Monolithic Power Systems Stock Market Value
| MPWR Stock | USD 560.24 11.84 2.07% |
| Symbol | Monolithic |
Monolithic Power Systems Price To Book Ratio
Is Semiconductors & Semiconductor 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 Monolithic Power. If investors know Monolithic 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 Monolithic Power 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 0.19 | Dividend Share 4.75 | Earnings Share 8.85 | Revenue Per Share 42.048 | Quarterly Revenue Growth 0.306 |
The market value of Monolithic Power Systems is measured differently than its book value, which is the value of Monolithic that is recorded on the company's balance sheet. Investors also form their own opinion of Monolithic Power's value that differs from its market value or its book value, called intrinsic value, which is Monolithic Power's 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 Monolithic Power's market value can be influenced by many factors that don't directly affect Monolithic Power's 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 Monolithic Power's value and its price as these two are different measures arrived at by different means. Investors typically determine if Monolithic Power is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Monolithic Power's 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.
Monolithic Power '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 Monolithic Power's 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 Monolithic Power.
| 05/09/2023 |
| 11/29/2024 |
If you would invest 0.00 in Monolithic Power on May 9, 2023 and sell it all today you would earn a total of 0.00 from holding Monolithic Power Systems or generate 0.0% return on investment in Monolithic Power over 570 days. Monolithic Power is related to or competes with MACOM Technology, FormFactor, MaxLinear, NLIGHT, Synaptics Incorporated, Diodes Incorporated, and Sitime. Monolithic Power Systems, Inc. engages in the design, development, marketing, and sale of semiconductor-based power elec... More
Monolithic Power 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 Monolithic Power's 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 Monolithic Power Systems upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.21) | |||
| Maximum Drawdown | 23.31 | |||
| Value At Risk | (6.62) | |||
| Potential Upside | 3.68 |
Monolithic Power Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Monolithic Power's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Monolithic Power's standard deviation. In reality, there are many statistical measures that can use Monolithic Power historical prices to predict the future Monolithic Power's volatility.| Risk Adjusted Performance | (0.13) | |||
| Jensen Alpha | (0.94) | |||
| Total Risk Alpha | (1.31) | |||
| Treynor Ratio | (0.38) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Monolithic Power's 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.
Monolithic Power Systems Backtested Returns
Monolithic Power Systems has Sharpe Ratio of -0.15, which conveys that the firm had a -0.15% return per unit of risk over the last 3 months. Monolithic Power exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify Monolithic Power's Standard Deviation of 3.92, risk adjusted performance of (0.13), and Mean Deviation of 2.53 to check out the risk estimate we provide. The company secures a Beta (Market Risk) of 1.9, which conveys 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, Monolithic Power will likely underperform. At this point, Monolithic Power Systems has a negative expected return of -0.56%. Please make sure to verify Monolithic Power's total risk alpha, kurtosis, as well as the relationship between the Kurtosis and market facilitation index , to decide if Monolithic Power Systems performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.1 |
Very weak reverse predictability
Monolithic Power Systems has very weak reverse predictability. Overlapping area represents the amount of predictability between Monolithic Power time series from 9th of May 2023 to 18th of February 2024 and 18th of February 2024 to 29th of November 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 Monolithic Power Systems price movement. The serial correlation of -0.1 indicates that less than 10.0% of current Monolithic Power price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.1 | |
| Spearman Rank Test | 0.31 | |
| Residual Average | 0.0 | |
| Price Variance | 11 K |
Monolithic Power Systems lagged returns against current returns
Autocorrelation, which is Monolithic Power 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 Monolithic Power's stock expected returns. We can calculate the autocorrelation of Monolithic Power returns to help us make a trade decision. For example, suppose you find that Monolithic Power 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 |
Monolithic Power 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 Monolithic Power stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Monolithic Power stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Monolithic Power stock over time.
Current vs Lagged Prices |
| Timeline |
Monolithic Power Lagged Returns
When evaluating Monolithic Power's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Monolithic Power stock have on its future price. Monolithic Power 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, Monolithic Power autocorrelation shows the relationship between Monolithic Power stock current value and its past values and can show if there is a momentum factor associated with investing in Monolithic Power Systems.
Regressed Prices |
| Timeline |
Pair Trading with Monolithic Power
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 Monolithic Power 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 Monolithic Power will appreciate offsetting losses from the drop in the long position's value.Moving together with Monolithic Stock
Moving against Monolithic Stock
| 0.89 | CAN | Canaan Inc Aggressive Push | PairCorr |
| 0.79 | RMBS | Rambus Inc | PairCorr |
| 0.6 | SITM | Sitime | PairCorr |
| 0.5 | INTC | Intel Fiscal Year End 23rd of January 2025 | PairCorr |
The ability to find closely correlated positions to Monolithic Power could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Monolithic Power 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 Monolithic Power - 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 Monolithic Power Systems to buy it.
The correlation of Monolithic Power 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 Monolithic Power moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Monolithic Power Systems 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 Monolithic Power 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.Additional Tools for Monolithic Stock Analysis
When running Monolithic Power's price analysis, check to measure Monolithic Power's 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 Monolithic Power is operating at the current time. Most of Monolithic Power's value examination focuses on studying past and present price action to predict the probability of Monolithic Power's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Monolithic Power's price. Additionally, you may evaluate how the addition of Monolithic Power to your portfolios can decrease your overall portfolio volatility.