Veritiv Risk Analysis

Veritiv Corporation -- USA Stock  

USD 32.85  0.85  2.66%

Macroaxis considers Veritiv not too risky given 1 month investment horizon. Veritiv owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.1379 which indicates Veritiv had 0.1379% 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 operate Veritiv Semi Deviation of 1.12, Coefficient Of Variation of 585.69 and Risk Adjusted Performance of 0.0546 to confirm if our risk estimates are consistent with your expectations.
Investment Horizon     30 Days    Login   to change

Veritiv Market Sensitivity

As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, Veritiv will likely underperform.
One Month Beta |Analyze Veritiv Demand Trend
Check current 30 days Veritiv correlation with market (DOW)
β = 2.0488
Veritiv Large BetaVeritiv Beta Legend

Projected Return Density Against Market

Given the investment horizon of 30 days, the stock has beta coefficient of 2.0488 . This entails as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are expected to be negative, Veritiv will likely underperform. Additionally, Veritiv Corporation has a negative alpha implying that the risk taken by holding this equity is not justified. The company is significantly underperforming DOW
 Predicted Return Density 
      Returns 
Given the investment horizon of 30 days, the coefficient of variation of Veritiv is 725.09. The daily returns are destributed with a variance of 2.54 and standard deviation of 1.59. The mean deviation of Veritiv Corporation is currently at 1.24. For similar time horizon, the selected benchmark (DOW) has volatility of 0.27
α
Alpha over DOW
=0.12
βBeta against DOW=2.05
σ
Overall volatility
=1.59
 IrInformation ratio =0.0476

Actual Return Volatility

Veritiv Corporation inherits 1.5928% risk (volatility on return distribution) over the 30 days horizon. DOW inherits 0.2576% 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

Hypersensitive to market

Total Debt

Veritiv Total Debt History

Total Debt

Largest Trends

Veritiv Largest Period Trend

Investment Outlook

Veritiv Investment Opportunity
Veritiv Corporation has a volatility of 1.59 and is 6.12 times more volatile than DOW. 14% 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 14 (%) of all global equities and portfolios over the last 30 days. Use Veritiv Corporation to enhance returns of your portfolios. The stock experiences unexpected upward trend. Watch out for market signals. Check odds of Veritiv to be traded at $39.42 in 30 days. As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, Veritiv will likely underperform.

Veritiv correlation with market

Weak 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.