Arqit Stock Volatility

ARQQ
 Stock
  

USD 6.16  0.15  2.38%   

We consider Arqit Quantum risky. Arqit Quantum secures Sharpe Ratio (or Efficiency) of 0.0177, which signifies that the company had 0.0177% of return per unit of risk over the last 24 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 Arqit Quantum, which you can use to evaluate the future volatility of the firm. Please confirm Arqit Quantum Mean Deviation of 4.53, risk adjusted performance of 0.0266, and Downside Deviation of 6.83 to double-check if the risk estimate we provide is consistent with the expected return of 0.13%.
  
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Arqit Quantum 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 Arqit daily returns, and it is calculated using variance and standard deviation. We also use Arqit's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Arqit Quantum volatility.

30 Days Market Risk

Risky

Chance of Distress

Quite High

30 Days Economic Sensitivity

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

0.66ALTRAltair EngineeringPairCorr

Arqit Quantum Market Sensitivity And Downside Risk

Arqit Quantum's beta coefficient measures the volatility of Arqit 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 Arqit stock's returns against your selected market. In other words, Arqit Quantum's beta of 0.0387 provides an investor with an approximation of how much risk Arqit Quantum stock can potentially add to one of your existing portfolios.
Let's try to break down what Arqit's beta means in this case. As returns on the market increase, Arqit Quantum returns are expected to increase less than the market. However, during the bear market, the loss on holding Arqit Quantum will be expected to be smaller as well.
24 Months Beta |Analyze Arqit Quantum Demand Trend
Check current 90 days Arqit Quantum correlation with market (DOW)

Arqit Beta

    
  0.0387  
Arqit 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

    
  7.53  
It is essential to understand the difference between upside risk (as represented by Arqit Quantum's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Arqit Quantum stock's daily returns or price. Since the actual investment returns on holding a position in Arqit Quantum 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 Arqit Quantum.

Arqit Quantum Stock Volatility Analysis

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

Historical Volatility

This type of stock volatility measures Arqit Quantum's fluctuations based on previous trends. It's commonly used to predict Arqit Quantum'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 Arqit Quantum'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 three hundred seventeen. Arqit Quantum 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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Arqit Quantum Projected Return Density Against Market

Given the investment horizon of 90 days Arqit Quantum has a beta of 0.0387 . This suggests as returns on the market go up, Arqit Quantum average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Arqit Quantum 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 Arqit Quantum 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 Arqit Quantum 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 Arqit 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 0.1228, implying that it can generate a 0.12 percent excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 
Arqit Quantum's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Arqit Quantum 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.

Arqit Quantum 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 Arqit Quantum 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 Arqit Quantum 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 Arqit 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 Arqit Quantum is 5636.82. The daily returns are distributed with a variance of 56.69 and standard deviation of 7.53. The mean deviation of Arqit Quantum is currently at 4.52. For similar time horizon, the selected benchmark (DOW) has volatility of 1.01
α
Alpha over DOW
0.12
β
Beta against DOW0.0387
σ
Overall volatility
7.53
Ir
Information ratio 0.0125

Arqit Quantum Stock Return Volatility

Arqit Quantum historical daily return volatility represents how much Arqit Quantum stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The firm inherits 7.5291% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 0.9869% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Arqit Quantum Volatility

Volatility is a rate at which the price of Arqit Quantum 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 Arqit Quantum may increase or decrease. In other words, similar to Arqit's beta indicator, it measures the risk of Arqit Quantum and helps estimate the fluctuations that may happen in a short period of time. So if prices of Arqit Quantum 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 CapitalizationBB
Arqit Quantum Inc. provides cybersecurity services through satellite and terrestrial platforms in the United Kingdom. It offers QuantumCloud that enables any device to download a lightweight software agent, which can create encryption keys in partnership with any other device. Arqit Quantum operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 74 people.

Arqit Quantum Investment Opportunity

Arqit Quantum has a volatility of 7.53 and is 7.61 times more volatile than DOW. 65  of all equities and portfolios are less risky than Arqit Quantum. Compared to the overall equity markets, volatility of historical daily returns of Arqit Quantum is higher than 65 () of all global equities and portfolios over the last 90 days. Use Arqit Quantum to protect your portfolios against small market fluctuations. The stock experiences an unexpected downward movement. The market is reacting to new fundamentals. Check odds of Arqit Quantum to be traded at $5.91 in 90 days. . Let's try to break down what Arqit's beta means in this case. As returns on the market increase, Arqit Quantum returns are expected to increase less than the market. However, during the bear market, the loss on holding Arqit Quantum will be expected to be smaller as well.

Significant diversification

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

Arqit Quantum Additional Risk Indicators

The analysis of Arqit Quantum'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 Arqit Quantum's investment and either accepting that risk or mitigating it. Along with some common measures of Arqit Quantum 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 Performance0.0266
Market Risk Adjusted Performance3.21
Mean Deviation4.53
Semi Deviation5.95
Downside Deviation6.83
Coefficient Of Variation5627.98
Standard Deviation7.54
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.

Arqit Quantum 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 Arqit Quantum 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. Arqit Quantum'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, Arqit Quantum'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 Arqit Quantum.
Please continue to Trending Equities. Note that the Arqit Quantum information on this page should be used as a complementary analysis to other Arqit Quantum'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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

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When running Arqit Quantum price analysis, check to measure Arqit Quantum'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 Arqit Quantum is operating at the current time. Most of Arqit Quantum's value examination focuses on studying past and present price action to predict the probability of Arqit Quantum's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Arqit Quantum's price. Additionally, you may evaluate how the addition of Arqit Quantum to your portfolios can decrease your overall portfolio volatility.
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Is Arqit Quantum'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 Arqit Quantum. If investors know Arqit 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 Arqit Quantum listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
751.1 M
Return On Assets
-0.14
Return On Equity
-0.5
The market value of Arqit Quantum is measured differently than its book value, which is the value of Arqit that is recorded on the company's balance sheet. Investors also form their own opinion of Arqit Quantum's value that differs from its market value or its book value, called intrinsic value, which is Arqit Quantum'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 Arqit Quantum's market value can be influenced by many factors that don't directly affect Arqit Quantum'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 Arqit Quantum's value and its price as these two are different measures arrived at by different means. Investors typically determine Arqit Quantum value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Arqit Quantum'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.