFirst Financial 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 OceanFirst Financial 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 OceanFirst 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 0.171, implying that it can generate a 0.17 percent excess return over DOW after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
OceanFirst Financial's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how OceanFirst Financial 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.

OceanFirst Financial 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 OceanFirst Financial 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 OceanFirst Financial 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 OceanFirst 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 OceanFirst Financial is 763.4. The daily returns are distributed with a variance of 2.13 and standard deviation of 1.46. The mean deviation of OceanFirst Financial Corp is currently at 1.14. For similar time horizon, the selected benchmark (DOW) has volatility of 1.25
α
Alpha over DOW
0.17
β
Beta against DOW0.73
σ
Overall volatility
1.46
Ir
Information ratio 0.12

OceanFirst Financial Stock Return Volatility

OceanFirst Financial historical daily return volatility represents how much OceanFirst Financial 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 1.4611% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 1.2597% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About OceanFirst Financial Volatility

Volatility is a rate at which the price of OceanFirst Financial 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 OceanFirst Financial may increase or decrease. In other words, similar to OceanFirst's beta indicator, it measures the risk of OceanFirst Financial and helps estimate the fluctuations that may happen in a short period of time. So if prices of OceanFirst Financial 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 Capitalization1.5 B1.6 B
OceanFirst Financial Corp. operates as the bank holding company for OceanFirst Bank N.A. that provides community banking services. The company was founded in 1902 and is based in Red Bank, New Jersey. OceanFirst Financial operates under BanksRegional classification in the United States and is traded on NASDAQ Exchange. It employs 894 people.

OceanFirst Financial Investment Opportunity

OceanFirst Financial Corp has a volatility of 1.46 and is 1.16 times more volatile than DOW. 12  of all equities and portfolios are less risky than OceanFirst Financial. Compared to the overall equity markets, volatility of historical daily returns of OceanFirst Financial Corp is lower than 12 () of all global equities and portfolios over the last 90 days.
Use OceanFirst Financial Corp to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a normal downward trend and little activity. Check odds of OceanFirst Financial to be traded at $20.54 in 90 days. .

Poor diversification

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

OceanFirst Financial Additional Risk Indicators

The analysis of OceanFirst Financial'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 OceanFirst Financial's investment and either accepting that risk or mitigating it. Along with some common measures of OceanFirst Financial 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 Performance0.1515
Market Risk Adjusted Performance0.2327
Mean Deviation1.12
Semi Deviation1.21
Downside Deviation1.37
Coefficient Of Variation834.35
Standard Deviation1.43
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.

OceanFirst Financial 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 OceanFirst Financial 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. OceanFirst Financial'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, OceanFirst Financial'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 OceanFirst Financial Corp.
Please check Your Equity Center. Note that the OceanFirst Financial Corp information on this page should be used as a complementary analysis to other OceanFirst Financial'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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.

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When running OceanFirst Financial Corp price analysis, check to measure OceanFirst Financial'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 OceanFirst Financial is operating at the current time. Most of OceanFirst Financial's value examination focuses on studying past and present price action to predict the probability of OceanFirst Financial's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move OceanFirst Financial's price. Additionally, you may evaluate how the addition of OceanFirst Financial to your portfolios can decrease your overall portfolio volatility.
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Is OceanFirst Financial'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 OceanFirst Financial. If investors know OceanFirst 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 OceanFirst Financial 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
-0.041
Market Capitalization
1.2 B
Quarterly Revenue Growth YOY
0.052
Return On Assets
0.0085
Return On Equity
0.0674
The market value of OceanFirst Financial Corp is measured differently than its book value, which is the value of OceanFirst that is recorded on the company's balance sheet. Investors also form their own opinion of OceanFirst Financial's value that differs from its market value or its book value, called intrinsic value, which is OceanFirst Financial'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 OceanFirst Financial's market value can be influenced by many factors that don't directly affect OceanFirst Financial'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 OceanFirst Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine OceanFirst Financial value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, OceanFirst Financial'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.