Alphatec Holdings Stock Volatility
| ATEC Stock | USD 13.82 0.32 2.37% |
Alphatec Holdings secures Sharpe Ratio (or Efficiency) of -0.14, which signifies that the company had a -0.14 % return per unit of risk over the last 3 months. Alphatec Holdings exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Alphatec Holdings' Mean Deviation of 2.39, standard deviation of 3.94, and Risk Adjusted Performance of (0.10) to double-check the risk estimate we provide.
Sharpe Ratio = -0.1361
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Based on monthly moving average Alphatec Holdings is not performing at its full potential. However, if added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Alphatec Holdings by adding Alphatec Holdings to a well-diversified portfolio.
Key indicators related to Alphatec Holdings' volatility include:90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Alphatec Holdings 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 Alphatec daily returns, and it is calculated using variance and standard deviation. We also use Alphatec's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Alphatec Holdings volatility.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Alphatec Holdings can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game as hey may decide to buy additional stocks of Alphatec Holdings at lower prices to lower their average cost per share. Similarly, when the prices of Alphatec Holdings' stock rise, investors can sell out and invest the proceeds in other equities with better opportunities. Main indicators related to Alphatec Holdings' market risk premium analysis include:
Beta 1.02 | Alpha (0.63) | Risk 3.91 | Sharpe Ratio (0.14) | Expected Return (0.53) |
Moving together with Alphatec Stock
Moving against Alphatec Stock
Alphatec Holdings Market Sensitivity And Downside Risk
Alphatec Holdings' beta coefficient measures the volatility of Alphatec stock compared to the systematic risk of the entire 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 Alphatec stock's returns against your selected market. In other words, Alphatec Holdings's beta of 1.02 provides an investor with an approximation of how much risk Alphatec Holdings stock can potentially add to one of your existing portfolios. Alphatec Holdings exhibits very low volatility with skewness of -2.67 and kurtosis of 15.44. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Alphatec Holdings' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Alphatec Holdings' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Alphatec Holdings Demand TrendCheck current 90 days Alphatec Holdings correlation with market (Dow Jones Industrial)Alphatec Holdings Volatility and Downside Risk
Alphatec standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity 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.
Alphatec Holdings Stock Volatility Analysis
Volatility refers to the frequency at which Alphatec Holdings stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Alphatec Holdings' price changes. Investors will then calculate the volatility of Alphatec Holdings' stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Alphatec Holdings' volatility:
Historical Volatility
This type of stock volatility measures Alphatec Holdings' fluctuations based on previous trends. It's commonly used to predict Alphatec Holdings' future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Alphatec Holdings' current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Alphatec Holdings' to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Alphatec Holdings 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.
Alphatec Holdings Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 1.0248 . This suggests Alphatec Holdings market returns are highly-sensitive to returns on the market. As the market goes up or down, Alphatec Holdings is expected to follow.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 Alphatec Holdings or Health Care Equipment & Supplies 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 Alphatec Holdings' 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 Alphatec 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.
Predicted Return Density |
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What Drives an Alphatec Holdings Price Volatility?
Several factors can influence a stock's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract investor attention to the company. This positive attention may impact the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Alphatec Holdings Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Alphatec Holdings is -734.93. The daily returns are distributed with a variance of 15.27 and standard deviation of 3.91. The mean deviation of Alphatec Holdings is currently at 2.36. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.81
α | Alpha over Dow Jones | -0.63 | |
β | Beta against Dow Jones | 1.02 | |
σ | Overall volatility | 3.91 | |
Ir | Information ratio | -0.16 |
Alphatec Holdings Stock Return Volatility
Alphatec Holdings historical daily return volatility represents how much of Alphatec Holdings stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 3.9074% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.8192% volatility on return distribution over the 90 days horizon. Performance |
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Related Correlations Analysis
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
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Risk-Adjusted Indicators
There is a big difference between Alphatec Stock performing well and Alphatec Holdings Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Alphatec Holdings' multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| LIVN | 1.61 | 0.27 | 0.17 | 0.30 | 1.45 | 4.27 | 12.50 | |||
| SGRY | 2.12 | (0.67) | 0.00 | (1.86) | 0.00 | 3.53 | 26.78 | |||
| LEGN | 2.33 | (0.91) | 0.00 | (19.67) | 0.00 | 3.83 | 19.65 | |||
| SRRK | 3.07 | 0.76 | 0.26 | 0.81 | 2.52 | 7.07 | 31.68 | |||
| IRON | 2.07 | (0.08) | 0.00 | (0.31) | 0.00 | 4.33 | 14.87 | |||
| HTFL | 3.45 | (0.43) | 0.00 | (0.08) | 0.00 | 6.73 | 19.49 | |||
| IDYA | 1.99 | 0.00 | (0.01) | 0.08 | 2.26 | 4.86 | 10.56 | |||
| ADPT | 3.19 | (0.06) | 0.00 | (0.10) | 0.00 | 9.94 | 29.55 | |||
| ZLAB | 1.94 | (0.63) | 0.00 | (0.85) | 0.00 | 4.75 | 10.32 | |||
| CDTX | 4.25 | 1.83 | 0.65 | (2.04) | 1.30 | 5.93 | 105.72 |
About Alphatec Holdings Volatility
Volatility is a rate at which the price of Alphatec Holdings 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 Alphatec Holdings may increase or decrease. In other words, similar to Alphatec's beta indicator, it measures the risk of Alphatec Holdings and helps estimate the fluctuations that may happen in a short period of time. So if prices of Alphatec Holdings 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.Alphatec Holdings, Inc., a medical technology company, designs, develops, and advances technologies for the surgical treatment of spinal disorders. The company was founded in 1990 and is headquartered in Carlsbad, California. Alphatec Holdings operates under Medical Devices classification in the United States and is traded on NASDAQ Exchange. It employs 561 people.
Alphatec Holdings' stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Alphatec Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Alphatec Holdings' price varies over time.
3 ways to utilize Alphatec Holdings' volatility to invest better
Higher Alphatec Holdings' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Alphatec Holdings stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Alphatec Holdings stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Alphatec Holdings investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Alphatec Holdings' stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Alphatec Holdings' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Alphatec Holdings Investment Opportunity
Alphatec Holdings has a volatility of 3.91 and is 4.77 times more volatile than Dow Jones Industrial. 35 percent of all equities and portfolios are less risky than Alphatec Holdings. You can use Alphatec Holdings to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Alphatec Holdings to be traded at $16.58 in 90 days.Very good diversification
The correlation between Alphatec Holdings and DJI is -0.26 (i.e., Very good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Alphatec Holdings and DJI in the same portfolio, assuming nothing else is changed.
Alphatec Holdings Additional Risk Indicators
The analysis of Alphatec Holdings' 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 Alphatec Holdings' investment and either accepting that risk or mitigating it. Along with some common measures of Alphatec Holdings stock's 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 | (0.10) | |||
| Market Risk Adjusted Performance | (0.53) | |||
| Mean Deviation | 2.39 | |||
| Coefficient Of Variation | (728.96) | |||
| Standard Deviation | 3.94 | |||
| Variance | 15.52 | |||
| Information Ratio | (0.16) |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Alphatec Holdings 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.
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 Alphatec Holdings 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. Alphatec Holdings' 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, Alphatec Holdings' 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 Alphatec Holdings.
Complementary Tools for Alphatec Stock analysis
When running Alphatec Holdings' price analysis, check to measure Alphatec Holdings' 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 Alphatec Holdings is operating at the current time. Most of Alphatec Holdings' value examination focuses on studying past and present price action to predict the probability of Alphatec Holdings' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Alphatec Holdings' price. Additionally, you may evaluate how the addition of Alphatec Holdings to your portfolios can decrease your overall portfolio volatility.
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