Air Industries Stock Volatility

AIRI
 Stock
  

USD 0.72  0.03  4.35%   

We consider Air Industries dangerous. Air Industries Group secures Sharpe Ratio (or Efficiency) of 0.0588, which signifies that the company had 0.0588% of return per unit of risk over the last 3 months. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Air Industries Group, which you can use to evaluate the future volatility of the firm. Please confirm Air Industries Group risk adjusted performance of (0.012913), and Mean Deviation of 2.43 to double-check if the risk estimate we provide is consistent with the expected return of 0.19%.
  
Air Industries 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 Air Industries daily returns, and it is calculated using variance and standard deviation. We also use Air Industries's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Air Industries volatility.

240 Days Market Risk

Dangerous

Chance of Distress

Close to Average

240 Days Economic Sensitivity

Slowly supersedes the market
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Air Industries can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Air Industries at lower prices. For example, an investor can purchase Air Industries stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Air Industries' stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.

Air Industries Market Sensitivity And Downside Risk

Air Industries' beta coefficient measures the volatility of Air Industries stock compared to the systematic risk of the entire stock 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 Air Industries stock's returns against your selected market. In other words, Air Industries's beta of 0.28 provides an investor with an approximation of how much risk Air Industries stock can potentially add to one of your existing portfolios.
Air Industries Group exhibits very low volatility with skewness of 0.27 and kurtosis of -0.01. However, we advise investors to further study Air Industries Group technical indicators to make sure all market info is available and is reliable. Air Industries Group is a potential penny stock. Although Air Industries may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Air Industries Group. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Air Industries instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.
3 Months Beta |Analyze Air Industries Group Demand Trend
Check current 90 days Air Industries correlation with market (DOW)

Air Industries Beta

    
  0.28  
Air Industries standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity 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

    
  3.28  
It is essential to understand the difference between upside risk (as represented by Air Industries's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Air Industries stock's daily returns or price. Since the actual investment returns on holding a position in Air Industries 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 Air Industries.

Air Industries Group Stock Volatility Analysis

Volatility refers to the frequency at which Air Industries stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Air Industries' price changes. Investors will then calculate the volatility of Air Industries' 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 Air Industries' volatility:

Historical Volatility

This type of stock volatility measures Air Industries' fluctuations based on previous trends. It's commonly used to predict Air Industries' 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 Air Industries' current market price. This means that the stock will return to its initially predicted market price.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. The Median Price line plots median indexes of Air Industries Group price series.
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Air Industries Projected Return Density Against Market

Given the investment horizon of 90 days Air Industries has a beta of 0.2751 . This suggests as returns on the market go up, Air Industries average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Air Industries Group will be expected to be much smaller as well.
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 Air Industries or Industrials 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 Air Industries stock'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 Air Industries 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.
The company has a negative alpha, implying that the risk taken by holding this instrument is not justified. Air Industries Group is significantly underperforming DOW.
   Predicted Return Density   
       Returns  
Air Industries' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Air Industries stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Company's Stock Price Volatility?

Several factors can influence a company's stock 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.

Air Industries Stock Risk Measures

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 Air Industries or Industrials 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 Air Industries stock'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 Air Industries 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.
Given the investment horizon of 90 days the coefficient of variation of Air Industries is 1699.85. The daily returns are distributed with a variance of 10.78 and standard deviation of 3.28. The mean deviation of Air Industries Group is currently at 2.4. For similar time horizon, the selected benchmark (DOW) has volatility of 1.36
α
Alpha over DOW
-0.05
β
Beta against DOW0.28
σ
Overall volatility
3.28
Ir
Information ratio -0.01

Air Industries Stock Return Volatility

Air Industries historical daily return volatility represents how much Air Industries stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The company inherits 3.2832% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 1.2667% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About Air Industries Volatility

Volatility is a rate at which the price of Air Industries 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 Air Industries may increase or decrease. In other words, similar to Air Industries's beta indicator, it measures the risk of Air Industries and helps estimate the fluctuations that may happen in a short period of time. So if prices of Air Industries 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 ReportedProjected for 2022
Market Capitalization29.1 M36.8 M
Air Industries Group, an aerospace and defense company, designs, manufactures, and sells structural parts and assemblies for mission-critical aerospace and defense applications, and a prime contractor to the U.S. Air Industries Group was founded in 1979 and is headquartered in Bay Shore, New York. Air Industries operates under Aerospace Defense classification in the United States and is traded on NYSEMKT Exchange. It employs 197 people.

Air Industries Investment Opportunity

Air Industries Group has a volatility of 3.28 and is 2.58 times more volatile than DOW. 28  of all equities and portfolios are less risky than Air Industries. Compared to the overall equity markets, volatility of historical daily returns of Air Industries Group is lower than 28 () of all global equities and portfolios over the last 90 days.
Use Air Industries Group to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a very speculative upward sentiment. Check odds of Air Industries to be traded at $0.9 in 90 days. .

Average diversification

The correlation between Air Industries Group and DJI is Average diversification for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Air Industries Group and DJI in the same portfolio, assuming nothing else is changed.

Air Industries Additional Risk Indicators

The analysis of Air Industries' 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 Air Industries' investment and either accepting that risk or mitigating it. Along with some common measures of Air Industries stock 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(0.012913)
Market Risk Adjusted Performance(0.20)
Mean Deviation2.43
Coefficient Of Variation(7,195)
Standard Deviation3.35
Variance11.23
Information Ratio(0.012151)
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stock investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Air Industries 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.
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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 Air Industries 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. Air Industries' 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, Air Industries' 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 Air Industries Group.
Please continue to Trending Equities. Note that the Air Industries Group information on this page should be used as a complementary analysis to other Air Industries' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Fund Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

Complementary Tools for Air Industries Stock analysis

When running Air Industries Group price analysis, check to measure Air Industries' 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 Air Industries is operating at the current time. Most of Air Industries' value examination focuses on studying past and present price action to predict the probability of Air Industries' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Air Industries' price. Additionally, you may evaluate how the addition of Air Industries to your portfolios can decrease your overall portfolio volatility.
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Is Air Industries' industry 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 Air Industries. If investors know Air Industries 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 Air Industries listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
23.2 M
Quarterly Revenue Growth YOY
-0.12
Return On Assets
0.0304
Return On Equity
0.11
The market value of Air Industries Group is measured differently than its book value, which is the value of Air Industries that is recorded on the company's balance sheet. Investors also form their own opinion of Air Industries' value that differs from its market value or its book value, called intrinsic value, which is Air Industries' 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 Air Industries' market value can be influenced by many factors that don't directly affect Air Industries' 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 Air Industries' value and its price as these two are different measures arrived at by different means. Investors typically determine Air Industries value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Air Industries' 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.