Interlink Electronics Stock Volatility
| LINK Stock | USD 4.94 0.12 2.49% |
Interlink Electronics appears to be moderately volatile, given 3 months investment horizon. Interlink Electronics holds Efficiency (Sharpe) Ratio of 0.0822, which attests that the entity had a 0.0822% return per unit of risk over the last 3 months. By evaluating Interlink Electronics' technical indicators, you can evaluate if the expected return of 0.52% is justified by implied risk. Please utilize Interlink Electronics' Downside Deviation of 3.93, market risk adjusted performance of (0.38), and Risk Adjusted Performance of 0.0851 to validate if our risk estimates are consistent with your expectations. Key indicators related to Interlink Electronics' volatility include:
90 Days Market Risk | Chance Of Distress | 90 Days Economic Sensitivity |
Interlink Electronics 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 Interlink daily returns, and it is calculated using variance and standard deviation. We also use Interlink's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Interlink Electronics volatility.
Interlink |
ESG Sustainability
While most ESG disclosures are voluntary, Interlink Electronics' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Interlink Electronics' managers and investors.Environmental | Governance | Social |
Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Interlink Electronics at lower prices. For example, an investor can purchase Interlink stock that has halved in price over a short period. This will lower their average cost per share, thereby improving the overall portfolio performance when market normalizes.
Moving together with Interlink Stock
| 0.71 | KE | Kimball Electronics | PairCorr |
| 0.65 | EBON | Ebang International Upward Rally | PairCorr |
| 0.8 | EHGO | Eshallgo Class A | PairCorr |
Moving against Interlink Stock
| 0.91 | EVLV | Evolv Technologies Trending | PairCorr |
| 0.73 | CDW | CDW Corp | PairCorr |
| 0.58 | STX | Seagate Technology PLC | PairCorr |
| 0.57 | IVAC | Intevac | PairCorr |
| 0.49 | VRME | VerifyMe | PairCorr |
Interlink Electronics Market Sensitivity And Downside Risk
Interlink Electronics' beta coefficient measures the volatility of Interlink 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 Interlink stock's returns against your selected market. In other words, Interlink Electronics's beta of -1.59 provides an investor with an approximation of how much risk Interlink Electronics stock can potentially add to one of your existing portfolios. Interlink Electronics is displaying above-average volatility over the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Interlink Electronics' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Interlink Electronics' 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 Interlink Electronics Demand TrendCheck current 90 days Interlink Electronics correlation with market (Dow Jones Industrial)Interlink Beta |
Interlink 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 | 6.28 |
It is essential to understand the difference between upside risk (as represented by Interlink Electronics's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Interlink Electronics' daily returns or price. Since the actual investment returns on holding a position in interlink 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 Interlink Electronics.
Interlink Electronics Stock Volatility Analysis
Volatility refers to the frequency at which Interlink Electronics stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Interlink Electronics' price changes. Investors will then calculate the volatility of Interlink Electronics' 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 Interlink Electronics' volatility:
Historical Volatility
This type of stock volatility measures Interlink Electronics' fluctuations based on previous trends. It's commonly used to predict Interlink Electronics' 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 Interlink Electronics' 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 Interlink Electronics' 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. Interlink Electronics 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.
Interlink Electronics Projected Return Density Against Market
Given the investment horizon of 90 days Interlink Electronics has a beta of -1.5922 . This indicates as returns on its benchmark rise, returns on holding Interlink Electronics are expected to decrease by similarly larger amounts. On the other hand, during market turmoils, Interlink Electronics is expected to outperform its benchmark.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 Interlink Electronics or Electronic Equipment, Instruments & Components 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 Interlink Electronics' 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 Interlink 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.
Interlink Electronics has an alpha of 0.8291, implying that it can generate a 0.83 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives an Interlink Electronics 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.Interlink Electronics Stock Risk Measures
Given the investment horizon of 90 days the coefficient of variation of Interlink Electronics is 1216.18. The daily returns are distributed with a variance of 39.39 and standard deviation of 6.28. The mean deviation of Interlink Electronics is currently at 3.93. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.83 | |
β | Beta against Dow Jones | -1.59 | |
σ | Overall volatility | 6.28 | |
Ir | Information ratio | 0.08 |
Interlink Electronics Stock Return Volatility
Interlink Electronics historical daily return volatility represents how much of Interlink Electronics stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company inherits 6.276% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7444% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Interlink Electronics Volatility
Volatility is a rate at which the price of Interlink Electronics 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 Interlink Electronics may increase or decrease. In other words, similar to Interlink's beta indicator, it measures the risk of Interlink Electronics and helps estimate the fluctuations that may happen in a short period of time. So if prices of Interlink Electronics 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 | ||
| Market Cap | 84.1 M | 88.3 M |
Interlink Electronics' 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 Interlink Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Interlink Electronics' price varies over time.
3 ways to utilize Interlink Electronics' volatility to invest better
Higher Interlink Electronics' stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Interlink Electronics 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. Interlink Electronics 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 Interlink Electronics investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Interlink Electronics' 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 Interlink Electronics' stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Interlink Electronics Investment Opportunity
Interlink Electronics has a volatility of 6.28 and is 8.49 times more volatile than Dow Jones Industrial. 55 percent of all equities and portfolios are less risky than Interlink Electronics. You can use Interlink Electronics to enhance the returns of your portfolios. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Interlink Electronics to be traded at $5.93 in 90 days.Good diversification
The correlation between Interlink Electronics and DJI is -0.19 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Interlink Electronics and DJI in the same portfolio, assuming nothing else is changed.
Interlink Electronics Additional Risk Indicators
The analysis of Interlink Electronics' 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 Interlink Electronics' investment and either accepting that risk or mitigating it. Along with some common measures of Interlink Electronics 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 | 0.0851 | |||
| Market Risk Adjusted Performance | (0.38) | |||
| Mean Deviation | 4.14 | |||
| Semi Deviation | 3.58 | |||
| Downside Deviation | 3.93 | |||
| Coefficient Of Variation | 1002.27 | |||
| Standard Deviation | 6.37 |
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.
Interlink Electronics 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 Interlink Electronics 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. Interlink Electronics' 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, Interlink Electronics' 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 Interlink Electronics.
When determining whether Interlink Electronics 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 Interlink 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 Interlink Electronics Stock. Highlighted below are key reports to facilitate an investment decision about Interlink Electronics Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Interlink Electronics. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. For more information on how to buy Interlink Stock please use our How to buy in Interlink Stock 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.
Is Electronic Equipment, Instruments & Components 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 Interlink Electronics. If investors know Interlink 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 Interlink Electronics 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 21.014 | Earnings Share (0.25) | Revenue Per Share 1.24 | Quarterly Revenue Growth (0.13) | Return On Assets (0.09) |
The market value of Interlink Electronics is measured differently than its book value, which is the value of Interlink that is recorded on the company's balance sheet. Investors also form their own opinion of Interlink Electronics' value that differs from its market value or its book value, called intrinsic value, which is Interlink Electronics' 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 Interlink Electronics' market value can be influenced by many factors that don't directly affect Interlink Electronics' 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 Interlink Electronics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Interlink Electronics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Interlink Electronics' 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.