Verizon Stock Volatility

VZ
 Stock
  

USD 45.34  0.46  1.00%   

Verizon Communications owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0565, which indicates the firm had -0.0565% 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. Verizon Communications exposes twenty-seven different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to validate Verizon Communications risk adjusted performance of (0.037244), and Coefficient Of Variation of (3,239) to confirm the risk estimate we provide.
  
Verizon Communications 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 Verizon daily returns, and it is calculated using variance and standard deviation. We also use Verizon's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Verizon Communications volatility.

720 Days Market Risk

Very steady

Chance of Distress

Close to Average

720 Days Economic Sensitivity

Slowly supersedes the market

ESG Sustainability

While most ESG disclosures are voluntary, Verizon Communications' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Verizon Communications' managers and investors.
Environment Score
Governance Score
Social Score
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Verizon Communications 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 Verizon Communications at lower prices. For example, an investor can purchase Verizon 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 Verizon Communications' 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 Verizon Communications

0.95TATT IncPairCorr

Moving against Verizon Communications

0.7FFord Motor Potential GrowthPairCorr
0.62HMCHonda MotorPairCorr

Verizon Communications Market Sensitivity And Downside Risk

Verizon Communications' beta coefficient measures the volatility of Verizon 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 Verizon stock's returns against your selected market. In other words, Verizon Communications's beta of 0.36 provides an investor with an approximation of how much risk Verizon Communications stock can potentially add to one of your existing portfolios.
Verizon Communications exhibits very low volatility with skewness of -1.63 and kurtosis of 6.99. However, we advise investors to further study Verizon Communications technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Verizon Communications' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Verizon Communications' 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.

Verizon Communications Implied Volatility

Verizon Communications' implied volatility exposes the market's sentiment of Verizon Communications stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Verizon Communications' 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 Verizon Communications stock will not fluctuate a lot when Verizon Communications' options are near their expiration.
3 Months Beta |Analyze Verizon Communications Demand Trend
Check current 90 days Verizon Communications correlation with market (DOW)

Verizon Beta

    
  0.36  
Verizon 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

    
  1.44  
It is essential to understand the difference between upside risk (as represented by Verizon Communications's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Verizon Communications' daily returns or price. Since the actual investment returns on holding a position in verizon 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 Verizon Communications.

Using Verizon Put Option to Manage Risk

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

Verizon Communications' PUT expiring on 2022-08-19

   Profit   
Share
       Verizon Communications Price At Expiration  

Current Verizon Communications Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2022-08-19 PUT at $40.0-0.01060.010236032022-08-190.0 - 0.010.01View
Put
2022-08-19 PUT at $41.0-0.01240.01415852022-08-190.0 - 0.010.01View
Put
2022-08-19 PUT at $42.0-0.02540.028923682022-08-190.0 - 0.030.02View
Put
2022-08-19 PUT at $42.5-0.01690.02595552022-08-190.0 - 0.010.01View
Put
2022-08-19 PUT at $43.0-0.03220.045969162022-08-190.01 - 0.020.02View
Put
2022-08-19 PUT at $43.5-0.03730.061311842022-08-190.01 - 0.030.02View
Put
2022-08-19 PUT at $44.0-0.05880.0997146002022-08-190.02 - 0.030.03View
Put
2022-08-19 PUT at $44.5-0.07350.153565702022-08-190.03 - 0.040.03View
Put
2022-08-19 PUT at $45.0-0.17310.3208342022-08-190.06 - 0.080.08View
Put
2022-08-19 PUT at $45.5-0.34360.501219182022-08-190.15 - 0.180.17View
Put
2022-08-19 PUT at $46.0-0.6170.551831012022-08-190.38 - 0.410.37View
View All Verizon Communications Options

Verizon Communications Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Verizon Communications' fluctuations based on previous trends. It's commonly used to predict Verizon Communications' 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 Verizon Communications' 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. Verizon Communications 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.
.

Verizon Communications Projected Return Density Against Market

Allowing for the 90-day total investment horizon Verizon Communications has a beta of 0.3576 . This entails as returns on the market go up, Verizon Communications average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Verizon Communications 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 Verizon Communications 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 Verizon Communications' 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 Verizon 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. Verizon Communications is significantly underperforming DOW.
   Predicted Return Density   
       Returns  
Verizon Communications' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how verizon 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 Verizon Communications 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.

Verizon Communications 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 Verizon Communications 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 Verizon Communications' 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 Verizon 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.
Allowing for the 90-day total investment horizon the coefficient of variation of Verizon Communications is -1770.82. The daily returns are distributed with a variance of 2.09 and standard deviation of 1.44. The mean deviation of Verizon Communications is currently at 0.95. For similar time horizon, the selected benchmark (DOW) has volatility of 1.25
α
Alpha over DOW
-0.09
β
Beta against DOW0.36
σ
Overall volatility
1.44
Ir
Information ratio -0.11

Verizon Communications Stock Return Volatility

Verizon Communications historical daily return volatility represents how much of Verizon Communications stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company accepts 1.4445% volatility on return distribution over the 90 days horizon. By contrast, DOW inherits 1.1712% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About Verizon Communications Volatility

Volatility is a rate at which the price of Verizon Communications 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 Verizon Communications may increase or decrease. In other words, similar to Verizon's beta indicator, it measures the risk of Verizon Communications and helps estimate the fluctuations that may happen in a short period of time. So if prices of Verizon Communications 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 Capitalization195.8 B156.6 B
Verizon Communications Inc., through its subsidiaries, offers communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. Verizon Communications Inc. was incorporated in 1983 and is headquartered in New York, New York. Verizon Communications operates under Telecom Services classification in the United States and is traded on New York Stock Exchange. It employs 119400 people.

Verizon Communications Investment Opportunity

Verizon Communications has a volatility of 1.44 and is 1.23 times more volatile than DOW. 12  of all equities and portfolios are less risky than Verizon Communications. Compared to the overall equity markets, volatility of historical daily returns of Verizon Communications is lower than 12 () of all global equities and portfolios over the last 90 days.
Use Verizon Communications 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 Verizon Communications to be traded at $43.98 in 90 days. .

Weak diversification

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

Verizon Communications Additional Risk Indicators

The analysis of Verizon Communications' 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 Verizon Communications' investment and either accepting that risk or mitigating it. Along with some common measures of Verizon Communications 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.
Risk Adjusted Performance(0.037244)
Market Risk Adjusted Performance(0.14)
Mean Deviation0.926
Coefficient Of Variation(3,239)
Standard Deviation1.42
Variance2.02
Information Ratio(0.11)
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.

Verizon Communications 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 Verizon Communications 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. Verizon Communications' 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, Verizon Communications' 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 Verizon Communications.
Also, please take a look at World Market Map. Note that the Verizon Communications information on this page should be used as a complementary analysis to other Verizon Communications' 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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When running Verizon Communications price analysis, check to measure Verizon Communications' 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 Verizon Communications is operating at the current time. Most of Verizon Communications' value examination focuses on studying past and present price action to predict the probability of Verizon Communications' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Verizon Communications' price. Additionally, you may evaluate how the addition of Verizon Communications to your portfolios can decrease your overall portfolio volatility.
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Is Verizon Communications' 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 Verizon Communications. If investors know Verizon 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 Verizon Communications 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 YOY
-0.12
Market Capitalization
189.6 B
Quarterly Revenue Growth YOY
0.001
Return On Assets
0.0463
Return On Equity
0.26
The market value of Verizon Communications is measured differently than its book value, which is the value of Verizon that is recorded on the company's balance sheet. Investors also form their own opinion of Verizon Communications' value that differs from its market value or its book value, called intrinsic value, which is Verizon Communications' 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 Verizon Communications' market value can be influenced by many factors that don't directly affect Verizon Communications' 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 Verizon Communications' value and its price as these two are different measures arrived at by different means. Investors typically determine Verizon Communications value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Verizon Communications' 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.