Acadia Stock Volatility

AKR
 Stock
  

USD 15.38  0.18  1.18%   

We consider Acadia Realty not too volatile. Acadia Realty Trust secures Sharpe Ratio (or Efficiency) of 0.0047, which signifies that the company had 0.0047% of return per unit of standard deviation over the last 3 months. Our philosophy in 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-eight technical indicators for Acadia Realty Trust, which you can use to evaluate the future volatility of the firm. Please confirm Acadia Realty Trust mean deviation of 1.92, and Risk Adjusted Performance of (0.039192) to double-check if the risk estimate we provide is consistent with the expected return of 0.012%.
  
Acadia Realty 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 Acadia daily returns, and it is calculated using variance and standard deviation. We also use Acadia's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Acadia Realty volatility.

390 Days Market Risk

Not too volatile

Chance of Distress

Below Average

390 Days Economic Sensitivity

Responds to the market
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Acadia Realty 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 Acadia Realty at lower prices. For example, an investor can purchase Acadia 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 Acadia Realty'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 Acadia Realty

+0.81STGPFScentre GroupPairCorr
+0.95ORealty Income CorpPairCorr
+0.82KIMKimco Realty CorpPairCorr
+0.74REGRegency Centers CorpPairCorr

Acadia Realty Market Sensitivity And Downside Risk

Acadia Realty's beta coefficient measures the volatility of Acadia 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 Acadia stock's returns against your selected market. In other words, Acadia Realty's beta of 1.41 provides an investor with an approximation of how much risk Acadia Realty stock can potentially add to one of your existing portfolios.
Acadia Realty Trust exhibits very low volatility with skewness of 0.25 and kurtosis of 0.96. However, we advise investors to further study Acadia Realty Trust technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Acadia Realty'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 Acadia Realty'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.
3 Months Beta |Analyze Acadia Realty Trust Demand Trend
Check current 90 days Acadia Realty correlation with market (DOW)

Acadia Beta

    
  1.41  
Acadia 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

    
  2.57  
It is essential to understand the difference between upside risk (as represented by Acadia Realty's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Acadia Realty's daily returns or price. Since the actual investment returns on holding a position in acadia 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 Acadia Realty.

Using Acadia Put Option to Manage Risk

Put options written on Acadia Realty grant holders of the option the right to sell a specified amount of Acadia Realty at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Acadia Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Acadia Realty's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Acadia Realty will be realized, the loss incurred will be offset by the profits made with the option trade.

Acadia Realty's PUT expiring on 2022-12-16

   Profit   
Share
       Acadia Realty Price At Expiration  

Current Acadia Realty Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2022-12-16 PUT at $17.5-0.77690.117512022-12-162.0 - 3.20.0View
View All Acadia Realty Options

Acadia Realty Trust Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Acadia Realty's fluctuations based on previous trends. It's commonly used to predict Acadia Realty'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 Acadia Realty'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 Acadia Realty'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. The Median Price line plots median indexes of Acadia Realty Trust price series.
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Acadia Realty Projected Return Density Against Market

Considering the 90-day investment horizon the stock has the beta coefficient of 1.4085 . 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, Acadia Realty 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 Acadia Realty or Real Estate 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 Acadia Realty'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 Acadia 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. Acadia Realty Trust is significantly underperforming DOW.
   Predicted Return Density   
       Returns  
Acadia Realty's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how acadia 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 an Acadia Realty Price Volatility?

Several factors can influence a Stock'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.

Acadia Realty 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 Acadia Realty or Real Estate 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 Acadia Realty'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 Acadia 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. Considering the 90-day investment horizon the coefficient of variation of Acadia Realty is 21495.92. The daily returns are distributed with a variance of 6.61 and standard deviation of 2.57. The mean deviation of Acadia Realty Trust is currently at 1.95. For similar time horizon, the selected benchmark (DOW) has volatility of 1.37
α
Alpha over DOW
-0.19
β
Beta against DOW1.41
σ
Overall volatility
2.57
Ir
Information ratio -0.06

Acadia Realty Stock Return Volatility

Acadia Realty historical daily return volatility represents how much of Acadia Realty stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The enterprise has volatility of 2.5706% on return distribution over 90 days investment horizon. By contrast, DOW inherits 1.4101% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About Acadia Realty Volatility

Volatility is a rate at which the price of Acadia Realty 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 Acadia Realty may increase or decrease. In other words, similar to Acadia's beta indicator, it measures the risk of Acadia Realty and helps estimate the fluctuations that may happen in a short period of time. So if prices of Acadia Realty 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 Capitalization1.9 B2.1 B

Acadia Realty Investment Opportunity

Acadia Realty Trust has a volatility of 2.57 and is 1.82 times more volatile than DOW. 22  of all equities and portfolios are less risky than Acadia Realty. Compared to the overall equity markets, volatility of historical daily returns of Acadia Realty Trust is lower than 22 () of all global equities and portfolios over the last 90 days. Use Acadia Realty Trust to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a large bullish trend. Check odds of Acadia Realty to be traded at $16.92 in 90 days.

Poor diversification

The correlation between Acadia Realty Trust and DJI is 0.76 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Acadia Realty Trust and DJI in the same portfolio, assuming nothing else is changed.

Acadia Realty Additional Risk Indicators

The analysis of Acadia Realty'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 Acadia Realty's investment and either accepting that risk or mitigating it. Along with some common measures of Acadia Realty 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.
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.

Acadia Realty 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 Acadia Realty 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. Acadia Realty'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, Acadia Realty'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 Acadia Realty Trust.
Please continue to Trending Equities. You can also try Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

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Is Acadia Realty'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 Acadia Realty. If investors know Acadia 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 Acadia Realty 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
2.57
Market Capitalization
1.5 B
Quarterly Revenue Growth YOY
(0.59) 
Return On Assets
6.0E-4
Return On Equity
(0.0305) 
The market value of Acadia Realty Trust is measured differently than its book value, which is the value of Acadia that is recorded on the company's balance sheet. Investors also form their own opinion of Acadia Realty's value that differs from its market value or its book value, called intrinsic value, which is Acadia Realty'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 Acadia Realty's market value can be influenced by many factors that don't directly affect Acadia Realty'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 Acadia Realty's value and its price as these two are different measures arrived at by different means. Investors typically determine Acadia Realty value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Acadia Realty'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.