Zenith Bank has maintained the number four position attained last week to consolidate its place as one of the least volatile banking stocks on the Nigerian Stock Exchange (NSE) according to data compiled by Independent Business and Market In,telligence Unit (BMIU).
Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole-Investopedia.
Volatility from trading of Zenith Bank closed at 0.9836 on Friday 18 May to figure as the fourth ranked bank on volatility after Wema Bank, Unity Bank and Stanbic IBTC Bank.
Wema Bank had a volatility reading of 0.7212 as the least volatile stock on the banking sector of the NSE. Unity Bank is the second least volatile with volatility of 0.8579, while Stanbic IBTC Bank ranks third with volatility of 0.9434.
Meanwhile the most volatile stock in the banking sector is Diamond bank with volatility of 1.9722, the only bank to have crossed the second point’s barrier.
The next most volatile stock is UBA with a score of 1.6282. Ranked number 13 and therefore, the third most volatile stock is FCMB with volatility of 1.6125.
Apart from parameters like EPS, earning growth rate, ROIC, Debt-to-profit, P-E ratios, investors also look at a company’s beta to assess a company’s risk-return trade-off.