Arena Group Holdings secures Sharpe Ratio (or Efficiency) of -0.14, which signifies that the company had -0.14% of return per unit of standard deviation over the last 3 months. Our philosophy in 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. Arena Group Holdings exposes fifteen different technical indicators, which can help you to evaluate volatility embedded in its stock price that cannot be diversified away. Please confirm Arena Group Holdings risk adjusted performance of (0.09), and Mean Deviation of 4.5 to double-check the risk estimate we provide. Key technical indicators related to Arena Group's volatility include:
30 Days Market Risk
Chance of Distress
30 Days Economic Sensitivity
Arena Group 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 Arena daily returns, and it is calculated using variance and standard deviation. We also use Arena's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Arena Group volatility.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Arena Group 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 Arena Group at lower prices. For example, an investor can purchase Arena 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 Arena Group'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 together with Arena Stock
Moving against Arena Stock
Arena Group Market Sensitivity And Downside Risk
Arena Group's beta coefficient measures the volatility of Arena 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 Arena stock's returns against your selected market. In other words, Arena Group's beta of 0.14 provides an investor with an approximation of how much risk Arena Group stock can potentially add to one of your existing portfolios.Arena Group Holdings is displaying above-average volatility over the selected time horizon. Investors should scrutinize Arena Group Holdings independently to ensure intended market timing strategies are aligned with expectations about Arena Group volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Arena Group'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 Arena Group'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 stocks as prices fall. 3 Months Beta |Analyze Arena Group Holdings Demand TrendCheck current 90 days Arena Group correlation with market (NYSE Composite)
Arena 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 Arena Group's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Arena Group's daily returns or price. Since the actual investment returns on holding a position in arena 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 Arena Group.
Arena Group Holdings Stock Volatility Analysis
Volatility refers to the frequency at which Arena Group stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Arena Group's price changes. Investors will then calculate the volatility of Arena Group'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 Arena Group's volatility:
Historical VolatilityThis type of stock volatility measures Arena Group's fluctuations based on previous trends. It's commonly used to predict Arena Group's 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 Arena Group'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 Arena Group's to be redeemed at a future date.
Arena Group Projected Return Density Against MarketGiven the investment horizon of 90 days Arena Group has a beta of 0.1389 . This suggests as returns on the market go up, Arena Group average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Arena Group Holdings 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 Arena Group or Entertainment 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 Arena Group'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 Arena 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. Arena Group Holdings is significantly underperforming NYSE Composite. Arena Group's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how arena 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 Arena Group 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.
Arena Group 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 Arena Group or Entertainment 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 Arena Group'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 Arena 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 Arena Group is -723.36. The daily returns are distributed with a variance of 48.49 and standard deviation of 6.96. The mean deviation of Arena Group Holdings is currently at 4.64. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.77
Arena Group Stock Return VolatilityArena Group historical daily return volatility represents how much of Arena Group stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 6.9635% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.7785% volatility on return distribution over the 90 days horizon.
About Arena Group Volatility
Volatility is a rate at which the price of Arena Group 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 Arena Group may increase or decrease. In other words, similar to Arena's beta indicator, it measures the risk of Arena Group and helps estimate the fluctuations that may happen in a short period of time. So if prices of Arena Group 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.
Arena Group'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 Arena Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Arena Group's price varies over time.
3 ways to utilize Arena Group's volatility to invest betterHigher Arena Group's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Arena Group Holdings 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. Arena Group Holdings 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 Arena Group Holdings investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Arena Group'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 Arena Group's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Arena Group Investment OpportunityArena Group Holdings has a volatility of 6.96 and is 8.92 times more volatile than NYSE Composite. 61 of all equities and portfolios are less risky than Arena Group. Compared to the overall equity markets, volatility of historical daily returns of Arena Group Holdings is higher than 61 () of all global equities and portfolios over the last 90 days. Use Arena Group Holdings to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of Arena Group to be traded at $1.8624 in 90 days.
Arena Group Additional Risk Indicators
The analysis of Arena Group'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 Arena Group's investment and either accepting that risk or mitigating it. Along with some common measures of Arena Group 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.
Arena Group 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 Arena Group 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. Arena Group'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, Arena Group'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 Arena Group Holdings.When determining whether Arena Group Holdings offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Arena Group's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Arena Group Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Arena Group Holdings Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Arena Group Holdings. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in banks.Note that the Arena Group Holdings information on this page should be used as a complementary analysis to other Arena Group'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 Transaction History module to view history of all your transactions and understand their impact on performance.
Complementary Tools for Arena Stock analysis
When running Arena Group's price analysis, check to measure Arena Group'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 Arena Group is operating at the current time. Most of Arena Group's value examination focuses on studying past and present price action to predict the probability of Arena Group's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Arena Group's price. Additionally, you may evaluate how the addition of Arena Group to your portfolios can decrease your overall portfolio volatility.
Is Arena Group'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 Arena Group. If investors know Arena 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 Arena Group 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
The market value of Arena Group Holdings is measured differently than its book value, which is the value of Arena that is recorded on the company's balance sheet. Investors also form their own opinion of Arena Group's value that differs from its market value or its book value, called intrinsic value, which is Arena Group'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 Arena Group's market value can be influenced by many factors that don't directly affect Arena Group'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 Arena Group's value and its price as these two are different measures arrived at by different means. Investors typically determine if Arena Group is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Arena Group'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.