Vivint Stock Volatility

VVNT -  USA Stock  

USD 6.38  0.38  5.62%

Vivint Smart Home owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0576, which indicates the firm had -0.0576% of return per unit of risk over the last 3 months. Macroaxis standpoint towards measuring the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Vivint Smart Home exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to validate Vivint Smart coefficient of variation of (1,505), and Risk Adjusted Performance of (0.046684) to confirm the risk estimate we provide.

Vivint Volatility 

 
Refresh
Vivint Smart 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 Vivint daily returns, and it is calculated using variance and standard deviation. We also use Vivint's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Vivint Smart volatility.

30 Days Market Risk

Relatively risky

Chance of Distress

High

30 Days Economic Sensitivity

Actively responds to the market
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Vivint Smart 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 Vivint Smart at lower prices. For example, an investor can purchase Vivint 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 Vivint Smart'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.

Vivint Smart Market Sensitivity And Downside Risk

Vivint Smart's beta coefficient measures the volatility of Vivint 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 Vivint stock's returns against your selected market. In other words, Vivint Smart's beta of 1.97 provides an investor with an approximation of how much risk Vivint Smart stock can potentially add to one of your existing portfolios.
Let's try to break down what Vivint's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Vivint Smart will likely underperform.
3 Months Beta |Analyze Vivint Smart Home Demand Trend
Check current 90 days Vivint Smart correlation with market (DOW)

Vivint Beta

    
  1.97  
Vivint 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.

Standard Deviation

    
  4.95  
It is essential to understand the difference between upside risk (as represented by Vivint Smart's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Vivint Smart stock's daily returns or price. Since the actual investment returns on holding a position in Vivint Smart 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 Vivint Smart.

Vivint Smart Implied Volatility

    
  127.22  
Vivint Smart's implied volatility exposes the market's sentiment of Vivint Smart Home stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Vivint Smart's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Vivint Smart stock will not fluctuate a lot when Vivint Smart's options are near their expiration.

Vivint Smart Home Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Vivint Smart's fluctuations based on previous trends. It's commonly used to predict Vivint Smart'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 Vivint Smart's current market price. This means that the stock will return to its initially predicted market price.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Vivint Smart Home 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.

Vivint Smart Projected Return Density Against Market

Given the investment horizon of 90 days the stock has the beta coefficient of 1.9728 . 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, Vivint Smart 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 Vivint Smart or Industrials 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 Vivint Smart stock'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 Vivint 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 a negative alpha, implying that the risk taken by holding this instrument is not justified. Vivint Smart Home is significantly underperforming DOW.
 Predicted Return Density 
      Returns 
Vivint Smart's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Vivint Smart 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 Company's Stock Price Volatility?

Several factors can influence a company's stock 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.

Vivint Smart 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 Vivint Smart or Industrials 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 Vivint Smart stock'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 Vivint 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 Vivint Smart is -1736.15. The daily returns are distributed with a variance of 24.51 and standard deviation of 4.95. The mean deviation of Vivint Smart Home is currently at 3.62. For similar time horizon, the selected benchmark (DOW) has volatility of 0.83
α
Alpha over DOW
-0.21
β
Beta against DOW1.97
σ
Overall volatility
4.95
Ir
Information ratio -0.06

Vivint Smart Stock Return Volatility

Vivint Smart historical daily return volatility represents how much Vivint Smart stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The firm inherits 4.9506% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 0.8439% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Vivint Smart Volatility

Volatility is a rate at which the price of Vivint Smart 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 Vivint Smart may increase or decrease. In other words, similar to Vivint's beta indicator, it measures the risk of Vivint Smart and helps estimate the fluctuations that may happen in a short period of time. So if prices of Vivint Smart 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.
Vivint Smart Home, Inc., together with its subsidiaries, engages in the sale, installation, servicing, and monitoring of smart home and security systems primarily in the United States and Canada. The company was founded in 1999 and is headquartered in Provo, Utah. Vivint Smart operates under Security Protection Services classification in the United States and is traded on New York Stock Exchange. It employs 12100 people.

Nearest Vivint long CALL Option Payoff at Expiration

Vivint Smart's implied volatility is one of the determining factors in the pricing options written on Vivint Smart Home. Implied volatility approximates the future value of Vivint Smartusing the option's current value. Options with high implied volatility have higher premiums and can be used to hedge the downside of investing in Vivint Smart Home over a specific time period.
View All Vivint options
2022-02-18 CALL at $2.5 is a CALL option contract on Vivint Smart's common stock with a strick price of 2.5 expiring on 2022-02-18. The contract was last traded on 2021-11-10 at 06:58:20 for $9.8 and, as of today, has 23 days remaining before the expiration. The option is currently trading at a bid price of $3.6, and an ask price of $4.7. The implied volatility as of the 26th of January is 440.9835.
 Profit 
Share
      Vivint Smart Price At Expiration 

Vivint Smart Investment Opportunity

Vivint Smart Home has a volatility of 4.95 and is 5.89 times more volatile than DOW. 42  of all equities and portfolios are less risky than Vivint Smart. Compared to the overall equity markets, volatility of historical daily returns of Vivint Smart Home is lower than 42 () of all global equities and portfolios over the last 90 days. Use Vivint Smart Home to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of Vivint Smart to be traded at $6.06 in 90 days. . Let's try to break down what Vivint's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Vivint Smart will likely underperform.

Weak diversification

The correlation between Vivint Smart Home and DJI is Weak diversification for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vivint Smart Home and DJI in the same portfolio assuming nothing else is changed.

Vivint Smart Additional Risk Indicators

The analysis of Vivint Smart'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 Vivint Smart's investment and either accepting that risk or mitigating it. Along with some common measures of Vivint Smart stock 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(0.046684)
Market Risk Adjusted Performance(0.16)
Mean Deviation3.5
Coefficient Of Variation(1,505)
Standard Deviation4.82
Variance23.19
Information Ratio(0.06)
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stock investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Vivint Smart 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.
Alphabet vs. Vivint Smart
SP Metals vs. Vivint Smart
GM vs. Vivint Smart
Advantage Energy vs. Vivint Smart
Salesforce vs. Vivint Smart
Eqt Corp vs. Vivint Smart
Rogers Agriculture vs. Vivint Smart
Lucid vs. Vivint Smart
KBW Bank vs. Vivint Smart
Visa vs. Vivint Smart
MP Materials vs. Vivint Smart
Reconnaissance Energy vs. Vivint Smart
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 Vivint Smart 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. Vivint Smart'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, Vivint Smart'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 Vivint Smart Home.
Also, please take a look at World Market Map. Note that the Vivint Smart Home information on this page should be used as a complementary analysis to other Vivint Smart'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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

Complementary Tools for Vivint Stock analysis

When running Vivint Smart Home price analysis, check to measure Vivint Smart'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 Vivint Smart is operating at the current time. Most of Vivint Smart's value examination focuses on studying past and present price action to predict the probability of Vivint Smart's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Vivint Smart's price. Additionally, you may evaluate how the addition of Vivint Smart to your portfolios can decrease your overall portfolio volatility.
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Is Vivint Smart'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 Vivint Smart. If investors know Vivint 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 Vivint Smart listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Vivint Smart Home is measured differently than its book value, which is the value of Vivint that is recorded on the company's balance sheet. Investors also form their own opinion of Vivint Smart's value that differs from its market value or its book value, called intrinsic value, which is Vivint Smart'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 Vivint Smart's market value can be influenced by many factors that don't directly affect Vivint Smart'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 Vivint Smart's value and its price as these two are different measures arrived at by different means. Investors typically determine Vivint Smart value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Vivint Smart'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.