Macroaxis considers CDK Global not too risky given 1 month investment horizon. CDK Global Inc secures Sharpe Ratio (or Efficiency) of 0.3842 which signifies that CDK Global Inc had 0.3842% 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. By examining CDK Global Inc technical indicators you can right now evaluate if the expected return of 0.5036% is justified by implied risk. Please makes use of CDK Global Inc Downside Deviation of 0.8046, Risk Adjusted Performance of 0.1869 and Mean Deviation of 0.8678 to double-check if our risk estimates are consistent with your expectations.
|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 TrendCheck current 30 days CDK Global correlation with market (DOW)|
β = -0.384
CDK Global Inc Technical Analysis
Projected Return Density Against MarketConsidering 30-days investment horizon, CDK Global Inc has beta of -0.384 . 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 0.5362 implying that it can potentially generate 0.5362% excess return over DOW after adjusting for the inherited market risk (beta).
Considering 30-days investment horizon, the coefficient of variation of CDK Global is 260.29. The daily returns are destributed with a variance of 1.72 and standard deviation of 1.31. The mean deviation of CDK Global Inc is currently at 0.87. For similar time horizon, the selected benchmark (DOW) has volatility of 0.49