CDK Global Risk Analysis

CDK Global Inc -- USA Stock  

USD 71.62  1.37  1.95%

Macroaxis considers CDK Global to be not too risky. CDK Global Inc secures Sharpe Ratio (or Efficiency) of -0.0844 which signifies that CDK Global Inc had -0.0844% of return per unit of return volatility over the last 1 month. Macroaxis approach into foreseeing risk of any stock is to look at both systematic and un-systematic factors of the business, including all available market data and technical indicators. CDK Global Inc exposes twenty-one different technical indicators which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm CDK Global Inc Risk Adjusted Performance of 0.14 and Mean Deviation of 1.17 to double-check risk estimate we provide.
 Time Horizon     30 Days    Login   to change

CDK Global Market Sensitivity

As returns on market increase, CDK Global returns are expected to increase less than the market. However during bear market, the loss on holding CDK Global will be expected to be smaller as well.
One Month Beta |Analyze CDK Global Inc Demand Trend
Check current 30 days CDK Global correlation with market (DOW)
β = 0.6737
CDK Global Small BetaCDK Global Inc Beta Legend

CDK Global Inc Technical Analysis

Transformation
The output start index for this execution was zero with a total number of output elements of seventeen. CDK Global Inc 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. View also all equity analysis or get more info about average price price transform indicator.

Projected Return Density Against Market

Considering 30-days investment horizon, CDK Global has beta of 0.6737 . This suggests as returns on market go up, CDK Global average returns are expected to increase less than the benchmark. However during bear market, the loss on holding CDK Global Inc will be expected to be much smaller as well. Additionally, CDK Global Inc has a negative alpha implying that the risk taken by holding this equity is not justified. The company is significantly underperforming DOW
 Predicted Return Density 
      Returns 
Considering 30-days investment horizon, the coefficient of variation of CDK Global is -1185.51. The daily returns are destributed with a variance of 3.97 and standard deviation of 1.99. The mean deviation of CDK Global Inc is currently at 1.17. For similar time horizon, the selected benchmark (DOW) has volatility of 1.71
α
Alpha over DOW
=0.09
β
Beta against DOW=0.67
σ
Overall volatility
=1.99
Ir
Information ratio =0.02

Actual Return Volatility

CDK Global Inc has volatility of 1.9923% on return distribution over 30 days investment horizon. DOW inherits 1.7062% 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

Below average

30 Days Economic Sensitivity

Barely shadows market

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 1.99 and is 1.16 times more volatile than DOW. 18% 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 18 (%) of all global equities and portfolios over the last 30 days. Use CDK Global Inc to enhance returns of your portfolios. The stock experiences large bullish trend. Check odds of CDK Global to be traded at $78.78 in 30 days. As returns on market increase, CDK Global returns are expected to increase less than the market. However during bear market, the loss on holding CDK Global will be expected to be smaller as well.

CDK Global correlation with market

Very weak 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.