Performance Stock Volatility

PFGC
 Stock
  

USD 58.83  0.13  0.22%   

Performance Food appears to be very steady, given 3 months investment horizon. Performance Food 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-eight technical indicators for Performance Food, which you can use to evaluate the future volatility of the company. Please evaluate Performance Food's Semi Deviation of 1.75, coefficient of variation of 953.87, and Risk Adjusted Performance of 0.1524 to confirm if our risk estimates are consistent with your expectations.
  
Performance Food 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 Performance daily returns, and it is calculated using variance and standard deviation. We also use Performance's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Performance Food volatility.

30 Days Market Risk

Very steady

Chance of Distress

Very Small

30 Days Economic Sensitivity

Almost mirrors the market
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Performance Food 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 Performance Food at lower prices. For example, an investor can purchase Performance 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 Performance Food'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 Performance Food

+0.88SYYSysco CorpPairCorr
+0.88BZLFYBunzl Plc ADRPairCorr
+0.95USFDUS Foods HoldingPairCorr

Moving against Performance Food

-0.66DNAGinkgo Bioworks Hldgs Sell-off TrendPairCorr

Performance Food Market Sensitivity And Downside Risk

Performance Food's beta coefficient measures the volatility of Performance 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 Performance stock's returns against your selected market. In other words, Performance Food's beta of 1.07 provides an investor with an approximation of how much risk Performance Food stock can potentially add to one of your existing portfolios.
Performance Food Group has relatively low volatility with skewness of 0.16 and kurtosis of 0.11. However, we advise all investors to independently investigate Performance Food Group 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 Performance Food'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 Performance Food'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 Performance Food Demand Trend
Check current 90 days Performance Food correlation with market (DOW)

Performance Beta

    
  1.07  
Performance 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

    
  2.18  
It is essential to understand the difference between upside risk (as represented by Performance Food's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Performance Food's daily returns or price. Since the actual investment returns on holding a position in performance 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 Performance Food.

Using Performance Put Option to Manage Risk

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

Performance Food's PUT expiring on 2022-12-16

   Profit   
Share
       Performance Food Price At Expiration  

Current Performance Food Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2022-12-16 PUT at $65.0-0.84350.0447212022-12-165.5 - 7.30.0View
Put
2022-12-16 PUT at $60.0-0.580.097242022-12-161.9 - 2.652.15View
Put
2022-12-16 PUT at $55.0-0.21790.0514322022-12-160.3 - 1.21.1View
Put
2022-12-16 PUT at $50.0-0.07480.01994822022-12-160.0 - 0.40.25View
View All Performance Food Options

Performance Food Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Performance Food's fluctuations based on previous trends. It's commonly used to predict Performance Food'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 Performance Food'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 Performance Food'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. The Median Price line plots median indexes of Performance Food price series.
.

Performance Food Projected Return Density Against Market

Given the investment horizon of 90 days the stock has the beta coefficient of 1.0665 indicating Performance Food Group market returns are sensitive to returns on the market. As the market goes up or down, Performance Food 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 Performance Food 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 Performance Food'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 Performance 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 0.1884, implying that it can generate a 0.19 percent excess return over DOW after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Performance Food's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how performance 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 Performance Food 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.

Performance Food 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 Performance Food 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 Performance Food'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 Performance 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 Performance Food is 744.98. The daily returns are distributed with a variance of 4.74 and standard deviation of 2.18. The mean deviation of Performance Food Group is currently at 1.7. For similar time horizon, the selected benchmark (DOW) has volatility of 1.42
α
Alpha over DOW
0.19
β
Beta against DOW1.07
σ
Overall volatility
2.18
Ir
Information ratio 0.09

Performance Food Stock Return Volatility

Performance Food historical daily return volatility represents how much of Performance Food stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 2.1779% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 1.3869% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About Performance Food Volatility

Volatility is a rate at which the price of Performance Food 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 Performance Food may increase or decrease. In other words, similar to Performance's beta indicator, it measures the risk of Performance Food and helps estimate the fluctuations that may happen in a short period of time. So if prices of Performance Food 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 Capitalization4.4 B4.3 B

Performance Food Investment Opportunity

Performance Food Group has a volatility of 2.18 and is 1.57 times more volatile than DOW. 18  of all equities and portfolios are less risky than Performance Food. Compared to the overall equity markets, volatility of historical daily returns of Performance Food Group is lower than 18 () of all global equities and portfolios over the last 90 days. Use Performance Food Group 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 Performance Food to be traded at $58.24 in 90 days.

Poor diversification

The correlation between Performance Food Group and DJI is 0.71 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Performance Food Group and DJI in the same portfolio, assuming nothing else is changed.

Performance Food Additional Risk Indicators

The analysis of Performance Food'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 Performance Food's investment and either accepting that risk or mitigating it. Along with some common measures of Performance Food 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.

Performance Food 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 Performance Food 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. Performance Food'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, Performance Food'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 Performance Food Group.
Please check Your Equity Center. Note that the Performance Food information on this page should be used as a complementary analysis to other Performance Food'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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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When running Performance Food price analysis, check to measure Performance Food'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 Performance Food is operating at the current time. Most of Performance Food's value examination focuses on studying past and present price action to predict the probability of Performance Food's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Performance Food's price. Additionally, you may evaluate how the addition of Performance Food to your portfolios can decrease your overall portfolio volatility.
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Is Performance Food'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 Performance Food. If investors know Performance 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 Performance Food 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
19.67
Market Capitalization
9.1 B
Quarterly Revenue Growth YOY
0.39
Return On Assets
0.0248
Return On Equity
0.0624
The market value of Performance Food is measured differently than its book value, which is the value of Performance that is recorded on the company's balance sheet. Investors also form their own opinion of Performance Food's value that differs from its market value or its book value, called intrinsic value, which is Performance Food'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 Performance Food's market value can be influenced by many factors that don't directly affect Performance Food'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 Performance Food's value and its price as these two are different measures arrived at by different means. Investors typically determine Performance Food value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Performance Food'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.