Search for another Company Symbol?

Volatility Analysis for Deere & Company

Chapter II: Understanding Price Volatility behaviour is essential to assessing the risk associated with positions across different time spans.

Prev. Co. Next Co.
Daily Volatility = Price Range as a percent of the daily average price. of Deere & Company

This chart shows Volatility for Deere & Company, defined to be the price range as a portion of the average price:

So, to derive the Daily Volatility on 1/27/2011 of 1.5%, the price range for the day (1.41) was divided by the average price (90.72). The Daily Volatility is obtained by dividing the daily range by the daily average. A longer Volatility period such as Weekly Volatility is obtained by dividing the weekly price range by the weekly mean price. This is a different concept from the weekly average of daily volatility.

The red plot shows the actual price. Volatility, as measured through various intervals, ( Daily, Weekly, Monthly and Quarterly) is plotted according to color.

According to academic theory, Volatility is exactly equal to Risk. But investors often make a distinction between these two concepts. The different character of Volatility as seen in different time frames, lends some support to the investor's view. During 29 years, the Average Quarterly Volatility of DE stock price has been 24% while the Average Daily Volatility has been 3%.



Prev. Co. Next Co.
Volatility Curve of Deere & Company

If you have ever seen a "yield curve" you should be able to understand the concept behind this "yield curve". These Volatility Curves each apply to a discrete time interval. From left to right, each position plots the Volatility associated with increasing intervals of time. However, as seen in this plot of the DE Volatility Curve, the increase is not constant.



Prev. Co. Next Co.
Daily Volatility Histogram of Deere & Company

A frequency distribution of the green points on the first chart (the daily volatility) yields this histogram.



Prev. Co. Next Co.
Quarterly Volatility Histogram of Deere & Company

Similarly, the purple points on the top chart, the Quarterly Volatility Values, are subjected to frequency distribution here.

For Subscribers: Refined Analysis of Deere & Company Volatility and Risk Behavior

Refined Volatility Risk Analysis for DE :


Companies in the News:

In the news, Friday, February 18, 2011: An unfavorable condition has developed with Aetna Inc., ticker symbol AET. Also, there are breaking events concerning Dollar Tree, Inc. (DLTR) and First Niagara Financial Group Inc. (FNFG)

More DE Technical Analysis Topics

DE Price Predictions

Support and Resistance Levels

Volume Stratification Analysis

Politics and Prices of DE

Japanese Candlestick Analysis

Momentum Investing Indicators

DE Classical Analysis of Time Series

DE Historical Volume

DE Seasonal Trends

Back to DE Table of Contents


Information on public pages is delayed. Associates of Hybrid Technical may hold positions in issues covered here. These reports are not to be used for stock-picking or investment decision support. Any such use is strictly prohibited.



Notice: Pages available to the public on this site are for entertainment and academic purposes only. We do not advocate investment in common stock. We do not recommend the purchase or sale of this or any other issue. Research shows that most people who invest in common stock will lose money. Charts and concepts are property of Hybrid Technical. All Rights Reserved. All Content is Copyright 2010 by Hybrid Technical

.