Innospec Stock Volatility
| IOSP Stock | USD 67.54 -1.33 -1.93% |
Across the designated horizon, Innospec continues to post a minimal volatility profile. The current Sharpe Ratio (Efficiency) for Innospec is -0.17, reflecting poor reward-to-volatility behavior over the last 3 months. Current risk dynamics are supported by 23 technical indicators.
Sharpe Ratio = -0.1676
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| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
| Negative Returns | IOSP |
Latest disclosures for Innospec show a Market Risk Adjusted Performance of -0.2%, a Risk of 1.50, and a Risk Adjusted Performance of -0.1%. Monthly data shows Innospec is not tracking at its maximum return potential. Including it in a well-diversified portfolio can maximize its risk-adjusted contribution.
Key indicators related to Innospec's volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Innospec's beta measures how much Innospec's price moves relative to the broad market. Combined with total volatility, beta helps investors understand whether Innospec's risk is primarily market-driven or company-specific.
Innospec | Build portfolio with Innospec Stock |
Volatility Strategy
Volatility in Innospec contributes to allocation risk depending on correlation. Current statistical measures show total volatility near 1.5% with a beta coefficient of 0.97, indicating sensitivity relative to the broader market benchmark. Risk-adjusted efficiency, represented by a Sharpe ratio of -0.17, evaluates return per unit of total risk. An alpha value of -0.16 reflects performance relative to systematic market exposure. Expected return estimates near -0.25% are derived from historical distribution modeling and help frame forward-looking return assumptions within a portfolio context. Equity volatility may reflect changes in growth expectations.
Main indicators related to Innospec's market risk premium analysis include:
Beta 0.97 | Alpha -0.16 | Risk 1.5 | Sharpe Ratio -0.17 | Expected Return -0.25 |
Moving together with Innospec Stock
Moving against Innospec Stock
| 0.67 | SUNFF | Sun Life Financial | PairCorr |
| 0.44 | NIHK | Video River Networks | PairCorr |
| 0.36 | GLUC | Glucose Health | PairCorr |
Sensitivity To Market
Innospec relative market sensitivity is quantified by its beta value of 0.97. This regression-derived coefficient reflects systematic risk. Total return variability is about 1.5%.This summary describes how Innospec has moved rather than why it moved. Standard deviation is near 1.44% and downside deviation is near 0.0%. Options markets imply a forward-looking volatility estimate near 58.0%. This indicates expectations for moderate future movement relative to historical averages. Equity volatility often increases when trading volume rises and spreads widen in fast markets.
3 Months Beta |Analyze Innospec Demand TrendCheck current 90 days Innospec correlation with market (Dow Jones Industrial)Downside Risk
Standard deviation of Innospec is a key measure of price volatility, reflecting the average daily deviation from the mean over the selected time period. High standard deviation means higher volatility; low standard deviation means stability.
Standard Deviation | 1.5 |
For investors in Innospec, understanding the difference between standard deviation and downside deviation is important. Standard deviation measures total volatility; downside deviation measures only the loss risk in Innospec's returns. Latest disclosures for Innospec show a Maximum Drawdown of 7.77.
Using Innospec Put Option to Manage Risk Based on 2026-06-18 Contracts
Latest disclosures for Innospec show an Option Implied Volatility of 0.58 and an Option Max Pain Price of 70. Put options on Innospec are commonly used by institutional and retail investors to hedge long positions. A put gives the holder the right to sell a fixed quantity of Innospec Stock at the agreed strike price.
Innospec's PUT expiring on 2026-06-18
Profit |
| Innospec Price At Expiration |
Current Innospec Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | IOSP260618P00060000 | -0.238975 | 0.019435 | 5 | 2026-06-18 | 0.05 - 5.0 | 0.0 | View |
Put | IOSP260618P00065000 | -0.339177 | 0.030517 | 1 | 2026-06-18 | 0.55 - 5.4 | 0.0 | View |
Put | IOSP260618P00070000 | -0.511867 | 0.036592 | 1 | 2026-06-18 | 2.55 - 7.4 | 0.0 | View |
Put | IOSP260618P00075000 | -0.698728 | 0.034485 | 2 | 2026-06-18 | 5.6 - 10.3 | 0.0 | View |
Put | IOSP260618P00080000 | -0.831228 | 0.024439 | 5 | 2026-06-18 | 9.6 - 14.4 | 0.0 | View |
Put | IOSP260618P00090000 | -0.903166 | 0.012492 | 1 | 2026-06-18 | 19.3 - 24.0 | 0.0 | View |
Put | IOSP260618P00105000 | -0.928929 | 0.0072 | 1 | 2026-06-18 | 34.1 - 39.0 | 0.0 | View |
Stock Volatility Analysis
Analyzing Innospec volatility is essential for any investor seeking to manage risk exposure effectively. Sharp swings in Innospec's stock price during volatile periods can trigger margin calls or forced exits.
Transformation |
This analysis covers sixty-one data points across the selected time horizon. Innospec 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.
Projected Return Density Against Market
Given the investment horizon of 90 days Innospec has a beta of 0.9705 . This usually indicates Innospec market returns are sensible to returns on the market. As the market goes up or down, Innospec is expected to follow.Innospec remains sensitive to broader stock market conditions in addition to company or sector-specific developments. Portfolio diversification mitigates only part of this exposure. Latest disclosures for Innospec show a Mean Deviation of 1.08, an Option Implied Volatility of 0.58, and a Standard Deviation of 1.44.
Predicted Return Density |
| Returns |
What Drives Innospec's Price Volatility?
Several factors can influence Innospec's market volatility:Industry Dynamics
Sector-level events can directly affect Innospec's price stability. Regulatory changes, supply disruptions, or shifts in demand within Innospec's industry may create volatility even when the broader market is calm. Competitive dynamics and industry consolidation can also amplify price swings for companies like Innospec.Political and Economic Environment
Macroeconomic conditions and policy decisions shape the backdrop for Innospec's price movements. Interest rate changes, trade policy shifts, and fiscal legislation can all alter investor sentiment toward Innospec. During periods of economic expansion, Innospec's price tends to benefit from broader market optimism, while downturns can amplify selling pressure.Innospec's Company-Specific Factors
Volatility can also stem from events unique to Innospec. Earnings surprises, management changes, product launches, or legal developments may trigger sharp price reactions in Innospec's stock. Conversely, operational setbacks, guidance revisions, or data breaches can weigh on Innospec's share price.Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Innospec is -596.6. The daily returns are distributed with a variance of 2.26 and standard deviation of 1.5. The mean deviation of Innospec is currently at 1.14. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.79
α | Alpha over Dow Jones | -0.1577 | |
β | Beta against Dow Jones | 0.97 | |
σ | Overall volatility | 1.50 | |
Ir | Information ratio | -0.1084 |
Stock Return Volatility
Innospec historical daily return volatility represents how much of Innospec stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company reported 1.5026% 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. Performance |
| Timeline |
Related Correlations Analysis
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
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Risk-Adjusted Indicators
There is a big difference between Innospec Stock performing well and Innospec Company doing well as a business compared to the competition. A thorough review of Innospec's risk-adjusted indicators provides a clearer picture of whether returns are being earned efficiently. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| CC | 3.11 | 0.74 | 0.16 | 0.33 | 3.90 | 7.65 | 25.73 | |||
| NGVT | 1.56 | 0.28 | 0.15 | 0.17 | 1.67 | 3.30 | 7.60 | |||
| MTX | 1.08 | 0.26 | 0.19 | 0.21 | 1.15 | 2.46 | 7.74 | |||
| ASH | 1.54 | -0.15 | 0.00 | -0.14 | 0.00 | 3.23 | 10.15 | |||
| ARMN | 2.78 | 0.92 | 0.18 | 0.71 | 3.97 | 6.86 | 26.24 | |||
| OLN | 2.92 | 0.42 | 0.11 | 0.18 | 3.10 | 6.18 | 18.91 | |||
| FMC | 2.48 | 0.22 | 0.04 | 0.08 | 4.44 | 5.39 | 25.40 | |||
| SKE | 3.09 | 0.46 | 0.09 | 0.24 | 4.33 | 7.44 | 23.05 | |||
| AAUC | 1.48 | 0.53 | 0.29 | -2.15 | 1.43 | 4.34 | 14.78 | |||
| KWR | 1.88 | -0.14 | 0.00 | -0.14 | 0.00 | 3.35 | 12.82 |
Risk Metrics, Assumptions & Methodology
Volatility for Innospec measures return dispersion and uncertainty over time. Return variability informs risk budgeting and diversification impact. Innospec has a market cap of 1.71 B, P/E of 96.38, ROE of 9.15%.
The analytics block for Innospec relies on periodic company reporting and market reference feeds, with quality checks and normalization applied before rendering. Analyst inputs may be included when coverage is available. Timing can vary by data vendor. Volatility and downside metrics are estimated from historical return dispersion.
This content is curated and reviewed by:
Rifka Kats - Member of Macroaxis Editorial BoardInnospec Investment Opportunity
Innospec is about 1.88 times more volatile than Dow Jones Industrial based on recent return behavior. The higher-risk profile should usually be reviewed beside Sharpe Ratio, downside risk, and catalyst strength before the position is sized up.You can use Innospec to protect your portfolios against small market fluctuations. This price-change note interprets the latest move in the context of short-horizon trading behavior. It is most useful when combined with broader risk controls and position-sizing discipline. a somewhat bearish sentiment, but the market may correct it shortly. Check odds of Innospec to be traded at $65.51 in 90 days.Very poor diversification
For the present investment horizon, the measured correlation between IOSP and DJI stands at 0.87, or Very poor diversification. Used correctly, the chart helps investors judge whether adding the second position genuinely diversifies the first.
Innospec Additional Risk Indicators
Looking at additional risk metrics for Innospec helps investors judge how the position may behave under different market and portfolio conditions. A disciplined risk review helps investors decide whether exposure should be maintained, reduced, or offset elsewhere in the portfolio.
| Risk Adjusted Performance | -0.1 | |||
| Market Risk Adjusted Performance | -0.19 | |||
| Mean Deviation | 1.08 | |||
| Coefficient Of Variation | -770.94 | |||
| Standard Deviation | 1.44 | |||
| Variance | 2.09 | |||
| Information Ratio | -0.11 |
Innospec Suggested Diversification Pairs
Pair trading with Innospec can help investors hedge some company-specific exposure by balancing a long view with an offsetting position. The advantage is that adverse movement in one leg may be partly offset by the other when correlation and thesis alignment hold.
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 Innospec 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. Innospec'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, Innospec'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 Innospec.
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