Edify Stock Volatility

EACPW -  USA Stock  

USD 0.52  0.13  20.00%

Edify Acquisition Corp secures Sharpe Ratio (or Efficiency) of -0.0902, which denotes the company had -0.0902% of return per unit of risk over the last 3 months. Macroaxis standpoint towards predicting 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. Edify Acquisition Corp exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Edify Acquisition Corp mean deviation of 5.53, and Coefficient Of Variation of (5,163) to check the risk estimate we provide.

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Edify Acquisition 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 Edify daily returns, and it is calculated using variance and standard deviation. We also use Edify's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Edify Acquisition volatility.

Edify Acquisition Market Sensitivity And Downside Risk

Edify Acquisition's beta coefficient measures the volatility of Edify 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 Edify stock's returns against your selected market. In other words, Edify Acquisition's beta of -0.83 provides an investor with an approximation of how much risk Edify Acquisition stock can potentially add to one of your existing portfolios.
Let's try to break down what Edify's beta means in this case. As returns on the market increase, returns on owning Edify Acquisition are expected to decrease at a much lower rate. During the bear market, Edify Acquisition is likely to outperform the market.
3 Months Beta |Analyze Edify Acquisition Corp Demand Trend
Check current 90 days Edify Acquisition correlation with market (DOW)

Edify Beta

    
  -0.83  
Edify 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.

Standard Deviation

    
  8.74  
It is essential to understand the difference between upside risk (as represented by Edify Acquisition's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Edify Acquisition stock's daily returns or price. Since the actual investment returns on holding a position in Edify Acquisition 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 Edify Acquisition.

Edify Acquisition Corp Stock Volatility Analysis

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Edify Acquisition Projected Return Density Against Market

Assuming the 90 days horizon Edify Acquisition Corp has a beta of -0.8295 suggesting as returns on benchmark increase, returns on holding Edify Acquisition are expected to decrease at a much lower rate. During the bear market, however, Edify Acquisition Corp is likely to outperform the market.
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 Edify Acquisition or Edify Acquisition Corp 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 Edify Acquisition stock'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 Edify 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. Edify Acquisition Corp is significantly underperforming DOW.
 Predicted Return Density 
      Returns 

Edify Acquisition 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 Edify Acquisition or Edify Acquisition Corp 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 Edify Acquisition stock'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 Edify 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.
Assuming the 90 days horizon the coefficient of variation of Edify Acquisition is -1108.79. The daily returns are distributed with a variance of 76.35 and standard deviation of 8.74. The mean deviation of Edify Acquisition Corp is currently at 5.55. For similar time horizon, the selected benchmark (DOW) has volatility of 0.69
α
Alpha over DOW
-0.13
β
Beta against DOW-0.83
σ
Overall volatility
8.74
Ir
Information ratio -0.03

Edify Acquisition Stock Return Volatility

Edify Acquisition historical daily return volatility represents how much Edify Acquisition stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The venture shows 8.7381% volatility of returns over 90 . By contrast, DOW inherits 0.6927% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Edify Acquisition Volatility

Volatility is a rate at which the price of Edify Acquisition 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 Edify Acquisition may increase or decrease. In other words, similar to Edify's beta indicator, it measures the risk of Edify Acquisition and helps estimate the fluctuations that may happen in a short period of time. So if prices of Edify Acquisition 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.
The company was incorporated in 2020 and is based in New York, New York. Edify Acquisition is traded on NASDAQ Exchange in the United States.

Edify Acquisition Investment Opportunity

Edify Acquisition Corp has a volatility of 8.74 and is 12.67 times more volatile than DOW. 74  of all equities and portfolios are less risky than Edify Acquisition. Compared to the overall equity markets, volatility of historical daily returns of Edify Acquisition Corp is higher than 74 () of all global equities and portfolios over the last 90 days. Use Edify Acquisition Corp to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of Edify Acquisition to be traded at $0.494 in 90 days. . Let's try to break down what Edify's beta means in this case. As returns on the market increase, returns on owning Edify Acquisition are expected to decrease at a much lower rate. During the bear market, Edify Acquisition is likely to outperform the market.

Good diversification

The correlation between Edify Acquisition Corp and DJI is Good diversification for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Edify Acquisition Corp and DJI in the same portfolio assuming nothing else is changed.

Edify Acquisition Additional Risk Indicators

The analysis of Edify Acquisition'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 Edify Acquisition's investment and either accepting that risk or mitigating it. Along with some common measures of Edify Acquisition stock 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(0.004329)
Market Risk Adjusted Performance0.2019
Mean Deviation5.53
Coefficient Of Variation(5,163)
Standard Deviation7.7
Variance59.34
Information Ratio(0.02497)
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stock investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Edify Acquisition 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.
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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 Edify Acquisition 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. Edify Acquisition'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, Edify Acquisition'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 Edify Acquisition Corp.
Continue to Investing Opportunities. Note that the Edify Acquisition Corp information on this page should be used as a complementary analysis to other Edify Acquisition'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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

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When running Edify Acquisition Corp price analysis, check to measure Edify Acquisition'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 Edify Acquisition is operating at the current time. Most of Edify Acquisition's value examination focuses on studying past and present price action to predict the probability of Edify Acquisition's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Edify Acquisition's price. Additionally, you may evaluate how the addition of Edify Acquisition to your portfolios can decrease your overall portfolio volatility.
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The market value of Edify Acquisition Corp is measured differently than its book value, which is the value of Edify that is recorded on the company's balance sheet. Investors also form their own opinion of Edify Acquisition's value that differs from its market value or its book value, called intrinsic value, which is Edify Acquisition'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 Edify Acquisition's market value can be influenced by many factors that don't directly affect Edify Acquisition Corp underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Edify Acquisition's value and its price as these two are different measures arrived at by different means. Investors typically determine Edify Acquisition value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Edify Acquisition'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.