Vita Coco Stock Volatility
| COCO Stock | USD 36.12 0.51 1.39% |
Vita Coco appears to be very steady, given 3 months investment horizon. Vita Coco owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.25, which indicates the firm had a 0.25% return per unit of risk over the last 3 months. By inspecting Vita Coco's technical indicators, you can evaluate if the expected return of 0.57% is justified by implied risk. Please review Vita Coco's Semi Deviation of 1.5, risk adjusted performance of 0.2, and Coefficient Of Variation of 394.68 to confirm if our risk estimates are consistent with your expectations. Key indicators related to Vita Coco's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
Vita Coco 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 Vita daily returns, and it is calculated using variance and standard deviation. We also use Vita's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Vita Coco volatility.
Vita |
ESG Sustainability
While most ESG disclosures are voluntary, Vita Coco's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Vita Coco's managers and investors.Environmental | Governance | Social |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Vita Coco 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 Vita Coco at lower prices. For example, an investor can purchase Vita 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 Vita Coco's 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 Vita Stock
Moving against Vita Stock
| 0.89 | CL | Colgate Palmolive Fiscal Year End 24th of January 2025 | PairCorr |
| 0.85 | KO | Coca Cola Aggressive Push | PairCorr |
| 0.83 | PEP | PepsiCo | PairCorr |
| 0.82 | EL | Estee Lauder Companies | PairCorr |
| 0.79 | BG | Bunge Limited | PairCorr |
| 0.77 | KDP | Keurig Dr Pepper | PairCorr |
| 0.77 | COKE | Coca Cola Consolidated | PairCorr |
| 0.73 | CELH | Celsius Holdings | PairCorr |
| 0.67 | KOF | Coca Cola Femsa | PairCorr |
Vita Coco Market Sensitivity And Downside Risk
Vita Coco's beta coefficient measures the volatility of Vita 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 Vita stock's returns against your selected market. In other words, Vita Coco's beta of 0.55 provides an investor with an approximation of how much risk Vita Coco stock can potentially add to one of your existing portfolios. Vita Coco currently demonstrates below-average downside deviation. It has Information Ratio of 0.21 and Jensen Alpha of 0.52. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Vita Coco'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 Vita Coco'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 Vita Coco Demand TrendCheck current 90 days Vita Coco correlation with market (Dow Jones Industrial)Vita Beta |
Vita 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 | 2.33 |
It is essential to understand the difference between upside risk (as represented by Vita Coco's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Vita Coco's daily returns or price. Since the actual investment returns on holding a position in vita 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 Vita Coco.
Vita Coco Stock Volatility Analysis
Volatility refers to the frequency at which Vita Coco stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Vita Coco's price changes. Investors will then calculate the volatility of Vita Coco'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 Vita Coco's volatility:
Historical Volatility
This type of stock volatility measures Vita Coco's fluctuations based on previous trends. It's commonly used to predict Vita Coco'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 Vita Coco'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 Vita Coco'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. Vita Coco 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.
Vita Coco Projected Return Density Against Market
Given the investment horizon of 90 days Vita Coco has a beta of 0.549 suggesting as returns on the market go up, Vita Coco average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Vita Coco 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 Vita Coco or Beverages 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 Vita Coco'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 Vita 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.
Vita Coco has an alpha of 0.5205, implying that it can generate a 0.52 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Vita Coco 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.Vita Coco Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Vita Coco is 405.05. The daily returns are distributed with a variance of 5.42 and standard deviation of 2.33. The mean deviation of Vita Coco is currently at 1.63. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.52 | |
β | Beta against Dow Jones | 0.55 | |
σ | Overall volatility | 2.33 | |
Ir | Information ratio | 0.21 |
Vita Coco Stock Return Volatility
Vita Coco historical daily return volatility represents how much of Vita Coco stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 2.3285% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7685% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Vita Coco Volatility
Volatility is a rate at which the price of Vita Coco 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 Vita Coco may increase or decrease. In other words, similar to Vita's beta indicator, it measures the risk of Vita Coco and helps estimate the fluctuations that may happen in a short period of time. So if prices of Vita Coco 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 | ||
| Selling And Marketing Expenses | 14.9 M | 11.6 M | |
| Market Cap | 1.4 B | 756.8 M |
Vita Coco'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 Vita Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Vita Coco's price varies over time.
3 ways to utilize Vita Coco's volatility to invest better
Higher Vita Coco's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Vita Coco 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. Vita Coco 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 Vita Coco investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Vita Coco'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 Vita Coco's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Vita Coco Investment Opportunity
Vita Coco has a volatility of 2.33 and is 3.03 times more volatile than Dow Jones Industrial. 20 percent of all equities and portfolios are less risky than Vita Coco. You can use Vita Coco to protect your portfolios against small market fluctuations. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of Vita Coco to be traded at $35.04 in 90 days.Average diversification
The correlation between Vita Coco and DJI is 0.18 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vita Coco and DJI in the same portfolio, assuming nothing else is changed.
Vita Coco Additional Risk Indicators
The analysis of Vita Coco'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 Vita Coco's investment and either accepting that risk or mitigating it. Along with some common measures of Vita Coco 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 | 0.2 | |||
| Market Risk Adjusted Performance | 1.06 | |||
| Mean Deviation | 1.62 | |||
| Semi Deviation | 1.5 | |||
| Downside Deviation | 2.18 | |||
| Coefficient Of Variation | 394.68 | |||
| Standard Deviation | 2.31 |
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.
Vita Coco 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 Vita Coco 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. Vita Coco'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, Vita Coco'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 Vita Coco.
When determining whether Vita Coco offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Vita Coco's 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 Vita Coco Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Vita Coco Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Vita Coco. 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 Vita Stock, please use our How to Invest in Vita Coco guide.You can also try the Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Is Soft Drinks & Non-alcoholic Beverages 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 Vita Coco. If investors know Vita 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 Vita Coco 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 0.231 | Earnings Share 1 | Revenue Per Share 8.724 | Quarterly Revenue Growth (0.04) | Return On Assets 0.1515 |
The market value of Vita Coco is measured differently than its book value, which is the value of Vita that is recorded on the company's balance sheet. Investors also form their own opinion of Vita Coco's value that differs from its market value or its book value, called intrinsic value, which is Vita Coco's 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 Vita Coco's market value can be influenced by many factors that don't directly affect Vita Coco's 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 Vita Coco's value and its price as these two are different measures arrived at by different means. Investors typically determine if Vita Coco is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Vita Coco's 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.