Ashford Hospitality Trust Stock Volatility
| AHT Stock | USD 1.32 0.01 0.76% |
Ashford Hospitality Trust secures Sharpe Ratio (or Efficiency) of -0.0086, which signifies that the company had a -0.0086% return per unit of standard deviation over the last 3 months. Ashford Hospitality Trust exposes twenty-nine different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Ashford Hospitality's mean deviation of 3.45, and Risk Adjusted Performance of 0.0135 to double-check the risk estimate we provide. Key indicators related to Ashford Hospitality's volatility include:
270 Days Market Risk | Chance Of Distress | 270 Days Economic Sensitivity |
Ashford Hospitality Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Ashford daily returns, and it is calculated using variance and standard deviation. We also use Ashford's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Ashford Hospitality volatility.
Ashford |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Ashford Hospitality can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Ashford Hospitality at lower prices. For example, an investor can purchase Ashford stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Ashford Hospitality's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Moving against Ashford Stock
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Ashford Hospitality Market Sensitivity And Downside Risk
Ashford Hospitality's beta coefficient measures the volatility of Ashford stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Ashford stock's returns against your selected market. In other words, Ashford Hospitality's beta of 0.78 provides an investor with an approximation of how much risk Ashford Hospitality stock can potentially add to one of your existing portfolios. Ashford Hospitality Trust exhibits above-average semi-deviation for your current time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Ashford Hospitality's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Ashford Hospitality'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 financial instruments as prices fall.
3 Months Beta |Analyze Ashford Hospitality Trust Demand TrendCheck current 90 days Ashford Hospitality correlation with market (NYSE Composite)Ashford Beta |
Ashford standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 5.18 |
It is essential to understand the difference between upside risk (as represented by Ashford Hospitality's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Ashford Hospitality's daily returns or price. Since the actual investment returns on holding a position in ashford stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Ashford Hospitality.
Ashford Hospitality Trust Stock Volatility Analysis
Volatility refers to the frequency at which Ashford Hospitality stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Ashford Hospitality's price changes. Investors will then calculate the volatility of Ashford Hospitality's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Ashford Hospitality's volatility:
Historical Volatility
This type of stock volatility measures Ashford Hospitality's fluctuations based on previous trends. It's commonly used to predict Ashford Hospitality's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Ashford Hospitality's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Ashford Hospitality's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Ashford Hospitality Trust Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Ashford Hospitality Projected Return Density Against Market
Considering the 90-day investment horizon Ashford Hospitality has a beta of 0.7813 . This suggests as returns on the market go up, Ashford Hospitality average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Ashford Hospitality Trust will be expected to be much smaller as well.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Ashford Hospitality or Diversified REITs sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Ashford Hospitality's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Ashford stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Ashford Hospitality Trust has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the NYSE Composite. Predicted Return Density |
| Returns |
What Drives an Ashford Hospitality Price Volatility?
Several factors can influence a stock's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Ashford Hospitality Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of Ashford Hospitality is -11664.85. The daily returns are distributed with a variance of 26.86 and standard deviation of 5.18. The mean deviation of Ashford Hospitality Trust is currently at 3.32. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | -0.02 | |
β | Beta against NYSE Composite | 0.78 | |
σ | Overall volatility | 5.18 | |
Ir | Information ratio | -0.0055 |
Ashford Hospitality Stock Return Volatility
Ashford Hospitality historical daily return volatility represents how much of Ashford Hospitality stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm has volatility of 5.1827% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.6214% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Ashford Hospitality Volatility
Volatility is a rate at which the price of Ashford Hospitality or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Ashford Hospitality may increase or decrease. In other words, similar to Ashford's beta indicator, it measures the risk of Ashford Hospitality and helps estimate the fluctuations that may happen in a short period of time. So if prices of Ashford Hospitality fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.| Last Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 11.6 M | 8.7 M | |
| Market Cap | 346.1 M | 284.6 M |
Ashford Hospitality's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Ashford Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Ashford Hospitality's price varies over time.
3 ways to utilize Ashford Hospitality's volatility to invest better
Higher Ashford Hospitality's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Ashford Hospitality Trust stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Ashford Hospitality Trust stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Ashford Hospitality Trust investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Ashford Hospitality's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Ashford Hospitality's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Ashford Hospitality Investment Opportunity
Ashford Hospitality Trust has a volatility of 5.18 and is 8.35 times more volatile than NYSE Composite. 45 percent of all equities and portfolios are less risky than Ashford Hospitality. You can use Ashford Hospitality Trust to enhance the returns of your portfolios. The stock experiences a moderate upward volatility. Check odds of Ashford Hospitality to be traded at $1.452 in 90 days.Significant diversification
The correlation between Ashford Hospitality Trust and NYA is 0.09 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Ashford Hospitality Trust and NYA in the same portfolio, assuming nothing else is changed.
Ashford Hospitality Additional Risk Indicators
The analysis of Ashford Hospitality's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Ashford Hospitality's investment and either accepting that risk or mitigating it. Along with some common measures of Ashford Hospitality stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.0135 | |||
| Market Risk Adjusted Performance | 0.0483 | |||
| Mean Deviation | 3.45 | |||
| Semi Deviation | 4.08 | |||
| Downside Deviation | 4.46 | |||
| Coefficient Of Variation | 13086.63 | |||
| Standard Deviation | 5.23 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Ashford Hospitality Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Ashford Hospitality as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Ashford Hospitality's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Ashford Hospitality's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Ashford Hospitality Trust.
When determining whether Ashford Hospitality Trust is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Ashford Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Ashford Hospitality Trust Stock. Highlighted below are key reports to facilitate an investment decision about Ashford Hospitality Trust Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Ashford Hospitality Trust. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in rate. Note that the Ashford Hospitality Trust information on this page should be used as a complementary analysis to other Ashford Hospitality's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Complementary Tools for Ashford Stock analysis
When running Ashford Hospitality's price analysis, check to measure Ashford Hospitality'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 Ashford Hospitality is operating at the current time. Most of Ashford Hospitality's value examination focuses on studying past and present price action to predict the probability of Ashford Hospitality's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ashford Hospitality's price. Additionally, you may evaluate how the addition of Ashford Hospitality to your portfolios can decrease your overall portfolio volatility.
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Is Ashford Hospitality'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 Ashford Hospitality. If investors know Ashford 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 Ashford Hospitality listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (5.61) | Revenue Per Share 39.579 | Quarterly Revenue Growth 0.007 | Return On Assets 0.02 | Return On Equity (22.60) |
The market value of Ashford Hospitality Trust is measured differently than its book value, which is the value of Ashford that is recorded on the company's balance sheet. Investors also form their own opinion of Ashford Hospitality's value that differs from its market value or its book value, called intrinsic value, which is Ashford Hospitality'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 Ashford Hospitality's market value can be influenced by many factors that don't directly affect Ashford Hospitality'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 Ashford Hospitality's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ashford Hospitality is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ashford Hospitality'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.