Vertical Aerospace Stock Volatility
| EVTL Stock | USD 9.29 0.07 0.76% |
Vertical Aerospace is unstable given 3 months investment horizon. Vertical Aerospace owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0992, which indicates the firm had a 0.0992% return per unit of risk over the last 3 months. We were able to interpolate and analyze data for twenty-nine different technical indicators, which can help you to evaluate if expected returns of 1.26% are justified by taking the suggested risk. Use Vertical Aerospace Semi Deviation of 8.01, coefficient of variation of 949.22, and Risk Adjusted Performance of 0.0974 to evaluate company specific risk that cannot be diversified away. Key indicators related to Vertical Aerospace's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Vertical Aerospace 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 Vertical daily returns, and it is calculated using variance and standard deviation. We also use Vertical's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Vertical Aerospace volatility.
Vertical |
ESG Sustainability
While most ESG disclosures are voluntary, Vertical Aerospace's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Vertical Aerospace'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 Vertical Aerospace at lower prices. For example, an investor can purchase Vertical 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 Vertical Stock
| 0.78 | BA | Boeing Fiscal Year End 29th of January 2025 | PairCorr |
| 0.73 | PL | Planet Labs PBC | PairCorr |
| 0.78 | DPRO | Draganfly | PairCorr |
| 0.74 | BA-PA | Boeing | PairCorr |
Moving against Vertical Stock
| 0.78 | LHX | L3Harris Technologies Earnings Call This Week | PairCorr |
| 0.69 | GD | General Dynamics Earnings Call This Week | PairCorr |
| 0.53 | HEI | Heico | PairCorr |
| 0.36 | EH | Ehang Holdings | PairCorr |
| 0.35 | GE | GE Aerospace Earnings Call This Week | PairCorr |
Vertical Aerospace Market Sensitivity And Downside Risk
Vertical Aerospace's beta coefficient measures the volatility of Vertical 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 Vertical stock's returns against your selected market. In other words, Vertical Aerospace's beta of 0.72 provides an investor with an approximation of how much risk Vertical Aerospace stock can potentially add to one of your existing portfolios. Vertical Aerospace is showing large volatility of returns 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 Vertical Aerospace'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 Vertical Aerospace'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 Vertical Aerospace Demand TrendCheck current 90 days Vertical Aerospace correlation with market (Dow Jones Industrial)Vertical Beta |
Vertical 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 | 12.72 |
It is essential to understand the difference between upside risk (as represented by Vertical Aerospace's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Vertical Aerospace's daily returns or price. Since the actual investment returns on holding a position in vertical 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 Vertical Aerospace.
Using Vertical Put Option to Manage Risk
Put options written on Vertical Aerospace grant holders of the option the right to sell a specified amount of Vertical Aerospace at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Vertical Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Vertical Aerospace's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Vertical Aerospace will be realized, the loss incurred will be offset by the profits made with the option trade.
Vertical Aerospace's PUT expiring on 2025-04-17
Profit |
| Vertical Aerospace Price At Expiration |
Current Vertical Aerospace Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | EVTL250417P00002500 | -0.785839 | 0.431275 | 30 | 2025-04-17 | 1.75 - 2.0 | 0.0 | View |
Put | EVTL1250417P00002500 | -0.049785 | 0.006484 | 30 | 2025-04-17 | 1.2 - 2.25 | 0.0 | View |
Vertical Aerospace Stock Volatility Analysis
Volatility refers to the frequency at which Vertical Aerospace stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Vertical Aerospace's price changes. Investors will then calculate the volatility of Vertical Aerospace'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 Vertical Aerospace's volatility:
Historical Volatility
This type of stock volatility measures Vertical Aerospace's fluctuations based on previous trends. It's commonly used to predict Vertical Aerospace'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 Vertical Aerospace'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 Vertical Aerospace'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. Vertical Aerospace 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.
Vertical Aerospace Projected Return Density Against Market
Given the investment horizon of 90 days Vertical Aerospace has a beta of 0.7193 suggesting as returns on the market go up, Vertical Aerospace average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Vertical Aerospace will be expected to be much smaller as well.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 Vertical Aerospace or Aerospace & Defense 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 Vertical Aerospace'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 Vertical 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.
Vertical Aerospace has an alpha of 1.2851, implying that it can generate a 1.29 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Vertical Aerospace 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.Vertical Aerospace Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Vertical Aerospace is 1007.93. The daily returns are distributed with a variance of 161.86 and standard deviation of 12.72. The mean deviation of Vertical Aerospace is currently at 9.1. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.84
α | Alpha over Dow Jones | 1.29 | |
β | Beta against Dow Jones | 0.72 | |
σ | Overall volatility | 12.72 | |
Ir | Information ratio | 0.10 |
Vertical Aerospace Stock Return Volatility
Vertical Aerospace historical daily return volatility represents how much of Vertical Aerospace stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 12.7223% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8427% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Vertical Aerospace Volatility
Volatility is a rate at which the price of Vertical Aerospace 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 Vertical Aerospace may increase or decrease. In other words, similar to Vertical's beta indicator, it measures the risk of Vertical Aerospace and helps estimate the fluctuations that may happen in a short period of time. So if prices of Vertical Aerospace 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 | ||
| Selling And Marketing Expenses | 619.2 K | 588.2 K | |
| Market Cap | 578.4 M | 709.8 M |
Vertical Aerospace'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 Vertical Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Vertical Aerospace's price varies over time.
3 ways to utilize Vertical Aerospace's volatility to invest better
Higher Vertical Aerospace's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Vertical Aerospace 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. Vertical Aerospace 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 Vertical Aerospace investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Vertical Aerospace'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 Vertical Aerospace's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Vertical Aerospace Investment Opportunity
Vertical Aerospace has a volatility of 12.72 and is 15.14 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Vertical Aerospace is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use Vertical Aerospace to enhance the returns of your portfolios. The stock experiences a moderate upward volatility. Check odds of Vertical Aerospace to be traded at $10.22 in 90 days.Significant diversification
The correlation between Vertical Aerospace and DJI is 0.05 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vertical Aerospace and DJI in the same portfolio, assuming nothing else is changed.
Vertical Aerospace Additional Risk Indicators
The analysis of Vertical Aerospace'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 Vertical Aerospace's investment and either accepting that risk or mitigating it. Along with some common measures of Vertical Aerospace 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 | 0.0974 | |||
| Market Risk Adjusted Performance | 1.82 | |||
| Mean Deviation | 8.92 | |||
| Semi Deviation | 8.01 | |||
| Downside Deviation | 9.12 | |||
| Coefficient Of Variation | 949.22 | |||
| Standard Deviation | 12.43 |
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.
Vertical Aerospace 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 Vertical Aerospace 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. Vertical Aerospace'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, Vertical Aerospace'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 Vertical Aerospace.
When determining whether Vertical Aerospace is a strong investment it is important to analyze Vertical Aerospace's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Vertical Aerospace's future performance. For an informed investment choice regarding Vertical Stock, refer to the following important reports: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Vertical Aerospace. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate. For more information on how to buy Vertical Stock please use our How to buy in Vertical Stock guide.You can also try the Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Is Aerospace & Defense space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Vertical Aerospace. If investors know Vertical will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Vertical Aerospace listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Vertical Aerospace is measured differently than its book value, which is the value of Vertical that is recorded on the company's balance sheet. Investors also form their own opinion of Vertical Aerospace's value that differs from its market value or its book value, called intrinsic value, which is Vertical Aerospace's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Vertical Aerospace's market value can be influenced by many factors that don't directly affect Vertical Aerospace's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Vertical Aerospace's value and its price as these two are different measures arrived at by different means. Investors typically determine if Vertical Aerospace is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Vertical Aerospace's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.