Applied Materials Stock Market Value
| AMAT Stock | USD 196.06 2.82 1.46% |
| Symbol | Applied |
Applied Materials Price To Book Ratio
Is Applied Materials' 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 Applied Materials. If investors know Applied 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 Applied Materials 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 0.193 | Dividend Share 1.28 | Earnings Share 8.51 | Revenue Per Share 31.662 | Quarterly Revenue Growth (0.01) |
The market value of Applied Materials is measured differently than its book value, which is the value of Applied that is recorded on the company's balance sheet. Investors also form their own opinion of Applied Materials' value that differs from its market value or its book value, called intrinsic value, which is Applied Materials' 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 Applied Materials' market value can be influenced by many factors that don't directly affect Applied Materials' 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 Applied Materials' value and its price as these two are different measures arrived at by different means. Investors typically determine if Applied Materials is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Applied Materials' 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.
Applied Materials '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 Applied Materials' 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 Applied Materials.
| 03/26/2024 |
| 04/25/2024 |
If you would invest 0.00 in Applied Materials on March 26, 2024 and sell it all today you would earn a total of 0.00 from holding Applied Materials or generate 0.0% return on investment in Applied Materials over 30 days. Applied Materials is related to or competes with Sunrun, Sunnova Energy, and JinkoSolar Holding. Applied Materials, Inc. engages in the provision of manufacturing equipment, services, and software to the semiconductor... More
Applied Materials 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 Applied Materials' 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 Applied Materials upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 2.1 | |||
| Information Ratio | 0.0739 | |||
| Maximum Drawdown | 12.1 | |||
| Value At Risk | (3.32) | |||
| Potential Upside | 4.28 |
Applied Materials Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Applied Materials' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Applied Materials' standard deviation. In reality, there are many statistical measures that can use Applied Materials historical prices to predict the future Applied Materials' volatility.| Risk Adjusted Performance | 0.0769 | |||
| Jensen Alpha | 0.1484 | |||
| Total Risk Alpha | (0.04) | |||
| Sortino Ratio | 0.0824 | |||
| Treynor Ratio | 0.1906 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Applied Materials' 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.
Applied Materials Backtested Returns
Applied Materials appears to be very steady, given 3 months investment horizon. Applied Materials secures Sharpe Ratio (or Efficiency) of 0.13, which signifies that the company had a 0.13% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Applied Materials, which you can use to evaluate the volatility of the firm. Please makes use of Applied Materials' Risk Adjusted Performance of 0.0769, downside deviation of 2.1, and Mean Deviation of 1.81 to double-check if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Applied Materials holds a performance score of 9. The firm shows a Beta (market volatility) of 1.32, which signifies a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Applied Materials will likely underperform. Please check Applied Materials' semi variance, and the relationship between the treynor ratio and daily balance of power , to make a quick decision on whether Applied Materials' price patterns will revert.
Auto-correlation | -0.25 |
Weak reverse predictability
Applied Materials has weak reverse predictability. Overlapping area represents the amount of predictability between Applied Materials time series from 26th of March 2024 to 10th of April 2024 and 10th of April 2024 to 25th 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 Applied Materials price movement. The serial correlation of -0.25 indicates that over 25.0% of current Applied Materials price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.25 | |
| Spearman Rank Test | -0.35 | |
| Residual Average | 0.0 | |
| Price Variance | 67.4 |
Applied Materials lagged returns against current returns
Autocorrelation, which is Applied Materials 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 Applied Materials' stock expected returns. We can calculate the autocorrelation of Applied Materials returns to help us make a trade decision. For example, suppose you find that Applied Materials 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 |
Applied Materials 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 Applied Materials stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Applied Materials stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Applied Materials stock over time.
Current vs Lagged Prices |
| Timeline |
Applied Materials Lagged Returns
When evaluating Applied Materials' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Applied Materials stock have on its future price. Applied Materials 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, Applied Materials autocorrelation shows the relationship between Applied Materials stock current value and its past values and can show if there is a momentum factor associated with investing in Applied Materials.
Regressed Prices |
| Timeline |
Applied Materials Investors Sentiment
The influence of Applied Materials' 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 Applied. 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 Applied Materials' public news can be used to forecast risks associated with an investment in Applied. The trend in average sentiment can be used to explain how an investor holding Applied can time the market purely based on public headlines and social activities around Applied Materials. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Applied Materials' 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 Applied Materials' 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 Applied Materials' news discussions. The higher the estimated score, the more favorable is the investor's outlook on Applied Materials.
Applied Materials Implied Volatility | 76.78 |
Applied Materials' implied volatility exposes the market's sentiment of Applied Materials stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Applied Materials' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Applied Materials stock will not fluctuate a lot when Applied Materials' options are near their expiration.
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 Applied Materials 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, Applied Materials' short interest history, or implied volatility extrapolated from Applied Materials options trading.
Pair Trading with Applied Materials
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 Applied Materials 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 Applied Materials will appreciate offsetting losses from the drop in the long position's value.Moving together with Applied Stock
| 0.96 | KLAC | KLA Tencor Earnings Call Today | PairCorr |
| 0.96 | LRCX | Lam Research Corp Financial Report 24th of July 2024 | PairCorr |
Moving against Applied Stock
| 0.82 | COMM | CommScope Holding Buyout Trend | PairCorr |
| 0.81 | TWLO | Twilio Inc Financial Report 14th of May 2024 | PairCorr |
| 0.79 | AAPL | Apple Inc Earnings Call This Week | PairCorr |
| 0.76 | PANW | Palo Alto Networks Financial Report 28th of May 2024 | PairCorr |
| 0.74 | ADBE | Adobe Systems rporated Financial Report 20th of June 2024 | PairCorr |
The ability to find closely correlated positions to Applied Materials could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Applied Materials 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 Applied Materials - 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 Applied Materials to buy it.
The correlation of Applied Materials 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 Applied Materials moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Applied Materials 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 Applied Materials 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 Applied Materials Correlation, Applied Materials Volatility and Applied Materials Alpha and Beta module to complement your research on Applied Materials. For more information on how to buy Applied Stock please use our How to Invest in Applied Materials guide.Note that the Applied Materials information on this page should be used as a complementary analysis to other Applied Materials' 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 the Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Complementary Tools for Applied Stock analysis
When running Applied Materials' price analysis, check to measure Applied Materials' 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 Applied Materials is operating at the current time. Most of Applied Materials' value examination focuses on studying past and present price action to predict the probability of Applied Materials' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Applied Materials' price. Additionally, you may evaluate how the addition of Applied Materials to your portfolios can decrease your overall portfolio volatility.
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |
Applied Materials 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.