Applied Digital Stock Volatility

APLD Stock  USD 25.93  -0.77  -2.88%   
Applied Digital keeps a high volatility profile over the selected analytical period. Its Sharpe Ratio (Efficiency) stands at 0.0175, implying constructive risk-adjusted performance over the last 3 months. We found 29 technical indicators contributing to the current risk picture.

Sharpe Ratio = 0.0175

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Negative Returns
Applied Digital posted a Market Risk Adjusted Performance of 0.1%, a Risk of 7.05, and a Risk Adjusted Performance of 0.03% for the reported period. Based on moving average positioning, Applied Digital is functioning near 1% of its previously observed return span. Portfolio interaction determines incremental risk-adjusted impact.
Key indicators related to Applied Digital's volatility include:
90 Days Market Risk
Chance Of Distress
90 Days Economic Sensitivity
Comparing Applied Digital's current volatility against its historical average surfaces whether Applied Digital is in a period of elevated or suppressed risk. Elevated volatility often coincides with uncertainty about earnings, regulatory changes, or macro conditions.

Volatility Strategy

Applied Digital fluctuations may alter downside contribution within diversified portfolios. Current statistical measures show total volatility near 7.05% with a beta coefficient of 3.32, indicating sensitivity relative to the broader market benchmark. Risk-adjusted efficiency, represented by a Sharpe ratio of 0.0175, evaluates return per unit of total risk. An alpha value of 0.48 reflects performance relative to systematic market exposure. Expected return estimates near 0.12% are derived from historical distribution modeling and help frame forward-looking return assumptions within a portfolio context. Company-specific developments can alter return variability.

Main indicators related to Applied Digital's market risk premium analysis include:

 Beta
3.32
 Alpha
0.48
 Risk
7.05
 Sharpe Ratio
0.0175
 Expected Return
0.12

Moving together with Applied Stock

  0.65VBIX Viewbix Common StockPairCorr

Moving against Applied Stock

  0.43FIG Figma Inc Earnings Call This WeekPairCorr
  0.38WAVE Eco Wave PowerPairCorr
  0.31VEEA Veea IncPairCorr

Sensitivity To Market

Market sensitivity for Applied Digital is expressed through a beta of 3.32, based on regression between asset returns and market returns. Total price dispersion is near 7.05%.Applied Digital price movement reflects recent variability that can be tracked through standard deviation (7.59%) and downside deviation (6.17%). Options markets imply a forward-looking volatility estimate near 120.0%. This suggests the market is pricing in the possibility of wider future price swings compared to recent historical dispersion. For Applied Digital, price swings may be influenced by sector movement and company-specific headlines.
Check current 90 days Applied Digital correlation with market (Dow Jones Industrial)
α0.48   β3.32
3 Months Beta |Analyze Applied Digital Demand Trend
Check current 90 days Applied Digital correlation with market (Dow Jones Industrial)

Downside Risk

Standard deviation is the primary measure of Applied daily price volatility relative to its mean over a specified period. High values reflect high volatility; low values reflect a stable price pattern.
Standard Deviation
    
  7.05  
An important distinction for Applied Digital investors is between standard deviation (total volatility, including upside) and downside deviation, which measures only the risk of loss in Applied Digital's returns. Applied Digital posted a Downside Deviation of 6.17, a Downside Variance of 38.11, and a Maximum Drawdown of 36.00 for the reported period.

Using Applied Put Option to Manage Risk Based on 2026-06-18 Contracts

Applied Digital posted an Option Implied Volatility of 1.20 and an Option Max Pain Price of 24 for the reported period. Protective puts on Applied Digital are a straightforward way to manage downside risk. By purchasing a put on Applied Stock, an investor guarantees a minimum exit price for Applied Digital during the option period.

Applied Digital's PUT expiring on 2026-06-18

   Profit   
       Applied Digital Price At Expiration  

Current Applied Digital Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
APLD260618P00001000-0.0015971.3E-462026-06-180.0 - 0.030.0View
Put
APLD260618P00002000-0.0032773.0E-412026-06-180.0 - 0.050.0View
Put
APLD260618P00003000-0.0074466.47E-4102026-06-180.0 - 0.120.0View
Put
APLD260618P00004000-0.004946.01E-42942026-06-180.0 - 0.040.0View
Put
APLD260618P00005000-0.0065238.48E-41242026-06-180.05 - 0.20.0View
Put
APLD260618P00007000-0.0363460.0028068012026-06-180.0 - 0.650.0View
Put
APLD260618P00010000-0.0328480.00421510282026-06-180.21 - 0.470.0View
Put
APLD260618P00011000-0.062080.005907492026-06-180.11 - 1.460.0View
Put
APLD260618P00012000-0.0488340.00640730672026-06-180.22 - 0.60.0View
Put
APLD260618P00013000-0.1074240.007342542026-06-180.0 - 2.090.0View
Put
APLD260618P00014000-0.0835260.009556502026-06-180.01 - 1.60.0View
View All Applied Digital Options

Stock Volatility Analysis

Tracking Applied Digital volatility helps market participants understand the degree of price uncertainty. Sharp price swings in Applied Digital's stock often accompany major news events, earnings announcements, or macro shifts.
Transformation
This analysis covers sixty-one data points across the selected time horizon. Applied Digital 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.

Projected Return Density Against Market

Given the investment horizon of 90 days Applied Digital has a beta of 3.3212 . This suggests as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Applied Digital will likely underperform.
Applied Digital combines broad market sensitivity with company or sector-specific developments. Diversification may lower asset-specific risk, but systematic volatility remains inherent. Applied Digital posted a Downside Deviation of 6.17, a Mean Deviation of 5.60, and an Option Implied Volatility of 1.20 for the reported period.
Applied Digital has an alpha of 0.4836, implying that it can generate a 0.4836 percent excess return over Dow Jones Industrial after adjusting for the inherent market risk (beta).
   Predicted Return Density   
       Returns  
Applied Digital's volatility is measured either by using standard deviation or beta. Standard deviation reflects how much Applied Digital's price typically deviates from the mean over a given period.

What Drives Applied Digital's Price Volatility?

Several factors can influence Applied Digital's market volatility:

Industry Dynamics

Sector-level events can directly affect Applied Digital's price stability. Regulatory changes, supply disruptions, or shifts in demand within Applied Digital's industry may create volatility even when the broader market is calm. Competitive dynamics and industry consolidation can also amplify price swings for companies like Applied Digital.

Political and Economic Environment

Macroeconomic conditions and policy decisions shape the backdrop for Applied Digital's price movements. Interest rate changes, trade policy shifts, and fiscal legislation can all alter investor sentiment toward Applied Digital. During periods of economic expansion, Applied Digital's price tends to benefit from broader market optimism, while downturns can amplify selling pressure.

Applied Digital's Company-Specific Factors

Volatility can also stem from events unique to Applied Digital. Earnings surprises, management changes, product launches, or legal developments may trigger sharp price reactions in Applied Digital's stock. Conversely, operational setbacks, guidance revisions, or data breaches can weigh on Applied Digital's share price.

Stock Risk Measures

Given the investment horizon of 90 days the coefficient of variation of Applied Digital is 5714.19. The daily returns are distributed with a variance of 49.72 and standard deviation of 7.05. The mean deviation of Applied Digital is currently at 5.15. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.79
α
Alpha over Dow Jones
0.48
β
Beta against Dow Jones3.32
σ
Overall volatility
7.05
Ir
Information ratio 0.04

Stock Return Volatility

Volatility for Applied Digital quantifies the day-to-day dispersion of stock returns around their historical average. The firm carries 7.051% return volatility across the 90-day horizon. As a benchmark, Dow Jones Industrial has volatility of 0.8248% on return distribution over a 90-day investment horizon.
 Performance 
       Timeline  

Related Correlations Analysis


Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

DOXEPAM
OTEXAPPF
OTEXTTAN
TTANAPPF
DOXJKHY
APPFJKHY
  

High negative correlations

CFLTOTEX
CFLTAPPF
CFLTTTAN
CFLTEPAM
CFLTDOX
CFLTJKHY

Risk-Adjusted Indicators

Applied Digital Company may look attractive on headline returns alone, but deeper analysis often tells a different story. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Applied Digital's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

Risk Metrics, Assumptions & Methodology

Volatility for Applied Digital measures return dispersion and uncertainty over time. Return spread influences portfolio contribution and drawdown risk. Applied Digital has a market cap of 7.45 B, ROE of -7.9%.

Unless otherwise specified, data for Applied Digital is compiled from periodic company reporting and market reference feeds and standardized for comparability. Professional analyst research is incorporated when coverage is available. Updates may occur throughout the day. Volatility and downside metrics are estimated from historical return dispersion.

This content is curated and reviewed by:

Gabriel Shpitalnik - Member of Macroaxis Editorial Board
Last reviewed on March 11th, 2026

Applied Digital Investment Opportunity

Applied Digital is about 8.6 times more volatile than Dow Jones Industrial based on recent return behavior. The higher-risk profile should usually be reviewed beside Sharpe Ratio, downside risk, and catalyst strength before the position is sized up.You can use Applied Digital to protect your portfolios against small market fluctuations. This short-horizon strategy note focuses on what the latest move may imply for immediate trading context. It works best as a directional cue rather than as a standalone forecast. an unexpected downward movement. The market is reacting to new fundamentals. Check odds of Applied Digital to be traded at $24.89 in 90 days.
Poor diversification
The correlation between APLD and DJI is 0.62, which Macroaxis classifies as Poor diversification for the selected horizon. This matters because lower overlap can improve diversification, while higher overlap leaves more of the same risk inside the portfolio.

Applied Digital Additional Risk Indicators

Risk analysis around Applied Digital becomes more useful when investors review secondary indicators that can confirm, refine, or challenge the basic volatility picture. The stronger process compares similar securities with comparable growth and valuation context before ranking one as more or less risky.

Applied Digital Suggested Diversification Pairs

Pair trading with Applied Digital can help investors hedge some company-specific exposure by balancing a long view with an offsetting position. The advantage is that adverse movement in one leg may be partly offset by the other when correlation and thesis alignment hold.
Risk reduction through pair trading is real but has limits - not every type of exposure can be offset by a second leg. Applied Digital's exposure to overall market risk stays intact regardless of pairing. The value of a second leg lies in reducing Applied Digital's idiosyncratic risk - the part that comes from company-level events rather than macro conditions.

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