Veeco Instruments Stock Volatility
| VECO Stock | USD 21.16 0.47 2.17% |
Veeco Instruments owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.17, which indicates the firm had a -0.17 % return per unit of risk over the last 3 months. Veeco Instruments exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Veeco Instruments' Coefficient Of Variation of (700.65), risk adjusted performance of (0.12), and Variance of 5.9 to confirm the risk estimate we provide. Key indicators related to Veeco Instruments' volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Veeco Instruments 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 Veeco daily returns, and it is calculated using variance and standard deviation. We also use Veeco's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Veeco Instruments volatility.
Veeco |
ESG Sustainability
While most ESG disclosures are voluntary, Veeco Instruments' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Veeco Instruments' managers and investors.Environmental | Governance | Social |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Veeco Instruments 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 Veeco Instruments at lower prices. For example, an investor can purchase Veeco 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 Veeco Instruments' 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 Veeco Stock
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| 0.87 | MXL | MaxLinear | PairCorr |
Moving against Veeco Stock
| 0.68 | LEDS | SemiLEDS Tech Boost | PairCorr |
| 0.55 | MQ | Marqeta | PairCorr |
| 0.42 | INTC | Intel | PairCorr |
| 0.32 | HIMX | Himax Technologies | PairCorr |
Veeco Instruments Market Sensitivity And Downside Risk
Veeco Instruments' beta coefficient measures the volatility of Veeco 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 Veeco stock's returns against your selected market. In other words, Veeco Instruments's beta of 0.68 provides an investor with an approximation of how much risk Veeco Instruments stock can potentially add to one of your existing portfolios. Veeco Instruments exhibits very low volatility with skewness of -0.51 and kurtosis of 0.93. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Veeco Instruments' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Veeco Instruments' 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 Veeco Instruments Demand TrendCheck current 90 days Veeco Instruments correlation with market (Dow Jones Industrial)Veeco Beta |
Veeco 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 | 2.49 |
It is essential to understand the difference between upside risk (as represented by Veeco Instruments's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Veeco Instruments' daily returns or price. Since the actual investment returns on holding a position in veeco 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 Veeco Instruments.
Using Veeco Put Option to Manage Risk
Put options written on Veeco Instruments grant holders of the option the right to sell a specified amount of Veeco Instruments 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 Veeco Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Veeco Instruments' 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 Veeco Instruments will be realized, the loss incurred will be offset by the profits made with the option trade.
Veeco Instruments' PUT expiring on 2025-05-16
Profit |
| Veeco Instruments Price At Expiration |
Veeco Instruments Stock Volatility Analysis
Volatility refers to the frequency at which Veeco Instruments stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Veeco Instruments' price changes. Investors will then calculate the volatility of Veeco Instruments' 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 Veeco Instruments' volatility:
Historical Volatility
This type of stock volatility measures Veeco Instruments' fluctuations based on previous trends. It's commonly used to predict Veeco Instruments' 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 Veeco Instruments' 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 Veeco Instruments' 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. Veeco Instruments 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.
Veeco Instruments Projected Return Density Against Market
Given the investment horizon of 90 days Veeco Instruments has a beta of 0.6779 . This entails as returns on the market go up, Veeco Instruments average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Veeco Instruments 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 Veeco Instruments or Semiconductors & Semiconductor Equipment 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 Veeco Instruments' 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 Veeco 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.
Veeco Instruments has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Predicted Return Density |
| Returns |
What Drives a Veeco Instruments 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.Veeco Instruments Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Veeco Instruments is -601.6. The daily returns are distributed with a variance of 6.22 and standard deviation of 2.49. The mean deviation of Veeco Instruments is currently at 1.91. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.89
α | Alpha over Dow Jones | -0.31 | |
β | Beta against Dow Jones | 0.68 | |
σ | Overall volatility | 2.49 | |
Ir | Information ratio | -0.12 |
Veeco Instruments Stock Return Volatility
Veeco Instruments historical daily return volatility represents how much of Veeco Instruments stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 2.4936% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8446% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Veeco Instruments Volatility
Volatility is a rate at which the price of Veeco Instruments 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 Veeco Instruments may increase or decrease. In other words, similar to Veeco's beta indicator, it measures the risk of Veeco Instruments and helps estimate the fluctuations that may happen in a short period of time. So if prices of Veeco Instruments 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 | 834.5 M | 491.6 M |
Veeco Instruments' 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 Veeco Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Veeco Instruments' price varies over time.
3 ways to utilize Veeco Instruments' volatility to invest better
Higher Veeco Instruments' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Veeco Instruments 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. Veeco Instruments 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 Veeco Instruments investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Veeco Instruments' 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 Veeco Instruments' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Veeco Instruments Investment Opportunity
Veeco Instruments has a volatility of 2.49 and is 2.96 times more volatile than Dow Jones Industrial. 22 percent of all equities and portfolios are less risky than Veeco Instruments. You can use Veeco Instruments to protect your portfolios against small market fluctuations. The stock experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of Veeco Instruments to be traded at $20.31 in 90 days.Modest diversification
The correlation between Veeco Instruments and DJI is 0.25 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Veeco Instruments and DJI in the same portfolio, assuming nothing else is changed.
Veeco Instruments Additional Risk Indicators
The analysis of Veeco Instruments' 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 Veeco Instruments' investment and either accepting that risk or mitigating it. Along with some common measures of Veeco Instruments 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 | (0.12) | |||
| Market Risk Adjusted Performance | (0.52) | |||
| Mean Deviation | 1.84 | |||
| Coefficient Of Variation | (700.65) | |||
| Standard Deviation | 2.43 | |||
| Variance | 5.9 | |||
| Information Ratio | (0.12) |
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.
Veeco Instruments 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 Veeco Instruments 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. Veeco Instruments' 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, Veeco Instruments' 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 Veeco Instruments.
When determining whether Veeco Instruments offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Veeco Instruments' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Veeco Instruments Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Veeco Instruments Stock: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Veeco Instruments. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. To learn how to invest in Veeco Stock, please use our How to Invest in Veeco Instruments guide.You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Is Semiconductors & Semiconductor Equipment space 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 Veeco Instruments. If investors know Veeco 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 Veeco Instruments 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 (0.30) | Earnings Share 1.23 | Revenue Per Share | Quarterly Revenue Growth 0.047 | Return On Assets |
The market value of Veeco Instruments is measured differently than its book value, which is the value of Veeco that is recorded on the company's balance sheet. Investors also form their own opinion of Veeco Instruments' value that differs from its market value or its book value, called intrinsic value, which is Veeco Instruments' 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 Veeco Instruments' market value can be influenced by many factors that don't directly affect Veeco Instruments' 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 Veeco Instruments' value and its price as these two are different measures arrived at by different means. Investors typically determine if Veeco Instruments is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Veeco Instruments' 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.