Digitalocean Holdings Stock Market Value
| DOCN Stock | USD 29.52 0.38 1.30% |
| Symbol | DigitalOcean |
DigitalOcean Holdings Price To Book Ratio
Is Internet Services & Infrastructure space 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 DigitalOcean Holdings. If investors know DigitalOcean 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 DigitalOcean Holdings 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 1.584 | Earnings Share 1.13 | Revenue Per Share | Quarterly Revenue Growth 0.141 | Return On Assets |
The market value of DigitalOcean Holdings is measured differently than its book value, which is the value of DigitalOcean that is recorded on the company's balance sheet. Investors also form their own opinion of DigitalOcean Holdings' value that differs from its market value or its book value, called intrinsic value, which is DigitalOcean Holdings' 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 DigitalOcean Holdings' market value can be influenced by many factors that don't directly affect DigitalOcean Holdings' 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 DigitalOcean Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if DigitalOcean Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, DigitalOcean Holdings' 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.
DigitalOcean Holdings '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 DigitalOcean Holdings' 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 DigitalOcean Holdings.
| 04/21/2025 |
| 07/20/2025 |
If you would invest 0.00 in DigitalOcean Holdings on April 21, 2025 and sell it all today you would earn a total of 0.00 from holding DigitalOcean Holdings or generate 0.0% return on investment in DigitalOcean Holdings over 90 days. DigitalOcean Holdings is related to or competes with Confluent, Cloudflare, Zscaler, MongoDB, Marqeta, Doximity, and Upstart Holdings. DigitalOcean Holdings, Inc., through its subsidiaries, operates a cloud computing platform in North America, Europe, Asi... More
DigitalOcean Holdings 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 DigitalOcean Holdings' 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 DigitalOcean Holdings upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 3.78 | |||
| Information Ratio | 0.0053 | |||
| Maximum Drawdown | 19.78 | |||
| Value At Risk | (5.04) | |||
| Potential Upside | 5.88 |
DigitalOcean Holdings Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for DigitalOcean Holdings' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as DigitalOcean Holdings' standard deviation. In reality, there are many statistical measures that can use DigitalOcean Holdings historical prices to predict the future DigitalOcean Holdings' volatility.| Risk Adjusted Performance | 0.0516 | |||
| Jensen Alpha | (0.16) | |||
| Total Risk Alpha | (0.32) | |||
| Sortino Ratio | 0.0046 | |||
| Treynor Ratio | 0.0632 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of DigitalOcean Holdings' 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.
DigitalOcean Holdings Backtested Returns
DigitalOcean Holdings appears to be very steady, given 3 months investment horizon. DigitalOcean Holdings secures Sharpe Ratio (or Efficiency) of 0.0792, which denotes the company had a 0.0792 % return per unit of risk over the last 3 months. We have found thirty technical indicators for DigitalOcean Holdings, which you can use to evaluate the volatility of the firm. Please utilize DigitalOcean Holdings' Mean Deviation of 2.37, coefficient of variation of 2102.59, and Downside Deviation of 3.78 to check if our risk estimates are consistent with your expectations. On a scale of 0 to 100, DigitalOcean Holdings holds a performance score of 6. The firm shows a Beta (market volatility) of 2.35, which means 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, DigitalOcean Holdings will likely underperform. Please check DigitalOcean Holdings' downside variance, day median price, and the relationship between the treynor ratio and kurtosis , to make a quick decision on whether DigitalOcean Holdings' price patterns will revert.
Auto-correlation | -0.24 |
Weak reverse predictability
DigitalOcean Holdings has weak reverse predictability. Overlapping area represents the amount of predictability between DigitalOcean Holdings time series from 21st of April 2025 to 5th of June 2025 and 5th of June 2025 to 20th of July 2025. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of DigitalOcean Holdings price movement. The serial correlation of -0.24 indicates that over 24.0% of current DigitalOcean Holdings price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.24 | |
| Spearman Rank Test | 0.06 | |
| Residual Average | 0.0 | |
| Price Variance | 0.51 |
DigitalOcean Holdings lagged returns against current returns
Autocorrelation, which is DigitalOcean Holdings 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 DigitalOcean Holdings' stock expected returns. We can calculate the autocorrelation of DigitalOcean Holdings returns to help us make a trade decision. For example, suppose you find that DigitalOcean Holdings 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 |
DigitalOcean Holdings 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 DigitalOcean Holdings stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if DigitalOcean Holdings stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in DigitalOcean Holdings stock over time.
Current vs Lagged Prices |
| Timeline |
DigitalOcean Holdings Lagged Returns
When evaluating DigitalOcean Holdings' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of DigitalOcean Holdings stock have on its future price. DigitalOcean Holdings 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, DigitalOcean Holdings autocorrelation shows the relationship between DigitalOcean Holdings stock current value and its past values and can show if there is a momentum factor associated with investing in DigitalOcean Holdings.
Regressed Prices |
| Timeline |
Pair Trading with DigitalOcean Holdings
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 DigitalOcean Holdings 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 DigitalOcean Holdings will appreciate offsetting losses from the drop in the long position's value.Moving together with DigitalOcean Stock
Moving against DigitalOcean Stock
The ability to find closely correlated positions to DigitalOcean Holdings could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace DigitalOcean Holdings 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 DigitalOcean Holdings - 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 DigitalOcean Holdings to buy it.
The correlation of DigitalOcean Holdings 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 DigitalOcean Holdings moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if DigitalOcean Holdings 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 DigitalOcean Holdings 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 DigitalOcean Holdings Correlation, DigitalOcean Holdings Volatility and DigitalOcean Holdings Alpha and Beta module to complement your research on DigitalOcean Holdings. To learn how to invest in DigitalOcean Stock, please use our How to Invest in DigitalOcean Holdings guide.You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
DigitalOcean Holdings 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.