Liquidity Services Stock Volatility
| LQDT Stock | USD 16.91 0.01 0.06% |
Liquidity Services has Sharpe Ratio of -0.0045, which conveys that the firm had a -0.0045% return per unit of risk over the last 3 months. Liquidity Services exposes thirty different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify Liquidity Services' Risk Adjusted Performance of 0.0079, downside deviation of 2.19, and Mean Deviation of 1.19 to check out the risk estimate we provide. Key indicators related to Liquidity Services' volatility include:
690 Days Market Risk | Chance Of Distress | 690 Days Economic Sensitivity |
Liquidity Services 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 Liquidity daily returns, and it is calculated using variance and standard deviation. We also use Liquidity's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Liquidity Services volatility.
Liquidity |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Liquidity Services 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 Liquidity Services at lower prices. For example, an investor can purchase Liquidity 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 Liquidity Services' 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 Liquidity Stock
| 0.76 | W | Wayfair Sell-off Trend | PairCorr |
| 0.64 | JD | JD Inc Adr Financial Report 9th of May 2024 | PairCorr |
Moving against Liquidity Stock
| 0.68 | ETSY | Etsy Inc Financial Report 1st of May 2024 | PairCorr |
| 0.54 | WINA | Winmark | PairCorr |
| 0.52 | GLBE | Global E Online Financial Report 27th of May 2024 | PairCorr |
| 0.44 | PDD | Pinduoduo Financial Report 24th of May 2024 | PairCorr |
| 0.42 | SBH | Sally Beauty Holdings Financial Report 2nd of May 2024 | PairCorr |
Liquidity Services Market Sensitivity And Downside Risk
Liquidity Services' beta coefficient measures the volatility of Liquidity 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 Liquidity stock's returns against your selected market. In other words, Liquidity Services's beta of 1.12 provides an investor with an approximation of how much risk Liquidity Services stock can potentially add to one of your existing portfolios. Liquidity Services currently demonstrates below-average downside deviation. It has Information Ratio of -0.03 and Jensen Alpha of -0.07. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Liquidity Services' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Liquidity Services' 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 Liquidity Services Demand TrendCheck current 90 days Liquidity Services correlation with market (NYSE Composite)Liquidity Beta |
Liquidity 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 | 1.95 |
It is essential to understand the difference between upside risk (as represented by Liquidity Services's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Liquidity Services' daily returns or price. Since the actual investment returns on holding a position in liquidity 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 Liquidity Services.
Using Liquidity Put Option to Manage Risk
Put options written on Liquidity Services grant holders of the option the right to sell a specified amount of Liquidity Services 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 Liquidity Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Liquidity Services' 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 Liquidity Services will be realized, the loss incurred will be offset by the profits made with the option trade.
Liquidity Services' PUT expiring on 2024-04-19
Profit |
| Liquidity Services Price At Expiration |
Liquidity Services Stock Volatility Analysis
Volatility refers to the frequency at which Liquidity Services stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Liquidity Services' price changes. Investors will then calculate the volatility of Liquidity Services' 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 Liquidity Services' volatility:
Historical Volatility
This type of stock volatility measures Liquidity Services' fluctuations based on previous trends. It's commonly used to predict Liquidity Services' 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 Liquidity Services' 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 Liquidity Services' 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. Liquidity Services 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.
Liquidity Services Projected Return Density Against Market
Given the investment horizon of 90 days the stock has the beta coefficient of 1.1163 . This indicates Liquidity Services market returns are related to returns on the market. As the market goes up or down, Liquidity Services is expected to follow.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 Liquidity Services or Internet & Direct Marketing Retail 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 Liquidity Services' 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 Liquidity 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.
Liquidity Services 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 Liquidity Services 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.Liquidity Services Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Liquidity Services is -22275.91. The daily returns are distributed with a variance of 3.79 and standard deviation of 1.95. The mean deviation of Liquidity Services is currently at 1.2. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | -0.07 | |
β | Beta against NYSE Composite | 1.12 | |
σ | Overall volatility | 1.95 | |
Ir | Information ratio | -0.03 |
Liquidity Services Stock Return Volatility
Liquidity Services historical daily return volatility represents how much of Liquidity Services stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 1.9458% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.6214% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Liquidity Services Volatility
Volatility is a rate at which the price of Liquidity Services 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 Liquidity Services may increase or decrease. In other words, similar to Liquidity's beta indicator, it measures the risk of Liquidity Services and helps estimate the fluctuations that may happen in a short period of time. So if prices of Liquidity Services 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 | 56.9 M | 35.6 M | |
| Market Cap | 492.8 M | 325.7 M |
Liquidity Services' 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 Liquidity Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Liquidity Services' price varies over time.
3 ways to utilize Liquidity Services' volatility to invest better
Higher Liquidity Services' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Liquidity Services 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. Liquidity Services 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 Liquidity Services investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Liquidity Services' 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 Liquidity Services' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Liquidity Services Investment Opportunity
Liquidity Services has a volatility of 1.95 and is 3.15 times more volatile than NYSE Composite. 17 percent of all equities and portfolios are less risky than Liquidity Services. You can use Liquidity Services to enhance the returns of your portfolios. The stock experiences a normal upward fluctuation. Check odds of Liquidity Services to be traded at $17.76 in 90 days.Weak diversification
The correlation between Liquidity Services and NYA is 0.36 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Liquidity Services and NYA in the same portfolio, assuming nothing else is changed.
Liquidity Services Additional Risk Indicators
The analysis of Liquidity Services' 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 Liquidity Services' investment and either accepting that risk or mitigating it. Along with some common measures of Liquidity Services 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 | 0.0079 | |||
| Market Risk Adjusted Performance | 0.0041 | |||
| Mean Deviation | 1.19 | |||
| Semi Deviation | 2.16 | |||
| Downside Deviation | 2.19 | |||
| Coefficient Of Variation | 55729.81 | |||
| Standard Deviation | 1.92 |
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.
Liquidity Services 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 Liquidity Services 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. Liquidity Services' 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, Liquidity Services' 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 Liquidity Services.
When determining whether Liquidity Services 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 Liquidity 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 Liquidity Services Stock. Highlighted below are key reports to facilitate an investment decision about Liquidity Services Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Liquidity Services. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in unemployment. For more information on how to buy Liquidity Stock please use our How to Invest in Liquidity Services guide.Note that the Liquidity Services information on this page should be used as a complementary analysis to other Liquidity Services' 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Complementary Tools for Liquidity Stock analysis
When running Liquidity Services' price analysis, check to measure Liquidity Services' 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 Liquidity Services is operating at the current time. Most of Liquidity Services' value examination focuses on studying past and present price action to predict the probability of Liquidity Services' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Liquidity Services' price. Additionally, you may evaluate how the addition of Liquidity Services to your portfolios can decrease your overall portfolio volatility.
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| 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 Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |
Is Liquidity Services' 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 Liquidity Services. If investors know Liquidity 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 Liquidity Services 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 (0.50) | Earnings Share 0.58 | Revenue Per Share 10.188 | Quarterly Revenue Growth (0.01) | Return On Assets 0.0539 |
The market value of Liquidity Services is measured differently than its book value, which is the value of Liquidity that is recorded on the company's balance sheet. Investors also form their own opinion of Liquidity Services' value that differs from its market value or its book value, called intrinsic value, which is Liquidity Services' 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 Liquidity Services' market value can be influenced by many factors that don't directly affect Liquidity Services' 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 Liquidity Services' value and its price as these two are different measures arrived at by different means. Investors typically determine if Liquidity Services is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Liquidity Services' 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.