Description

Akamai Technologies, Inc. provides cloud services for delivering, optimizing, and securing content and business applications over the Internet in the United States and internationally. It provides Web Application Protector to safeguard web assets from web application and distributed denial of service; Kona Site Defender, a cloud security solution; Bot Manager to identify bots and categorize bots based on business or IT impact; Edge DNS, which translates human-readable domain names into numerical IP addresses; Site Shield that prevents attacker from directly targeting the application origin and forces traffic to go through its network, where attack can be better detected and mitigated; identity Cloud, a customer identity access management solution; Prolexic Routed to protect web- and IP-based application; and Client Reputation that assigns risk scores to malicious IP address and enables customers to take action on individual clients. It also offers Enterprise Application Access that enables adaptive access to application; Enterprise Threat Protector to enable enterprise security teams to identify, block, and mitigate targeted attack; Ion, a suite of intelligent performance optimization tool and control; Dynamic Site Accelerator to accelerate and secure interactive website; Image Manager that automatically optimizes online images; CloudTest to conduct load testing and other analysis of website in a pre-production environment; and mPulse that provides real-time website performance data for customers to enhance their digital experiences. In addition, the company provides Aura Managed CDN, DNS Infrastructure, and security and personalization service; and adaptive delivery, download delivery, media service live, and media analytic solutions, as well as NetStorage, a cloud storage solution. It sells its solutions through direct sales and service organizations; and various channel partners. The company was founded in 1998 and is headquartered in Cambridge, Massachusetts.

Statistics (YTD)

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TotalReturn:

'The total return on a portfolio of investments takes into account not only the capital appreciation on the portfolio, but also the income received on the portfolio. The income typically consists of interest, dividends, and securities lending fees. This contrasts with the price return, which takes into account only the capital gain on an investment.'

Applying this definition to our asset in some examples:
  • The total return over 5 years of Akamai Technologies is -32.3%, which is smaller, thus worse compared to the benchmark SPY (110.9%) in the same period.
  • Looking at total return, or performance in of -14.6% in the period of the last 3 years, we see it is relatively lower, thus worse in comparison to SPY (69.3%).

CAGR:

'The compound annual growth rate (CAGR) is a useful measure of growth over multiple time periods. It can be thought of as the growth rate that gets you from the initial investment value to the ending investment value if you assume that the investment has been compounding over the time period.'

Which means for our asset as example:
  • Looking at the annual return (CAGR) of -7.5% in the last 5 years of Akamai Technologies, we see it is relatively lower, thus worse in comparison to the benchmark SPY (16.1%)
  • During the last 3 years, the annual return (CAGR) is -5.1%, which is smaller, thus worse than the value of 19.3% from the benchmark.

Volatility:

'In finance, volatility (symbol σ) is the degree of variation of a trading price series over time as measured by the standard deviation of logarithmic returns. Historic volatility measures a time series of past market prices. Implied volatility looks forward in time, being derived from the market price of a market-traded derivative (in particular, an option). Commonly, the higher the volatility, the riskier the security.'

Using this definition on our asset we see for example:
  • The historical 30 days volatility over 5 years of Akamai Technologies is 30.2%, which is larger, thus worse compared to the benchmark SPY (17.5%) in the same period.
  • Looking at volatility in of 31.9% in the period of the last 3 years, we see it is relatively larger, thus worse in comparison to SPY (17.5%).

DownVol:

'The downside volatility is similar to the volatility, or standard deviation, but only takes losing/negative periods into account.'

Which means for our asset as example:
  • Compared with the benchmark SPY (12.1%) in the period of the last 5 years, the downside deviation of 23.6% of Akamai Technologies is greater, thus worse.
  • During the last 3 years, the downside risk is 24.6%, which is higher, thus worse than the value of 11.5% from the benchmark.

Sharpe:

'The Sharpe ratio (also known as the Sharpe index, the Sharpe measure, and the reward-to-variability ratio) is a way to examine the performance of an investment by adjusting for its risk. The ratio measures the excess return (or risk premium) per unit of deviation in an investment asset or a trading strategy, typically referred to as risk, named after William F. Sharpe.'

Using this definition on our asset we see for example:
  • The ratio of return and volatility (Sharpe) over 5 years of Akamai Technologies is -0.33, which is lower, thus worse compared to the benchmark SPY (0.78) in the same period.
  • During the last 3 years, the Sharpe Ratio is -0.24, which is lower, thus worse than the value of 0.96 from the benchmark.

Sortino:

'The Sortino ratio, a variation of the Sharpe ratio only factors in the downside, or negative volatility, rather than the total volatility used in calculating the Sharpe ratio. The theory behind the Sortino variation is that upside volatility is a plus for the investment, and it, therefore, should not be included in the risk calculation. Therefore, the Sortino ratio takes upside volatility out of the equation and uses only the downside standard deviation in its calculation instead of the total standard deviation that is used in calculating the Sharpe ratio.'

Which means for our asset as example:
  • Looking at the downside risk / excess return profile of -0.43 in the last 5 years of Akamai Technologies, we see it is relatively lower, thus worse in comparison to the benchmark SPY (1.13)
  • During the last 3 years, the excess return divided by the downside deviation is -0.31, which is lower, thus worse than the value of 1.46 from the benchmark.

Ulcer:

'Ulcer Index is a method for measuring investment risk that addresses the real concerns of investors, unlike the widely used standard deviation of return. UI is a measure of the depth and duration of drawdowns in prices from earlier highs. Using Ulcer Index instead of standard deviation can lead to very different conclusions about investment risk and risk-adjusted return, especially when evaluating strategies that seek to avoid major declines in portfolio value (market timing, dynamic asset allocation, hedge funds, etc.). The Ulcer Index was originally developed in 1987. Since then, it has been widely recognized and adopted by the investment community. According to Nelson Freeburg, editor of Formula Research, Ulcer Index is “perhaps the most fully realized statistical portrait of risk there is.'

Using this definition on our asset we see for example:
  • The Downside risk index over 5 years of Akamai Technologies is 22 , which is larger, thus worse compared to the benchmark SPY (8.48 ) in the same period.
  • During the last 3 years, the Downside risk index is 21 , which is greater, thus worse than the value of 5.3 from the benchmark.

MaxDD:

'Maximum drawdown is defined as the peak-to-trough decline of an investment during a specific period. It is usually quoted as a percentage of the peak value. The maximum drawdown can be calculated based on absolute returns, in order to identify strategies that suffer less during market downturns, such as low-volatility strategies. However, the maximum drawdown can also be calculated based on returns relative to a benchmark index, for identifying strategies that show steady outperformance over time.'

Applying this definition to our asset in some examples:
  • Looking at the maximum DrawDown of -46.8 days in the last 5 years of Akamai Technologies, we see it is relatively smaller, thus worse in comparison to the benchmark SPY (-24.5 days)
  • Looking at maximum DrawDown in of -46.8 days in the period of the last 3 years, we see it is relatively smaller, thus worse in comparison to SPY (-18.8 days).

MaxDuration:

'The Drawdown Duration is the length of any peak to peak period, or the time between new equity highs. The Max Drawdown Duration is the worst (the maximum/longest) amount of time an investment has seen between peaks (equity highs). Many assume Max DD Duration is the length of time between new highs during which the Max DD (magnitude) occurred. But that isn’t always the case. The Max DD duration is the longest time between peaks, period. So it could be the time when the program also had its biggest peak to valley loss (and usually is, because the program needs a long time to recover from the largest loss), but it doesn’t have to be'

Applying this definition to our asset in some examples:
  • Looking at the maximum time in days below previous high water mark of 440 days in the last 5 years of Akamai Technologies, we see it is relatively lower, thus better in comparison to the benchmark SPY (488 days)
  • Looking at maximum time in days below previous high water mark in of 354 days in the period of the last 3 years, we see it is relatively larger, thus worse in comparison to SPY (199 days).

AveDuration:

'The Drawdown Duration is the length of any peak to peak period, or the time between new equity highs. The Avg Drawdown Duration is the average amount of time an investment has seen between peaks (equity highs), or in other terms the average of time under water of all drawdowns. So in contrast to the Maximum duration it does not measure only one drawdown event but calculates the average of all.'

Using this definition on our asset we see for example:
  • The average days below previous high over 5 years of Akamai Technologies is 169 days, which is higher, thus worse compared to the benchmark SPY (120 days) in the same period.
  • Compared with SPY (47 days) in the period of the last 3 years, the average time in days below previous high water mark of 133 days is higher, thus worse.

Performance (YTD)

Historical returns have been extended using synthetic data.

Allocations ()

Allocations

Returns (%)

  • Note that yearly returns do not equal the sum of monthly returns due to compounding.
  • Performance results of Akamai Technologies are hypothetical and do not account for slippage, fees or taxes.