Atyr Pharma Stock Volatility
| LIFE Stock | USD 1.60 0.02 1.23% |
We consider ATyr Pharma moderately volatile. aTyr Pharma secures Sharpe Ratio (or Efficiency) of 0.0263, which signifies that the company had a 0.0263% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for aTyr Pharma, which you can use to evaluate the volatility of the firm. Please confirm ATyr Pharma's Downside Deviation of 3.4, semi deviation of 3.03, and Risk Adjusted Performance of 0.0376 to double-check if the risk estimate we provide is consistent with the expected return of 0.13%. Key indicators related to ATyr Pharma's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
ATyr Pharma 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 ATyr daily returns, and it is calculated using variance and standard deviation. We also use ATyr's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of ATyr Pharma volatility.
ATyr |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as ATyr Pharma 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 ATyr Pharma at lower prices. For example, an investor can purchase ATyr 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 ATyr Pharma'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.
ATyr Pharma Market Sensitivity And Downside Risk
ATyr Pharma's beta coefficient measures the volatility of ATyr 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 ATyr stock's returns against your selected market. In other words, ATyr Pharma's beta of 0.9 provides an investor with an approximation of how much risk ATyr Pharma stock can potentially add to one of your existing portfolios. aTyr Pharma shows above-average downside volatility for the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure ATyr Pharma'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 ATyr Pharma'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 aTyr Pharma Demand TrendCheck current 90 days ATyr Pharma correlation with market (NYSE Composite)ATyr Beta |
ATyr 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 | 4.85 |
It is essential to understand the difference between upside risk (as represented by ATyr Pharma's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of ATyr Pharma's daily returns or price. Since the actual investment returns on holding a position in atyr 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 ATyr Pharma.
Using ATyr Put Option to Manage Risk
Put options written on ATyr Pharma grant holders of the option the right to sell a specified amount of ATyr Pharma 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 ATyr Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge ATyr Pharma'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 ATyr Pharma will be realized, the loss incurred will be offset by the profits made with the option trade.
ATyr Pharma's PUT expiring on 2024-05-17
Profit |
| ATyr Pharma Price At Expiration |
Current ATyr Pharma Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | 2024-05-17 PUT at $2.5 | -0.6754 | 0.3839 | 5 | 2024-05-17 | 0.65 - 1.4 | 1.25 | View |
aTyr Pharma Stock Volatility Analysis
Volatility refers to the frequency at which ATyr Pharma stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with ATyr Pharma's price changes. Investors will then calculate the volatility of ATyr Pharma'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 ATyr Pharma's volatility:
Historical Volatility
This type of stock volatility measures ATyr Pharma's fluctuations based on previous trends. It's commonly used to predict ATyr Pharma'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 ATyr Pharma'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 ATyr Pharma'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. aTyr Pharma 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.
ATyr Pharma Projected Return Density Against Market
Given the investment horizon of 90 days ATyr Pharma has a beta of 0.8963 . This indicates aTyr Pharma market returns are highly-sensitive to returns on the market. As the market goes up or down, ATyr Pharma is expected to follow.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 ATyr Pharma or Biotechnology 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 ATyr Pharma'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 ATyr 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.
ATyr Pharma has an alpha of 0.132, implying that it can generate a 0.13 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an ATyr Pharma 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.ATyr Pharma Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of ATyr Pharma is 3797.33. The daily returns are distributed with a variance of 23.48 and standard deviation of 4.85. The mean deviation of aTyr Pharma is currently at 2.88. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | 0.13 | |
β | Beta against NYSE Composite | 0.90 | |
σ | Overall volatility | 4.85 | |
Ir | Information ratio | 0.03 |
ATyr Pharma Stock Return Volatility
ATyr Pharma historical daily return volatility represents how much of ATyr Pharma stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 4.8455% 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 ATyr Pharma Volatility
Volatility is a rate at which the price of ATyr Pharma 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 ATyr Pharma may increase or decrease. In other words, similar to ATyr's beta indicator, it measures the risk of ATyr Pharma and helps estimate the fluctuations that may happen in a short period of time. So if prices of ATyr Pharma 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 | 2.5 M | 2.2 M | |
| Market Cap | 75.6 M | 84.4 M |
ATyr Pharma'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 ATyr Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much ATyr Pharma's price varies over time.
3 ways to utilize ATyr Pharma's volatility to invest better
Higher ATyr Pharma's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of aTyr Pharma 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. aTyr Pharma 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 aTyr Pharma investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in ATyr Pharma'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 ATyr Pharma's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
ATyr Pharma Investment Opportunity
aTyr Pharma has a volatility of 4.85 and is 7.58 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of aTyr Pharma is lower than 42 percent of all global equities and portfolios over the last 90 days. You can use aTyr Pharma to protect your portfolios against small market fluctuations. The stock experiences a somewhat bearish sentiment, but the market may correct it shortly. Check odds of ATyr Pharma to be traded at $1.552 in 90 days.Average diversification
The correlation between aTyr Pharma and NYA is 0.12 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding aTyr Pharma and NYA in the same portfolio, assuming nothing else is changed.
ATyr Pharma Additional Risk Indicators
The analysis of ATyr Pharma'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 ATyr Pharma's investment and either accepting that risk or mitigating it. Along with some common measures of ATyr Pharma 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 | 0.0376 | |||
| Market Risk Adjusted Performance | 0.2426 | |||
| Mean Deviation | 2.79 | |||
| Semi Deviation | 3.03 | |||
| Downside Deviation | 3.4 | |||
| Coefficient Of Variation | 2157.61 | |||
| Standard Deviation | 4.71 |
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.
ATyr Pharma 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 ATyr Pharma 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. ATyr Pharma'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, ATyr Pharma'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 aTyr Pharma.
When determining whether aTyr Pharma is a strong investment it is important to analyze ATyr Pharma's 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 ATyr Pharma's future performance. For an informed investment choice regarding ATyr Stock, refer to the following important reports: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in aTyr Pharma. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in census. For information on how to trade ATyr Stock refer to our How to Trade ATyr Stock guide.Note that the aTyr Pharma information on this page should be used as a complementary analysis to other ATyr Pharma'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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Complementary Tools for ATyr Stock analysis
When running ATyr Pharma's price analysis, check to measure ATyr Pharma'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 ATyr Pharma is operating at the current time. Most of ATyr Pharma's value examination focuses on studying past and present price action to predict the probability of ATyr Pharma's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move ATyr Pharma's price. Additionally, you may evaluate how the addition of ATyr Pharma to your portfolios can decrease your overall portfolio volatility.
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Is ATyr Pharma'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 ATyr Pharma. If investors know ATyr 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 ATyr Pharma listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.94) | Revenue Per Share 0.007 | Quarterly Revenue Growth (1.00) | Return On Assets (0.32) | Return On Equity (0.62) |
The market value of aTyr Pharma is measured differently than its book value, which is the value of ATyr that is recorded on the company's balance sheet. Investors also form their own opinion of ATyr Pharma's value that differs from its market value or its book value, called intrinsic value, which is ATyr Pharma'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 ATyr Pharma's market value can be influenced by many factors that don't directly affect ATyr Pharma'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 ATyr Pharma's value and its price as these two are different measures arrived at by different means. Investors typically determine if ATyr Pharma is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ATyr Pharma'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.