Envela Stock Volatility

ELA -  USA Stock  

USD 4.89  0.05  1.03%

Envela Corp appears to be slightly risky, given 3 months investment horizon. Envela Corp secures Sharpe Ratio (or Efficiency) of 0.11, which denotes the company had 0.11% of return per unit of risk over the last 3 months. Our standpoint towards predicting 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-six technical indicators for Envela Corp, which you can use to evaluate the future volatility of the firm. Please utilize Envela Corp's Coefficient Of Variation of 988.72, mean deviation of 2.22, and Downside Deviation of 3.05 to check if our risk estimates are consistent with your expectations.
  
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Envela 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 Envela daily returns, and it is calculated using variance and standard deviation. We also use Envela's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Envela Corp volatility.

30 Days Market Risk

Slightly risky

Chance of Distress

30 Days Economic Sensitivity

Follows the market closely
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Envela 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 Envela Corp at lower prices. For example, an investor can purchase Envela 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 Envela 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.

Moving together with Envela Corp

0.89BDLFlanigans EnterprisesPairCorr
0.87MMLTFMmgPairCorr
0.87CEZYYCez ASPairCorr
0.87ACBAAce Global BusinessPairCorr
0.87MUSAMurphy USAPairCorr
0.86TBAKFTed Baker OrdPairCorr

Moving against Envela Corp

-0.87KIRKKirklandsPairCorr
-0.81CJJDChina Jojo DrugstorePairCorr
-0.8CATOCato CorpPairCorr
-0.78AXLAmerican Axle ManufaPairCorr
-0.78BCBrunswick CorpPairCorr
-0.78APRNBlue Apron Holdings Aggressive PushPairCorr
-0.78CURVTorrid HoldingsPairCorr

Envela Corp Market Sensitivity And Downside Risk

Envela Corp's beta coefficient measures the volatility of Envela 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 Envela stock's returns against your selected market. In other words, Envela Corp's beta of 0.6 provides an investor with an approximation of how much risk Envela Corp stock can potentially add to one of your existing portfolios.
Let's try to break down what Envela's beta means in this case. As returns on the market increase, Envela Corp returns are expected to increase less than the market. However, during the bear market, the loss on holding Envela Corp will be expected to be smaller as well.
3 Months Beta |Analyze Envela Corp Demand Trend
Check current 90 days Envela Corp correlation with market (DOW)

Envela Beta

    
  0.6  
Envela 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

    
  2.94  
It is essential to understand the difference between upside risk (as represented by Envela Corp's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Envela Corp stock's daily returns or price. Since the actual investment returns on holding a position in Envela Corp 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 Envela Corp.

Envela Corp Implied Volatility

    
  27.59  
Envela Corp's implied volatility exposes the market's sentiment of Envela Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Envela Corp'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 Envela Corp stock will not fluctuate a lot when Envela Corp's options are near their expiration.

Envela Corp Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Envela Corp's fluctuations based on previous trends. It's commonly used to predict Envela Corp'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 Envela Corp'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. Developed by Larry Williams, the Weighted Close is the average of Envela Corp high, low and close of a chart with the close values weighted twice. It can be used to smooth an indicator that normally takes only Envela Corp closing price as input.
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Envela Corp Projected Return Density Against Market

Considering the 90-day investment horizon Envela Corp has a beta of 0.6019 suggesting as returns on the market go up, Envela Corp average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Envela Corp will be expected to be much smaller as well.
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 Envela Corp or Consumer Cyclical 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 Envela Corp 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 Envela 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 0.3245, implying that it can generate a 0.32 percent excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 
Envela Corp's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Envela Corp 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.

Envela 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 Envela Corp or Consumer Cyclical 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 Envela Corp 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 Envela 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.
Considering the 90-day investment horizon the coefficient of variation of Envela Corp is 946.22. The daily returns are distributed with a variance of 8.63 and standard deviation of 2.94. The mean deviation of Envela Corp is currently at 2.27. For similar time horizon, the selected benchmark (DOW) has volatility of 1.35
α
Alpha over DOW
0.32
β
Beta against DOW0.60
σ
Overall volatility
2.94
Ir
Information ratio 0.12

Envela Corp Stock Return Volatility

Envela Corp historical daily return volatility represents how much Envela Corp stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The company has volatility of 2.9378% on return distribution over 90 days investment horizon. By contrast, DOW inherits 1.3574% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Envela Corp Volatility

Volatility is a rate at which the price of Envela 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 Envela Corp may increase or decrease. In other words, similar to Envela's beta indicator, it measures the risk of Envela Corp and helps estimate the fluctuations that may happen in a short period of time. So if prices of Envela 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.
Last ReportedProjected for 2022
Market Capitalization109.6 M118.2 M
Envela Corporation, together with its subsidiaries, primarily buys and sells jewelry and bullion products to individual consumers, dealers, Fortune 500 companies, municipalities, school districts, and other organizations in the United States. Envela Corporation was incorporated in 1965 and is headquartered in Irving, Texas. Envela Corp operates under Luxury Goods classification in the United States and is traded on NYSEMKT Exchange. It employs 256 people.

Nearest Envela long CALL Option Payoff at Expiration

Envela Corp's implied volatility is one of the determining factors in the pricing options written on Envela Corp. Implied volatility approximates the future value of Envela Corpusing the option's current value. Options with high implied volatility have higher premiums and can be used to hedge the downside of investing in Envela Corp over a specific time period.
View All Envela options
2022-06-17 CALL at $2.5 is a CALL option contract on Envela Corp's common stock with a strick price of 2.5 expiring on 2022-06-17. The contract was not traded in recent days and, as of today, has 22 days remaining before the expiration. The option is currently trading at a bid price of $2.2, and an ask price of $2.7. The implied volatility as of the 26th of May is 221.3759.
 Profit 
Share
      Envela Corp Price At Expiration 

Envela Corp Investment Opportunity

Envela Corp has a volatility of 2.94 and is 2.16 times more volatile than DOW. 25  of all equities and portfolios are less risky than Envela Corp. Compared to the overall equity markets, volatility of historical daily returns of Envela Corp is lower than 25 () of all global equities and portfolios over the last 90 days. Use Envela Corp to enhance returns of your portfolios. The stock experiences a large bullish trend. Check odds of Envela Corp to be traded at $5.38 in 90 days. . Let's try to break down what Envela's beta means in this case. As returns on the market increase, Envela Corp returns are expected to increase less than the market. However, during the bear market, the loss on holding Envela Corp will be expected to be smaller as well.

Modest diversification

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

Envela Corp Additional Risk Indicators

The analysis of Envela 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 Envela Corp's investment and either accepting that risk or mitigating it. Along with some common measures of Envela Corp 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 Performance0.1416
Market Risk Adjusted Performance0.4801
Mean Deviation2.22
Semi Deviation2.56
Downside Deviation3.05
Coefficient Of Variation988.72
Standard Deviation2.9
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.

Envela 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.
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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 Envela 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. Envela 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, Envela 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 Envela Corp.
Continue to Investing Opportunities. Note that the Envela Corp information on this page should be used as a complementary analysis to other Envela 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 Shere Portfolio module to track or share privately all of your investments from the convenience of any device.

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