Extreme Networks Stock Market Value
| EXTR Stock | USD 16.49 0.46 2.87% |
| Symbol | Extreme |
Extreme Networks 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 Extreme Networks. If investors know Extreme 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 Extreme Networks 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 (0.77) | Earnings Share (0.96) | Revenue Per Share 7.955 | Quarterly Revenue Growth (0.24) | Return On Assets (0.04) |
The market value of Extreme Networks is measured differently than its book value, which is the value of Extreme that is recorded on the company's balance sheet. Investors also form their own opinion of Extreme Networks' value that differs from its market value or its book value, called intrinsic value, which is Extreme Networks' 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 Extreme Networks' market value can be influenced by many factors that don't directly affect Extreme Networks' 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 Extreme Networks' value and its price as these two are different measures arrived at by different means. Investors typically determine if Extreme Networks is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Extreme Networks' 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.
Extreme Networks '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 Extreme Networks' 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 Extreme Networks.
| 10/27/2024 |
| 11/26/2024 |
If you would invest 0.00 in Extreme Networks on October 27, 2024 and sell it all today you would earn a total of 0.00 from holding Extreme Networks or generate 0.0% return on investment in Extreme Networks over 30 days. Extreme Networks is related to or competes with Knowles Cor, KVH Industries, Comtech Telecommunicatio, EchoStar, ADTRAN, NETGEAR, and Digi International. Extreme Networks, Inc. provides software-driven networking solutions worldwide More
Extreme Networks 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 Extreme Networks' 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 Extreme Networks upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 2.32 | |||
| Information Ratio | 0.0068 | |||
| Maximum Drawdown | 18.17 | |||
| Value At Risk | (3.30) | |||
| Potential Upside | 3.95 |
Extreme Networks Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Extreme Networks' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Extreme Networks' standard deviation. In reality, there are many statistical measures that can use Extreme Networks historical prices to predict the future Extreme Networks' volatility.| Risk Adjusted Performance | 0.0487 | |||
| Jensen Alpha | (0.09) | |||
| Total Risk Alpha | (0.30) | |||
| Sortino Ratio | 0.0082 | |||
| Treynor Ratio | 0.0728 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Extreme Networks' 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.
Extreme Networks Backtested Returns
Currently, Extreme Networks is not too volatile. Extreme Networks secures Sharpe Ratio (or Efficiency) of 0.0595, which denotes the company had a 0.0595% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Extreme Networks, which you can use to evaluate the volatility of the firm. Please confirm Extreme Networks' Mean Deviation of 1.79, downside deviation of 2.32, and Coefficient Of Variation of 1847.43 to check if the risk estimate we provide is consistent with the expected return of 0.17%. Extreme Networks has a performance score of 4 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 1.92, which means 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, Extreme Networks will likely underperform. Extreme Networks right now shows a risk of 2.85%. Please confirm Extreme Networks potential upside, as well as the relationship between the accumulation distribution and period momentum indicator , to decide if Extreme Networks will be following its price patterns.
Auto-correlation | -0.26 |
Weak reverse predictability
Extreme Networks has weak reverse predictability. Overlapping area represents the amount of predictability between Extreme Networks time series from 27th of October 2024 to 11th of November 2024 and 11th of November 2024 to 26th 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 Extreme Networks price movement. The serial correlation of -0.26 indicates that nearly 26.0% of current Extreme Networks price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.26 | |
| Spearman Rank Test | -0.35 | |
| Residual Average | 0.0 | |
| Price Variance | 0.29 |
Extreme Networks lagged returns against current returns
Autocorrelation, which is Extreme Networks 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 Extreme Networks' stock expected returns. We can calculate the autocorrelation of Extreme Networks returns to help us make a trade decision. For example, suppose you find that Extreme Networks 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 |
Extreme Networks 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 Extreme Networks stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Extreme Networks stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Extreme Networks stock over time.
Current vs Lagged Prices |
| Timeline |
Extreme Networks Lagged Returns
When evaluating Extreme Networks' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Extreme Networks stock have on its future price. Extreme Networks 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, Extreme Networks autocorrelation shows the relationship between Extreme Networks stock current value and its past values and can show if there is a momentum factor associated with investing in Extreme Networks.
Regressed Prices |
| Timeline |
Pair Trading with Extreme Networks
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 Extreme Networks 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 Extreme Networks will appreciate offsetting losses from the drop in the long position's value.Moving together with Extreme Stock
| 0.61 | CSCO | Cisco Systems Aggressive Push | PairCorr |
Moving against Extreme Stock
| 0.44 | CDW | CDW Corp | PairCorr |
| 0.37 | TER | Teradyne | PairCorr |
| 0.37 | ACLS | Axcelis Technologies | PairCorr |
| 0.37 | AEHR | Aehr Test Systems | PairCorr |
| 0.35 | ASYS | Amtech Systems Fiscal Year End 12th of December 2024 | PairCorr |
The ability to find closely correlated positions to Extreme Networks could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Extreme Networks 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 Extreme Networks - 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 Extreme Networks to buy it.
The correlation of Extreme Networks 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 Extreme Networks moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Extreme Networks 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 Extreme Networks 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 Extreme Stock Analysis
When running Extreme Networks' price analysis, check to measure Extreme Networks' 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 Extreme Networks is operating at the current time. Most of Extreme Networks' value examination focuses on studying past and present price action to predict the probability of Extreme Networks' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Extreme Networks' price. Additionally, you may evaluate how the addition of Extreme Networks to your portfolios can decrease your overall portfolio volatility.