Affirm Holdings Stock Market Value
| AFRM Stock | USD 32.08 0.68 2.08% |
| Symbol | Affirm |
Affirm Holdings Price To Book Ratio
Is Affirm Holdings' 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 Affirm Holdings. If investors know Affirm 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 Affirm Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (2.49) | Revenue Per Share 6.338 | Quarterly Revenue Growth 0.479 | Return On Assets (0.07) | Return On Equity (0.29) |
The market value of Affirm Holdings is measured differently than its book value, which is the value of Affirm that is recorded on the company's balance sheet. Investors also form their own opinion of Affirm Holdings' value that differs from its market value or its book value, called intrinsic value, which is Affirm Holdings' 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 Affirm Holdings' market value can be influenced by many factors that don't directly affect Affirm Holdings' 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 Affirm Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if Affirm Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Affirm Holdings' 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.
Affirm Holdings '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 Affirm Holdings' 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 Affirm Holdings.
| 01/26/2024 |
| 04/25/2024 |
If you would invest 0.00 in Affirm Holdings on January 26, 2024 and sell it all today you would earn a total of 0.00 from holding Affirm Holdings or generate 0.0% return on investment in Affirm Holdings over 90 days. Affirm Holdings is related to or competes with Upstart HoldingsInc, SoFi Technologies, RobloxCorp, Robinhood Markets, and Snowflake. Affirm Holdings, Inc. operates a platform for digital and mobile-first commerce in the United States, Canada, and intern... More
Affirm Holdings 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 Affirm Holdings' 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 Affirm Holdings upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.08) | |||
| Maximum Drawdown | 24.18 | |||
| Value At Risk | (8.23) | |||
| Potential Upside | 5.88 |
Affirm Holdings Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Affirm Holdings' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Affirm Holdings' standard deviation. In reality, there are many statistical measures that can use Affirm Holdings historical prices to predict the future Affirm Holdings' volatility.| Risk Adjusted Performance | (0.03) | |||
| Jensen Alpha | (0.62) | |||
| Total Risk Alpha | (0.91) | |||
| Treynor Ratio | (0.08) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Affirm Holdings' 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.
Affirm Holdings Backtested Returns
Affirm Holdings secures Sharpe Ratio (or Efficiency) of -0.0675, which signifies that the company had a -0.0675% return per unit of standard deviation over the last 3 months. Affirm Holdings exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Affirm Holdings' risk adjusted performance of (0.03), and Mean Deviation of 3.34 to double-check the risk estimate we provide. The firm shows a Beta (market volatility) of 3.84, 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, Affirm Holdings will likely underperform. Affirm Holdings has an expected return of -0.31%. Please make sure to confirm Affirm Holdings total risk alpha, as well as the relationship between the skewness and day median price , to decide if Affirm Holdings performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.76 |
Good predictability
Affirm Holdings has good predictability. Overlapping area represents the amount of predictability between Affirm Holdings time series from 26th of January 2024 to 11th of March 2024 and 11th of March 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 Affirm Holdings price movement. The serial correlation of 0.76 indicates that around 76.0% of current Affirm Holdings price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.76 | |
| Spearman Rank Test | 0.59 | |
| Residual Average | 0.0 | |
| Price Variance | 5.47 |
Affirm Holdings lagged returns against current returns
Autocorrelation, which is Affirm Holdings 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 Affirm Holdings' stock expected returns. We can calculate the autocorrelation of Affirm Holdings returns to help us make a trade decision. For example, suppose you find that Affirm Holdings 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 |
Affirm Holdings 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 Affirm Holdings stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Affirm Holdings stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Affirm Holdings stock over time.
Current vs Lagged Prices |
| Timeline |
Affirm Holdings Lagged Returns
When evaluating Affirm Holdings' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Affirm Holdings stock have on its future price. Affirm Holdings 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, Affirm Holdings autocorrelation shows the relationship between Affirm Holdings stock current value and its past values and can show if there is a momentum factor associated with investing in Affirm Holdings.
Regressed Prices |
| Timeline |
Affirm Holdings Investors Sentiment
The influence of Affirm Holdings' 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 Affirm. 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 Affirm Holdings' public news can be used to forecast risks associated with an investment in Affirm. The trend in average sentiment can be used to explain how an investor holding Affirm can time the market purely based on public headlines and social activities around Affirm Holdings. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Affirm Holdings' 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 Affirm Holdings' 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 Affirm Holdings' news discussions. The higher the estimated score, the more favorable is the investor's outlook on Affirm Holdings.
Affirm Holdings Implied Volatility | 106.74 |
Affirm Holdings' implied volatility exposes the market's sentiment of Affirm Holdings stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Affirm Holdings' 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 Affirm Holdings stock will not fluctuate a lot when Affirm Holdings' 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 Affirm Holdings 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, Affirm Holdings' short interest history, or implied volatility extrapolated from Affirm Holdings options trading.
Pair Trading with Affirm Holdings
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 Affirm Holdings 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 Affirm Holdings will appreciate offsetting losses from the drop in the long position's value.Moving together with Affirm Stock
| 0.8 | S | SentinelOne Financial Report 6th of June 2024 | PairCorr |
Moving against Affirm Stock
| 0.73 | DTSS | Datasea | PairCorr |
| 0.72 | GB | Global Blue Group | PairCorr |
| 0.71 | NN | Nextnav Acquisition Corp Tech Boost | PairCorr |
| 0.65 | VERI | Veritone Financial Report 7th of May 2024 | PairCorr |
| 0.5 | SQ | Block Inc Earnings Call This Week | PairCorr |
The ability to find closely correlated positions to Affirm Holdings could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Affirm Holdings 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 Affirm Holdings - 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 Affirm Holdings to buy it.
The correlation of Affirm Holdings 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 Affirm Holdings moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Affirm Holdings 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 Affirm Holdings 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 Affirm Holdings Correlation, Affirm Holdings Volatility and Affirm Holdings Alpha and Beta module to complement your research on Affirm Holdings. To learn how to invest in Affirm Stock, please use our How to Invest in Affirm Holdings guide.You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Complementary Tools for Affirm Stock analysis
When running Affirm Holdings' price analysis, check to measure Affirm Holdings' 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 Affirm Holdings is operating at the current time. Most of Affirm Holdings' value examination focuses on studying past and present price action to predict the probability of Affirm Holdings' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Affirm Holdings' price. Additionally, you may evaluate how the addition of Affirm Holdings to your portfolios can decrease your overall portfolio volatility.
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Affirm Holdings 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.