Ftai Infrastructure Stock Volatility
| FIP Stock | USD 7.30 0.07 0.95% |
FTAI Infrastructure appears to be slightly risky, given 3 months investment horizon. FTAI Infrastructure retains Efficiency (Sharpe Ratio) of 0.28, which denotes the company had a 0.28% return per unit of risk over the last 3 months. By analyzing FTAI Infrastructure's technical indicators, you can evaluate if the expected return of 0.92% is justified by implied risk. Please utilize FTAI Infrastructure's Market Risk Adjusted Performance of (1.62), coefficient of variation of 416.63, and Downside Deviation of 2.44 to check if our risk estimates are consistent with your expectations. Key indicators related to FTAI Infrastructure's volatility include:
30 Days Market Risk | Chance Of Distress | 30 Days Economic Sensitivity |
FTAI Infrastructure 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 FTAI daily returns, and it is calculated using variance and standard deviation. We also use FTAI's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of FTAI Infrastructure volatility.
FTAI |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as FTAI Infrastructure 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 FTAI Infrastructure at lower prices. For example, an investor can purchase FTAI 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 FTAI Infrastructure'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 FTAI Stock
| 0.77 | IGC | India Globalization | PairCorr |
| 0.95 | MMM | 3M Company Financial Report 23rd of July 2024 | PairCorr |
| 0.88 | WAB | Westinghouse Air Brake | PairCorr |
Moving against FTAI Stock
| 0.95 | AZ | A2Z Smart Technologies | PairCorr |
| 0.94 | BA | Boeing Financial Report 24th of July 2024 | PairCorr |
| 0.79 | AP | Ampco Pittsburgh | PairCorr |
| 0.66 | FBYD | Falcons Beyond Global | PairCorr |
| 0.64 | CVGI | Commercial Vehicle Earnings Call This Week | PairCorr |
| 0.54 | MPU | Mega Matrix Corp | PairCorr |
FTAI Infrastructure Market Sensitivity And Downside Risk
FTAI Infrastructure's beta coefficient measures the volatility of FTAI 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 FTAI stock's returns against your selected market. In other words, FTAI Infrastructure's beta of -0.48 provides an investor with an approximation of how much risk FTAI Infrastructure stock can potentially add to one of your existing portfolios. FTAI Infrastructure currently demonstrates below-average downside deviation. It has Information Ratio of 0.22 and Jensen Alpha of 0.79. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure FTAI Infrastructure's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact FTAI Infrastructure'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 financial instruments as prices fall.
3 Months Beta |Analyze FTAI Infrastructure Demand TrendCheck current 90 days FTAI Infrastructure correlation with market (NYSE Composite)FTAI Beta |
FTAI 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 | 3.26 |
It is essential to understand the difference between upside risk (as represented by FTAI Infrastructure's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of FTAI Infrastructure's daily returns or price. Since the actual investment returns on holding a position in ftai 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 FTAI Infrastructure.
FTAI Infrastructure Stock Volatility Analysis
Volatility refers to the frequency at which FTAI Infrastructure stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with FTAI Infrastructure's price changes. Investors will then calculate the volatility of FTAI Infrastructure'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 FTAI Infrastructure's volatility:
Historical Volatility
This type of stock volatility measures FTAI Infrastructure's fluctuations based on previous trends. It's commonly used to predict FTAI Infrastructure'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 FTAI Infrastructure'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 FTAI Infrastructure'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. FTAI Infrastructure 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.
FTAI Infrastructure Projected Return Density Against Market
Considering the 90-day investment horizon FTAI Infrastructure has a beta of -0.4752 . This usually indicates as returns on the benchmark increase, returns on holding FTAI Infrastructure are expected to decrease at a much lower rate. During a bear market, however, FTAI Infrastructure is likely to outperform the market.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 FTAI Infrastructure or Machinery 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 FTAI Infrastructure'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 FTAI 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.
FTAI Infrastructure has an alpha of 0.7939, implying that it can generate a 0.79 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a FTAI Infrastructure 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.FTAI Infrastructure Stock Risk Measures
Considering the 90-day investment horizon the coefficient of variation of FTAI Infrastructure is 354.16. The daily returns are distributed with a variance of 10.65 and standard deviation of 3.26. The mean deviation of FTAI Infrastructure is currently at 2.51. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.64
α | Alpha over NYSE Composite | 0.79 | |
β | Beta against NYSE Composite | -0.48 | |
σ | Overall volatility | 3.26 | |
Ir | Information ratio | 0.22 |
FTAI Infrastructure Stock Return Volatility
FTAI Infrastructure historical daily return volatility represents how much of FTAI Infrastructure stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The enterprise has volatility of 3.2628% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.6246% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About FTAI Infrastructure Volatility
Volatility is a rate at which the price of FTAI Infrastructure 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 FTAI Infrastructure may increase or decrease. In other words, similar to FTAI's beta indicator, it measures the risk of FTAI Infrastructure and helps estimate the fluctuations that may happen in a short period of time. So if prices of FTAI Infrastructure 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 | ||
| Market Cap | 400.5 M | 277.6 M |
FTAI Infrastructure'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 FTAI Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much FTAI Infrastructure's price varies over time.
3 ways to utilize FTAI Infrastructure's volatility to invest better
Higher FTAI Infrastructure's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of FTAI Infrastructure 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. FTAI Infrastructure 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 FTAI Infrastructure investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in FTAI Infrastructure'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 FTAI Infrastructure's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
FTAI Infrastructure Investment Opportunity
FTAI Infrastructure has a volatility of 3.26 and is 5.26 times more volatile than NYSE Composite. 28 percent of all equities and portfolios are less risky than FTAI Infrastructure. You can use FTAI Infrastructure to protect your portfolios against small market fluctuations. The stock experiences a moderate downward daily trend and can be a good diversifier. Check odds of FTAI Infrastructure to be traded at $7.15 in 90 days.Good diversification
The correlation between FTAI Infrastructure and NYA is -0.09 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding FTAI Infrastructure and NYA in the same portfolio, assuming nothing else is changed.
FTAI Infrastructure Additional Risk Indicators
The analysis of FTAI Infrastructure'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 FTAI Infrastructure's investment and either accepting that risk or mitigating it. Along with some common measures of FTAI Infrastructure 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 | 0.1624 | |||
| Market Risk Adjusted Performance | (1.62) | |||
| Mean Deviation | 2.49 | |||
| Semi Deviation | 2.0 | |||
| Downside Deviation | 2.44 | |||
| Coefficient Of Variation | 416.63 | |||
| Standard Deviation | 3.26 |
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.
FTAI Infrastructure 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 FTAI Infrastructure 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. FTAI Infrastructure'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, FTAI Infrastructure'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 FTAI Infrastructure.
When determining whether FTAI Infrastructure is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if FTAI Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Ftai Infrastructure Stock. Highlighted below are key reports to facilitate an investment decision about Ftai Infrastructure Stock: Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in FTAI Infrastructure. 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. To learn how to invest in FTAI Stock, please use our How to Invest in FTAI Infrastructure guide.You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Complementary Tools for FTAI Stock analysis
When running FTAI Infrastructure's price analysis, check to measure FTAI Infrastructure'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 FTAI Infrastructure is operating at the current time. Most of FTAI Infrastructure's value examination focuses on studying past and present price action to predict the probability of FTAI Infrastructure's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move FTAI Infrastructure's price. Additionally, you may evaluate how the addition of FTAI Infrastructure to your portfolios can decrease your overall portfolio volatility.
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Is FTAI Infrastructure'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 FTAI Infrastructure. If investors know FTAI 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 FTAI Infrastructure listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Dividend Share 0.12 | Earnings Share (1.79) | Revenue Per Share 3.113 | Quarterly Revenue Growth 0.141 | Return On Assets (0.01) |
The market value of FTAI Infrastructure is measured differently than its book value, which is the value of FTAI that is recorded on the company's balance sheet. Investors also form their own opinion of FTAI Infrastructure's value that differs from its market value or its book value, called intrinsic value, which is FTAI Infrastructure'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 FTAI Infrastructure's market value can be influenced by many factors that don't directly affect FTAI Infrastructure'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 FTAI Infrastructure's value and its price as these two are different measures arrived at by different means. Investors typically determine if FTAI Infrastructure is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, FTAI Infrastructure'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.