Vornado Realty Trust Stock Volatility
| VNO Stock | USD 41.42 0.44 1.07% |
Vornado Realty appears to be very steady, given 3 months investment horizon. Vornado Realty Trust owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.17, which indicates the firm had a 0.17% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Vornado Realty Trust, which you can use to evaluate the volatility of the company. Please review Vornado Realty's Coefficient Of Variation of 530.33, semi deviation of 1.29, and Risk Adjusted Performance of 0.1477 to confirm if our risk estimates are consistent with your expectations. Key indicators related to Vornado Realty's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Vornado Realty 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 Vornado daily returns, and it is calculated using variance and standard deviation. We also use Vornado's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Vornado Realty volatility.
Vornado |
ESG Sustainability
While most ESG disclosures are voluntary, Vornado Realty's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Vornado Realty's managers and investors.Environmental | Governance | Social |
Vornado Realty Trust Stock Volatility Analysis
Volatility refers to the frequency at which Vornado Realty stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Vornado Realty's price changes. Investors will then calculate the volatility of Vornado Realty'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 Vornado Realty's volatility:
Historical Volatility
This type of stock volatility measures Vornado Realty's fluctuations based on previous trends. It's commonly used to predict Vornado Realty'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 Vornado Realty'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 Vornado Realty'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. Vornado Realty Trust 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.
Vornado Realty Projected Return Density Against Market
Considering the 90-day investment horizon Vornado Realty has a beta of 0.9952 . This entails Vornado Realty Trust market returns are highly reactive to returns on the market. As the market goes up or down, Vornado Realty 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 Vornado Realty or Diversified REITs 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 Vornado Realty'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 Vornado 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.
Vornado Realty Trust has an alpha of 0.229, implying that it can generate a 0.23 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Vornado Realty 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.Vornado Realty Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Vornado Realty is 571.95. The daily returns are distributed with a variance of 2.8 and standard deviation of 1.67. The mean deviation of Vornado Realty Trust is currently at 1.27. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.75
α | Alpha over Dow Jones | 0.23 | |
β | Beta against Dow Jones | 1.00 | |
σ | Overall volatility | 1.67 | |
Ir | Information ratio | 0.13 |
Vornado Realty Stock Return Volatility
Vornado Realty historical daily return volatility represents how much of Vornado Realty stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 1.6733% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7608% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Vornado Realty Volatility
Volatility is a rate at which the price of Vornado Realty 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 Vornado Realty may increase or decrease. In other words, similar to Vornado's beta indicator, it measures the risk of Vornado Realty and helps estimate the fluctuations that may happen in a short period of time. So if prices of Vornado Realty 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 | 3.6 B | 3.3 B |
Vornado Realty'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 Vornado Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Vornado Realty's price varies over time.
3 ways to utilize Vornado Realty's volatility to invest better
Higher Vornado Realty's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Vornado Realty Trust 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. Vornado Realty Trust 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 Vornado Realty Trust investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Vornado Realty'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 Vornado Realty's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Vornado Realty Investment Opportunity
Vornado Realty Trust has a volatility of 1.67 and is 2.2 times more volatile than Dow Jones Industrial. 14 percent of all equities and portfolios are less risky than Vornado Realty. You can use Vornado Realty Trust to enhance the returns of your portfolios. The stock experiences a large bullish trend. Check odds of Vornado Realty to be traded at $45.56 in 90 days.Very weak diversification
The correlation between Vornado Realty Trust and DJI is 0.44 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vornado Realty Trust and DJI in the same portfolio, assuming nothing else is changed.
Vornado Realty Additional Risk Indicators
The analysis of Vornado Realty'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 Vornado Realty's investment and either accepting that risk or mitigating it. Along with some common measures of Vornado Realty 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 | 0.1477 | |||
| Market Risk Adjusted Performance | 0.3255 | |||
| Mean Deviation | 1.32 | |||
| Semi Deviation | 1.29 | |||
| Downside Deviation | 1.58 | |||
| Coefficient Of Variation | 530.33 | |||
| Standard Deviation | 1.72 |
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.
Vornado Realty 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 Vornado Realty 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. Vornado Realty'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, Vornado Realty'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 Vornado Realty Trust.
When determining whether Vornado Realty Trust offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Vornado Realty'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 Vornado Realty Trust Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Vornado Realty Trust Stock: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Vornado Realty Trust. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Is Diversified REITs 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 Vornado Realty. If investors know Vornado 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 Vornado Realty listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.25) | Dividend Share 0.3 | Earnings Share (0.28) | Revenue Per Share 9.825 | Quarterly Revenue Growth (0.02) |
The market value of Vornado Realty Trust is measured differently than its book value, which is the value of Vornado that is recorded on the company's balance sheet. Investors also form their own opinion of Vornado Realty's value that differs from its market value or its book value, called intrinsic value, which is Vornado Realty'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 Vornado Realty's market value can be influenced by many factors that don't directly affect Vornado Realty'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 Vornado Realty's value and its price as these two are different measures arrived at by different means. Investors typically determine if Vornado Realty is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Vornado Realty'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.