Altisource Stock Volatility

AAMC
 Stock
  

USD 23.60  0.77  3.16%   

Altisource Asset is somewhat reliable given 3 months investment horizon. Altisource Asset Man secures Sharpe Ratio (or Efficiency) of 0.23, which signifies that the company had 0.23% of return per unit of risk over the last 3 months. Our standpoint towards foreseeing the risk of a stock is to use both market data as well as company specific technical data. We have collected data for twenty-eight different technical indicators, which can help you to evaluate if expected returns of 1.58% are justified by taking the suggested risk. Use Altisource Asset Downside Deviation of 4.96, risk adjusted performance of 0.28, and Mean Deviation of 4.48 to evaluate company specific risk that cannot be diversified away.
  
Altisource Asset 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 Altisource daily returns, and it is calculated using variance and standard deviation. We also use Altisource's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Altisource Asset volatility.

30 Days Market Risk

Somewhat reliable

Chance of Distress

Very Low

30 Days Economic Sensitivity

Almost mirrors the market
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Altisource Asset 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 Altisource Asset at lower prices. For example, an investor can purchase Altisource 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 Altisource Asset's 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.

Moving together with Altisource Asset

0.62ABAlliancebernsteinPairCorr
0.63AINVApollo InvestmentPairCorr

Altisource Asset Market Sensitivity And Downside Risk

Altisource Asset's beta coefficient measures the volatility of Altisource 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 Altisource stock's returns against your selected market. In other words, Altisource Asset's beta of 1.12 provides an investor with an approximation of how much risk Altisource Asset stock can potentially add to one of your existing portfolios.
Altisource Asset Management is displaying above-average volatility over the selected time horizon. Investors should scrutinize Altisource Asset Management independently to ensure intended market timing strategies are aligned with expectations about Altisource Asset volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Altisource Asset's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Altisource Asset'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 stocks as prices fall.

Altisource Asset Implied Volatility

Altisource Asset's implied volatility exposes the market's sentiment of Altisource Asset Management stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Altisource Asset's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Altisource Asset stock will not fluctuate a lot when Altisource Asset's options are near their expiration.
3 Months Beta |Analyze Altisource Asset Man Demand Trend
Check current 90 days Altisource Asset correlation with market (DOW)

Altisource Beta

    
  1.12  
Altisource 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

    
  6.95  
It is essential to understand the difference between upside risk (as represented by Altisource Asset's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Altisource Asset stock's daily returns or price. Since the actual investment returns on holding a position in Altisource Asset 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 Altisource Asset.

Altisource Asset Man Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Altisource Asset's fluctuations based on previous trends. It's commonly used to predict Altisource Asset'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 Altisource Asset's 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. Developed by Larry Williams, the Weighted Close is the average of Altisource Asset Man high, low and close of a chart with the close values weighted twice. It can be used to smooth an indicator that normally takes only Altisource Asset closing price as input.
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Altisource Asset Projected Return Density Against Market

Given the investment horizon of 90 days the stock has the beta coefficient of 1.1157 . This suggests Altisource Asset Management market returns are sensitive to returns on the market. As the market goes up or down, Altisource Asset 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 Altisource Asset or Financial 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 Altisource Asset 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 Altisource 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 an alpha of 1.4128, implying that it can generate a 1.41 percent excess return over DOW after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Altisource Asset's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Altisource Asset 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.

Altisource Asset 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 Altisource Asset or Financial 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 Altisource Asset 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 Altisource 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 Altisource Asset is 440.96. The daily returns are distributed with a variance of 48.29 and standard deviation of 6.95. The mean deviation of Altisource Asset Management is currently at 4.7. For similar time horizon, the selected benchmark (DOW) has volatility of 1.27
α
Alpha over DOW
1.41
β
Beta against DOW1.12
σ
Overall volatility
6.95
Ir
Information ratio 0.21

Altisource Asset Stock Return Volatility

Altisource Asset historical daily return volatility represents how much Altisource Asset 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 6.9492% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 1.2724% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About Altisource Asset Volatility

Volatility is a rate at which the price of Altisource Asset 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 Altisource Asset may increase or decrease. In other words, similar to Altisource's beta indicator, it measures the risk of Altisource Asset and helps estimate the fluctuations that may happen in a short period of time. So if prices of Altisource Asset 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 Capitalization36.8 M37.8 M
Altisource Asset Management Corporation is an alternative lending company that provides liquidity and capital to under-served market and portfolio management and corporate governance services to institutional investors in the United States. Altisource Asset Management Corporation was founded in 2012 and is headquartered in Christiansted, Virgin Islands with the additional in United States and India. Altisource Asset operates under Asset Management classification in the United States and is traded on NYSEMKT Exchange. It employs 24 people.

Altisource Asset Investment Opportunity

Altisource Asset Management has a volatility of 6.95 and is 5.47 times more volatile than DOW. 60  of all equities and portfolios are less risky than Altisource Asset. Compared to the overall equity markets, volatility of historical daily returns of Altisource Asset Management is higher than 60 () of all global equities and portfolios over the last 90 days.
Use Altisource Asset Management to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of Altisource Asset to be traded at $22.66 in 90 days. .

Modest diversification

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

Altisource Asset Additional Risk Indicators

The analysis of Altisource Asset'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 Altisource Asset's investment and either accepting that risk or mitigating it. Along with some common measures of Altisource Asset 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 Performance0.28
Market Risk Adjusted Performance1.29
Mean Deviation4.48
Semi Deviation3.67
Downside Deviation4.96
Coefficient Of Variation466.72
Standard Deviation6.73
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.

Altisource Asset 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 Altisource Asset 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. Altisource Asset'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, Altisource Asset'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 Altisource Asset Management.
Please continue to Trending Equities. Note that the Altisource Asset Man information on this page should be used as a complementary analysis to other Altisource Asset's 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

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Is Altisource Asset's 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 Altisource Asset. If investors know Altisource 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 Altisource Asset 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 YOY
-0.98
Market Capitalization
43.2 M
Quarterly Revenue Growth YOY
0.008
Return On Assets
-0.0866
Return On Equity
-0.2
The market value of Altisource Asset Man is measured differently than its book value, which is the value of Altisource that is recorded on the company's balance sheet. Investors also form their own opinion of Altisource Asset's value that differs from its market value or its book value, called intrinsic value, which is Altisource Asset'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 Altisource Asset's market value can be influenced by many factors that don't directly affect Altisource Asset'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 Altisource Asset's value and its price as these two are different measures arrived at by different means. Investors typically determine Altisource Asset value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Altisource Asset'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.