Akoustis Technologies secures Sharpe Ratio (or Efficiency) of -0.0891, which signifies that the company had -0.0891% of return per unit of risk over the last 3 months. Our standpoint towards foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Akoustis Technologies exposes twenty-one different technical indicators, which can help you to evaluate volatility embedded in its stock price that cannot be diversified away. Please confirm Akoustis Technologies Risk Adjusted Performance of (0.09), standard deviation of 8.19, and Mean Deviation of 5.97 to double-check the risk estimate we provide. Key technical indicators related to Akoustis Technologies' volatility include:
720 Days Market Risk
Chance of Distress
720 Days Economic Sensitivity
Akoustis Technologies 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 Akoustis daily returns, and it is calculated using variance and standard deviation. We also use Akoustis's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Akoustis Technologies volatility.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Akoustis Technologies 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 Akoustis Technologies at lower prices. For example, an investor can purchase Akoustis 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 Akoustis Technologies' 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 together with Akoustis Stock
Akoustis Technologies Market Sensitivity And Downside Risk
Akoustis Technologies' beta coefficient measures the volatility of Akoustis stock compared to the systematic risk of the entire stock 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 Akoustis stock's returns against your selected market. In other words, Akoustis Technologies's beta of 3.92 provides an investor with an approximation of how much risk Akoustis Technologies stock can potentially add to one of your existing portfolios.Akoustis Technologies is displaying above-average volatility over the selected time horizon. Investors should scrutinize Akoustis Technologies independently to ensure intended market timing strategies are aligned with expectations about Akoustis Technologies volatility. Akoustis Technologies is a potential penny stock. Although Akoustis Technologies may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Akoustis Technologies. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Akoustis instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals. 3 Months Beta |Analyze Akoustis Technologies Demand TrendCheck current 90 days Akoustis Technologies correlation with market (NYSE Composite)
Akoustis standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity 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.
It is essential to understand the difference between upside risk (as represented by Akoustis Technologies's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Akoustis Technologies' daily returns or price. Since the actual investment returns on holding a position in akoustis 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 Akoustis Technologies.
Using Akoustis Put Option to Manage Risk
Put options written on Akoustis Technologies grant holders of the option the right to sell a specified amount of Akoustis Technologies at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Akoustis Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Akoustis Technologies' position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Akoustis Technologies will be realized, the loss incurred will be offset by the profits made with the option trade.
Akoustis Technologies' PUT expiring on 2023-12-15
Akoustis Technologies Stock Volatility Analysis
Volatility refers to the frequency at which Akoustis Technologies stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Akoustis Technologies' price changes. Investors will then calculate the volatility of Akoustis Technologies' 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 Akoustis Technologies' volatility:
Historical VolatilityThis type of stock volatility measures Akoustis Technologies' fluctuations based on previous trends. It's commonly used to predict Akoustis Technologies' future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.
Implied VolatilityThis type of volatility provides a positive outlook on future price fluctuations for Akoustis Technologies' 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 Akoustis Technologies' to be redeemed at a future date.
Akoustis Technologies Projected Return Density Against MarketGiven the investment horizon of 90 days the stock has the beta coefficient of 3.921 . This suggests as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Akoustis Technologies will likely underperform.
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 Akoustis Technologies or Electronic Equipment, Instruments & Components 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 Akoustis Technologies' 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 Akoustis 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.The company has a negative alpha, implying that the risk taken by holding this instrument is not justified. Akoustis Technologies is significantly underperforming NYSE Composite. Akoustis Technologies' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how akoustis stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.
What Drives an Akoustis Technologies Price Volatility?Several factors can influence a stock's market volatility:
IndustrySpecific 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 environmentWhen 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 PerformanceSometimes 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.
Akoustis Technologies Stock Risk Measures
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 Akoustis Technologies or Electronic Equipment, Instruments & Components 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 Akoustis Technologies' 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 Akoustis 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. Given the investment horizon of 90 days the coefficient of variation of Akoustis Technologies is -1122.76. The daily returns are distributed with a variance of 53.17 and standard deviation of 7.29. The mean deviation of Akoustis Technologies is currently at 5.46. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.78
Akoustis Technologies Stock Return VolatilityAkoustis Technologies historical daily return volatility represents how much of Akoustis Technologies stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 7.2918% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.7794% volatility on return distribution over the 90 days horizon.
About Akoustis Technologies Volatility
Volatility is a rate at which the price of Akoustis Technologies 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 Akoustis Technologies may increase or decrease. In other words, similar to Akoustis's beta indicator, it measures the risk of Akoustis Technologies and helps estimate the fluctuations that may happen in a short period of time. So if prices of Akoustis Technologies 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.
Akoustis Technologies' 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 Akoustis Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Akoustis Technologies' price varies over time.
3 ways to utilize Akoustis Technologies' volatility to invest betterHigher Akoustis Technologies' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Akoustis Technologies 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. Akoustis Technologies 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 Akoustis Technologies investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Akoustis Technologies' 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 Akoustis Technologies' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Akoustis Technologies Investment OpportunityAkoustis Technologies has a volatility of 7.29 and is 9.35 times more volatile than NYSE Composite. 63 of all equities and portfolios are less risky than Akoustis Technologies. Compared to the overall equity markets, volatility of historical daily returns of Akoustis Technologies is higher than 63 () of all global equities and portfolios over the last 90 days. Use Akoustis Technologies to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of Akoustis Technologies to be traded at $0.5626 in 90 days.
Akoustis Technologies Additional Risk Indicators
The analysis of Akoustis Technologies' 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 Akoustis Technologies' investment and either accepting that risk or mitigating it. Along with some common measures of Akoustis Technologies 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.
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.
Akoustis Technologies 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 Akoustis Technologies 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. Akoustis Technologies' 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, Akoustis Technologies' 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 Akoustis Technologies.When determining whether Akoustis Technologies is a strong investment it is important to analyze Akoustis Technologies' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Akoustis Technologies' future performance. For an informed investment choice regarding Akoustis Stock, refer to the following important reports:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Akoustis Technologies. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in real.For more information on how to buy Akoustis Stock please use our How to Invest in Akoustis Technologies guide.You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Complementary Tools for Akoustis Stock analysis
When running Akoustis Technologies' price analysis, check to measure Akoustis Technologies' 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 Akoustis Technologies is operating at the current time. Most of Akoustis Technologies' value examination focuses on studying past and present price action to predict the probability of Akoustis Technologies' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Akoustis Technologies' price. Additionally, you may evaluate how the addition of Akoustis Technologies to your portfolios can decrease your overall portfolio volatility.
Is Akoustis Technologies' 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 Akoustis Technologies. If investors know Akoustis 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 Akoustis Technologies listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Revenue Per Share
Quarterly Revenue Growth
Return On Assets
Return On Equity
The market value of Akoustis Technologies is measured differently than its book value, which is the value of Akoustis that is recorded on the company's balance sheet. Investors also form their own opinion of Akoustis Technologies' value that differs from its market value or its book value, called intrinsic value, which is Akoustis Technologies' 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 Akoustis Technologies' market value can be influenced by many factors that don't directly affect Akoustis Technologies' 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 Akoustis Technologies' value and its price as these two are different measures arrived at by different means. Investors typically determine if Akoustis Technologies is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Akoustis Technologies' 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.