Velo3d Stock Volatility
| VELO Stock | USD 16.63 2.63 18.79% |
Velo3D is relatively risky given 3 months investment horizon. Velo3D owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.19, which indicates the firm had a 0.19 % return per unit of risk over the last 3 months. We were able to break down and interpolate thirty different technical indicators, which can help you to evaluate if expected returns of 2.69% are justified by taking the suggested risk. Use Velo3D Risk Adjusted Performance of 0.1424, semi deviation of 8.64, and Coefficient Of Variation of 553.17 to evaluate company specific risk that cannot be diversified away.
Sharpe Ratio = 0.1902
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| Good Returns | VELO | |||
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| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
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Based on monthly moving average Velo3D is performing at about 15% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Velo3D by adding it to a well-diversified portfolio.
Key indicators related to Velo3D's volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Velo3D 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 Velo3D daily returns, and it is calculated using variance and standard deviation. We also use Velo3D's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Velo3D volatility.
ESG Sustainability
While most ESG disclosures are voluntary, Velo3D's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Velo3D's managers and investors.Environmental | Governance | Social |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Velo3D can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Velo3D at lower prices. For example, an investor can purchase Velo3D stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Velo3D's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns. Main indicators related to Velo3D's market risk premium analysis include:
Beta 8.32 | Alpha 2 | Risk 14.14 | Sharpe Ratio 0.19 | Expected Return 2.69 |
Moving together with Velo3D Stock
| 0.64 | EFR | Eaton Vance Senior | PairCorr |
| 0.65 | GUG | Guggenheim Active | PairCorr |
| 0.66 | NREF | Nexpoint Real Estate | PairCorr |
| 0.7 | OCCI | OFS Credit | PairCorr |
| 0.86 | SAMG | Silvercrest Asset | PairCorr |
| 0.77 | BANX | Arrowmark Financial Corp | PairCorr |
| 0.65 | WF | Woori Financial Group | PairCorr |
| 0.73 | BCH | Banco De Chile Earnings Call This Week | PairCorr |
| 0.62 | BAC-PL | Bank of America | PairCorr |
| 0.91 | SAIC | Science Applications | PairCorr |
| 0.83 | HL | Hecla Mining | PairCorr |
Moving against Velo3D Stock
Velo3D Market Sensitivity And Downside Risk
Velo3D's beta coefficient measures the volatility of Velo3D 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 Velo3D stock's returns against your selected market. In other words, Velo3D's beta of 8.32 provides an investor with an approximation of how much risk Velo3D stock can potentially add to one of your existing portfolios. Velo3D 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 Velo3D'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 Velo3D'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 Velo3D Demand TrendCheck current 90 days Velo3D correlation with market (Dow Jones Industrial)Velo3D Volatility and Downside Risk
Velo3D 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.
Velo3D Stock Volatility Analysis
Volatility refers to the frequency at which Velo3D stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Velo3D's price changes. Investors will then calculate the volatility of Velo3D'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 Velo3D's volatility:
Historical Volatility
This type of stock volatility measures Velo3D's fluctuations based on previous trends. It's commonly used to predict Velo3D'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 Velo3D'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 Velo3D'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. Velo3D 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.
Velo3D Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 8.3156 . This entails as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Velo3D will likely underperform.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 Velo3D or Capital Markets 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 Velo3D'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 Velo3D 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.
Velo3D has an alpha of 2.0042, implying that it can generate a 2.0 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Velo3D 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.Velo3D Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Velo3D is 525.66. The daily returns are distributed with a variance of 199.88 and standard deviation of 14.14. The mean deviation of Velo3D is currently at 10.68. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.74
α | Alpha over Dow Jones | 2.00 | |
β | Beta against Dow Jones | 8.32 | |
σ | Overall volatility | 14.14 | |
Ir | Information ratio | 0.18 |
Velo3D Stock Return Volatility
Velo3D historical daily return volatility represents how much of Velo3D stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 14.1378% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7548% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
Related Correlations Analysis
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
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Risk-Adjusted Indicators
There is a big difference between Velo3D Stock performing well and Velo3D Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Velo3D's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| WLFC | 2.35 | 0.42 | 0.16 | 0.36 | 2.34 | 5.67 | 11.05 | |||
| CFRLF | 0.95 | 0.47 | 0.00 | 1.15 | 0.00 | 1.59 | 21.28 | |||
| DWWEF | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| CATWF | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| MJWNY | 0.55 | 0.18 | 0.00 | (1.05) | 0.00 | 2.00 | 11.94 | |||
| NLOP | 0.96 | (0.07) | 0.00 | (0.79) | 0.00 | 1.85 | 7.34 | |||
| BDN | 1.60 | (0.42) | 0.00 | (0.76) | 0.00 | 3.42 | 9.05 | |||
| SRRTF | 0.65 | 0.09 | 0.07 | 0.32 | 0.58 | 1.41 | 4.53 |
About Velo3D Volatility
Volatility is a rate at which the price of Velo3D 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 Velo3D may increase or decrease. In other words, similar to Velo3D's beta indicator, it measures the risk of Velo3D and helps estimate the fluctuations that may happen in a short period of time. So if prices of Velo3D 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 | 15.9 M | 18.7 M | |
| Market Cap | 9.9 M | 9.4 M |
Velo3D'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 Velo3D Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Velo3D's price varies over time.
3 ways to utilize Velo3D's volatility to invest better
Higher Velo3D's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Velo3D 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. Velo3D 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 Velo3D investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Velo3D'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 Velo3D's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Velo3D Investment Opportunity
Velo3D has a volatility of 14.14 and is 18.85 times more volatile than Dow Jones Industrial. 96 percent of all equities and portfolios are less risky than Velo3D. You can use Velo3D to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Velo3D to be traded at $20.79 in 90 days.Very poor diversification
The correlation between Velo3D and DJI is 0.88 (i.e., Very poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Velo3D and DJI in the same portfolio, assuming nothing else is changed.
Velo3D Additional Risk Indicators
The analysis of Velo3D'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 Velo3D's investment and either accepting that risk or mitigating it. Along with some common measures of Velo3D 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 | 0.1424 | |||
| Market Risk Adjusted Performance | 0.3159 | |||
| Mean Deviation | 10.9 | |||
| Semi Deviation | 8.64 | |||
| Downside Deviation | 9.17 | |||
| Coefficient Of Variation | 553.17 | |||
| Standard Deviation | 14.13 |
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.
Velo3D 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 Velo3D 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. Velo3D'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, Velo3D'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 Velo3D.
When determining whether Velo3D offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Velo3D's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Velo3d Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Velo3d Stock: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Velo3D. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state. To learn how to invest in Velo3D Stock, please use our How to Invest in Velo3D guide.You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Will Asset Management & Custody Banks sector continue expanding? Could Velo3D diversify its offerings? Factors like these will boost the valuation of Velo3D. If investors know Velo3D will grow in the future, the company's valuation will be higher. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Velo3D data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth 0.792 | Earnings Share 1.37 | Revenue Per Share | Quarterly Revenue Growth 0.654 | Return On Assets |
The market value of Velo3D is measured differently than its book value, which is the value of Velo3D that is recorded on the company's balance sheet. Investors also form their own opinion of Velo3D's value that differs from its market value or its book value, called intrinsic value, which is Velo3D's true underlying value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. Because Velo3D's market value can be influenced by many factors that don't directly affect Velo3D'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 Velo3D's value and its price as these two are different measures arrived at by different means. Investors typically determine if Velo3D is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. Meanwhile, Velo3D's quoted price indicates the marketplace figure where supply meets demand through bilateral consent.