Photronics Stock Volatility

PLAB
 Stock
  

USD 14.88  0.25  1.71%   

Photronics maintains Sharpe Ratio (i.e., Efficiency) of -0.0446, which implies the firm had -0.0446% of return per unit of risk over the last 3 months. Macroaxis standpoint towards forecasting 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. Photronics exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to check Photronics risk adjusted performance of (0.1), and Coefficient Of Variation of (1,074) to confirm the risk estimate we provide.
  
Photronics 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 Photronics daily returns, and it is calculated using variance and standard deviation. We also use Photronics's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Photronics volatility.

30 Days Market Risk

Somewhat reliable

Chance of Distress

30 Days Economic Sensitivity

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

+0.86ASMLFAsml Hld NVPairCorr
+0.87ASMLAsml Holdings NYPairCorr
+0.91AMATApplied Materials Fiscal Year End 17th of November 2022 PairCorr
+0.87LRCXLam Research CorpPairCorr
+0.77KLACK L A-TencorPairCorr
+0.91TOELYTokyo ElectronPairCorr
+0.89TOELFTOKYO ELECTRONPairCorr

Moving against Photronics

-0.7RUMRumble IncPairCorr

Photronics Market Sensitivity And Downside Risk

Photronics' beta coefficient measures the volatility of Photronics 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 Photronics stock's returns against your selected market. In other words, Photronics's beta of 1.53 provides an investor with an approximation of how much risk Photronics stock can potentially add to one of your existing portfolios.
Photronics exhibits very low volatility with skewness of -1.98 and kurtosis of 8.93. However, we advise investors to further study Photronics 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 Photronics' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Photronics' 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 Photronics Demand Trend
Check current 90 days Photronics correlation with market (DOW)

Photronics Beta

    
  1.53  
Photronics 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

    
  4.57  
It is essential to understand the difference between upside risk (as represented by Photronics's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Photronics' daily returns or price. Since the actual investment returns on holding a position in photronics 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 Photronics.

Using Photronics Put Option to Manage Risk

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

Photronics' PUT expiring on 2022-10-21

   Profit   
Share
       Photronics Price At Expiration  

Current Photronics Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2022-10-21 PUT at $25.0-0.72640.0386762022-10-219.0 - 11.28.85View
Put
2022-10-21 PUT at $22.5-0.69310.044292022-10-216.3 - 8.87.6View
Put
2022-10-21 PUT at $20.0-0.95530.03841422022-10-215.0 - 5.34.71View
Put
2022-10-21 PUT at $17.5-0.93440.08332232022-10-212.55 - 2.752.65View
Put
2022-10-21 PUT at $15.0-0.49420.20615842022-10-210.75 - 0.91.2View
Put
2022-10-21 PUT at $12.5-0.11930.0836932022-10-210.1 - 0.20.25View
View All Photronics Options

Photronics Stock Volatility Analysis

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

Historical Volatility

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

Photronics Projected Return Density Against Market

Given the investment horizon of 90 days the stock has the beta coefficient of 1.5309 indicating as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Photronics 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 Photronics 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 Photronics' 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 Photronics 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. Photronics is significantly underperforming DOW.
   Predicted Return Density   
       Returns  
Photronics' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how photronics 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 Photronics 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.

Photronics 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 Photronics 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 Photronics' 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 Photronics 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 Photronics is -2243.68. The daily returns are distributed with a variance of 20.85 and standard deviation of 4.57. The mean deviation of Photronics is currently at 2.85. For similar time horizon, the selected benchmark (DOW) has volatility of 1.13
α
Alpha over DOW
-0.35
β
Beta against DOW1.53
σ
Overall volatility
4.57
Ir
Information ratio -0.08

Photronics Stock Return Volatility

Photronics historical daily return volatility represents how much of Photronics stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 4.5657% risk (volatility on return distribution) over the 90 days horizon. By contrast, DOW inherits 1.1296% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About Photronics Volatility

Volatility is a rate at which the price of Photronics 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 Photronics may increase or decrease. In other words, similar to Photronics's beta indicator, it measures the risk of Photronics and helps estimate the fluctuations that may happen in a short period of time. So if prices of Photronics 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.
Photronics, Inc., together with its subsidiaries, engages in the manufacture and sale of photomask products and services in the United States, Taiwan, Korea, Europe, China, and internationally. Photronics, Inc. was incorporated in 1969 and is based in Brookfield, Connecticut. Photronics operates under Semiconductor Equipment Materials classification in the United States and is traded on NASDAQ Exchange. It employs 1728 people.

Photronics Investment Opportunity

Photronics has a volatility of 4.57 and is 4.04 times more volatile than DOW. 39  of all equities and portfolios are less risky than Photronics. Compared to the overall equity markets, volatility of historical daily returns of Photronics is lower than 39 () of all global equities and portfolios over the last 90 days. Use Photronics 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 Photronics to be traded at $16.37 in 90 days.

Weak diversification

The correlation between Photronics and DJI is 0.39 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Photronics and DJI in the same portfolio, assuming nothing else is changed.

Photronics Additional Risk Indicators

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

Photronics 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 Photronics 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. Photronics' 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, Photronics' 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 Photronics.
Please check Your Equity Center. Note that the Photronics information on this page should be used as a complementary analysis to other Photronics' 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

Complementary Tools for Photronics Stock analysis

When running Photronics price analysis, check to measure Photronics' 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 Photronics is operating at the current time. Most of Photronics' value examination focuses on studying past and present price action to predict the probability of Photronics' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Photronics' price. Additionally, you may evaluate how the addition of Photronics to your portfolios can decrease your overall portfolio volatility.
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Go
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Is Photronics' 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 Photronics. If investors know Photronics 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 Photronics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Photronics is measured differently than its book value, which is the value of Photronics that is recorded on the company's balance sheet. Investors also form their own opinion of Photronics' value that differs from its market value or its book value, called intrinsic value, which is Photronics' 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 Photronics' market value can be influenced by many factors that don't directly affect Photronics' 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 Photronics' value and its price as these two are different measures arrived at by different means. Investors typically determine Photronics value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Photronics' 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.