Yelp Stock Volatility

YELP -  USA Stock  

USD 35.93  0.57  1.56%

Yelp Inc shows Sharpe Ratio of -0.0293, which attests that the company had -0.0293% of return per unit of risk over the last 3 months. Macroaxis standpoint towards determining 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. Yelp Inc exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to check out Yelp Inc mean deviation of 1.8, and Market Risk Adjusted Performance of 0.6845 to validate the risk estimate we provide.

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

360 Days Market Risk

Very steady

Chance of Distress

Very Low

360 Days Economic Sensitivity

Moves indifferently to market moves

Yelp Market Sensitivity And Downside Risk

Yelp's beta coefficient measures the volatility of Yelp 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 Yelp stock's returns against your selected market. In other words, Yelp's beta of -0.14 provides an investor with an approximation of how much risk Yelp stock can potentially add to one of your existing portfolios.
Let's try to break down what Yelp's beta means in this case. As returns on the market increase, returns on owning Yelp are expected to decrease at a much lower rate. During the bear market, Yelp is likely to outperform the market.
3 Months Beta |Analyze Yelp Inc Demand Trend
Check current 90 days Yelp correlation with market (DOW)

Yelp Beta

    
  -0.14  
Yelp 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

    
  2.4  
It is essential to understand the difference between upside risk (as represented by Yelp's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Yelp stock's daily returns or price. Since the actual investment returns on holding a position in Yelp 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 Yelp.

Yelp Inc Stock Volatility Analysis

Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Yelp Inc 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.

Yelp Projected Return Density Against Market

Given the investment horizon of 90 days Yelp Inc has a beta of -0.1403 . This entails as returns on benchmark increase, returns on holding Yelp are expected to decrease at a much lower rate. During the bear market, however, Yelp Inc is likely to outperform the market.
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 Yelp or Communication Services 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 Yelp 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 Yelp 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. Yelp Inc is significantly underperforming DOW.
 Predicted Return Density 
      Returns 

Yelp 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 Yelp or Communication Services 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 Yelp 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 Yelp 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 Yelp is -3415.28. The daily returns are distributed with a variance of 5.75 and standard deviation of 2.4. The mean deviation of Yelp Inc is currently at 1.84. For similar time horizon, the selected benchmark (DOW) has volatility of 0.74
α
Alpha over DOW
-0.09
β
Beta against DOW-0.14
σ
Overall volatility
2.40
Ir
Information ratio -0.05

Yelp Stock Return Volatility

Yelp historical daily return volatility represents how much Yelp 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 2.3988% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 0.7459% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Yelp Volatility

Volatility is a rate at which the price of Yelp 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 Yelp may increase or decrease. In other words, similar to Yelp's beta indicator, it measures the risk of Yelp and helps estimate the fluctuations that may happen in a short period of time. So if prices of Yelp 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 2021
Market CapitalizationB2.3 B
Yelp Inc. operates a platform that connects consumers with local businesses in the United States and internationally. The companys platform covers various local business categories, including restaurants, shopping, beauty and fitness, health, and other categories, as well as home, local, auto, professional, pets, events, real estate, and financial services. It provides free and paid advertising products to businesses, which include cost-per-click search advertising and multi-location ad products, as well as enables businesses to deliver targeted search advertising to local audiences and business listing page products. The company also offers other services comprising Yelp Reservations that provide online reservations for restaurants, nightlife, and other venues directly from their Yelp business listing pages Yelp Waitlist, a subscription-based waitlist management solution that allows consumers to check wait times and join waitlists remotely, as well as businesses to manage seating and server rotation Yelp Knowledge program that offers business owners local analytics and insights through access to its historical data and other proprietary content and Yelp Fusion, which offers free and paid access to content and data for consumer-facing enterprise use through publicly available APIs. In addition, it provides content licensing, as well as allows third-party data providers to update and manage business listing information on behalf of businesses. The company offers its products directly through its sales force indirectly through partners and online through its website, as well as non-advertising partner arrangements. It has strategic partnership with Grubhub for providing consumers with a service to place food orders for pickup and delivery. Yelp Inc. was incorporated in 2004 and is headquartered in San Francisco, California.

Nearest Yelp long CALL Option Payoff at Expiration

Yelp's implied volatility is one of the determining factors in the pricing options written on Yelp Inc. Implied volatility approximates the future value of Yelpusing the option's current value. Options with high implied volatility have higher premiums and can be used to hedge the downside of investing in Yelp Inc over a specific time period.
View All Yelp options
YELP210806C00030000 is a CALL option contract on Yelp's common stock with a strick price of 30.0 expiring on 2021-08-06. The contract was last traded on 2021-07-20 at 09:55:34 for $6.06 and, as of today, has 2 days remaining before the expiration. The option is currently trading at a bid price of $6.2, and an ask price of $8.1. The implied volatility as of the 4th of August is 231.172.
 Profit 
Share
      Yelp Price At Expiration 

Yelp Investment Opportunity

Yelp Inc has a volatility of 2.4 and is 3.2 times more volatile than DOW. 20  of all equities and portfolios are less risky than Yelp. Compared to the overall equity markets, volatility of historical daily returns of Yelp Inc is lower than 20 () of all global equities and portfolios over the last 90 days. Use Yelp Inc to protect your portfolios against small market fluctuations. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of Yelp to be traded at $34.85 in 90 days. . Let's try to break down what Yelp's beta means in this case. As returns on the market increase, returns on owning Yelp are expected to decrease at a much lower rate. During the bear market, Yelp is likely to outperform the market.

Good diversification

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

Yelp Additional Risk Indicators

The analysis of Yelp'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 Yelp's investment and either accepting that risk or mitigating it. Along with some common measures of Yelp 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(0.019619)
Market Risk Adjusted Performance0.6845
Mean Deviation1.8
Coefficient Of Variation(2,787)
Standard Deviation2.36
Variance5.56
Information Ratio(0.047987)
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.

Yelp 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.
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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 Yelp 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. Yelp'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, Yelp'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 Yelp Inc.
Check out Your Current Watchlist. Note that the Yelp Inc information on this page should be used as a complementary analysis to other Yelp'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 Commodity Channel Index module to use Commodity Channel Index to analyze current equity momentum.

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When running Yelp Inc price analysis, check to measure Yelp'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 Yelp is operating at the current time. Most of Yelp's value examination focuses on studying past and present price action to predict the probability of Yelp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Yelp's price. Additionally, you may evaluate how the addition of Yelp to your portfolios can decrease your overall portfolio volatility.
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The market value of Yelp Inc is measured differently than its book value, which is the value of Yelp that is recorded on the company's balance sheet. Investors also form their own opinion of Yelp's value that differs from its market value or its book value, called intrinsic value, which is Yelp'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 Yelp's market value can be influenced by many factors that don't directly affect Yelp Inc underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Yelp's value and its price as these two are different measures arrived at by different means. Investors typically determine Yelp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Yelp'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.