Arrow Electronics Stock Market Value
| ARW Stock | USD 127.58 2.56 2.05% |
| Symbol | Arrow |
Arrow Electronics Price To Book Ratio
Is Arrow Electronics' 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 Arrow Electronics. If investors know Arrow 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 Arrow Electronics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.38) | Earnings Share 15.84 | Revenue Per Share 587.433 | Quarterly Revenue Growth (0.16) | Return On Assets 0.0456 |
The market value of Arrow Electronics is measured differently than its book value, which is the value of Arrow that is recorded on the company's balance sheet. Investors also form their own opinion of Arrow Electronics' value that differs from its market value or its book value, called intrinsic value, which is Arrow Electronics' 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 Arrow Electronics' market value can be influenced by many factors that don't directly affect Arrow Electronics' 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 Arrow Electronics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Arrow Electronics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Arrow Electronics' 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.
Arrow Electronics '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 Arrow Electronics' 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 Arrow Electronics.
| 10/27/2023 |
| 04/24/2024 |
If you would invest 0.00 in Arrow Electronics on October 27, 2023 and sell it all today you would earn a total of 0.00 from holding Arrow Electronics or generate 0.0% return on investment in Arrow Electronics over 180 days. Arrow Electronics is related to or competes with Insight Enterprises, PC Connection, and Snap One. Arrow Electronics, Inc. provides products, services, and solutions to industrial and commercial users of electronic comp... More
Arrow Electronics 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 Arrow Electronics' 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 Arrow Electronics upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.33 | |||
| Information Ratio | 0.0121 | |||
| Maximum Drawdown | 7.05 | |||
| Value At Risk | (2.20) | |||
| Potential Upside | 2.64 |
Arrow Electronics Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Arrow Electronics' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Arrow Electronics' standard deviation. In reality, there are many statistical measures that can use Arrow Electronics historical prices to predict the future Arrow Electronics' volatility.| Risk Adjusted Performance | 0.0559 | |||
| Jensen Alpha | (0.02) | |||
| Total Risk Alpha | (0.09) | |||
| Sortino Ratio | 0.0127 | |||
| Treynor Ratio | 0.0737 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Arrow Electronics' 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.
Arrow Electronics Backtested Returns
We consider Arrow Electronics very steady. Arrow Electronics secures Sharpe Ratio (or Efficiency) of 0.0989, which signifies that the company had a 0.0989% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Arrow Electronics, which you can use to evaluate the volatility of the firm. Please confirm Arrow Electronics' Risk Adjusted Performance of 0.0559, downside deviation of 1.33, and Mean Deviation of 1.03 to double-check if the risk estimate we provide is consistent with the expected return of 0.14%. Arrow Electronics has a performance score of 7 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 1.39, 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, Arrow Electronics will likely underperform. Arrow Electronics right now shows a risk of 1.41%. Please confirm Arrow Electronics value at risk, as well as the relationship between the kurtosis and price action indicator , to decide if Arrow Electronics will be following its price patterns.
Auto-correlation | -0.18 |
Insignificant reverse predictability
Arrow Electronics has insignificant reverse predictability. Overlapping area represents the amount of predictability between Arrow Electronics time series from 27th of October 2023 to 25th of January 2024 and 25th of January 2024 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 Arrow Electronics price movement. The serial correlation of -0.18 indicates that over 18.0% of current Arrow Electronics price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.18 | |
| Spearman Rank Test | -0.31 | |
| Residual Average | 0.0 | |
| Price Variance | 34.91 |
Arrow Electronics lagged returns against current returns
Autocorrelation, which is Arrow Electronics 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 Arrow Electronics' stock expected returns. We can calculate the autocorrelation of Arrow Electronics returns to help us make a trade decision. For example, suppose you find that Arrow Electronics 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 |
Arrow Electronics 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 Arrow Electronics stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Arrow Electronics stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Arrow Electronics stock over time.
Current vs Lagged Prices |
| Timeline |
Arrow Electronics Lagged Returns
When evaluating Arrow Electronics' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Arrow Electronics stock have on its future price. Arrow Electronics 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, Arrow Electronics autocorrelation shows the relationship between Arrow Electronics stock current value and its past values and can show if there is a momentum factor associated with investing in Arrow Electronics.
Regressed Prices |
| Timeline |
Pair Trading with Arrow Electronics
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 Arrow Electronics 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 Arrow Electronics will appreciate offsetting losses from the drop in the long position's value.Moving together with Arrow Stock
| 0.88 | AVT | Avnet Inc Earnings Call This Week | PairCorr |
| 0.86 | SNX | Synnex Financial Report 25th of June 2024 | PairCorr |
Moving against Arrow Stock
| 0.8 | U | Unity Software Financial Report 8th of May 2024 | PairCorr |
| 0.79 | G | Genpact Limited Financial Report 8th of May 2024 | PairCorr |
| 0.75 | S | SentinelOne Financial Report 6th of June 2024 | PairCorr |
| 0.49 | FN | Fabrinet Financial Report 13th of May 2024 | PairCorr |
The ability to find closely correlated positions to Arrow Electronics could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Arrow Electronics 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 Arrow Electronics - 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 Arrow Electronics to buy it.
The correlation of Arrow Electronics 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 Arrow Electronics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Arrow Electronics 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 Arrow Electronics 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 Arrow Electronics Correlation, Arrow Electronics Volatility and Arrow Electronics Alpha and Beta module to complement your research on Arrow Electronics. For more information on how to buy Arrow Stock please use our How to Invest in Arrow Electronics guide.You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Complementary Tools for Arrow Stock analysis
When running Arrow Electronics' price analysis, check to measure Arrow Electronics' 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 Arrow Electronics is operating at the current time. Most of Arrow Electronics' value examination focuses on studying past and present price action to predict the probability of Arrow Electronics' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Arrow Electronics' price. Additionally, you may evaluate how the addition of Arrow Electronics to your portfolios can decrease your overall portfolio volatility.
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Arrow Electronics 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.