First Bancshares Stock Volatility

Volatility Strategy

Main indicators related to First Bancshares' market risk premium analysis include:

Moving together with First Stock

Sensitivity To Market

3 Months Beta |Analyze First Bancshares Demand TrendCheck current 90 days First Bancshares correlation with market (Dow Jones Industrial)

Downside Risk

Standard Deviation

1.8

Stock Volatility Analysis

Projected Return Density Against Market

Given the investment horizon of 90 days First Bancshares has a beta of -0.0506 . This usually indicates that as returns on the benchmark increase, returns on First Bancshares tend to move in the opposite direction, though by a smaller magnitude. During a bear market, however, First Bancshares is likely to outperform the market. First Bancshares has an alpha of 0.0986, implying that it can generate a 0.0986 percent excess return over Dow Jones Industrial after adjusting for the inherent market risk (beta). First Bancshares' volatility is measured either by using standard deviation or beta. Standard deviation reflects how much First Bancshares' price typically deviates from the mean over a given period.

What Drives First Bancshares' Price Volatility?

Several factors can influence First Bancshares' market volatility:

Industry Dynamics

Sector-level events can directly affect First Bancshares' price stability. Regulatory changes, supply disruptions, or shifts in demand within First Bancshares' industry may create volatility even when the broader market is calm. Competitive dynamics and industry consolidation can also amplify price swings for companies like First Bancshares.

Political and Economic Environment

Macroeconomic conditions and policy decisions shape the backdrop for First Bancshares' price movements. Interest rate changes, trade policy shifts, and fiscal legislation can all alter investor sentiment toward First Bancshares. During periods of economic expansion, First Bancshares' price tends to benefit from broader market optimism, while downturns can amplify selling pressure.

First Bancshares' Company-Specific Factors

Volatility can also stem from events unique to First Bancshares. Earnings surprises, management changes, product launches, or legal developments may trigger sharp price reactions in First Bancshares' stock. Conversely, operational setbacks, guidance revisions, or data breaches can weigh on First Bancshares' share price.

Stock Risk Measures

Stock Return Volatility

First Bancshares historical daily return volatility represents how much of First Bancshares stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company reported 1.7994% volatility on return distribution over a 90-day investment horizon. By contrast, Dow Jones Industrial has volatility of 0.8012% on return distribution over a 90-day investment horizon.

Related Correlations Analysis

A broader risk-indicator set for First Bancshares can improve buy, hold, hedge, and sell decisions by adding context beyond the most common measures. This is most useful when investors want to understand whether the current opportunity is being paid for with reasonable risk.

Pair trading with First Bancshares can help investors hedge some company-specific exposure by balancing a long view with an offsetting position. Used properly, pair trading is less about prediction in isolation and more about identifying relative mispricing between related positions.

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 First Bancshares 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. First Bancshares' 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, First Bancshares' 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 First Bancshares.