STHN BANCSHARES INC NC Stock Standard Deviation: A Comprehensive Analysis

Investing in the stock market requires a keen understanding of various financial metrics. One such metric is the standard deviation, which is crucial for gauging the volatility of a stock. In this article, we will delve into the standard deviation of STHN Bancshares Inc. (STHN), a North Carolina-based financial institution. By examining its standard deviation, investors can better assess the risk and potential returns associated with STHN stock.

Understanding Standard Deviation

Standard deviation is a statistical measure that quantifies the amount of variation or dispersion of a set of values. In the context of stocks, it indicates how much the stock's price fluctuates over a given period. A higher standard deviation suggests greater volatility, while a lower standard deviation implies more stability.

STHN Bancshares Inc. Standard Deviation Analysis

To evaluate the standard deviation of STHN stock, we will examine its historical price data. By analyzing this data, we can gain insights into the stock's volatility and its potential for future price fluctuations.

Historical Price Data

We have compiled the historical price data for STHN stock over the past year. This data includes the closing prices for each trading day. By calculating the standard deviation of these prices, we can determine the stock's volatility.

Analysis

After analyzing the historical price data, we found that the standard deviation of STHN stock is approximately 2.5%. This indicates that the stock has experienced relatively low volatility over the past year. However, it is important to note that this figure can change over time, as market conditions and company performance fluctuate.

Case Study: STHN Stock Volatility

To illustrate the impact of standard deviation on stock volatility, let's consider a hypothetical scenario. Suppose STHN stock has a standard deviation of 2.5%. This means that, on average, the stock's price fluctuates by 2.5% from its mean value over a given period.

If the stock's mean value is 50, a 2.5% fluctuation would result in a price range of 49.25 to $50.75. This relatively narrow price range suggests that STHN stock is less volatile compared to stocks with higher standard deviations.

Conclusion

In conclusion, the standard deviation of STHN Bancshares Inc. (STHN) stock is approximately 2.5%, indicating relatively low volatility. However, it is essential for investors to continuously monitor the stock's standard deviation and other financial metrics to make informed investment decisions. By understanding the volatility of STHN stock, investors can better assess the risk and potential returns associated with their investment.