Faro Technologies Stock Market Value
| FARO Stock | USD 26.30 0.80 3.14% |
| Symbol | FARO |
FARO Technologies Price To Book Ratio
Is Electronic Equipment, Instruments & Components 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 FARO Technologies. If investors know FARO 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 FARO Technologies listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.33) | Revenue Per Share 18.152 | Quarterly Revenue Growth (0.05) | Return On Assets 0.013 | Return On Equity (0.03) |
The market value of FARO Technologies is measured differently than its book value, which is the value of FARO that is recorded on the company's balance sheet. Investors also form their own opinion of FARO Technologies' value that differs from its market value or its book value, called intrinsic value, which is FARO Technologies' 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 FARO Technologies' market value can be influenced by many factors that don't directly affect FARO Technologies' 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 FARO Technologies' value and its price as these two are different measures arrived at by different means. Investors typically determine if FARO Technologies is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, FARO Technologies' 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.
FARO Technologies '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 FARO Technologies' 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 FARO Technologies.
| 12/03/2022 |
| 11/22/2024 |
If you would invest 0.00 in FARO Technologies on December 3, 2022 and sell it all today you would earn a total of 0.00 from holding FARO Technologies or generate 0.0% return on investment in FARO Technologies over 720 days. FARO Technologies is related to or competes with Coherent, ESCO Technologies, Mesa Laboratories, Vishay Precision, Sensata Technologies, Sono Tek, and Novanta. FARO Technologies, Inc. designs, develops, manufactures, markets, and supports software driven three-dimensional measure... More
FARO Technologies 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 FARO Technologies' 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 FARO Technologies upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 2.17 | |||
| Information Ratio | 0.1361 | |||
| Maximum Drawdown | 40.56 | |||
| Value At Risk | (3.11) | |||
| Potential Upside | 4.09 |
FARO Technologies Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for FARO Technologies' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as FARO Technologies' standard deviation. In reality, there are many statistical measures that can use FARO Technologies historical prices to predict the future FARO Technologies' volatility.| Risk Adjusted Performance | 0.1255 | |||
| Jensen Alpha | 0.643 | |||
| Total Risk Alpha | 0.1981 | |||
| Sortino Ratio | 0.3112 | |||
| Treynor Ratio | 0.5512 |
FARO Technologies Backtested Returns
FARO Technologies appears to be not too volatile, given 3 months investment horizon. FARO Technologies secures Sharpe Ratio (or Efficiency) of 0.15, which denotes the company had a 0.15% return per unit of volatility over the last 3 months. By examining FARO Technologies' technical indicators, you can evaluate if the expected return of 0.77% is justified by implied risk. Please utilize FARO Technologies' Market Risk Adjusted Performance of 0.5612, downside deviation of 2.17, and Mean Deviation of 2.31 to check if our risk estimates are consistent with your expectations. On a scale of 0 to 100, FARO Technologies holds a performance score of 11. The firm shows a Beta (market volatility) of 1.38, 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, FARO Technologies will likely underperform. Please check FARO Technologies' value at risk, as well as the relationship between the skewness and day median price , to make a quick decision on whether FARO Technologies' price patterns will revert.
Auto-correlation | 0.58 |
Modest predictability
FARO Technologies has modest predictability. Overlapping area represents the amount of predictability between FARO Technologies 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 FARO Technologies price movement. The serial correlation of 0.58 indicates that roughly 58.0% of current FARO Technologies price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.58 | |
| Spearman Rank Test | 0.45 | |
| Residual Average | 0.0 | |
| Price Variance | 6.33 |
FARO Technologies lagged returns against current returns
Autocorrelation, which is FARO Technologies 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 FARO Technologies' stock expected returns. We can calculate the autocorrelation of FARO Technologies returns to help us make a trade decision. For example, suppose you find that FARO Technologies 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 |
FARO Technologies 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 FARO Technologies stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if FARO Technologies stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in FARO Technologies stock over time.
Current vs Lagged Prices |
| Timeline |
FARO Technologies Lagged Returns
When evaluating FARO Technologies' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of FARO Technologies stock have on its future price. FARO Technologies 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, FARO Technologies autocorrelation shows the relationship between FARO Technologies stock current value and its past values and can show if there is a momentum factor associated with investing in FARO Technologies.
Regressed Prices |
| Timeline |
Pair Trading with FARO Technologies
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 FARO Technologies 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 FARO Technologies will appreciate offsetting losses from the drop in the long position's value.Moving together with FARO Stock
Moving against FARO Stock
| 0.69 | ST | Sensata Technologies | PairCorr |
| 0.64 | VPG | Vishay Precision | PairCorr |
| 0.54 | SVREW | SaverOne 2014 | PairCorr |
| 0.5 | WATT | Energous | PairCorr |
| 0.35 | KNW | Know Labs Fiscal Year End 17th of December 2024 | PairCorr |
The ability to find closely correlated positions to FARO Technologies could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace FARO Technologies 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 FARO Technologies - 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 FARO Technologies to buy it.
The correlation of FARO Technologies 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 FARO Technologies moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if FARO Technologies 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 FARO Technologies 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 FARO Technologies Correlation, FARO Technologies Volatility and FARO Technologies Alpha and Beta module to complement your research on FARO Technologies. To learn how to invest in FARO Stock, please use our How to Invest in FARO Technologies guide.You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
FARO Technologies 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.