Ribbon Communications Stock Market Value
| RBBN Stock | USD 3.91 0.15 3.99% |
| Symbol | Ribbon |
Ribbon Communications Price To Book Ratio
Is Communications Equipment 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 Ribbon Communications. If investors know Ribbon 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 Ribbon Communications 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 (0.68) | Earnings Share (0.31) | Revenue Per Share 4.672 | Quarterly Revenue Growth 0.035 | Return On Assets 0.0072 |
The market value of Ribbon Communications is measured differently than its book value, which is the value of Ribbon that is recorded on the company's balance sheet. Investors also form their own opinion of Ribbon Communications' value that differs from its market value or its book value, called intrinsic value, which is Ribbon Communications' 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 Ribbon Communications' market value can be influenced by many factors that don't directly affect Ribbon Communications' 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 Ribbon Communications' value and its price as these two are different measures arrived at by different means. Investors typically determine if Ribbon Communications is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ribbon Communications' 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.
Ribbon Communications '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 Ribbon Communications' 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 Ribbon Communications.
| 12/12/2022 |
| 12/01/2024 |
If you would invest 0.00 in Ribbon Communications on December 12, 2022 and sell it all today you would earn a total of 0.00 from holding Ribbon Communications or generate 0.0% return on investment in Ribbon Communications over 720 days. Ribbon Communications is related to or competes with ATN International, Liberty Broadband, Cable One, Consolidated Communications, Radcom, Shenandoah Telecommunicatio, and Anterix. Ribbon Communications Inc. provides communications technology in the United States, Europe, the Middle East, Africa, the... More
Ribbon Communications 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 Ribbon Communications' 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 Ribbon Communications upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 2.65 | |||
| Information Ratio | 0.0478 | |||
| Maximum Drawdown | 11.95 | |||
| Value At Risk | (3.78) | |||
| Potential Upside | 4.79 |
Ribbon Communications Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Ribbon Communications' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Ribbon Communications' standard deviation. In reality, there are many statistical measures that can use Ribbon Communications historical prices to predict the future Ribbon Communications' volatility.| Risk Adjusted Performance | 0.0805 | |||
| Jensen Alpha | (0.02) | |||
| Total Risk Alpha | (0.22) | |||
| Sortino Ratio | 0.0518 | |||
| Treynor Ratio | 0.1187 |
Ribbon Communications Backtested Returns
Ribbon Communications appears to be slightly risky, given 3 months investment horizon. Ribbon Communications maintains Sharpe Ratio (i.e., Efficiency) of 0.15, which implies the firm had a 0.15% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Ribbon Communications, which you can use to evaluate the volatility of the company. Please evaluate Ribbon Communications' Risk Adjusted Performance of 0.0805, coefficient of variation of 1045.44, and Semi Deviation of 2.44 to confirm if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Ribbon Communications holds a performance score of 11. The company holds a Beta of 2.23, which implies 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, Ribbon Communications will likely underperform. Please check Ribbon Communications' downside variance, day median price, and the relationship between the treynor ratio and kurtosis , to make a quick decision on whether Ribbon Communications' historical price patterns will revert.
Auto-correlation | -0.3 |
Weak reverse predictability
Ribbon Communications has weak reverse predictability. Overlapping area represents the amount of predictability between Ribbon Communications time series from 12th of December 2022 to 7th of December 2023 and 7th of December 2023 to 1st of December 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 Ribbon Communications price movement. The serial correlation of -0.3 indicates that nearly 30.0% of current Ribbon Communications price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.3 | |
| Spearman Rank Test | -0.49 | |
| Residual Average | 0.0 | |
| Price Variance | 0.13 |
Ribbon Communications lagged returns against current returns
Autocorrelation, which is Ribbon Communications 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 Ribbon Communications' stock expected returns. We can calculate the autocorrelation of Ribbon Communications returns to help us make a trade decision. For example, suppose you find that Ribbon Communications 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 |
Ribbon Communications 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 Ribbon Communications stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Ribbon Communications stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Ribbon Communications stock over time.
Current vs Lagged Prices |
| Timeline |
Ribbon Communications Lagged Returns
When evaluating Ribbon Communications' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Ribbon Communications stock have on its future price. Ribbon Communications 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, Ribbon Communications autocorrelation shows the relationship between Ribbon Communications stock current value and its past values and can show if there is a momentum factor associated with investing in Ribbon Communications.
Regressed Prices |
| Timeline |
Pair Trading with Ribbon Communications
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 Ribbon Communications 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 Ribbon Communications will appreciate offsetting losses from the drop in the long position's value.Moving together with Ribbon Stock
Moving against Ribbon Stock
| 0.83 | WBX | Wallbox NV | PairCorr |
| 0.74 | CDW | CDW Corp | PairCorr |
| 0.71 | EVLV | Evolv Technologies Trending | PairCorr |
| 0.62 | VRME | VerifyMe | PairCorr |
| 0.61 | IVAC | Intevac | PairCorr |
The ability to find closely correlated positions to Ribbon Communications could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ribbon Communications 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 Ribbon Communications - 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 Ribbon Communications to buy it.
The correlation of Ribbon Communications 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 Ribbon Communications moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ribbon Communications 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 Ribbon Communications 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 Ribbon Communications Correlation, Ribbon Communications Volatility and Ribbon Communications Alpha and Beta module to complement your research on Ribbon Communications. To learn how to invest in Ribbon Stock, please use our How to Invest in Ribbon Communications guide.You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.
Ribbon Communications 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.