Alpha Technology Group Stock Volatility
| ATGL Stock | 14.20 2.04 16.78% |
Alpha Technology is very risky given 3 months investment horizon. Alpha Technology secures Sharpe Ratio (or Efficiency) of 0.24, which signifies that the company had a 0.24% return per unit of risk over the last 3 months. We were able to analyze and collect data for thirty different technical indicators, which can help you to evaluate if expected returns of 4.04% are justified by taking the suggested risk. Use Alpha Technology Risk Adjusted Performance of 0.1917, downside deviation of 6.35, and Mean Deviation of 11.36 to evaluate company specific risk that cannot be diversified away. Key indicators related to Alpha Technology's volatility include:
360 Days Market Risk | Chance Of Distress | 360 Days Economic Sensitivity |
Alpha Technology 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 Alpha daily returns, and it is calculated using variance and standard deviation. We also use Alpha's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Alpha Technology volatility.
Alpha |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Alpha Technology at lower prices. For example, an investor can purchase Alpha stock that has halved in price over a short period. This will lower their average cost per share, thereby improving the overall portfolio performance when market normalizes.
Moving together with Alpha Stock
Moving against Alpha Stock
| 0.79 | VHAI | VHAI | PairCorr |
| 0.76 | VRAR | Glimpse Group | PairCorr |
| 0.62 | VRNT | Verint Systems | PairCorr |
| 0.47 | MQ | Marqeta | PairCorr |
| 0.41 | FAAS | DigiAsia Corp Symbol Change | PairCorr |
| 0.31 | VRNS | Varonis Systems Potential Growth | PairCorr |
Alpha Technology Market Sensitivity And Downside Risk
Alpha Technology's beta coefficient measures the volatility of Alpha 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 Alpha stock's returns against your selected market. In other words, Alpha Technology's beta of 3.48 provides an investor with an approximation of how much risk Alpha Technology stock can potentially add to one of your existing portfolios. Alpha Technology Group is displaying above-average volatility over the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Alpha Technology's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Alpha Technology's 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 Alpha Technology Demand TrendCheck current 90 days Alpha Technology correlation with market (Dow Jones Industrial)Alpha Beta |
Alpha 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.
Standard Deviation | 17.06 |
It is essential to understand the difference between upside risk (as represented by Alpha Technology's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Alpha Technology's daily returns or price. Since the actual investment returns on holding a position in alpha stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Alpha Technology.
Alpha Technology Stock Volatility Analysis
Volatility refers to the frequency at which Alpha Technology stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Alpha Technology's price changes. Investors will then calculate the volatility of Alpha Technology's 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 Alpha Technology's volatility:
Historical Volatility
This type of stock volatility measures Alpha Technology's fluctuations based on previous trends. It's commonly used to predict Alpha Technology's 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 Alpha Technology's 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 Alpha Technology's 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. Alpha Technology 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.
Alpha Technology Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 3.4784 . This suggests as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Alpha Technology will likely underperform.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 Alpha Technology or IT Services 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 Alpha Technology's 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 Alpha 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.
Alpha Technology Group has an alpha of 3.5617, implying that it can generate a 3.56 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Alpha Technology 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 many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Alpha Technology Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Alpha Technology is 422.62. The daily returns are distributed with a variance of 290.88 and standard deviation of 17.06. The mean deviation of Alpha Technology Group is currently at 11.62. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.77
α | Alpha over Dow Jones | 3.56 | |
β | Beta against Dow Jones | 3.48 | |
σ | Overall volatility | 17.06 | |
Ir | Information ratio | 0.23 |
Alpha Technology Stock Return Volatility
Alpha Technology historical daily return volatility represents how much of Alpha Technology stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 17.0552% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7685% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Alpha Technology Volatility
Volatility is a rate at which the price of Alpha Technology 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 Alpha Technology may increase or decrease. In other words, similar to Alpha's beta indicator, it measures the risk of Alpha Technology and helps estimate the fluctuations that may happen in a short period of time. So if prices of Alpha Technology 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.| Last Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 1.2 M | 647.4 K | |
| Market Cap | 462.4 M | 411.1 M |
Alpha Technology's 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 Alpha Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Alpha Technology's price varies over time.
3 ways to utilize Alpha Technology's volatility to invest better
Higher Alpha Technology's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Alpha Technology 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. Alpha Technology 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 Alpha Technology investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Alpha Technology's 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 Alpha Technology's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Alpha Technology Investment Opportunity
Alpha Technology Group has a volatility of 17.06 and is 22.16 times more volatile than Dow Jones Industrial. Compared to the overall equity markets, volatility of historical daily returns of Alpha Technology Group is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use Alpha Technology Group to enhance the returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Alpha Technology to be traded at 17.75 in 90 days.Average diversification
The correlation between Alpha Technology Group and DJI is 0.16 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Alpha Technology Group and DJI in the same portfolio, assuming nothing else is changed.
Alpha Technology Additional Risk Indicators
The analysis of Alpha Technology's 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 Alpha Technology's investment and either accepting that risk or mitigating it. Along with some common measures of Alpha Technology 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 | 0.1917 | |||
| Market Risk Adjusted Performance | 1.15 | |||
| Mean Deviation | 11.36 | |||
| Semi Deviation | 5.32 | |||
| Downside Deviation | 6.35 | |||
| Coefficient Of Variation | 421.13 | |||
| Standard Deviation | 16.81 |
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.
Alpha Technology 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 Alpha Technology 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. Alpha Technology's 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, Alpha Technology's 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 Alpha Technology Group.
When determining whether Alpha Technology is a strong investment it is important to analyze Alpha Technology's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Alpha Technology's future performance. For an informed investment choice regarding Alpha Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Alpha Technology Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Is IT Consulting & Other Services 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 Alpha Technology. If investors know Alpha 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 Alpha Technology listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.08) | Revenue Per Share 0.448 | Quarterly Revenue Growth 0.087 | Return On Assets (0.10) | Return On Equity (0.25) |
The market value of Alpha Technology is measured differently than its book value, which is the value of Alpha that is recorded on the company's balance sheet. Investors also form their own opinion of Alpha Technology's value that differs from its market value or its book value, called intrinsic value, which is Alpha Technology'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 Alpha Technology's market value can be influenced by many factors that don't directly affect Alpha Technology'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 Alpha Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine if Alpha Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alpha Technology'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.