Applied Opt Stock Market Value
AAOI Stock | USD 11.13 0.99 8.17% |
Symbol | Applied |
Applied Opt Price To Book Ratio
Is Applied Opt's 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 Applied Opt. If investors know Applied 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 Applied Opt listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (1.75) | Revenue Per Share 6.813 | Quarterly Revenue Growth (0.02) | Return On Assets (0.06) | Return On Equity (0.28) |
The market value of Applied Opt is measured differently than its book value, which is the value of Applied that is recorded on the company's balance sheet. Investors also form their own opinion of Applied Opt's value that differs from its market value or its book value, called intrinsic value, which is Applied Opt'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 Applied Opt's market value can be influenced by many factors that don't directly affect Applied Opt'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 Applied Opt's value and its price as these two are different measures arrived at by different means. Investors typically determine if Applied Opt is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Applied Opt'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.
Applied Opt '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 Applied Opt's 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 Applied Opt.
05/04/2022 |
| 04/23/2024 |
If you would invest 0.00 in Applied Opt on May 4, 2022 and sell it all today you would earn a total of 0.00 from holding Applied Opt or generate 0.0% return on investment in Applied Opt over 720 days. Applied Opt is related to or competes with Desktop Metal, Fabrinet, Kimball Electronics, Knowles Cor, Deswell Industries, AmpliTech, and Via OptronicsAg. Applied Optoelectronics, Inc. designs, manufactures, and sells various fiber-optic networking products worldwide More
Applied Opt 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 Applied Opt's 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 Applied Opt upside and downside potential and time the market with a certain degree of confidence.
Information Ratio | (0.07) | |||
Maximum Drawdown | 44.45 | |||
Value At Risk | (8.49) | |||
Potential Upside | 8.16 |
Applied Opt Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Applied Opt's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Applied Opt's standard deviation. In reality, there are many statistical measures that can use Applied Opt historical prices to predict the future Applied Opt's volatility.Risk Adjusted Performance | (0.03) | |||
Jensen Alpha | (0.62) | |||
Total Risk Alpha | (1.23) | |||
Treynor Ratio | (0.13) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Applied Opt's 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.
Applied Opt Backtested Returns
Applied Opt secures Sharpe Ratio (or Efficiency) of -0.0647, which signifies that the company had a -0.0647% return per unit of risk over the last 3 months. Applied Opt exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Applied Opt's Standard Deviation of 6.51, risk adjusted performance of (0.03), and Mean Deviation of 4.56 to double-check the risk estimate we provide. The firm shows a Beta (market volatility) of 2.92, which signifies a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Applied Opt will likely underperform. Applied Opt has an expected return of -0.42%. Please make sure to confirm Applied Opt value at risk, as well as the relationship between the accumulation distribution and day typical price , to decide if Applied Opt performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.13 |
Insignificant predictability
Applied Opt has insignificant predictability. Overlapping area represents the amount of predictability between Applied Opt time series from 4th of May 2022 to 29th of April 2023 and 29th of April 2023 to 23rd 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 Applied Opt price movement. The serial correlation of 0.13 indicates that less than 13.0% of current Applied Opt price fluctuation can be explain by its past prices.
Correlation Coefficient | 0.13 | |
Spearman Rank Test | 0.17 | |
Residual Average | 0.0 | |
Price Variance | 32.29 |
Applied Opt lagged returns against current returns
Autocorrelation, which is Applied Opt 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 Applied Opt's stock expected returns. We can calculate the autocorrelation of Applied Opt returns to help us make a trade decision. For example, suppose you find that Applied Opt 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 |
Applied Opt 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 Applied Opt stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Applied Opt stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Applied Opt stock over time.
Current vs Lagged Prices |
Timeline |
Applied Opt Lagged Returns
When evaluating Applied Opt's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Applied Opt stock have on its future price. Applied Opt 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, Applied Opt autocorrelation shows the relationship between Applied Opt stock current value and its past values and can show if there is a momentum factor associated with investing in Applied Opt.
Regressed Prices |
Timeline |
Pair Trading with Applied Opt
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 Applied Opt 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 Applied Opt will appreciate offsetting losses from the drop in the long position's value.Moving against Applied Stock
0.77 | GE | GE Aerospace Earnings Call Today | PairCorr |
0.77 | XOM | Exxon Mobil Corp Earnings Call This Week | PairCorr |
0.74 | AA | Alcoa Corp Financial Report 17th of July 2024 | PairCorr |
0.74 | MMM | 3M Company Earnings Call This Week | PairCorr |
0.64 | WMT | Walmart Financial Report 16th of May 2024 | PairCorr |
The ability to find closely correlated positions to Applied Opt could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Applied Opt 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 Applied Opt - 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 Applied Opt to buy it.
The correlation of Applied Opt 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 Applied Opt moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Applied Opt 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 Applied Opt 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 Applied Opt Correlation, Applied Opt Volatility and Applied Opt Alpha and Beta module to complement your research on Applied Opt. For more detail on how to invest in Applied Stock please use our How to Invest in Applied Opt guide.You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Complementary Tools for Applied Stock analysis
When running Applied Opt's price analysis, check to measure Applied Opt's 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 Applied Opt is operating at the current time. Most of Applied Opt's value examination focuses on studying past and present price action to predict the probability of Applied Opt's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Applied Opt's price. Additionally, you may evaluate how the addition of Applied Opt to your portfolios can decrease your overall portfolio volatility.
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Applied Opt 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.