Volatility is a statistical measure of the dispersion of returns for a given security or market index, it shows how the price swings around its mean. The volatility here is measured as the annualized standard deviation between monthly returns from the security over the past year. In most cases, the higher the volatility, the riskier the security.
Electro Rent does not have enough data to calculate Volatility.
Competitive Comparison of Electro Rent's Volatility
For the Rental & Leasing Services subindustry, Electro Rent's Volatility, along with its competitors' market caps and Volatility data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Electro Rent's Volatility Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Electro Rent's Volatility distribution charts can be found below:
* The bar in red indicates where Electro Rent's Volatility falls into.
Electro Rent (NAS:ELRC) Volatility Calculation
The annualized volatility is calculated as following:
σA
=
σM
*
√12
=
√ 1/(n-1) ∑(Ri - R')^2
*
√12
Where: σM is the monthly volatility, n is the number of months in the period, Ri is the security's historical monthly returns and R' is the arithmetic mean of monthly returns.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Electro Rent (NAS:ELRC) Volatility Explanation
Volatility is a statistical measure of the dispersion of returns for a given security or market index. It’s often measured as standard deviation or variance of historical returns over a certain period. The volatility here is measured as the annualized standard deviation between monthly returns from the security over the past year.
Volatility reflects the uncertainty or risk of a security’s value. Generally speaking, a higher volatility suggests a higher risk, because it implies a wider fluctuation around average price. This means the price of the security can change dramatically in either direction within a short period. Conversely, a lower volatility means that the security's price is more steady, which suggests a lower risk.
Another measurement of relative volatility is Beta. Beta is a measure of systematic risk of a security or a portfolio in comparison to the market as a whole. Beta is usually compared to 1. A beta of greater than 1 indicates that the security's price will be more volatile than the market.
Electro Rent Volatility Related Terms
Thank you for viewing the detailed overview of Electro Rent's Volatility provided by GuruFocus.com. Please click on the following links to see related term pages.
Electro Rent Corp was incorporated in California in 1965 and became a publicly held corporation in 1980. The Company rental, lease and sells of new and used electronic test and measurement equipment. The Company purchases that equipment from manufacturers such as Agilent and Tektronix primarily for use by its customers in the aerospace, telecommunications, defense, electronics, industrial and semiconductor industries. The Company data products division provides personal computers and servers from manufacturers including Dell, HP/Compaq, IBM, Toshiba and Apple. It has also expanded its rental, lease and sale of electrical test and inspection equipment used in the industrial industry, which includes electrical contractors and utility companies and their related support services providers. The Company's competitors in the North American T&M rental area include McGrath Rent Corp., Continental Resources, Test Equity and Microlease PLC. It competes for rental business with Microlease plc and Livingston Group Ltd. in Europe and Orix Corporation in Asia.
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