Adtran Inc Stock Market Value
| ADTN Stock | USD 8.16 0.43 5.56% |
| Symbol | ADTRAN |
ADTRAN Inc Price To Book Ratio
Is Communications Equipment 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 ADTRAN. If investors know ADTRAN 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 ADTRAN 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 (0.60) | Earnings Share (6.51) | Revenue Per Share 11.491 | Quarterly Revenue Growth (0.16) | Return On Assets (0.05) |
The market value of ADTRAN Inc is measured differently than its book value, which is the value of ADTRAN that is recorded on the company's balance sheet. Investors also form their own opinion of ADTRAN's value that differs from its market value or its book value, called intrinsic value, which is ADTRAN'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 ADTRAN's market value can be influenced by many factors that don't directly affect ADTRAN'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 ADTRAN's value and its price as these two are different measures arrived at by different means. Investors typically determine if ADTRAN is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ADTRAN'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.
ADTRAN '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 ADTRAN'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 ADTRAN.
| 10/23/2024 |
| 11/22/2024 |
If you would invest 0.00 in ADTRAN on October 23, 2024 and sell it all today you would earn a total of 0.00 from holding ADTRAN Inc or generate 0.0% return on investment in ADTRAN over 30 days. ADTRAN is related to or competes with Mynaric AG, KVH Industries, Telesat Corp, Digi International, Comtech Telecommunicatio, Knowles Cor, and Ituran Location. ADTRAN Holdings, Inc., through its subsidiaries, provides end-to-end fiber networking solutions for communications servi... More
ADTRAN 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 ADTRAN'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 ADTRAN Inc upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 2.15 | |||
| Information Ratio | 0.1595 | |||
| Maximum Drawdown | 22.03 | |||
| Value At Risk | (3.34) | |||
| Potential Upside | 6.31 |
ADTRAN Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for ADTRAN's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as ADTRAN's standard deviation. In reality, there are many statistical measures that can use ADTRAN historical prices to predict the future ADTRAN's volatility.| Risk Adjusted Performance | 0.1531 | |||
| Jensen Alpha | 0.4961 | |||
| Total Risk Alpha | 0.2026 | |||
| Sortino Ratio | 0.2626 | |||
| Treynor Ratio | 0.3923 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of ADTRAN's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
ADTRAN Inc Backtested Returns
ADTRAN appears to be somewhat reliable, given 3 months investment horizon. ADTRAN Inc secures Sharpe Ratio (or Efficiency) of 0.19, which signifies that the company had a 0.19% return per unit of risk over the last 3 months. By reviewing ADTRAN's technical indicators, you can evaluate if the expected return of 0.67% is justified by implied risk. Please makes use of ADTRAN's mean deviation of 2.36, and Risk Adjusted Performance of 0.1531 to double-check if our risk estimates are consistent with your expectations. On a scale of 0 to 100, ADTRAN holds a performance score of 15. The firm shows a Beta (market volatility) of 1.69, 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, ADTRAN will likely underperform. Please check ADTRAN's skewness, and the relationship between the value at risk and day median price , to make a quick decision on whether ADTRAN's price patterns will revert.
Auto-correlation | 0.50 |
Modest predictability
ADTRAN Inc has modest predictability. Overlapping area represents the amount of predictability between ADTRAN time series from 23rd of October 2024 to 7th of November 2024 and 7th of November 2024 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 ADTRAN Inc price movement. The serial correlation of 0.5 indicates that about 50.0% of current ADTRAN price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.5 | |
| Spearman Rank Test | -0.3 | |
| Residual Average | 0.0 | |
| Price Variance | 0.04 |
ADTRAN Inc lagged returns against current returns
Autocorrelation, which is ADTRAN 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 ADTRAN's stock expected returns. We can calculate the autocorrelation of ADTRAN returns to help us make a trade decision. For example, suppose you find that ADTRAN 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 |
ADTRAN 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 ADTRAN stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if ADTRAN stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in ADTRAN stock over time.
Current vs Lagged Prices |
| Timeline |
ADTRAN Lagged Returns
When evaluating ADTRAN's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of ADTRAN stock have on its future price. ADTRAN 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, ADTRAN autocorrelation shows the relationship between ADTRAN stock current value and its past values and can show if there is a momentum factor associated with investing in ADTRAN Inc.
Regressed Prices |
| Timeline |
Pair Trading with ADTRAN
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 ADTRAN 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 ADTRAN will appreciate offsetting losses from the drop in the long position's value.Moving together with ADTRAN Stock
Moving against ADTRAN Stock
| 0.81 | ACLS | Axcelis Technologies | PairCorr |
| 0.77 | CDW | CDW Corp | PairCorr |
| 0.75 | TER | Teradyne | PairCorr |
| 0.68 | KLAC | KLA Tencor | PairCorr |
| 0.66 | VECO | Veeco Instruments | PairCorr |
The ability to find closely correlated positions to ADTRAN could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ADTRAN 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 ADTRAN - 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 ADTRAN Inc to buy it.
The correlation of ADTRAN 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 ADTRAN moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ADTRAN Inc 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 ADTRAN 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.Check out ADTRAN Correlation, ADTRAN Volatility and ADTRAN Alpha and Beta module to complement your research on ADTRAN. You can also try the CEOs Directory module to screen CEOs from public companies around the world.
ADTRAN technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.