We consider Vericel Corp very steady. Vericel Corp Ord owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0189, which indicates the firm had 0.0189% of return per unit of risk over the last 3 months. Our standpoint towards measuring the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Vericel Corp Ord, which you can use to evaluate the future volatility of the company. Please validate Vericel Corp Risk Adjusted Performance of 0.0275, semi deviation of 3.16, and Coefficient Of Variation of 3869.53 to confirm if the risk estimate we provide is consistent with the expected return of 0.0634%. Key technical indicators related to Vericel Corp's volatility include:
90 Days Market Risk
Chance of Distress
90 Days Economic Sensitivity
Vericel Corp 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 Vericel daily returns, and it is calculated using variance and standard deviation. We also use Vericel's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Vericel Corp volatility.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Vericel Corp 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 Vericel Corp at lower prices. For example, an investor can purchase Vericel 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 Vericel Corp'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.
Vericel Corp Market Sensitivity And Downside Risk
Vericel Corp's beta coefficient measures the volatility of Vericel stock compared to the systematic risk of the entire stock 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 Vericel stock's returns against your selected market. In other words, Vericel Corp's beta of 2.1 provides an investor with an approximation of how much risk Vericel Corp stock can potentially add to one of your existing portfolios.Vericel Corp Ord shows above-average downside volatility for the selected time horizon. We advise investors to inspect Vericel Corp Ord further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Vericel Corp future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Vericel Corp'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 Vericel Corp'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 stocks as prices fall. 3 Months Beta |Analyze Vericel Corp Ord Demand TrendCheck current 90 days Vericel Corp correlation with market (NYSE Composite)
Vericel standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity 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.
It is essential to understand the difference between upside risk (as represented by Vericel Corp's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Vericel Corp's daily returns or price. Since the actual investment returns on holding a position in vericel 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 Vericel Corp.
Using Vericel Put Option to Manage Risk
Put options written on Vericel Corp grant holders of the option the right to sell a specified amount of Vericel Corp 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 Vericel Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Vericel Corp'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 Vericel Corp will be realized, the loss incurred will be offset by the profits made with the option trade.
Vericel Corp's PUT expiring on 2023-12-15
Vericel Corp Ord Stock Volatility Analysis
Volatility refers to the frequency at which Vericel Corp stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Vericel Corp's price changes. Investors will then calculate the volatility of Vericel Corp'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 Vericel Corp's volatility:
Historical VolatilityThis type of stock volatility measures Vericel Corp's fluctuations based on previous trends. It's commonly used to predict Vericel Corp's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.
Implied VolatilityThis type of volatility provides a positive outlook on future price fluctuations for Vericel Corp'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 Vericel Corp's to be redeemed at a future date.
Vericel Corp Projected Return Density Against MarketGiven the investment horizon of 90 days the stock has the beta coefficient of 2.0963 . 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, Vericel Corp 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 Vericel Corp or Biotechnology 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 Vericel Corp'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 Vericel 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.The company has an alpha of 0.042, implying that it can generate a 0.042 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Vericel Corp's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how vericel 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 Vericel Corp Price Volatility?Several factors can influence a stock's market volatility:
IndustrySpecific 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 environmentWhen 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 PerformanceSometimes 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.
Vericel Corp Stock Risk Measures
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 Vericel Corp or Biotechnology 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 Vericel Corp'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 Vericel 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. Given the investment horizon of 90 days the coefficient of variation of Vericel Corp is 5286.47. The daily returns are distributed with a variance of 11.23 and standard deviation of 3.35. The mean deviation of Vericel Corp Ord is currently at 2.5. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.77
Vericel Corp Stock Return VolatilityVericel Corp historical daily return volatility represents how much of Vericel Corp stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 3.3511% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.7845% volatility on return distribution over the 90 days horizon.
About Vericel Corp Volatility
Volatility is a rate at which the price of Vericel Corp 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 Vericel Corp may increase or decrease. In other words, similar to Vericel's beta indicator, it measures the risk of Vericel Corp and helps estimate the fluctuations that may happen in a short period of time. So if prices of Vericel Corp 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.
Vericel Corp'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 Vericel Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Vericel Corp's price varies over time.
3 ways to utilize Vericel Corp's volatility to invest betterHigher Vericel Corp's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Vericel Corp Ord 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. Vericel Corp Ord 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 Vericel Corp Ord investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Vericel Corp'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 Vericel Corp's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Vericel Corp Investment OpportunityVericel Corp Ord has a volatility of 3.35 and is 4.29 times more volatile than NYSE Composite. 29 of all equities and portfolios are less risky than Vericel Corp. Compared to the overall equity markets, volatility of historical daily returns of Vericel Corp Ord is lower than 29 () of all global equities and portfolios over the last 90 days. Use Vericel Corp Ord to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a large bullish trend. Check odds of Vericel Corp to be traded at $37.66 in 90 days.
Vericel Corp Additional Risk Indicators
The analysis of Vericel Corp'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 Vericel Corp's investment and either accepting that risk or mitigating it. Along with some common measures of Vericel Corp 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.
Vericel Corp 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 Vericel Corp 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. Vericel Corp'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, Vericel Corp'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 Vericel Corp Ord.When determining whether Vericel Corp Ord is a strong investment it is important to analyze Vericel Corp's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Vericel Corp's future performance. For an informed investment choice regarding Vericel Stock, refer to the following important reports:
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Vericel Corp Ord. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in commodities.Note that the Vericel Corp Ord information on this page should be used as a complementary analysis to other Vericel Corp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Complementary Tools for Vericel Stock analysis
When running Vericel Corp's price analysis, check to measure Vericel Corp'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 Vericel Corp is operating at the current time. Most of Vericel Corp's value examination focuses on studying past and present price action to predict the probability of Vericel Corp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Vericel Corp's price. Additionally, you may evaluate how the addition of Vericel Corp to your portfolios can decrease your overall portfolio volatility.
Is Vericel Corp'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 Vericel Corp. If investors know Vericel 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 Vericel Corp 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
Revenue Per Share
Quarterly Revenue Growth
Return On Assets
The market value of Vericel Corp Ord is measured differently than its book value, which is the value of Vericel that is recorded on the company's balance sheet. Investors also form their own opinion of Vericel Corp's value that differs from its market value or its book value, called intrinsic value, which is Vericel Corp'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 Vericel Corp's market value can be influenced by many factors that don't directly affect Vericel Corp'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 Vericel Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Vericel Corp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Vericel Corp'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.