Appian Stock Volatility

APPN
 Stock
  

USD 47.14  0.22  0.46%   

Appian Corp Cl secures Sharpe Ratio (or Efficiency) of -0.0066, which signifies that the company had -0.0066% of return per unit of risk over the last 3 months. Macroaxis standpoint towards foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Appian Corp Cl exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Appian Corp Cl mean deviation of 5.09, and Risk Adjusted Performance of (0.043292) to double-check the risk estimate we provide.
  
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Appian Corp 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 Appian daily returns, and it is calculated using variance and standard deviation. We also use Appian's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Appian Corp volatility.

60 Days Market Risk

Not too volatile

Chance of Distress

Very Small

60 Days Economic Sensitivity

Hyperactively responds to market trends
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Appian Corp 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 Appian Corp at lower prices. For example, an investor can purchase Appian 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 Appian Corp'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.

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Appian Corp Market Sensitivity And Downside Risk

Appian Corp's beta coefficient measures the volatility of Appian 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 Appian stock's returns against your selected market. In other words, Appian Corp's beta of 2.55 provides an investor with an approximation of how much risk Appian Corp stock can potentially add to one of your existing portfolios.
Let's try to break down what Appian's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Appian Corp will likely underperform.
3 Months Beta |Analyze Appian Corp Cl Demand Trend
Check current 90 days Appian Corp correlation with market (DOW)

Appian Beta

    
  2.55  
Appian 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

    
  7.55  
It is essential to understand the difference between upside risk (as represented by Appian Corp's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Appian Corp stock's daily returns or price. Since the actual investment returns on holding a position in Appian Corp 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 Appian Corp.

Appian Corp Implied Volatility

    
  81.36  
Appian Corp's implied volatility exposes the market's sentiment of Appian Corp Cl stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Appian Corp'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 Appian Corp stock will not fluctuate a lot when Appian Corp's options are near their expiration.

Appian Corp Cl Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Appian Corp's fluctuations based on previous trends. It's commonly used to predict Appian Corp'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 Appian Corp'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. Appian Corp Cl 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.
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Appian Corp Projected Return Density Against Market

Given the investment horizon of 90 days the stock has the beta coefficient of 2.5548 . 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, Appian Corp 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 Appian Corp or Technology 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 Appian Corp 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 Appian 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 0.2106, implying that it can generate a 0.21 percent excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 
Appian Corp's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Appian Corp 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.

Appian Corp 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 Appian Corp or Technology 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 Appian Corp 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 Appian 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 Appian Corp is -15183.74. The daily returns are distributed with a variance of 57.07 and standard deviation of 7.55. The mean deviation of Appian Corp Cl is currently at 5.07. For similar time horizon, the selected benchmark (DOW) has volatility of 1.42
α
Alpha over DOW
0.21
β
Beta against DOW2.55
σ
Overall volatility
7.55
Ir
Information ratio -0.01

Appian Corp Stock Return Volatility

Appian Corp historical daily return volatility represents how much Appian Corp 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 7.5545% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 1.4606% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Appian Corp Volatility

Volatility is a rate at which the price of Appian Corp 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 Appian Corp may increase or decrease. In other words, similar to Appian's beta indicator, it measures the risk of Appian Corp and helps estimate the fluctuations that may happen in a short period of time. So if prices of Appian Corp 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 Capitalization4.6 BB
Appian Corporation provides low-code automation platform in the United States and internationally. The company was incorporated in 1999 and is headquartered in McLean, Virginia. Appian Corp operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 1798 people.

Appian Corp Investment Opportunity

Appian Corp Cl has a volatility of 7.55 and is 5.17 times more volatile than DOW. 65  of all equities and portfolios are less risky than Appian Corp. Compared to the overall equity markets, volatility of historical daily returns of Appian Corp Cl is higher than 65 () of all global equities and portfolios over the last 90 days. Use Appian Corp Cl to protect your portfolios against small market fluctuations. The stock experiences a normal downward trend and little activity. Check odds of Appian Corp to be traded at $46.67 in 90 days. . Let's try to break down what Appian's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Appian Corp will likely underperform.

Very weak diversification

The correlation between Appian Corp Cl and DJI is Very weak diversification for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Appian Corp Cl and DJI in the same portfolio, assuming nothing else is changed.

Appian Corp Additional Risk Indicators

The analysis of Appian Corp'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 Appian Corp's investment and either accepting that risk or mitigating it. Along with some common measures of Appian Corp 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(0.043292)
Market Risk Adjusted Performance(0.1)
Mean Deviation5.09
Coefficient Of Variation(2,762)
Standard Deviation7.43
Variance55.23
Information Ratio(0.01176)
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.

Appian Corp 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 Appian Corp 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. Appian Corp'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, Appian Corp'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 Appian Corp Cl.
Please continue to Trending Equities. Note that the Appian Corp Cl information on this page should be used as a complementary analysis to other Appian Corp'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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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When running Appian Corp Cl price analysis, check to measure Appian Corp's 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 Appian Corp is operating at the current time. Most of Appian Corp's value examination focuses on studying past and present price action to predict the probability of Appian Corp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Appian Corp's price. Additionally, you may evaluate how the addition of Appian Corp to your portfolios can decrease your overall portfolio volatility.
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Is Appian Corp'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 Appian Corp. If investors know Appian 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 Appian Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
3.4 B
Quarterly Revenue Growth YOY
0.29
Return On Assets
-0.12
Return On Equity
-0.36
The market value of Appian Corp Cl is measured differently than its book value, which is the value of Appian that is recorded on the company's balance sheet. Investors also form their own opinion of Appian Corp's value that differs from its market value or its book value, called intrinsic value, which is Appian Corp'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 Appian Corp's market value can be influenced by many factors that don't directly affect Appian Corp'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 Appian Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine Appian Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Appian Corp'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.