Ark Innovation Etf Market Value
| ARKK Etf | USD 43.87 1.27 2.98% |
| Symbol | ARK |
The market value of ARK Innovation ETF is measured differently than its book value, which is the value of ARK that is recorded on the company's balance sheet. Investors also form their own opinion of ARK Innovation's value that differs from its market value or its book value, called intrinsic value, which is ARK Innovation'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 ARK Innovation's market value can be influenced by many factors that don't directly affect ARK Innovation'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 ARK Innovation's value and its price as these two are different measures arrived at by different means. Investors typically determine if ARK Innovation is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ARK Innovation'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.
ARK Innovation '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 ARK Innovation's etf 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 ARK Innovation.
| 05/05/2022 |
| 04/24/2024 |
If you would invest 0.00 in ARK Innovation on May 5, 2022 and sell it all today you would earn a total of 0.00 from holding ARK Innovation ETF or generate 0.0% return on investment in ARK Innovation over 720 days. ARK Innovation is related to or competes with Vanguard Small, Vanguard Mid, Vanguard Small, Vanguard Mid, and Vanguard Large. The fund is an actively-managed exchange-traded fund that will invest under normal circumstances primarily in domestic a... More
ARK Innovation 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 ARK Innovation's etf 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 ARK Innovation ETF upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.08) | |||
| Maximum Drawdown | 10.37 | |||
| Value At Risk | (3.51) | |||
| Potential Upside | 3.45 |
ARK Innovation Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for ARK Innovation's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as ARK Innovation's standard deviation. In reality, there are many statistical measures that can use ARK Innovation historical prices to predict the future ARK Innovation's volatility.| Risk Adjusted Performance | (0.02) | |||
| Jensen Alpha | (0.14) | |||
| Total Risk Alpha | (0.41) | |||
| Treynor Ratio | (0.20) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of ARK Innovation'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.
ARK Innovation ETF Backtested Returns
ARK Innovation ETF secures Sharpe Ratio (or Efficiency) of -0.0183, which signifies that the etf had a -0.0183% return per unit of return volatility over the last 3 months. ARK Innovation ETF exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm ARK Innovation's Coefficient Of Variation of (2,552), risk adjusted performance of (0.02), and Mean Deviation of 1.78 to double-check the risk estimate we provide. The etf shows a Beta (market volatility) of 0.5, which signifies possible diversification benefits within a given portfolio. As returns on the market increase, ARK Innovation's returns are expected to increase less than the market. However, during the bear market, the loss of holding ARK Innovation is expected to be smaller as well.
Auto-correlation | -0.17 |
Insignificant reverse predictability
ARK Innovation ETF has insignificant reverse predictability. Overlapping area represents the amount of predictability between ARK Innovation time series from 5th of May 2022 to 30th of April 2023 and 30th of April 2023 to 24th 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 ARK Innovation ETF price movement. The serial correlation of -0.17 indicates that over 17.0% of current ARK Innovation price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.17 | |
| Spearman Rank Test | -0.43 | |
| Residual Average | 0.0 | |
| Price Variance | 22.6 |
ARK Innovation ETF lagged returns against current returns
Autocorrelation, which is ARK Innovation etf'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 ARK Innovation's etf expected returns. We can calculate the autocorrelation of ARK Innovation returns to help us make a trade decision. For example, suppose you find that ARK Innovation has exhibited high autocorrelation historically, and you observe that the etf 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 |
ARK Innovation 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 ARK Innovation etf is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if ARK Innovation etf is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in ARK Innovation etf over time.
Current vs Lagged Prices |
| Timeline |
ARK Innovation Lagged Returns
When evaluating ARK Innovation's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of ARK Innovation etf have on its future price. ARK Innovation 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, ARK Innovation autocorrelation shows the relationship between ARK Innovation etf current value and its past values and can show if there is a momentum factor associated with investing in ARK Innovation ETF.
Regressed Prices |
| Timeline |
Pair Trading with ARK Innovation
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 ARK Innovation 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 ARK Innovation will appreciate offsetting losses from the drop in the long position's value.Moving together with ARK Etf
| 0.62 | IWP | iShares Russell Mid | PairCorr |
| 0.7 | KOMP | SPDR Kensho New | PairCorr |
The ability to find closely correlated positions to ARK Innovation could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ARK Innovation 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 ARK Innovation - 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 ARK Innovation ETF to buy it.
The correlation of ARK Innovation 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 ARK Innovation moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ARK Innovation ETF 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 ARK Innovation 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 ARK Innovation Correlation, ARK Innovation Volatility and ARK Innovation Alpha and Beta module to complement your research on ARK Innovation. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
ARK Innovation technical etf 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, etf market cycles, or different charting patterns.