TWTR Stock Volatility

TWTR -  USA Stock  

USD 60.85  0.21  0.35%

Twitter owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0237, which indicates the firm had -0.0237% of return per unit of risk over the last 3 months. Macroaxis standpoint towards measuring 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. Twitter exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to validate Twitter coefficient of variation of (1,612), and Risk Adjusted Performance of (0.031562) to confirm the risk estimate we provide.

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

90 Days Market Risk

Very steady

Chance of Distress

90 Days Economic Sensitivity

Moves indifferently to market moves

Twitter Market Sensitivity And Downside Risk

Twitter's beta coefficient measures the volatility of TWTR 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 TWTR stock's returns against your selected market. In other words, Twitter's beta of -0.0114 provides an investor with an approximation of how much risk Twitter stock can potentially add to one of your existing portfolios.
Let's try to break down what TWTR's beta means in this case. As returns on the market increase, returns on owning Twitter are expected to decrease at a much lower rate. During the bear market, Twitter is likely to outperform the market.
3 Months Beta |Analyze Twitter Demand Trend
Check current 90 days Twitter correlation with market (DOW)

TWTR Beta

    
  -0.0114  
TWTR 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

    
  2.86  
It is essential to understand the difference between upside risk (as represented by Twitter's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Twitter stock's daily returns or price. Since the actual investment returns on holding a position in Twitter 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 Twitter.

Twitter Stock Volatility Analysis

Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Twitter 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. View also all equity analysis or get more info about average price price transform indicator.

Twitter Projected Return Density Against Market

Given the investment horizon of 90 days Twitter has a beta of -0.0114 . This usually implies as returns on benchmark increase, returns on holding Twitter are expected to decrease at a much lower rate. During the bear market, however, Twitter 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 Twitter or Communication Services 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 Twitter 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 TWTR 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. Twitter is significantly underperforming DOW.
 Predicted Return Density 
      Returns 

Twitter 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 Twitter or Communication Services 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 Twitter 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 TWTR 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 Twitter is -4222.37. The daily returns are distributed with a variance of 8.16 and standard deviation of 2.86. The mean deviation of Twitter is currently at 1.8. For similar time horizon, the selected benchmark (DOW) has volatility of 0.63
α
Alpha over DOW
-0.19
β
Beta against DOW-0.01
σ
Overall volatility
2.86
Ir
Information ratio -0.08

Twitter Stock Return Volatility

Twitter historical daily return volatility represents how much Twitter stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The enterprise inherits 2.8563% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 0.6615% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Twitter Volatility

Volatility is a rate at which the price of Twitter 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 Twitter may increase or decrease. In other words, similar to TWTR's beta indicator, it measures the risk of Twitter and helps estimate the fluctuations that may happen in a short period of time. So if prices of Twitter 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 ReportedProjected for 2021
Market Capitalization13.4 B19.7 B
Twitter, Inc. operates as a platform for public self-expression and conversation in real time United States, Japan, and internationally. The company offers Twitter, a platform that allows users to consume, create, distribute, and discover content. It also provides promoted products and services, such as promoted tweets, promoted accounts, and promoted trends, which enable its advertisers to promote their brands, products, and services. In addition, the company offers MoPub, a mobile-focused advertising exchange that combines ad serving, ad network mediation, and a real-time bidding exchange into one monetization platform Twitter Audience platform, an advertising offering that enables advertisers to extend advertising campaigns Developer and Enterprise solutions, a software-as-a-service platform that enables developers to build products on Twitter and paid enterprise access for its public data streams. Twitter, Inc. was founded in 2006 and is headquartered in San Francisco, California.

Twitter Investment Opportunity

Twitter has a volatility of 2.86 and is 4.33 times more volatile than DOW. 24  of all equities and portfolios are less risky than Twitter. Compared to the overall equity markets, volatility of historical daily returns of Twitter is lower than 24 () of all global equities and portfolios over the last 90 days.

Twitter Additional Risk Indicators

The analysis of Twitter'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 Twitter's investment and either accepting that risk or mitigating it. Along with some common measures of Twitter 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(0.031562)
Market Risk Adjusted Performance16.45
Mean Deviation1.82
Coefficient Of Variation(1,612)
Standard Deviation2.86
Variance8.18
Information Ratio(0.08)
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.

Twitter 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 Twitter 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. Twitter'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, Twitter'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 Twitter.
Additionally, take a look at World Market Map. Note that the Twitter information on this page should be used as a complementary analysis to other Twitter'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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

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