Vinci Partners Investments Stock Volatility
| VINP Stock | USD 10.78 0.24 2.28% |
We consider Vinci Partners not too volatile. Vinci Partners Inves owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0212, which indicates the firm had a 0.0212% return per unit of risk over the last 3 months. We have found twenty-seven technical indicators for Vinci Partners Investments, which you can use to evaluate the volatility of the company. Please validate Vinci Partners' Semi Deviation of 1.49, coefficient of variation of 5241.11, and Risk Adjusted Performance of 0.0184 to confirm if the risk estimate we provide is consistent with the expected return of 0.0373%. Key indicators related to Vinci Partners' volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Vinci Partners 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 Vinci daily returns, and it is calculated using variance and standard deviation. We also use Vinci's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Vinci Partners volatility.
Vinci |
ESG Sustainability
While most ESG disclosures are voluntary, Vinci Partners' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Vinci Partners' managers and investors.Environmental | Governance | Social |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Vinci Partners 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 Vinci Partners at lower prices. For example, an investor can purchase Vinci 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 Vinci Partners' 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 Vinci Stock
| 0.66 | V | Visa Class A Financial Report 23rd of July 2024 | PairCorr |
Moving against Vinci Stock
| 0.41 | PFLT | PennantPark Floating Rate Fiscal Year End 20th of November 2024 | PairCorr |
Vinci Partners Market Sensitivity And Downside Risk
Vinci Partners' beta coefficient measures the volatility of Vinci stock compared to the systematic risk of the entire 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 Vinci stock's returns against your selected market. In other words, Vinci Partners's beta of 0.26 provides an investor with an approximation of how much risk Vinci Partners stock can potentially add to one of your existing portfolios. Vinci Partners Investments has relatively low volatility with skewness of 0.59 and kurtosis of 0.76. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Vinci Partners' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Vinci Partners' 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 financial instruments as prices fall.
3 Months Beta |Analyze Vinci Partners Inves Demand TrendCheck current 90 days Vinci Partners correlation with market (NYSE Composite)Vinci Beta |
Vinci standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity 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 | 1.76 |
It is essential to understand the difference between upside risk (as represented by Vinci Partners's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Vinci Partners' daily returns or price. Since the actual investment returns on holding a position in vinci 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 Vinci Partners.
Using Vinci Put Option to Manage Risk
Put options written on Vinci Partners grant holders of the option the right to sell a specified amount of Vinci Partners 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 Vinci Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Vinci Partners' 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 Vinci Partners will be realized, the loss incurred will be offset by the profits made with the option trade.
Vinci Partners' PUT expiring on 2024-06-21
Profit |
| Vinci Partners Price At Expiration |
Vinci Partners Inves Stock Volatility Analysis
Volatility refers to the frequency at which Vinci Partners stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Vinci Partners' price changes. Investors will then calculate the volatility of Vinci Partners' 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 Vinci Partners' volatility:
Historical Volatility
This type of stock volatility measures Vinci Partners' fluctuations based on previous trends. It's commonly used to predict Vinci Partners' 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 Vinci Partners' 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 Vinci Partners' 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. Vinci Partners Inves 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.
Vinci Partners Projected Return Density Against Market
Given the investment horizon of 90 days Vinci Partners has a beta of 0.2603 . This entails as returns on the market go up, Vinci Partners average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Vinci Partners Investments 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 Vinci Partners or Capital Markets 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 Vinci Partners' 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 Vinci 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.
Vinci Partners Investments has an alpha of 0.0164, implying that it can generate a 0.0164 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Vinci Partners Price Volatility?
Several factors can influence a stock's market 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.Vinci Partners Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Vinci Partners is 4705.93. The daily returns are distributed with a variance of 3.09 and standard deviation of 1.76. The mean deviation of Vinci Partners Investments is currently at 1.29. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.63
α | Alpha over NYSE Composite | 0.02 | |
β | Beta against NYSE Composite | 0.26 | |
σ | Overall volatility | 1.76 | |
Ir | Information ratio | -0.0016 |
Vinci Partners Stock Return Volatility
Vinci Partners historical daily return volatility represents how much of Vinci Partners stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The enterprise inherits 1.7567% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.6325% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Vinci Partners Volatility
Volatility is a rate at which the price of Vinci Partners 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 Vinci Partners may increase or decrease. In other words, similar to Vinci's beta indicator, it measures the risk of Vinci Partners and helps estimate the fluctuations that may happen in a short period of time. So if prices of Vinci Partners 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 Reported | Projected for Next Year | ||
| Market Cap | 2.9 B | 3.9 B |
Vinci Partners' stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Vinci Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Vinci Partners' price varies over time.
3 ways to utilize Vinci Partners' volatility to invest better
Higher Vinci Partners' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Vinci Partners Inves stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Vinci Partners Inves stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Vinci Partners Inves investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Vinci Partners' stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Vinci Partners' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Vinci Partners Investment Opportunity
Vinci Partners Investments has a volatility of 1.76 and is 2.79 times more volatile than NYSE Composite. 15 percent of all equities and portfolios are less risky than Vinci Partners. You can use Vinci Partners Investments to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Vinci Partners to be traded at $12.94 in 90 days.Significant diversification
The correlation between Vinci Partners Investments and NYA is 0.09 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vinci Partners Investments and NYA in the same portfolio, assuming nothing else is changed.
Vinci Partners Additional Risk Indicators
The analysis of Vinci Partners' 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 Vinci Partners' investment and either accepting that risk or mitigating it. Along with some common measures of Vinci Partners 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 | 0.0184 | |||
| Market Risk Adjusted Performance | 0.099 | |||
| Mean Deviation | 1.29 | |||
| Semi Deviation | 1.49 | |||
| Downside Deviation | 1.55 | |||
| Coefficient Of Variation | 5241.11 | |||
| Standard Deviation | 1.74 |
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.
Vinci Partners 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 Vinci Partners 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. Vinci Partners' 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, Vinci Partners' 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 Vinci Partners Investments.
Additional Tools for Vinci Stock Analysis
When running Vinci Partners' price analysis, check to measure Vinci Partners' 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 Vinci Partners is operating at the current time. Most of Vinci Partners' value examination focuses on studying past and present price action to predict the probability of Vinci Partners' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Vinci Partners' price. Additionally, you may evaluate how the addition of Vinci Partners to your portfolios can decrease your overall portfolio volatility.