Avalonbay Communities Stock Market Value
| AVB Stock | USD 191.34 2.68 1.42% |
| Symbol | AvalonBay |
AvalonBay Communities Price To Book Ratio
Is AvalonBay Communities' 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 AvalonBay Communities. If investors know AvalonBay 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 AvalonBay Communities 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 (0.01) | Earnings Share 6.56 | Revenue Per Share 19.683 | Quarterly Revenue Growth 0.107 | Return On Assets 0.0273 |
The market value of AvalonBay Communities is measured differently than its book value, which is the value of AvalonBay that is recorded on the company's balance sheet. Investors also form their own opinion of AvalonBay Communities' value that differs from its market value or its book value, called intrinsic value, which is AvalonBay Communities' 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 AvalonBay Communities' market value can be influenced by many factors that don't directly affect AvalonBay Communities' 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 AvalonBay Communities' value and its price as these two are different measures arrived at by different means. Investors typically determine if AvalonBay Communities is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, AvalonBay Communities' 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.
AvalonBay Communities '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 AvalonBay Communities' 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 AvalonBay Communities.
| 03/26/2024 |
| 04/25/2024 |
If you would invest 0.00 in AvalonBay Communities on March 26, 2024 and sell it all today you would earn a total of 0.00 from holding AvalonBay Communities or generate 0.0% return on investment in AvalonBay Communities over 30 days. AvalonBay Communities is related to or competes with Equinix, Iron Mountain, American Tower, Hannon Armstrong, and Gaming Leisure. As of December 31, 2020, the Company owned or held a direct or indirect ownership interest in 291 apartment communities ... More
AvalonBay Communities 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 AvalonBay Communities' 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 AvalonBay Communities upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.26 | |||
| Information Ratio | 0.0133 | |||
| Maximum Drawdown | 6.23 | |||
| Value At Risk | (1.98) | |||
| Potential Upside | 2.64 |
AvalonBay Communities Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for AvalonBay Communities' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as AvalonBay Communities' standard deviation. In reality, there are many statistical measures that can use AvalonBay Communities historical prices to predict the future AvalonBay Communities' volatility.| Risk Adjusted Performance | 0.0567 | |||
| Jensen Alpha | 0.0153 | |||
| Total Risk Alpha | (0.06) | |||
| Sortino Ratio | 0.0133 | |||
| Treynor Ratio | 0.0929 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of AvalonBay Communities' 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.
AvalonBay Communities Backtested Returns
We consider AvalonBay Communities very steady. AvalonBay Communities secures Sharpe Ratio (or Efficiency) of 0.11, which signifies that the company had a 0.11% return per unit of standard deviation over the last 3 months. We have found thirty technical indicators for AvalonBay Communities, which you can use to evaluate the volatility of the firm. Please confirm AvalonBay Communities' risk adjusted performance of 0.0567, and Mean Deviation of 0.9772 to double-check if the risk estimate we provide is consistent with the expected return of 0.14%. AvalonBay Communities has a performance score of 8 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 1.02, which signifies a somewhat significant risk relative to the market. AvalonBay Communities returns are very sensitive to returns on the market. As the market goes up or down, AvalonBay Communities is expected to follow. AvalonBay Communities right now shows a risk of 1.27%. Please confirm AvalonBay Communities semi deviation, sortino ratio, semi variance, as well as the relationship between the standard deviation and value at risk , to decide if AvalonBay Communities will be following its price patterns.
Auto-correlation | 0.71 |
Good predictability
AvalonBay Communities has good predictability. Overlapping area represents the amount of predictability between AvalonBay Communities time series from 26th of March 2024 to 10th of April 2024 and 10th of April 2024 to 25th 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 AvalonBay Communities price movement. The serial correlation of 0.71 indicates that around 71.0% of current AvalonBay Communities price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.71 | |
| Spearman Rank Test | 0.69 | |
| Residual Average | 0.0 | |
| Price Variance | 12.59 |
AvalonBay Communities lagged returns against current returns
Autocorrelation, which is AvalonBay Communities 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 AvalonBay Communities' stock expected returns. We can calculate the autocorrelation of AvalonBay Communities returns to help us make a trade decision. For example, suppose you find that AvalonBay Communities 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 |
AvalonBay Communities 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 AvalonBay Communities stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if AvalonBay Communities stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in AvalonBay Communities stock over time.
Current vs Lagged Prices |
| Timeline |
AvalonBay Communities Lagged Returns
When evaluating AvalonBay Communities' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of AvalonBay Communities stock have on its future price. AvalonBay Communities 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, AvalonBay Communities autocorrelation shows the relationship between AvalonBay Communities stock current value and its past values and can show if there is a momentum factor associated with investing in AvalonBay Communities.
Regressed Prices |
| Timeline |
Pair Trading with AvalonBay Communities
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 AvalonBay Communities 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 AvalonBay Communities will appreciate offsetting losses from the drop in the long position's value.Moving against AvalonBay Stock
| 0.68 | ADC-PA | Agree Realty | PairCorr |
| 0.53 | KW | Kennedy Wilson Holdings Financial Report 1st of May 2024 | PairCorr |
| 0.52 | REXR | Rexford Industrial Realty | PairCorr |
| 0.46 | UE | Urban Edge Properties Financial Report 14th of May 2024 | PairCorr |
| 0.43 | FR | First Industrial Realty | PairCorr |
The ability to find closely correlated positions to AvalonBay Communities could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace AvalonBay Communities 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 AvalonBay Communities - 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 AvalonBay Communities to buy it.
The correlation of AvalonBay Communities 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 AvalonBay Communities moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if AvalonBay Communities 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 AvalonBay Communities 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 AvalonBay Communities Correlation, AvalonBay Communities Volatility and AvalonBay Communities Alpha and Beta module to complement your research on AvalonBay Communities. For information on how to trade AvalonBay Stock refer to our How to Trade AvalonBay Stock guide.You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Complementary Tools for AvalonBay Stock analysis
When running AvalonBay Communities' price analysis, check to measure AvalonBay Communities' 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 AvalonBay Communities is operating at the current time. Most of AvalonBay Communities' value examination focuses on studying past and present price action to predict the probability of AvalonBay Communities' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move AvalonBay Communities' price. Additionally, you may evaluate how the addition of AvalonBay Communities to your portfolios can decrease your overall portfolio volatility.
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AvalonBay Communities 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.