Evolent Health Stock Volatility
| EVH Stock | USD 12.21 0.96 8.53% |
Evolent Health secures Sharpe Ratio (or Efficiency) of -0.17, which denotes the company had a -0.17% return per unit of risk over the last 3 months. Evolent Health exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Evolent Health's Standard Deviation of 6.47, mean deviation of 3.11, and Variance of 41.92 to check the risk estimate we provide. Key indicators related to Evolent Health's volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Evolent Health Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Evolent daily returns, and it is calculated using variance and standard deviation. We also use Evolent's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Evolent Health volatility.
Evolent |
ESG Sustainability
While most ESG disclosures are voluntary, Evolent Health's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Evolent Health's managers and investors.Environmental | Governance | Social |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Evolent Health at lower prices. For example, an investor can purchase Evolent stock that has halved in price over a short period. This will lower their average cost per share, thereby improving the overall portfolio performance when market normalizes.
Moving together with Evolent Stock
Moving against Evolent Stock
| 0.93 | ELMD | Electromed | PairCorr |
| 0.86 | DOCS | Doximity | PairCorr |
| 0.83 | MD | Mednax Inc | PairCorr |
| 0.83 | VREX | Varex Imaging Corp | PairCorr |
| 0.8 | ECOR | Electrocore LLC | PairCorr |
| 0.72 | OM | Outset Medical | PairCorr |
| 0.59 | LH | Laboratory | PairCorr |
| 0.56 | DXCM | DexCom Inc | PairCorr |
| 0.49 | GH | Guardant Health | PairCorr |
Evolent Health Market Sensitivity And Downside Risk
Evolent Health's beta coefficient measures the volatility of Evolent stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Evolent stock's returns against your selected market. In other words, Evolent Health's beta of 1.07 provides an investor with an approximation of how much risk Evolent Health stock can potentially add to one of your existing portfolios. Evolent Health is displaying above-average volatility over the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Evolent Health's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Evolent Health's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Evolent Health Demand TrendCheck current 90 days Evolent Health correlation with market (Dow Jones Industrial)Evolent Beta |
Evolent standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 6.71 |
It is essential to understand the difference between upside risk (as represented by Evolent Health's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Evolent Health's daily returns or price. Since the actual investment returns on holding a position in evolent stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Evolent Health.
Evolent Health Stock Volatility Analysis
Volatility refers to the frequency at which Evolent Health stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Evolent Health's price changes. Investors will then calculate the volatility of Evolent Health's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Evolent Health's volatility:
Historical Volatility
This type of stock volatility measures Evolent Health's fluctuations based on previous trends. It's commonly used to predict Evolent Health's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Evolent Health's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Evolent Health's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Evolent Health Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Evolent Health Projected Return Density Against Market
Considering the 90-day investment horizon the stock has the beta coefficient of 1.0701 suggesting Evolent Health market returns are responsive to returns on the market. As the market goes up or down, Evolent Health is expected to follow.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Evolent Health or Health Care Technology sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Evolent Health's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Evolent stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Evolent Health has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives an Evolent Health Price Volatility?
Several factors can influence a stock's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Evolent Health Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Evolent Health is -575.72. The daily returns are distributed with a variance of 45.01 and standard deviation of 6.71. The mean deviation of Evolent Health is currently at 3.22. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | -1.44 | |
β | Beta against Dow Jones | 1.07 | |
σ | Overall volatility | 6.71 | |
Ir | Information ratio | -0.22 |
Evolent Health Stock Return Volatility
Evolent Health historical daily return volatility represents how much of Evolent Health stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 6.7093% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7796% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Evolent Health Volatility
Volatility is a rate at which the price of Evolent Health or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Evolent Health may increase or decrease. In other words, similar to Evolent's beta indicator, it measures the risk of Evolent Health and helps estimate the fluctuations that may happen in a short period of time. So if prices of Evolent Health fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.| Last Reported | Projected for Next Year | ||
| Market Cap | 765.9 M | 772.9 M |
Evolent Health's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Evolent Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Evolent Health's price varies over time.
3 ways to utilize Evolent Health's volatility to invest better
Higher Evolent Health's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Evolent Health stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Evolent Health stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Evolent Health investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Evolent Health's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Evolent Health's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Evolent Health Investment Opportunity
Evolent Health has a volatility of 6.71 and is 8.6 times more volatile than Dow Jones Industrial. 59 percent of all equities and portfolios are less risky than Evolent Health. You can use Evolent Health to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Evolent Health to be traded at $15.26 in 90 days.Average diversification
The correlation between Evolent Health and DJI is 0.13 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Evolent Health and DJI in the same portfolio, assuming nothing else is changed.
Evolent Health Additional Risk Indicators
The analysis of Evolent Health's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Evolent Health's investment and either accepting that risk or mitigating it. Along with some common measures of Evolent Health stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | (0.15) | |||
| Market Risk Adjusted Performance | (1.21) | |||
| Mean Deviation | 3.11 | |||
| Coefficient Of Variation | (498.43) | |||
| Standard Deviation | 6.47 | |||
| Variance | 41.92 | |||
| Information Ratio | (0.22) |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Evolent Health Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Evolent Health as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Evolent Health's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Evolent Health's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Evolent Health.
Complementary Tools for Evolent Stock analysis
When running Evolent Health's price analysis, check to measure Evolent Health's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Evolent Health is operating at the current time. Most of Evolent Health's value examination focuses on studying past and present price action to predict the probability of Evolent Health's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Evolent Health's price. Additionally, you may evaluate how the addition of Evolent Health to your portfolios can decrease your overall portfolio volatility.
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