Will Adobe Systems (USA Stocks:ADBE) continue to dip in February?

Closer look at Adobe Systems Mean Deviation

Adobe Systems Incorporated has current Mean Deviation of 1.88. The mean deviation of the equity instrument is the first measure of the distances between each value of security historical prices and the mean. It gives us an idea of how spread out from the center the distribution of returns.

Mean Deviation is the average of the absolute values of the differences between price distribution numbers and their mean. Mean deviation of equity instrument with a lot of historical data is a biased estimator because the time horizon used in calculation will always be much smaller than the entire price history of the equity. The mean deviation is typically used as a measure of dispersion for small investment horizon, otherwise standard deviation is a better measure of dispersion.

Mean Deviation   =  SUM(RET DEV)  N

=

1.88

SUM	=	Summation notation
RET DEV	=	Sum of return deviations of Adobe Systems
N	=	Number of calculation points for selected time horizon

Let's now compare Adobe Systems Mean Deviation to its closest peers:

	ADBE	1.877293319559229
	INGN	2.12
	AIVOX	1.04
	DPZ	1.68
	TGBAX	0.57

Adobe Systems is projected to stay under USD351 in February

Mean deviation is down to 1.88. It may indicate a possible volatility dip. Adobe Systems Incorporated has relatively low volatility with skewness of 0.89 and kurtosis of 3.14. However, we advise all investors to independently investigate Adobe Systems Incorporated to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Adobe Systems' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Adobe Systems' 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 stocks as prices fall.

The Current Takeaway on Adobe Systems Investment

Although few other entities in the software—infrastructure industry are either recovering or due for a correction, Adobe Systems may not be performing as strong as the other in terms of long-term growth potentials. With an optimistic outlook on your 90 days horizon, it may be a good time to take over new shares of Adobe or increase your existing holdings in the Stock as it seems the potential growth has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Adobe Systems.