Axt Inc Stock Volatility
AXTI Stock | USD 3.01 0.09 3.08% |
AXT appears to be dangerous, given 3 months investment horizon. AXT Inc secures Sharpe Ratio (or Efficiency) of 0.0702, which signifies that the company had a 0.0702% return per unit of risk over the last 3 months. By analyzing AXT's technical indicators, you can evaluate if the expected return of 0.81% is justified by implied risk. Please makes use of AXT's mean deviation of 5.71, and Risk Adjusted Performance of 0.0471 to double-check if our risk estimates are consistent with your expectations. Key indicators related to AXT's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
AXT 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 AXT daily returns, and it is calculated using variance and standard deviation. We also use AXT's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of AXT volatility.
AXT |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as AXT 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 AXT at lower prices. For example, an investor can purchase AXT 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 AXT'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 AXT Stock
0.79 | KLAC | KLA Tencor Earnings Call Today | PairCorr |
0.7 | LRCX | Lam Research Corp Financial Report 24th of July 2024 | PairCorr |
0.63 | ASML | ASML Holding NV Financial Report 17th of July 2024 | PairCorr |
0.9 | SQ | Block Inc Earnings Call This Week | PairCorr |
Moving against AXT Stock
0.6 | PANW | Palo Alto Networks Financial Report 28th of May 2024 | PairCorr |
0.56 | COMM | CommScope Holding Buyout Trend | PairCorr |
0.55 | AAPL | Apple Inc Earnings Call This Week | PairCorr |
0.49 | TWLO | Twilio Inc Financial Report 14th of May 2024 | PairCorr |
0.46 | MX | MagnaChip Semiconductor Earnings Call This Week | PairCorr |
0.45 | LPL | LG Display Financial Report 20th of May 2024 | PairCorr |
0.42 | ADBE | Adobe Systems rporated Financial Report 20th of June 2024 | PairCorr |
AXT Market Sensitivity And Downside Risk
AXT's beta coefficient measures the volatility of AXT 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 AXT stock's returns against your selected market. In other words, AXT's beta of 4.5 provides an investor with an approximation of how much risk AXT stock can potentially add to one of your existing portfolios. AXT Inc is displaying above-average volatility over the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure AXT'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 AXT'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 AXT Inc Demand TrendCheck current 90 days AXT correlation with market (NYSE Composite)AXT Beta |
AXT 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 | 11.46 |
It is essential to understand the difference between upside risk (as represented by AXT's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of AXT's daily returns or price. Since the actual investment returns on holding a position in axt 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 AXT.
Using AXT Put Option to Manage Risk
Put options written on AXT grant holders of the option the right to sell a specified amount of AXT 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 AXT Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge AXT's 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 AXT will be realized, the loss incurred will be offset by the profits made with the option trade.
AXT's PUT expiring on 2024-05-17
Profit |
AXT Price At Expiration |
Current AXT Insurance Chain
Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | 2024-05-17 PUT at $7.5 | -0.9462 | 0.0743 | 5 | 2024-05-17 | 4.5 - 4.7 | 4.66 | View |
Put | 2024-05-17 PUT at $5.0 | -0.9295 | 0.1419 | 367 | 2024-05-17 | 1.95 - 2.25 | 2.15 | View |
Put | 2024-05-17 PUT at $2.5 | -0.2355 | 0.3907 | 712 | 2024-05-17 | 0.05 - 0.2 | 0.15 | View |
AXT Inc Stock Volatility Analysis
Volatility refers to the frequency at which AXT stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with AXT's price changes. Investors will then calculate the volatility of AXT'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 AXT's volatility:
Historical Volatility
This type of stock volatility measures AXT's fluctuations based on previous trends. It's commonly used to predict AXT'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 AXT'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 AXT'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. AXT Inc 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.
AXT Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 4.4997 . 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, AXT 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 AXT or Semiconductors & Semiconductor Equipment 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 AXT'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 AXT 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.
AXT Inc has an alpha of 0.2805, implying that it can generate a 0.28 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
Returns |
What Drives an AXT 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.AXT Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of AXT is 1423.72. The daily returns are distributed with a variance of 131.34 and standard deviation of 11.46. The mean deviation of AXT Inc is currently at 5.86. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 0.28 | |
β | Beta against NYSE Composite | 4.50 | |
σ | Overall volatility | 11.46 | |
Ir | Information ratio | 0.05 |
AXT Stock Return Volatility
AXT historical daily return volatility represents how much of AXT stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 11.4605% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.6372% volatility on return distribution over the 90 days horizon. Performance |
Timeline |
About AXT Volatility
Volatility is a rate at which the price of AXT 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 AXT may increase or decrease. In other words, similar to AXT's beta indicator, it measures the risk of AXT and helps estimate the fluctuations that may happen in a short period of time. So if prices of AXT 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 | ||
Market Cap | 585.5 M | 390.3 M |
AXT'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 AXT Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much AXT's price varies over time.
3 ways to utilize AXT's volatility to invest better
Higher AXT's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of AXT Inc 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. AXT Inc 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 AXT Inc investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in AXT'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 AXT's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
AXT Investment Opportunity
AXT Inc has a volatility of 11.46 and is 17.91 times more volatile than NYSE Composite. 96 percent of all equities and portfolios are less risky than AXT. You can use AXT Inc to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of AXT to be traded at $3.61 in 90 days.Modest diversification
The correlation between AXT Inc and NYA is 0.25 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding AXT Inc and NYA in the same portfolio, assuming nothing else is changed.
AXT Additional Risk Indicators
The analysis of AXT'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 AXT's investment and either accepting that risk or mitigating it. Along with some common measures of AXT 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 | 0.0471 | |||
Market Risk Adjusted Performance | 0.1577 | |||
Mean Deviation | 5.71 | |||
Semi Deviation | 7.16 | |||
Downside Deviation | 7.62 | |||
Coefficient Of Variation | 1653.77 | |||
Standard Deviation | 11.15 |
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.
AXT 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.
SentinelOne vs. AXT | ||
Visa vs. AXT | ||
Alphabet vs. AXT | ||
Microsoft vs. AXT | ||
South West vs. AXT | ||
Responsive Industries vs. AXT | ||
GM vs. AXT | ||
Alkyl Amines vs. AXT | ||
Mangalam Cement vs. AXT | ||
Citigroup vs. AXT |
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 AXT 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. AXT'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, AXT'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 AXT Inc.
When determining whether AXT Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of AXT'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 Axt Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Axt Inc Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in AXT Inc. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate. You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Complementary Tools for AXT Stock analysis
When running AXT's price analysis, check to measure AXT'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 AXT is operating at the current time. Most of AXT's value examination focuses on studying past and present price action to predict the probability of AXT's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move AXT's price. Additionally, you may evaluate how the addition of AXT to your portfolios can decrease your overall portfolio volatility.
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |
Is AXT'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 AXT. If investors know AXT 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 AXT 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 (0.57) | Earnings Share (0.42) | Revenue Per Share 1.777 | Quarterly Revenue Growth (0.24) | Return On Assets (0.04) |
The market value of AXT Inc is measured differently than its book value, which is the value of AXT that is recorded on the company's balance sheet. Investors also form their own opinion of AXT's value that differs from its market value or its book value, called intrinsic value, which is AXT'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 AXT's market value can be influenced by many factors that don't directly affect AXT'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 AXT's value and its price as these two are different measures arrived at by different means. Investors typically determine if AXT is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, AXT'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.