Akamai Technologies Stock Market Value
| AKAM Stock | USD 101.50 0.77 0.76% |
| Symbol | Akamai |
Akamai Technologies Price To Book Ratio
Is Akamai Technologies' 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 Akamai Technologies. If investors know Akamai 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 Akamai Technologies 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 0.257 | Earnings Share 3.52 | Revenue Per Share 24.995 | Quarterly Revenue Growth 0.072 | Return On Assets 0.0486 |
The market value of Akamai Technologies is measured differently than its book value, which is the value of Akamai that is recorded on the company's balance sheet. Investors also form their own opinion of Akamai Technologies' value that differs from its market value or its book value, called intrinsic value, which is Akamai Technologies' 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 Akamai Technologies' market value can be influenced by many factors that don't directly affect Akamai Technologies' 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 Akamai Technologies' value and its price as these two are different measures arrived at by different means. Investors typically determine if Akamai Technologies is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Akamai Technologies' 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.
Akamai Technologies 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Akamai Technologies' stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Akamai Technologies.
| 01/20/2024 |
| 04/19/2024 |
If you would invest 0.00 in Akamai Technologies on January 20, 2024 and sell it all today you would earn a total of 0.00 from holding Akamai Technologies or generate 0.0% return on investment in Akamai Technologies over 90 days. Akamai Technologies is related to or competes with Crowdstrike Holdings, Cloudflare, Palo Alto, Zscaler, Uipath, Adobe Systems, and Nutanix. Akamai Technologies, Inc. provides cloud services for securing, delivering, and optimizing content and business applicat... More
Akamai Technologies Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Akamai Technologies' stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Akamai Technologies upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.20) | |||
| Maximum Drawdown | 9.57 | |||
| Value At Risk | (2.42) | |||
| Potential Upside | 1.65 |
Akamai Technologies Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Akamai Technologies' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Akamai Technologies' standard deviation. In reality, there are many statistical measures that can use Akamai Technologies historical prices to predict the future Akamai Technologies' volatility.| Risk Adjusted Performance | (0.09) | |||
| Jensen Alpha | (0.28) | |||
| Total Risk Alpha | (0.39) | |||
| Treynor Ratio | (0.40) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Akamai Technologies' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Akamai Technologies Backtested Returns
Akamai Technologies secures Sharpe Ratio (or Efficiency) of -0.19, which signifies that the company had a -0.19% return per unit of standard deviation over the last 3 months. Akamai Technologies exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Akamai Technologies' mean deviation of 0.993, and Risk Adjusted Performance of (0.09) to double-check the risk estimate we provide. The firm shows a Beta (market volatility) of 0.6, which signifies possible diversification benefits within a given portfolio. As returns on the market increase, Akamai Technologies' returns are expected to increase less than the market. However, during the bear market, the loss of holding Akamai Technologies is expected to be smaller as well. Akamai Technologies has an expected return of -0.29%. Please make sure to confirm Akamai Technologies treynor ratio, and the relationship between the standard deviation and kurtosis , to decide if Akamai Technologies performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.68 |
Good predictability
Akamai Technologies has good predictability. Overlapping area represents the amount of predictability between Akamai Technologies time series from 20th of January 2024 to 5th of March 2024 and 5th of March 2024 to 19th of April 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Akamai Technologies price movement. The serial correlation of 0.68 indicates that around 68.0% of current Akamai Technologies price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.68 | |
| Spearman Rank Test | 0.51 | |
| Residual Average | 0.0 | |
| Price Variance | 7.92 |
Akamai Technologies lagged returns against current returns
Autocorrelation, which is Akamai Technologies stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Akamai Technologies' stock expected returns. We can calculate the autocorrelation of Akamai Technologies returns to help us make a trade decision. For example, suppose you find that Akamai Technologies has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Akamai Technologies regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Akamai Technologies stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Akamai Technologies stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Akamai Technologies stock over time.
Current vs Lagged Prices |
| Timeline |
Akamai Technologies Lagged Returns
When evaluating Akamai Technologies' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Akamai Technologies stock have on its future price. Akamai Technologies autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Akamai Technologies autocorrelation shows the relationship between Akamai Technologies stock current value and its past values and can show if there is a momentum factor associated with investing in Akamai Technologies.
Regressed Prices |
| Timeline |
Akamai Technologies Investors Sentiment
The influence of Akamai Technologies' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Akamai. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Akamai Technologies' public news can be used to forecast risks associated with an investment in Akamai. The trend in average sentiment can be used to explain how an investor holding Akamai can time the market purely based on public headlines and social activities around Akamai Technologies. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Akamai Technologies' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Akamai Technologies' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Akamai Technologies' news discussions. The higher the estimated score, the more favorable is the investor's outlook on Akamai Technologies.
Akamai Technologies Implied Volatility | 35.08 |
Akamai Technologies' implied volatility exposes the market's sentiment of Akamai Technologies stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Akamai Technologies' 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 Akamai Technologies stock will not fluctuate a lot when Akamai Technologies' options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Akamai Technologies in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Akamai Technologies' short interest history, or implied volatility extrapolated from Akamai Technologies options trading.
Pair Trading with Akamai Technologies
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Akamai Technologies position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Akamai Technologies will appreciate offsetting losses from the drop in the long position's value.Moving together with Akamai Stock
| 0.61 | S | SentinelOne Financial Report 6th of June 2024 | PairCorr |
| 0.68 | JG | Aurora Mobile | PairCorr |
Moving against Akamai Stock
| 0.89 | DTSS | Datasea | PairCorr |
| 0.67 | SQ | Block Inc Financial Report 2nd of May 2024 | PairCorr |
| 0.65 | GB | Global Blue Group Downward Rally | PairCorr |
| 0.63 | NN | Nextnav Acquisition Corp Tech Boost | PairCorr |
| 0.61 | VERI | Veritone Financial Report 7th of May 2024 | PairCorr |
The ability to find closely correlated positions to Akamai Technologies could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Akamai Technologies when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Akamai Technologies - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Akamai Technologies to buy it.
The correlation of Akamai Technologies is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Akamai Technologies moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Akamai Technologies moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Akamai Technologies can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Akamai Technologies Correlation, Akamai Technologies Volatility and Akamai Technologies Alpha and Beta module to complement your research on Akamai Technologies. To learn how to invest in Akamai Stock, please use our How to Invest in Akamai Technologies guide.Note that the Akamai Technologies information on this page should be used as a complementary analysis to other Akamai Technologies' 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 the Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Complementary Tools for Akamai Stock analysis
When running Akamai Technologies' price analysis, check to measure Akamai Technologies' 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 Akamai Technologies is operating at the current time. Most of Akamai Technologies' value examination focuses on studying past and present price action to predict the probability of Akamai Technologies' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Akamai Technologies' price. Additionally, you may evaluate how the addition of Akamai Technologies to your portfolios can decrease your overall portfolio volatility.
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Akamai Technologies technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.