Verisk Stock Volatility

VRSK
 Stock
  

USD 170.39  3.16  1.82%   

Verisk Analytics owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0055, which indicates the firm had -0.0055% 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. Verisk Analytics exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to validate Verisk Analytics Coefficient Of Variation of 2744.18, risk adjusted performance of 0.0427, and Semi Deviation of 1.31 to confirm the risk estimate we provide.
  
Verisk Analytics 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 Verisk daily returns, and it is calculated using variance and standard deviation. We also use Verisk's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Verisk Analytics volatility.

420 Days Market Risk

Very steady

Chance of Distress

420 Days Economic Sensitivity

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

+0.86EXPGFEXPERIAN PLCPairCorr
+0.76EXPGYExperian Plc ADRPairCorr
+0.87EFXEquifaxPairCorr
+0.82BAHBooz Allen HamiltonPairCorr

Verisk Analytics Market Sensitivity And Downside Risk

Verisk Analytics' beta coefficient measures the volatility of Verisk 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 Verisk stock's returns against your selected market. In other words, Verisk Analytics's beta of 0.87 provides an investor with an approximation of how much risk Verisk Analytics stock can potentially add to one of your existing portfolios.
Verisk Analytics has relatively low volatility with skewness of 0.08 and kurtosis of 1.09. However, we advise all investors to independently investigate Verisk Analytics to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Verisk Analytics' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Verisk Analytics' 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 Verisk Analytics Demand Trend
Check current 90 days Verisk Analytics correlation with market (DOW)

Verisk Beta

    
  0.87  
Verisk 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

    
  1.38  
It is essential to understand the difference between upside risk (as represented by Verisk Analytics's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Verisk Analytics' daily returns or price. Since the actual investment returns on holding a position in verisk 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 Verisk Analytics.

Using Verisk Put Option to Manage Risk

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

Verisk Analytics' PUT expiring on 2022-10-21

   Profit   
Share
       Verisk Analytics Price At Expiration  

Current Verisk Analytics Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2022-10-21 PUT at $195.0-0.96450.007122022-10-2119.2 - 23.59.11View
Put
2022-10-21 PUT at $190.0-0.97490.00712022-10-2114.0 - 18.613.1View
Put
2022-10-21 PUT at $185.0-0.85570.023322022-10-219.5 - 14.26.6View
Put
2022-10-21 PUT at $180.0-0.68370.030512022-10-217.8 - 9.04.95View
Put
2022-10-21 PUT at $175.0-0.5190.031342022-10-215.2 - 6.14.6View
Put
2022-10-21 PUT at $165.0-0.2140.024112022-10-210.4 - 2.651.36View
View All Verisk Analytics Options

Verisk Analytics Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Verisk Analytics' fluctuations based on previous trends. It's commonly used to predict Verisk Analytics' 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 Verisk Analytics' 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 Verisk Analytics' 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. The Median Price line plots median indexes of Verisk Analytics price series.
.

Verisk Analytics Projected Return Density Against Market

Given the investment horizon of 90 days Verisk Analytics has a beta of 0.8738 . This entails Verisk Analytics market returns are responsive to returns on the market. As the market goes up or down, Verisk Analytics is expected to follow.
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 Verisk Analytics 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 Verisk Analytics' 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 Verisk 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 0.1191, implying that it can generate a 0.12 percent excess return over DOW after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Verisk Analytics' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how verisk 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 Verisk Analytics Price Volatility?

Several factors can influence a Stock'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.

Verisk Analytics 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 Verisk Analytics 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 Verisk Analytics' 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 Verisk 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 Verisk Analytics is -18105.53. The daily returns are distributed with a variance of 1.91 and standard deviation of 1.38. The mean deviation of Verisk Analytics is currently at 1.0. For similar time horizon, the selected benchmark (DOW) has volatility of 1.12
α
Alpha over DOW
0.12
β
Beta against DOW0.87
σ
Overall volatility
1.38
Ir
Information ratio 0.1

Verisk Analytics Stock Return Volatility

Verisk Analytics historical daily return volatility represents how much of Verisk Analytics stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 1.3815% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 1.1351% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About Verisk Analytics Volatility

Volatility is a rate at which the price of Verisk Analytics 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 Verisk Analytics may increase or decrease. In other words, similar to Verisk's beta indicator, it measures the risk of Verisk Analytics and helps estimate the fluctuations that may happen in a short period of time. So if prices of Verisk Analytics 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.
Verisk Analytics, Inc. provides data analytics solutions in the United States and internationally. The company was founded in 1971 and is headquartered in Jersey City, New Jersey. Verisk Analytics operates under Consulting Services classification in the United States and is traded on NASDAQ Exchange. It employs 9367 people.

Verisk Analytics Investment Opportunity

Verisk Analytics has a volatility of 1.38 and is 1.21 times more volatile than DOW. 12  of all equities and portfolios are less risky than Verisk Analytics. Compared to the overall equity markets, volatility of historical daily returns of Verisk Analytics is lower than 12 () of all global equities and portfolios over the last 90 days. Use Verisk Analytics to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of Verisk Analytics to be traded at $165.28 in 90 days.

Poor diversification

The correlation between Verisk Analytics and DJI is 0.71 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Verisk Analytics and DJI in the same portfolio, assuming nothing else is changed.

Verisk Analytics Additional Risk Indicators

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

Verisk Analytics 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 Verisk Analytics 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. Verisk Analytics' 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, Verisk Analytics' 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 Verisk Analytics.
Also, please take a look at World Market Map. You can also try Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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