Under Stock Volatility

UA
 Stock
  

USD 7.80  0.31  3.82%   

Under Armour owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.18, which indicates the firm had -0.18% 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. Under Armour exposes twenty-seven different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to validate Under Armour coefficient of variation of (575.82), and Risk Adjusted Performance of (0.24) to confirm the risk estimate we provide.
  
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Under Armour 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 Under daily returns, and it is calculated using variance and standard deviation. We also use Under's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Under Armour volatility.

720 Days Market Risk

Somewhat reliable

Chance of Distress

Below Average

720 Days Economic Sensitivity

Actively responds to the market
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Under Armour 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 Under Armour at lower prices. For example, an investor can purchase Under 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 Under Armour'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.

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Moving against Under Armour

0.59RGCRegencell BiosciencePairCorr

Under Armour Market Sensitivity And Downside Risk

Under Armour's beta coefficient measures the volatility of Under 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 Under stock's returns against your selected market. In other words, Under Armour's beta of 1.74 provides an investor with an approximation of how much risk Under Armour stock can potentially add to one of your existing portfolios.
Let's try to break down what Under'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, Under Armour will likely underperform.
3 Months Beta |Analyze Under Armour Demand Trend
Check current 90 days Under Armour correlation with market (DOW)

Under Beta

    
  1.74  
Under 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

    
  5.01  
It is essential to understand the difference between upside risk (as represented by Under Armour's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Under Armour stock's daily returns or price. Since the actual investment returns on holding a position in Under Armour 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 Under Armour.

Under Armour Implied Volatility

    
  80.11  
Under Armour's implied volatility exposes the market's sentiment of Under Armour stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Under Armour'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 Under Armour stock will not fluctuate a lot when Under Armour's options are near their expiration.

Under Armour Stock Volatility Analysis

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

Historical Volatility

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

Allowing for the 90-day total investment horizon the stock has the beta coefficient of 1.7354 . This usually implies as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Under Armour 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 Under Armour 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 Under Armour 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 Under 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. Under Armour is significantly underperforming DOW.
 Predicted Return Density 
      Returns 
Under Armour's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Under Armour 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.

Under Armour 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 Under Armour 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 Under Armour 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 Under 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.
Allowing for the 90-day total investment horizon the coefficient of variation of Under Armour is -551.2. The daily returns are distributed with a variance of 25.1 and standard deviation of 5.01. The mean deviation of Under Armour is currently at 3.23. For similar time horizon, the selected benchmark (DOW) has volatility of 1.42
α
Alpha over DOW
-0.56
β
Beta against DOW1.74
σ
Overall volatility
5.01
Ir
Information ratio -0.14

Under Armour Stock Return Volatility

Under Armour historical daily return volatility represents how much Under Armour stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The company accepts 5.0098% volatility on return distribution over the 90 days horizon. By contrast, DOW inherits 1.4428% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Under Armour Volatility

Volatility is a rate at which the price of Under Armour 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 Under Armour may increase or decrease. In other words, similar to Under's beta indicator, it measures the risk of Under Armour and helps estimate the fluctuations that may happen in a short period of time. So if prices of Under Armour 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.
Under Armour, Inc., together with its subsidiaries, engages in the developing, marketing, and distributing performance apparel, footwear, and accessories for men, women, and youth. Under Armour, Inc. was incorporated in 1996 and is headquartered in Baltimore, Maryland. Under Armour operates under Apparel Manufacturing classification in the United States and is traded on New York Stock Exchange. It employs 7100 people.

Under Armour Investment Opportunity

Under Armour has a volatility of 5.01 and is 3.48 times more volatile than DOW. 43  of all equities and portfolios are less risky than Under Armour. Compared to the overall equity markets, volatility of historical daily returns of Under Armour is lower than 43 () of all global equities and portfolios over the last 90 days. Use Under Armour to protect your portfolios against small market fluctuations. The stock experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of Under Armour to be traded at $7.49 in 90 days. . Let's try to break down what Under'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, Under Armour will likely underperform.

Very weak diversification

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

Under Armour Additional Risk Indicators

The analysis of Under Armour'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 Under Armour's investment and either accepting that risk or mitigating it. Along with some common measures of Under Armour 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(0.24)
Market Risk Adjusted Performance(0.49)
Mean Deviation3.15
Coefficient Of Variation(575.82)
Standard Deviation4.89
Variance23.92
Information Ratio(0.14)
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.

Under Armour 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 Under Armour 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. Under Armour'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, Under Armour'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 Under Armour.
Also, please take a look at World Market Map. Note that the Under Armour information on this page should be used as a complementary analysis to other Under Armour'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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

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When running Under Armour price analysis, check to measure Under Armour'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 Under Armour is operating at the current time. Most of Under Armour's value examination focuses on studying past and present price action to predict the probability of Under Armour's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Under Armour's price. Additionally, you may evaluate how the addition of Under Armour to your portfolios can decrease your overall portfolio volatility.
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Is Under Armour'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 Under Armour. If investors know Under 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 Under Armour 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
-0.44
Market Capitalization
B
Quarterly Revenue Growth YOY
0.035
Return On Assets
0.0563
Return On Equity
0.13
The market value of Under Armour is measured differently than its book value, which is the value of Under that is recorded on the company's balance sheet. Investors also form their own opinion of Under Armour's value that differs from its market value or its book value, called intrinsic value, which is Under Armour'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 Under Armour's market value can be influenced by many factors that don't directly affect Under Armour'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 Under Armour's value and its price as these two are different measures arrived at by different means. Investors typically determine Under Armour value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Under Armour'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.