CDK Global Risk Analysis

CDK Global Inc -- USA Stock  

USD 64.73  0.03  0.05%

We consider CDK Global not too risky. CDK Global Inc secures Sharpe Ratio (or Efficiency) of 0.3971 which signifies that CDK Global Inc had 0.3971% of return per unit of return volatility over the last 1 month. Our approach into foreseeing volatility of a stock is to use all available market data together with company specific technical indicators that cannot be diversified away. We have found twenty technical indicators for CDK Global Inc which you can use to evaluate future volatility of the firm. Please confirm CDK Global Inc Downside Deviation of 0.3628, Risk Adjusted Performance of 0.0952 and Mean Deviation of 0.3884 to double-check if risk estimate we provide are consistent with the epected return of 0.189%.
Investment Horizon     30 Days    Login   to change

CDK Global Market Sensitivity

As returns on market increase, returns on owning CDK Global are expected to decrease at a much smaller rate. During bear market, CDK Global is likely to outperform the market.
One Month Beta |Analyze CDK Global Inc Demand Trend
Check current 30 days CDK Global correlation with market (DOW)
β = -0.0924
CDK Global Almost negative betaCDK Global Inc Beta Legend

Projected Return Density Against Market

Considering 30-days investment horizon, CDK Global Inc has beta of -0.0924 . This suggests as returns on benchmark increase, returns on holding CDK Global are expected to decrease at a much smaller rate. During bear market, however, CDK Global Inc is likely to outperform the market. Moreover, CDK Global Inc has an alpha of 0.1891 implying that it can potentially generate 0.1891% excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 
Considering 30-days investment horizon, the coefficient of variation of CDK Global is 251.85. The daily returns are destributed with a variance of 0.23 and standard deviation of 0.48. The mean deviation of CDK Global Inc is currently at 0.39. For similar time horizon, the selected benchmark (DOW) has volatility of 0.23
α
Alpha over DOW
= 0.19 
βBeta against DOW=(0.0924) 
σ
Overall volatility
= 0.48 
 IrInformation ratio = 0.11 

Actual Return Volatility

CDK Global Inc has volatility of 0.476% on return distribution over 30 days investment horizon. DOW inherits 0.2342% risk (volatility on return distribution) over the 30 days horizon.
 Performance (%) 
      Timeline 

Market Risk Breakdown

CDK Global Volatility Factors

30 Days Market Risk

Not too risky

Chance of Distress in 24 months

30 Days Economic Sensitivity

Indifferent to market move

Total Debt

CDK Global Inc Total Debt History

Total Debt

Largest Trends

CDK Global Largest Period Trend

Investment Outlook

CDK Global Investment Opportunity
CDK Global Inc has a volatility of 0.48 and is 2.09 times more volatile than DOW. 4% of all equities and portfolios are less risky than CDK Global. Compared to the overall equity markets, volatility of historical daily returns of CDK Global Inc is lower than 4 (%) of all global equities and portfolios over the last 30 days. Use CDK Global Inc to protect against small markets fluctuations. The stock experiences normal downward trend and little activity. Check odds of CDK Global to be traded at $64.08 in 30 days. As returns on market increase, returns on owning CDK Global are expected to decrease at a much smaller rate. During bear market, CDK Global is likely to outperform the market.

CDK Global correlation with market

Good diversification
Overlapping area represents the amount of risk that can be diversified away by holding CDK Global Inc and equity matching DJI index in the same portfolio.

Volatility Indicators

CDK Global Current Risk Indicators