Aar Corp Stock Market Value
| AIR Stock | USD 64.12 1.09 1.73% |
| Symbol | AAR |
AAR Corp Price To Book Ratio
Is AAR Corp'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 AAR Corp. If investors know AAR 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 AAR Corp 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 (0.37) | Earnings Share 1.69 | Revenue Per Share 63.442 | Quarterly Revenue Growth 0.089 | Return On Assets 0.0538 |
The market value of AAR Corp is measured differently than its book value, which is the value of AAR that is recorded on the company's balance sheet. Investors also form their own opinion of AAR Corp's value that differs from its market value or its book value, called intrinsic value, which is AAR Corp'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 AAR Corp's market value can be influenced by many factors that don't directly affect AAR Corp'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 AAR Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine if AAR Corp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, AAR Corp'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.
AAR Corp 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to AAR Corp's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of AAR Corp.
| 06/30/2022 |
| 04/20/2024 |
If you would invest 0.00 in AAR Corp on June 30, 2022 and sell it all today you would earn a total of 0.00 from holding AAR Corp or generate 0.0% return on investment in AAR Corp over 660 days. AAR Corp is related to or competes with Novocure, HubSpot, DigitalOcean Holdings, Appian Corp, and Repligen. AAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide More
AAR Corp Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure AAR Corp's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess AAR Corp upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.73 | |||
| Information Ratio | 0.0445 | |||
| Maximum Drawdown | 12.62 | |||
| Value At Risk | (2.36) | |||
| Potential Upside | 2.78 |
AAR Corp Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for AAR Corp's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as AAR Corp's standard deviation. In reality, there are many statistical measures that can use AAR Corp historical prices to predict the future AAR Corp's volatility.| Risk Adjusted Performance | 0.0627 | |||
| Jensen Alpha | 0.1727 | |||
| Total Risk Alpha | (0.07) | |||
| Sortino Ratio | 0.0467 | |||
| Treynor Ratio | (0.71) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of AAR Corp's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
AAR Corp Backtested Returns
We consider AAR Corp very steady. AAR Corp secures Sharpe Ratio (or Efficiency) of 0.0798, which signifies that the company had a 0.0798% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for AAR Corp, which you can use to evaluate the volatility of the entity. Please confirm AAR Corp's Coefficient Of Variation of 1091.67, semi deviation of 1.57, and Mean Deviation of 1.3 to double-check if the risk estimate we provide is consistent with the expected return of 0.15%. AAR Corp has a performance score of 6 on a scale of 0 to 100. The firm shows a Beta (market volatility) of -0.22, which signifies not very significant fluctuations relative to the market. As returns on the market increase, returns on owning AAR Corp are expected to decrease at a much lower rate. During the bear market, AAR Corp is likely to outperform the market. AAR Corp at this time shows a risk of 1.84%. Please confirm AAR Corp maximum drawdown, as well as the relationship between the expected short fall and rate of daily change , to decide if AAR Corp will be following its price patterns.
Auto-correlation | 0.29 |
Poor predictability
AAR Corp has poor predictability. Overlapping area represents the amount of predictability between AAR Corp time series from 30th of June 2022 to 26th of May 2023 and 26th of May 2023 to 20th of April 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of AAR Corp price movement. The serial correlation of 0.29 indicates that nearly 29.0% of current AAR Corp price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.29 | |
| Spearman Rank Test | 0.52 | |
| Residual Average | 0.0 | |
| Price Variance | 18.32 |
AAR Corp lagged returns against current returns
Autocorrelation, which is AAR Corp stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting AAR Corp's stock expected returns. We can calculate the autocorrelation of AAR Corp returns to help us make a trade decision. For example, suppose you find that AAR Corp has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
AAR Corp regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If AAR Corp stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if AAR Corp stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in AAR Corp stock over time.
Current vs Lagged Prices |
| Timeline |
AAR Corp Lagged Returns
When evaluating AAR Corp's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of AAR Corp stock have on its future price. AAR Corp autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, AAR Corp autocorrelation shows the relationship between AAR Corp stock current value and its past values and can show if there is a momentum factor associated with investing in AAR Corp.
Regressed Prices |
| Timeline |
AAR Corp Investors Sentiment
The influence of AAR Corp's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in AAR. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to AAR Corp's public news can be used to forecast risks associated with an investment in AAR. The trend in average sentiment can be used to explain how an investor holding AAR can time the market purely based on public headlines and social activities around AAR Corp. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
AAR Corp's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for AAR Corp's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average AAR Corp's news discussions. The higher the estimated score, the more favorable is the investor's outlook on AAR Corp.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards AAR Corp in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, AAR Corp's short interest history, or implied volatility extrapolated from AAR Corp options trading.
Pair Trading with AAR Corp
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if AAR Corp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in AAR Corp will appreciate offsetting losses from the drop in the long position's value.Moving against AAR Stock
| 0.54 | CAE | CAE Inc Financial Report 29th of May 2024 | PairCorr |
| 0.42 | EH | Ehang Holdings | PairCorr |
The ability to find closely correlated positions to AAR Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace AAR Corp when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back AAR Corp - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling AAR Corp to buy it.
The correlation of AAR Corp is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as AAR Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if AAR Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for AAR Corp can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out AAR Corp Correlation, AAR Corp Volatility and AAR Corp Alpha and Beta module to complement your research on AAR Corp. To learn how to invest in AAR Stock, please use our How to Invest in AAR Corp guide.You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Complementary Tools for AAR Stock analysis
When running AAR Corp's price analysis, check to measure AAR Corp'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 AAR Corp is operating at the current time. Most of AAR Corp's value examination focuses on studying past and present price action to predict the probability of AAR Corp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move AAR Corp's price. Additionally, you may evaluate how the addition of AAR Corp to your portfolios can decrease your overall portfolio volatility.
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AAR Corp technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.