Archer Aviation Stock Market Value
| ACHR Stock | USD 6.04 0.26 4.50% |
| Symbol | Archer |
Archer Aviation Price To Book Ratio
Is Aerospace & Defense space 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 Archer Aviation. If investors know Archer 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 Archer Aviation listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (1.31) | Return On Assets (0.52) | Return On Equity (1.08) |
The market value of Archer Aviation is measured differently than its book value, which is the value of Archer that is recorded on the company's balance sheet. Investors also form their own opinion of Archer Aviation's value that differs from its market value or its book value, called intrinsic value, which is Archer Aviation'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 Archer Aviation's market value can be influenced by many factors that don't directly affect Archer Aviation'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 Archer Aviation's value and its price as these two are different measures arrived at by different means. Investors typically determine if Archer Aviation is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Archer Aviation'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.
Archer Aviation 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Archer Aviation's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Archer Aviation.
| 12/03/2022 |
| 11/22/2024 |
If you would invest 0.00 in Archer Aviation on December 3, 2022 and sell it all today you would earn a total of 0.00 from holding Archer Aviation or generate 0.0% return on investment in Archer Aviation over 720 days. Archer Aviation is related to or competes with Vertical Aerospace, Ehang Holdings, Rocket Lab, Eve Holding, Draganfly, Heico, and Redwire Corp. Archer Aviation Inc., an urban air mobility company, engages in designs, develops, manufactures, and operates electric v... More
Archer Aviation Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Archer Aviation's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Archer Aviation upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 3.78 | |||
| Information Ratio | 0.124 | |||
| Maximum Drawdown | 24.09 | |||
| Value At Risk | (5.57) | |||
| Potential Upside | 11.14 |
Archer Aviation Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Archer Aviation's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Archer Aviation's standard deviation. In reality, there are many statistical measures that can use Archer Aviation historical prices to predict the future Archer Aviation's volatility.| Risk Adjusted Performance | 0.1191 | |||
| Jensen Alpha | 0.5816 | |||
| Total Risk Alpha | 0.0659 | |||
| Sortino Ratio | 0.1719 | |||
| Treynor Ratio | 0.4448 |
Archer Aviation Backtested Returns
Archer Aviation appears to be unstable, given 3 months investment horizon. Archer Aviation secures Sharpe Ratio (or Efficiency) of 0.15, which signifies that the company had a 0.15% return per unit of standard deviation over the last 3 months. By analyzing Archer Aviation's technical indicators, you can evaluate if the expected return of 0.81% is justified by implied risk. Please makes use of Archer Aviation's mean deviation of 3.81, and Risk Adjusted Performance of 0.1191 to double-check if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Archer Aviation holds a performance score of 11. The firm shows a Beta (market volatility) of 1.68, which signifies a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Archer Aviation will likely underperform. Please check Archer Aviation's coefficient of variation, semi variance, period momentum indicator, as well as the relationship between the treynor ratio and daily balance of power , to make a quick decision on whether Archer Aviation's price patterns will revert.
Auto-correlation | -0.56 |
Good reverse predictability
Archer Aviation has good reverse predictability. Overlapping area represents the amount of predictability between Archer Aviation time series from 3rd of December 2022 to 28th of November 2023 and 28th of November 2023 to 22nd of November 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Archer Aviation price movement. The serial correlation of -0.56 indicates that roughly 56.0% of current Archer Aviation price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.56 | |
| Spearman Rank Test | -0.61 | |
| Residual Average | 0.0 | |
| Price Variance | 1.0 |
Archer Aviation lagged returns against current returns
Autocorrelation, which is Archer Aviation stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Archer Aviation's stock expected returns. We can calculate the autocorrelation of Archer Aviation returns to help us make a trade decision. For example, suppose you find that Archer Aviation has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Archer Aviation regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Archer Aviation stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Archer Aviation stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Archer Aviation stock over time.
Current vs Lagged Prices |
| Timeline |
Archer Aviation Lagged Returns
When evaluating Archer Aviation's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Archer Aviation stock have on its future price. Archer Aviation autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Archer Aviation autocorrelation shows the relationship between Archer Aviation stock current value and its past values and can show if there is a momentum factor associated with investing in Archer Aviation.
Regressed Prices |
| Timeline |
Pair Trading with Archer Aviation
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Archer Aviation position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Archer Aviation will appreciate offsetting losses from the drop in the long position's value.Moving against Archer Stock
| 0.57 | HII | Huntington Ingalls | PairCorr |
| 0.42 | GD | General Dynamics Fiscal Year End 22nd of January 2025 | PairCorr |
The ability to find closely correlated positions to Archer Aviation could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Archer Aviation when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Archer Aviation - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Archer Aviation to buy it.
The correlation of Archer Aviation is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Archer Aviation moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Archer Aviation moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Archer Aviation can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Additional Tools for Archer Stock Analysis
When running Archer Aviation's price analysis, check to measure Archer Aviation'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 Archer Aviation is operating at the current time. Most of Archer Aviation's value examination focuses on studying past and present price action to predict the probability of Archer Aviation's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Archer Aviation's price. Additionally, you may evaluate how the addition of Archer Aviation to your portfolios can decrease your overall portfolio volatility.