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.
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.
Cincinnati Financial Volatility Related Terms
LTS:0HYE vs WRB, MKL, L: Volatility Comparison
For the Insurance - Property & Casualty subindustry, Cincinnati Financial'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.
Cincinnati Financial Volatility vs Insurance Industry
For the Insurance industry and Financial Services sector, Cincinnati Financial's Volatility distribution charts can be found below:
* The bar in red indicates where Cincinnati Financial's Volatility falls into.
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.
Cincinnati Financial (LTS:0HYE) has a Volatility of 21.45% as of Jul. 03, 2026. Volatility is measured as the annualized standard deviation between monthly returns from the security over the past year. View historical data on Cincinnati Financial and its competitors.
Is Cincinnati Financial's Volatility too high?
Cincinnati Financial's current Volatility is 21.45%. Overall, Cincinnati Financial has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cincinnati Financial's Volatility compare to WRB and MKL?
Cincinnati Financial's Volatility of 21.45% can be compared against companies in the Insurance industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Volatility for an Insurance company?
A good Volatility depends on the Insurance industry context. However, Volatility should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Volatility mean?
A high Volatility can signal that a stock is expensive relative to its fundamentals. Volatility is measured as the annualized standard deviation between monthly returns from the security over the past year. View historical data on Cincinnati Financial and its competitors. Cincinnati Financial's current Volatility is 21.45%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cincinnati Financial stock overvalued right now?
Based on GuruFocus' analysis, Cincinnati Financial (LTS:0HYE) is currently considered Modestly Overvalued. The stock's GF Value™ is $164.81, compared to a current price of $191.43 — trading 16.2% above its estimated fair value. The current Volatility is 21.45%. Cincinnati Financial's overall GF Score™ is 75/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Volatility calculated?
Volatility is calculated from a company's financial statements. For Cincinnati Financial (LTS:0HYE), the current Volatility is 21.45% as of Jul. 03, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Cincinnati Financial (LTS:0HYE) Overvalued in 2026?
Based on GuruFocus' analysis, Cincinnati Financial stock appears to be overvalued.
The current stock price of $191.43 is trading 16.2% above its estimated GF Value™ of $164.81.
GuruFocus considers Cincinnati Financial to be Modestly Overvalued.
Key valuation signals for LTS:0HYE:
Volatility: 21.45%
GF Value™: $164.81 vs. price of $191.43 (16.2% above fair value)
No single metric tells the full story. See the LTS:0HYE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cincinnati Financial Corp is a property and casualty insurance company that generates income through written premiums. A select group of independent agencies actively markets the company's business, home, and automotive insurance within their communities. These agents offer the company's personal lines as well as its standard market, excess, and surplus commercial line policies in many regions in the United States. Cincinnati Financial also offers leasing and financing services. The company operates in segments: Commercial lines insurance, Personal lines insurance, Excess and surplus lines insurance, Life insurance, and Investments. The vast majority of the company's revenue is generated through commercial lines, followed by personal lines.
75GF Score
Get the complete analysis for LTS:0HYE
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