Doordash Class A Stock Volatility

DASH Stock  USD 138.88  1.38  0.98%   
DoorDash appears to be very steady, given 3 months investment horizon. DoorDash Class A secures Sharpe Ratio (or Efficiency) of 0.24, which denotes the company had a 0.24% return per unit of risk over the last 3 months. By reviewing DoorDash's technical indicators, you can evaluate if the expected return of 0.59% is justified by implied risk. Please utilize DoorDash's Mean Deviation of 1.76, downside deviation of 2.25, and Coefficient Of Variation of 454.31 to check if our risk estimates are consistent with your expectations. Key indicators related to DoorDash's volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
DoorDash 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 DoorDash daily returns, and it is calculated using variance and standard deviation. We also use DoorDash's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of DoorDash volatility.
  
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as DoorDash 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 DoorDash at lower prices. For example, an investor can purchase DoorDash 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 DoorDash'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.

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Moving against DoorDash Stock

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DoorDash Market Sensitivity And Downside Risk

DoorDash's beta coefficient measures the volatility of DoorDash 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 DoorDash stock's returns against your selected market. In other words, DoorDash's beta of 2.04 provides an investor with an approximation of how much risk DoorDash stock can potentially add to one of your existing portfolios. DoorDash Class A currently demonstrates below-average downside deviation. It has Information Ratio of 0.16 and Jensen Alpha of 0.25. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure DoorDash'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 DoorDash'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 DoorDash Class A Demand Trend
Check current 90 days DoorDash correlation with market (NYSE Composite)

DoorDash Beta

    
  2.04  
DoorDash 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

    
  2.43  
It is essential to understand the difference between upside risk (as represented by DoorDash's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of DoorDash's daily returns or price. Since the actual investment returns on holding a position in doordash 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 DoorDash.

Using DoorDash Put Option to Manage Risk

Put options written on DoorDash grant holders of the option the right to sell a specified amount of DoorDash 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 DoorDash Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge DoorDash'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 DoorDash will be realized, the loss incurred will be offset by the profits made with the option trade.

DoorDash's PUT expiring on 2024-03-28

   Profit   
       DoorDash Price At Expiration  

Current DoorDash Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2024-03-28 PUT at $150.0-0.80380.0233162024-03-2810.0 - 12.3510.6View
Put
2024-03-28 PUT at $145.0-0.88570.039662024-03-285.15 - 7.66.8View
Put
2024-03-28 PUT at $143.0-0.71380.049612024-03-283.8 - 5.34.05View
Put
2024-03-28 PUT at $142.0-0.78560.0766172024-03-282.83 - 4.32.24View
Put
2024-03-28 PUT at $141.0-0.77280.1096532024-03-282.25 - 2.681.94View
Put
2024-03-28 PUT at $140.0-0.67040.14831442024-03-281.5 - 1.761.91View
Put
2024-03-28 PUT at $139.0-0.51370.1655852024-03-280.93 - 1.11.13View
Put
2024-03-28 PUT at $138.0-0.35960.14571552024-03-280.58 - 0.690.92View
Put
2024-03-28 PUT at $137.0-0.23180.1155932024-03-280.33 - 0.390.45View
Put
2024-03-28 PUT at $136.0-0.14120.0814722024-03-280.17 - 0.230.24View
Put
2024-03-28 PUT at $135.0-0.09210.0551242024-03-280.11 - 0.150.17View
View All DoorDash Options

DoorDash Class A Stock Volatility Analysis

Volatility refers to the frequency at which DoorDash stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with DoorDash's price changes. Investors will then calculate the volatility of DoorDash'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 DoorDash's volatility:

Historical Volatility

This type of stock volatility measures DoorDash's fluctuations based on previous trends. It's commonly used to predict DoorDash'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 DoorDash'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 DoorDash'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. DoorDash Class A 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.

DoorDash Projected Return Density Against Market

Given the investment horizon of 90 days the stock has the beta coefficient of 2.0395 suggesting as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, DoorDash 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 DoorDash or Internet & Direct Marketing Retail 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 DoorDash'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 DoorDash 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.
DoorDash Class A has an alpha of 0.2542, implying that it can generate a 0.25 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
DoorDash's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how doordash stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a DoorDash 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.

DoorDash Stock Risk Measures

Given the investment horizon of 90 days the coefficient of variation of DoorDash is 413.04. The daily returns are distributed with a variance of 5.88 and standard deviation of 2.43. The mean deviation of DoorDash Class A is currently at 1.83. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
0.25
β
Beta against NYSE Composite2.04
σ
Overall volatility
2.43
Ir
Information ratio 0.16

DoorDash Stock Return Volatility

DoorDash historical daily return volatility represents how much of DoorDash stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 2.4257% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.5731% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About DoorDash Volatility

Volatility is a rate at which the price of DoorDash 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 DoorDash may increase or decrease. In other words, similar to DoorDash's beta indicator, it measures the risk of DoorDash and helps estimate the fluctuations that may happen in a short period of time. So if prices of DoorDash 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 ReportedProjected for 2024
Selling And Marketing Expenses1.9 B1.3 B
DoorDash'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 DoorDash Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much DoorDash's price varies over time.

3 ways to utilize DoorDash's volatility to invest better

Higher DoorDash's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of DoorDash Class A 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. DoorDash Class A 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 DoorDash Class A investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in DoorDash'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 DoorDash's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

DoorDash Investment Opportunity

DoorDash Class A has a volatility of 2.43 and is 4.26 times more volatile than NYSE Composite. 21 percent of all equities and portfolios are less risky than DoorDash. You can use DoorDash Class A to protect your portfolios against small market fluctuations. The stock experiences a moderate downward daily trend and can be a good diversifier. Check odds of DoorDash to be traded at $136.1 in 90 days.

Very weak diversification

The correlation between DoorDash Class A and NYA is 0.48 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding DoorDash Class A and NYA in the same portfolio, assuming nothing else is changed.

DoorDash Additional Risk Indicators

The analysis of DoorDash'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 DoorDash's investment and either accepting that risk or mitigating it. Along with some common measures of DoorDash 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.
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.

DoorDash 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 DoorDash 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. DoorDash'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, DoorDash'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 DoorDash Class A.
When determining whether DoorDash Class A offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of DoorDash'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 Doordash Class A Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Doordash Class A Stock:
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in DoorDash Class A. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in state.
You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

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When running DoorDash's price analysis, check to measure DoorDash's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy DoorDash is operating at the current time. Most of DoorDash's value examination focuses on studying past and present price action to predict the probability of DoorDash's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move DoorDash's price. Additionally, you may evaluate how the addition of DoorDash to your portfolios can decrease your overall portfolio volatility.
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Is DoorDash's industry 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 DoorDash. If investors know DoorDash 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 DoorDash listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(1.42)
Revenue Per Share
21.975
Quarterly Revenue Growth
0.267
Return On Assets
(0.03)
Return On Equity
(0.08)
The market value of DoorDash Class A is measured differently than its book value, which is the value of DoorDash that is recorded on the company's balance sheet. Investors also form their own opinion of DoorDash's value that differs from its market value or its book value, called intrinsic value, which is DoorDash'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 DoorDash's market value can be influenced by many factors that don't directly affect DoorDash'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 DoorDash's value and its price as these two are different measures arrived at by different means. Investors typically determine if DoorDash is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, DoorDash'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.