Faraday Future Intelligent Stock Volatility
| FFIE Stock | USD 0.04 0.01 11.06% |
Faraday Future Intel secures Sharpe Ratio (or Efficiency) of -0.17, which denotes the company had a -0.17% return per unit of risk over the last 3 months. Faraday Future Intelligent exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Faraday Future's Standard Deviation of 14.67, variance of 215.15, and Mean Deviation of 8.82 to check the risk estimate we provide. Key indicators related to Faraday Future's volatility include:
60 Days Market Risk | Chance Of Distress | 60 Days Economic Sensitivity |
Faraday Future 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 Faraday daily returns, and it is calculated using variance and standard deviation. We also use Faraday's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Faraday Future volatility.
Faraday |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Faraday Future 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 Faraday Future at lower prices. For example, an investor can purchase Faraday 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 Faraday Future'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 Faraday Stock
| 0.64 | AXL | American Axle Manufa Earnings Call This Week | PairCorr |
| 0.85 | FOXF | Fox Factory Holding Earnings Call This Week | PairCorr |
| 0.77 | DAN | Dana Inc Earnings Call Today | PairCorr |
Moving against Faraday Stock
| 0.92 | CMG | Chipotle Mexican Grill | PairCorr |
| 0.88 | WING | Wingstop Financial Report 1st of May 2024 | PairCorr |
| 0.87 | BH | Biglari Holdings Earnings Call This Week | PairCorr |
| 0.84 | ALV | Autoliv | PairCorr |
| 0.83 | VZIO | Vizio Holding Corp Financial Report 14th of May 2024 | PairCorr |
| 0.76 | AN | AutoNation | PairCorr |
| 0.73 | F | Ford Motor Sell-off Trend | PairCorr |
| 0.72 | AEO | American Eagle Outfitters Financial Report 22nd of May 2024 | PairCorr |
| 0.67 | DORM | Dorman Products Financial Report 7th of May 2024 | PairCorr |
Faraday Future Market Sensitivity And Downside Risk
Faraday Future's beta coefficient measures the volatility of Faraday stock compared to the systematic risk of the entire 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 Faraday stock's returns against your selected market. In other words, Faraday Future's beta of 6.19 provides an investor with an approximation of how much risk Faraday Future stock can potentially add to one of your existing portfolios. Faraday Future Intelligent is displaying above-average volatility over the selected time horizon. Faraday Future Intelligent is a penny stock. Although Faraday Future may be in fact a good investment, many penny stocks are subject to artificial price hype. Make sure you completely understand the upside potential and downside risk of investing in Faraday Future Intelligent. We encourage investors to look for signals such as message board hypes, claims of breakthroughs, email spams, sudden volume upswings, and other similar hype indicators. We also encourage traders to check biographies and work history of company officers before investing in instruments with high volatility. You can indeed make money on Faraday instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.
3 Months Beta |Analyze Faraday Future Intel Demand TrendCheck current 90 days Faraday Future correlation with market (NYSE Composite)Faraday Beta |
Faraday standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity 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 | 15.08 |
It is essential to understand the difference between upside risk (as represented by Faraday Future's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Faraday Future's daily returns or price. Since the actual investment returns on holding a position in faraday 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 Faraday Future.
Using Faraday Put Option to Manage Risk
Put options written on Faraday Future grant holders of the option the right to sell a specified amount of Faraday Future 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 Faraday Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Faraday Future'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 Faraday Future will be realized, the loss incurred will be offset by the profits made with the option trade.
Faraday Future's PUT expiring on 2024-05-17
Profit |
| Faraday Future Price At Expiration |
Current Faraday Future Insurance Chain
| Delta | Gamma | Open Int | Expiration | Current Spread | Last Price | |||
Put | 2024-05-17 PUT at $1.5 | -0.3243 | 2.7393 | 1 | 2024-05-17 | 1.41 - 1.48 | 1.5 | View |
Faraday Future Intel Stock Volatility Analysis
Volatility refers to the frequency at which Faraday Future stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Faraday Future's price changes. Investors will then calculate the volatility of Faraday Future'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 Faraday Future's volatility:
Historical Volatility
This type of stock volatility measures Faraday Future's fluctuations based on previous trends. It's commonly used to predict Faraday Future'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 Faraday Future'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 Faraday Future'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. Faraday Future Intel 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.
Faraday Future Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 6.1881 . This usually indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Faraday Future 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 Faraday Future or Automobiles 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 Faraday Future'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 Faraday 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.
Faraday Future Intelligent has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the NYSE Composite. Predicted Return Density |
| Returns |
What Drives a Faraday Future Price Volatility?
Several factors can influence a stock's market 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.Faraday Future Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Faraday Future is -600.94. The daily returns are distributed with a variance of 227.3 and standard deviation of 15.08. The mean deviation of Faraday Future Intelligent is currently at 9.11. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | -2.95 | |
β | Beta against NYSE Composite | 6.19 | |
σ | Overall volatility | 15.08 | |
Ir | Information ratio | -0.17 |
Faraday Future Stock Return Volatility
Faraday Future historical daily return volatility represents how much of Faraday Future stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 15.0766% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.6193% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Faraday Future Volatility
Volatility is a rate at which the price of Faraday Future 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 Faraday Future may increase or decrease. In other words, similar to Faraday's beta indicator, it measures the risk of Faraday Future and helps estimate the fluctuations that may happen in a short period of time. So if prices of Faraday Future 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 Reported | Projected for Next Year | ||
| Selling And Marketing Expenses | 23.9 M | 12.9 M | |
| Market Cap | 122.6 M | 116.5 M |
Faraday Future's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Faraday Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Faraday Future's price varies over time.
3 ways to utilize Faraday Future's volatility to invest better
Higher Faraday Future's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Faraday Future Intel stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Faraday Future Intel stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Faraday Future Intel investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Faraday Future's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Faraday Future's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Faraday Future Investment Opportunity
Faraday Future Intelligent has a volatility of 15.08 and is 24.32 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Faraday Future Intelligent is higher than 96 percent of all global equities and portfolios over the last 90 days. You can use Faraday Future Intelligent to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of Faraday Future to be traded at $0.0397 in 90 days.Modest diversification
The correlation between Faraday Future Intelligent and NYA is 0.26 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Faraday Future Intelligent and NYA in the same portfolio, assuming nothing else is changed.
Faraday Future Additional Risk Indicators
The analysis of Faraday Future'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 Faraday Future's investment and either accepting that risk or mitigating it. Along with some common measures of Faraday Future 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.
| Risk Adjusted Performance | (0.09) | |||
| Market Risk Adjusted Performance | (0.39) | |||
| Mean Deviation | 8.82 | |||
| Coefficient Of Variation | (597.68) | |||
| Standard Deviation | 14.67 | |||
| Variance | 215.15 | |||
| Information Ratio | (0.17) |
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.
Faraday Future 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 Faraday Future 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. Faraday Future'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, Faraday Future'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 Faraday Future Intelligent.
When determining whether Faraday Future Intel is a strong investment it is important to analyze Faraday Future's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Faraday Future's future performance. For an informed investment choice regarding Faraday Stock, refer to the following important reports: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Faraday Future Intelligent. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in gross domestic product. You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Complementary Tools for Faraday Stock analysis
When running Faraday Future's price analysis, check to measure Faraday Future'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 Faraday Future is operating at the current time. Most of Faraday Future's value examination focuses on studying past and present price action to predict the probability of Faraday Future's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Faraday Future's price. Additionally, you may evaluate how the addition of Faraday Future to your portfolios can decrease your overall portfolio volatility.
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| 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 | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| 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 | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Commodity Directory Find actively traded commodities issued by global exchanges |
Is Faraday Future'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 Faraday Future. If investors know Faraday 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 Faraday Future listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (129.06) | Revenue Per Share 0.13 | Return On Assets (0.31) | Return On Equity (1.95) |
The market value of Faraday Future Intel is measured differently than its book value, which is the value of Faraday that is recorded on the company's balance sheet. Investors also form their own opinion of Faraday Future's value that differs from its market value or its book value, called intrinsic value, which is Faraday Future'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 Faraday Future's market value can be influenced by many factors that don't directly affect Faraday Future'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 Faraday Future's value and its price as these two are different measures arrived at by different means. Investors typically determine if Faraday Future is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Faraday Future'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.