Vera Bradley Stock Volatility

VRA Stock  USD 3.14  0.08  2.48%   
Vera Bradley owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.21, which indicates the firm had a -0.21 % return per unit of risk over the last 3 months. Vera Bradley exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Vera Bradley's Risk Adjusted Performance of (0.11), coefficient of variation of (635.64), and Variance of 17.78 to confirm the risk estimate we provide. Key indicators related to Vera Bradley's volatility include:
90 Days Market Risk
Chance Of Distress
90 Days Economic Sensitivity
Vera Bradley 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 Vera daily returns, and it is calculated using variance and standard deviation. We also use Vera's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Vera Bradley volatility.
  

ESG Sustainability

While most ESG disclosures are voluntary, Vera Bradley's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Vera Bradley's managers and investors.
Environmental
Governance
Social
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Vera Bradley can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game as hey may decide to buy additional stocks of Vera Bradley at lower prices to lower their average cost per share. Similarly, when the prices of Vera Bradley's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.

Moving together with Vera Stock

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Moving against Vera Stock

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Vera Bradley Market Sensitivity And Downside Risk

Vera Bradley's beta coefficient measures the volatility of Vera 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 Vera stock's returns against your selected market. In other words, Vera Bradley's beta of 0.51 provides an investor with an approximation of how much risk Vera Bradley stock can potentially add to one of your existing portfolios. Vera Bradley exhibits very low volatility with skewness of -0.35 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 Vera Bradley's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Vera Bradley's 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 Vera Bradley Demand Trend
Check current 90 days Vera Bradley correlation with market (Dow Jones Industrial)

Vera Beta

    
  0.51  
Vera 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

    
  4.27  
It is essential to understand the difference between upside risk (as represented by Vera Bradley's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Vera Bradley's daily returns or price. Since the actual investment returns on holding a position in vera 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 Vera Bradley.

Using Vera Put Option to Manage Risk

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

Vera Bradley's PUT expiring on 2025-05-16

   Profit   
       Vera Bradley Price At Expiration  

Current Vera Bradley Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
VRA250516P00005000-0.9264630.14842942025-05-161.75 - 2.00.0View
View All Vera Bradley Options

Vera Bradley Stock Volatility Analysis

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

Historical Volatility

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

Vera Bradley Projected Return Density Against Market

Considering the 90-day investment horizon Vera Bradley has a beta of 0.5082 . This entails as returns on the market go up, Vera Bradley average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Vera Bradley 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 Vera Bradley or Textiles, Apparel & Luxury Goods 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 Vera Bradley'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 Vera 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.
Vera Bradley 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  
Vera Bradley's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how vera 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 Vera Bradley 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.

Vera Bradley Stock Risk Measures

Considering the 90-day investment horizon the coefficient of variation of Vera Bradley is -467.7. The daily returns are distributed with a variance of 18.24 and standard deviation of 4.27. The mean deviation of Vera Bradley is currently at 3.37. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.73
α
Alpha over Dow Jones
-0.68
β
Beta against Dow Jones0.51
σ
Overall volatility
4.27
Ir
Information ratio -0.16

Vera Bradley Stock Return Volatility

Vera Bradley historical daily return volatility represents how much of Vera Bradley stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company has volatility of 4.2708% on return distribution over 90 days investment horizon. By contrast, Dow Jones Industrial accepts 0.7329% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Vera Bradley Volatility

Volatility is a rate at which the price of Vera Bradley 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 Vera Bradley may increase or decrease. In other words, similar to Vera's beta indicator, it measures the risk of Vera Bradley and helps estimate the fluctuations that may happen in a short period of time. So if prices of Vera Bradley 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 Next Year
Selling And Marketing Expenses63.2 M59.9 M
Market Cap792.6 M840.5 M
Vera Bradley's 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 Vera Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Vera Bradley's price varies over time.

3 ways to utilize Vera Bradley's volatility to invest better

Higher Vera Bradley's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Vera Bradley 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. Vera Bradley 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 Vera Bradley investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Vera Bradley's 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 Vera Bradley's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Vera Bradley Investment Opportunity

Vera Bradley has a volatility of 4.27 and is 5.85 times more volatile than Dow Jones Industrial. 38 percent of all equities and portfolios are less risky than Vera Bradley. You can use Vera Bradley 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 Vera Bradley to be traded at $3.01 in 90 days.

Significant diversification

The correlation between Vera Bradley and DJI 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 Vera Bradley and DJI in the same portfolio, assuming nothing else is changed.

Vera Bradley Additional Risk Indicators

The analysis of Vera Bradley'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 Vera Bradley's investment and either accepting that risk or mitigating it. Along with some common measures of Vera Bradley 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.

Vera Bradley 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 Vera Bradley 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. Vera Bradley'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, Vera Bradley'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 Vera Bradley.

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When running Vera Bradley's price analysis, check to measure Vera Bradley'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 Vera Bradley is operating at the current time. Most of Vera Bradley's value examination focuses on studying past and present price action to predict the probability of Vera Bradley's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Vera Bradley's price. Additionally, you may evaluate how the addition of Vera Bradley to your portfolios can decrease your overall portfolio volatility.
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