Teradata Stock Volatility

TDC
 Stock
  

USD 30.26  0.39  1.27%   

Teradata Corp owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.14, which indicates the firm had -0.14% of return per unit of risk over the last 3 months. Macroaxis standpoint towards measuring 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. Teradata Corp exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to validate Teradata Corp coefficient of variation of (976.00), and Risk Adjusted Performance of (0.11) to confirm the risk estimate we provide.
  
Teradata Corp 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 Teradata daily returns, and it is calculated using variance and standard deviation. We also use Teradata's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Teradata Corp volatility.

30 Days Market Risk

Very steady

Chance of Distress

Below Average

30 Days Economic Sensitivity

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

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-0.81PPERYPt Bk MandiriPairCorr
-0.8PPERFBank Mandiri PerseroPairCorr
-0.72RUNSunrun IncPairCorr
-0.61BKRKYPt Bank RakyatPairCorr
-0.6TLKMFPt Telekomunik IndPairCorr

Teradata Corp Market Sensitivity And Downside Risk

Teradata Corp's beta coefficient measures the volatility of Teradata 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 Teradata stock's returns against your selected market. In other words, Teradata Corp's beta of 1.13 provides an investor with an approximation of how much risk Teradata Corp stock can potentially add to one of your existing portfolios.
Teradata Corp exhibits very low volatility with skewness of -0.3 and kurtosis of 1.01. However, we advise investors to further study Teradata Corp 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 Teradata Corp'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 Teradata Corp'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 Teradata Corp Demand Trend
Check current 90 days Teradata Corp correlation with market (DOW)

Teradata Beta

    
  1.13  
Teradata 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

    
  2.17  
It is essential to understand the difference between upside risk (as represented by Teradata Corp's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Teradata Corp's daily returns or price. Since the actual investment returns on holding a position in teradata 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 Teradata Corp.

Using Teradata Put Option to Manage Risk

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

Teradata Corp's PUT expiring on 2022-10-21

   Profit   
Share
       Teradata Corp Price At Expiration  

Current Teradata Corp Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2022-10-21 PUT at $57.5-0.9750.006412022-10-2126.3 - 27.510.8View
Put
2022-10-21 PUT at $52.5-0.93660.012832022-10-2121.7 - 22.48.68View
Put
2022-10-21 PUT at $50.0-0.93330.0143262022-10-2119.2 - 19.914.2View
Put
2022-10-21 PUT at $47.5-0.91840.0174172022-10-2116.5 - 17.713.4View
Put
2022-10-21 PUT at $45.0-0.94960.0156372022-10-2114.1 - 14.87.3View
Put
2022-10-21 PUT at $42.5-0.92950.0214342022-10-2111.6 - 12.410.0View
Put
2022-10-21 PUT at $40.0-0.93730.0246312022-10-219.1 - 9.84.81View
Put
2022-10-21 PUT at $37.5-0.92560.0348452022-10-216.6 - 7.35.75View
Put
2022-10-21 PUT at $35.0-0.84610.06381322022-10-214.4 - 4.64.6View
Put
2022-10-21 PUT at $32.5-0.67520.10472642022-10-212.45 - 2.552.8View
Put
2022-10-21 PUT at $30.0-0.40010.10742012022-10-211.05 - 1.151.3View
View All Teradata Corp Options

Teradata Corp Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Teradata Corp's fluctuations based on previous trends. It's commonly used to predict Teradata Corp'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 Teradata Corp'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 Teradata Corp'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 Teradata Corp price series.
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Teradata Corp Projected Return Density Against Market

Considering the 90-day investment horizon the stock has the beta coefficient of 1.1299 . This usually implies Teradata Corp market returns are sensitive to returns on the market. As the market goes up or down, Teradata Corp 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 Teradata Corp or Technology 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 Teradata Corp'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 Teradata 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. Teradata Corp is significantly underperforming DOW.
   Predicted Return Density   
       Returns  
Teradata Corp's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how teradata 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 Teradata Corp 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.

Teradata Corp 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 Teradata Corp or Technology 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 Teradata Corp'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 Teradata 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 Teradata Corp is -710.95. The daily returns are distributed with a variance of 4.73 and standard deviation of 2.17. The mean deviation of Teradata Corp is currently at 1.64. For similar time horizon, the selected benchmark (DOW) has volatility of 1.14
α
Alpha over DOW
-0.2
β
Beta against DOW1.13
σ
Overall volatility
2.17
Ir
Information ratio -0.09

Teradata Corp Stock Return Volatility

Teradata Corp historical daily return volatility represents how much of Teradata Corp stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company has volatility of 2.1743% on return distribution over 90 days investment horizon. By contrast, DOW inherits 1.1057% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About Teradata Corp Volatility

Volatility is a rate at which the price of Teradata Corp 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 Teradata Corp may increase or decrease. In other words, similar to Teradata's beta indicator, it measures the risk of Teradata Corp and helps estimate the fluctuations that may happen in a short period of time. So if prices of Teradata Corp 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.
Teradata Corporation, together with its subsidiaries, provides a connected multi-cloud data platform for enterprise analytics. Teradata Corporation was incorporated in 1979 and is headquartered in San Diego, California. Teradata Corp operates under SoftwareInfrastructure classification in the United States and is traded on New York Stock Exchange. It employs 7200 people.

Teradata Corp Investment Opportunity

Teradata Corp has a volatility of 2.17 and is 1.95 times more volatile than DOW. 18  of all equities and portfolios are less risky than Teradata Corp. Compared to the overall equity markets, volatility of historical daily returns of Teradata Corp is lower than 18 () of all global equities and portfolios over the last 90 days. Use Teradata Corp 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 Teradata Corp to be traded at $29.35 in 90 days.

Very weak diversification

The correlation between Teradata Corp and DJI is 0.55 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Teradata Corp and DJI in the same portfolio, assuming nothing else is changed.

Teradata Corp Additional Risk Indicators

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

Teradata Corp 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 Teradata Corp 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. Teradata Corp'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, Teradata Corp'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 Teradata Corp.
Additionally, take a look at World Market Map. Note that the Teradata Corp information on this page should be used as a complementary analysis to other Teradata Corp'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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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When running Teradata Corp price analysis, check to measure Teradata Corp'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 Teradata Corp is operating at the current time. Most of Teradata Corp's value examination focuses on studying past and present price action to predict the probability of Teradata Corp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Teradata Corp's price. Additionally, you may evaluate how the addition of Teradata Corp to your portfolios can decrease your overall portfolio volatility.
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Is Teradata Corp'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 Teradata Corp. If investors know Teradata 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 Teradata Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Teradata Corp is measured differently than its book value, which is the value of Teradata that is recorded on the company's balance sheet. Investors also form their own opinion of Teradata Corp's value that differs from its market value or its book value, called intrinsic value, which is Teradata Corp'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 Teradata Corp's market value can be influenced by many factors that don't directly affect Teradata Corp'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 Teradata Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine Teradata Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Teradata Corp'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.