Veritiv Risk Analysis And Volatility Evaluation

VRTV -- USA Stock  

USD 40.65  0.55  1.37%

We consider Veritiv not too risky. Veritiv owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.1424 which indicates Veritiv had 0.1424% of return per unit of risk over the last 1 month. Our philosophy towards measuring volatility of a stock is to use all available market data together with company specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Veritiv Corporation which you can use to evaluate future volatility of the company. Please validate Veritiv Semi Deviation of 1.07, Coefficient Of Variation of 666.53 and Risk Adjusted Performance of 0.0953 to confirm if risk estimate we provide are consistent with the epected return of 0.1854%.
 Time Horizon     30 Days    Login   to change

Veritiv Market Sensitivity

As returns on market increase, returns on owning Veritiv are expected to decrease at a much smaller rate. During bear market, Veritiv is likely to outperform the market.
One Month Beta |Analyze Veritiv Demand Trend
Check current 30 days Veritiv correlation with market (DOW)
β = -0.296
Veritiv Almost negative betaVeritiv Beta Legend

Veritiv Technical Analysis

Transformation
The output start index for this execution was zero with a total number of output elements of seventeen. Veritiv 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. View also all equity analysis or get more info about average price price transform indicator.

Projected Return Density Against Market

Given the investment horizon of 30 days, Veritiv Corporation has beta of -0.296 . This entails as returns on benchmark increase, returns on holding Veritiv are expected to decrease at a much smaller rate. During bear market, however, Veritiv Corporation is likely to outperform the market. Moreover, Veritiv Corporation has an alpha of 0.2254 implying that it can potentially generate 0.2254% excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 
Given the investment horizon of 30 days, the coefficient of variation of Veritiv is 702.14. The daily returns are destributed with a variance of 1.69 and standard deviation of 1.3. The mean deviation of Veritiv Corporation is currently at 0.99. For similar time horizon, the selected benchmark (DOW) has volatility of 0.6
α
Alpha over DOW
=0.23
β
Beta against DOW=0.3
σ
Overall volatility
=1.30
Ir
Information ratio =0.0427

Actual Return Volatility

Veritiv Corporation inherits 1.3015% risk (volatility on return distribution) over the 30 days horizon. DOW inherits 0.5992% risk (volatility on return distribution) over the 30 days horizon.
 Performance (%) 
      Timeline 

Market Risk Breakdown

Veritiv Volatility Factors

30 Days Market Risk

Not too risky

Chance of Distress in 24 months

30 Days Economic Sensitivity

Almost neglects market

Investment Outlook

Veritiv Investment Opportunity
Veritiv Corporation has a volatility of 1.3 and is 2.17 times more volatile than DOW. 11% of all equities and portfolios are less risky than Veritiv. Compared to the overall equity markets, volatility of historical daily returns of Veritiv Corporation is lower than 11 (%) of all global equities and portfolios over the last 30 days. Use Veritiv Corporation to enhance returns of your portfolios. The stock experiences large bullish trend. Check odds of Veritiv to be traded at $44.72 in 30 days. As returns on market increase, returns on owning Veritiv are expected to decrease at a much smaller rate. During bear market, Veritiv is likely to outperform the market.

Veritiv correlation with market

Good diversification
Overlapping area represents the amount of risk that can be diversified away by holding Veritiv Corp. and equity matching DJI index in the same portfolio.
Also please take a look at World Market Map. Please also try Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.