Aehr Test Story

Closer look at Aehr Test Mean Deviation

Aehr Test Systems has current Mean Deviation of 4.76. 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

=

4.76

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

Let's now compare Aehr Test Mean Deviation to its closest peers:

	AEHR	4.762488337924702
	DQ	6.76
	EMAN	6.07
	ENTG	2.63
	EVTN	19.16

Time to sell Aehr Test is now

Standard deviation is down to 6.42. It may connote a possible volatility fall. Aehr Test Systems is displaying above-average volatility over the selected time horizon. Investors should scrutinize Aehr Test Systems independently to ensure intended market timing strategies are aligned with expectations about Aehr Test volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Aehr Test's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Aehr Test'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 stocks as prices fall.

Our Final Take On Aehr Test

While few other entities in the semiconductor equipment & materials industry are either recovering or due for a correction, Aehr Test may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither pick up nor short any shares of Aehr Test at this time. The Aehr Test Systems risk-reward trade off is not appealing enough to do any trading. 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 Aehr Test.