Archrock Stock Volatility

AROC
 Stock
  

USD 7.61  0.02  0.26%   

Archrock secures Sharpe Ratio (or Efficiency) of -0.0765, which signifies that the company had -0.0765% of return per unit of standard deviation over the last 3 months. Macroaxis philosophy in 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. Archrock exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Archrock risk adjusted performance of (0.08), and Mean Deviation of 2.12 to double-check the risk estimate we provide.
  
Archrock 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 Archrock daily returns, and it is calculated using variance and standard deviation. We also use Archrock's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Archrock volatility.

30 Days Market Risk

Somewhat reliable

Chance of Distress

Below Average

30 Days Economic Sensitivity

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

0.92BKRBaker Hughes APairCorr
0.88BOOMDynamic MaterialsPairCorr

Moving against Archrock

0.62FTSIFTS InternationalPairCorr
0.58BASXQBasic Energy ServicesPairCorr

Archrock Market Sensitivity And Downside Risk

Archrock's beta coefficient measures the volatility of Archrock 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 Archrock stock's returns against your selected market. In other words, Archrock's beta of 0.88 provides an investor with an approximation of how much risk Archrock stock can potentially add to one of your existing portfolios.
Archrock exhibits very low volatility with skewness of -0.5 and kurtosis of 0.16. However, we advise investors to further study Archrock technical indicators to make sure 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 Archrock'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 Archrock'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.

Archrock Implied Volatility

Archrock's implied volatility exposes the market's sentiment of Archrock stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Archrock'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 Archrock stock will not fluctuate a lot when Archrock's options are near their expiration.
3 Months Beta |Analyze Archrock Demand Trend
Check current 90 days Archrock correlation with market (DOW)

Archrock Beta

    
  0.88  
Archrock 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

    
  2.65  
It is essential to understand the difference between upside risk (as represented by Archrock's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Archrock stock's daily returns or price. Since the actual investment returns on holding a position in Archrock 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 Archrock.

Using Archrock Put Option to Manage Risk

Put options written on Archrock grant holders of the option the right to sell a specified amount of Archrock 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 Archrock Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Archrock'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 Archrock will be realized, the loss incurred will be offset by the profits made with the option trade.

Archrock's PUT expiring on 2022-08-19

   Profit   
Share
       Archrock Price At Expiration  

Current Archrock Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2022-08-19 PUT at $10.0-0.98030.0448442022-08-191.45 - 3.42.0View
Put
2022-08-19 PUT at $7.5-0.42490.74758772022-08-190.05 - 0.250.17View
View All Archrock Options

Archrock Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Archrock's fluctuations based on previous trends. It's commonly used to predict Archrock'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 Archrock'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. Archrock 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.
.

Archrock Projected Return Density Against Market

Given the investment horizon of 90 days Archrock has a beta of 0.8769 . This suggests Archrock market returns are sensitive to returns on the market. As the market goes up or down, Archrock 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 Archrock or Energy 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 Archrock 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 Archrock 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. Archrock is significantly underperforming DOW.
   Predicted Return Density   
       Returns  
Archrock's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Archrock 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.

Archrock 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 Archrock or Energy 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 Archrock 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 Archrock 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 Archrock is -1307.67. The daily returns are distributed with a variance of 7.03 and standard deviation of 2.65. The mean deviation of Archrock is currently at 2.04. For similar time horizon, the selected benchmark (DOW) has volatility of 1.25
α
Alpha over DOW
-0.18
β
Beta against DOW0.88
σ
Overall volatility
2.65
Ir
Information ratio -0.07

Archrock Stock Return Volatility

Archrock historical daily return volatility represents how much Archrock 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 2.6515% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 1.2715% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About Archrock Volatility

Volatility is a rate at which the price of Archrock 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 Archrock may increase or decrease. In other words, similar to Archrock's beta indicator, it measures the risk of Archrock and helps estimate the fluctuations that may happen in a short period of time. So if prices of Archrock 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 Capitalization1.2 B1.1 B
Archrock, Inc., together with its subsidiaries, operates as an energy infrastructure company in the United States. Archrock, Inc. was founded in 1990 and is headquartered in Houston, Texas. Archrock operates under Oil Gas Equipment Services classification in the United States and is traded on New York Stock Exchange. It employs 1100 people.

Archrock Investment Opportunity

Archrock has a volatility of 2.65 and is 2.09 times more volatile than DOW. 23  of all equities and portfolios are less risky than Archrock. Compared to the overall equity markets, volatility of historical daily returns of Archrock is lower than 23 () of all global equities and portfolios over the last 90 days.
Use Archrock to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a normal upward fluctuation. Check odds of Archrock to be traded at $7.99 in 90 days. .

Very weak diversification

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

Archrock Additional Risk Indicators

The analysis of Archrock'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 Archrock's investment and either accepting that risk or mitigating it. Along with some common measures of Archrock 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(0.08)
Market Risk Adjusted Performance(0.21)
Mean Deviation2.12
Coefficient Of Variation(1,496)
Standard Deviation2.74
Variance7.5
Information Ratio(0.07)
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.

Archrock 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.
GM vs. Archrock
SP 500 vs. Archrock
Nasdaq QQQ vs. Archrock
Vmware vs. Archrock
Alphabet vs. Archrock
B of A vs. Archrock
Otp Bank vs. Archrock
Bitcoin Invt vs. Archrock
Twitter vs. Archrock
Walker Dunlop vs. Archrock
Dupont Denemours vs. Archrock
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 Archrock 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. Archrock'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, Archrock'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 Archrock.
Please continue to Trending Equities. Note that the Archrock information on this page should be used as a complementary analysis to other Archrock'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 Transaction History module to view history of all your transactions and understand their impact on performance.

Complementary Tools for Archrock Stock analysis

When running Archrock price analysis, check to measure Archrock'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 Archrock is operating at the current time. Most of Archrock's value examination focuses on studying past and present price action to predict the probability of Archrock's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Archrock's price. Additionally, you may evaluate how the addition of Archrock to your portfolios can decrease your overall portfolio volatility.
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Go
Is Archrock'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 Archrock. If investors know Archrock 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 Archrock 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
0.93
Market Capitalization
1.2 B
Quarterly Revenue Growth YOY
0.1
Return On Assets
0.0313
Return On Equity
0.0378
The market value of Archrock is measured differently than its book value, which is the value of Archrock that is recorded on the company's balance sheet. Investors also form their own opinion of Archrock's value that differs from its market value or its book value, called intrinsic value, which is Archrock'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 Archrock's market value can be influenced by many factors that don't directly affect Archrock'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 Archrock's value and its price as these two are different measures arrived at by different means. Investors typically determine Archrock value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Archrock'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.