Cinemark Holdings Risk Analysis

Cinemark Holdings Inc -- USA Stock  

USD 35.79  0.24  0.67%

Macroaxis considers Cinemark Holdings to be not too risky. Cinemark Holdings Inc secures Sharpe Ratio (or Efficiency) of -0.0274 which signifies that Cinemark Holdings Inc had -0.0274% of return per unit of risk over the last 1 month. Macroaxis philosophy towards 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. Cinemark Holdings Inc exposes twenty-eight different technical indicators which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Cinemark Holdings Inc Downside Deviation of 1.63, Risk Adjusted Performance of 0.0205 and Mean Deviation of 1.02 to double-check risk estimate we provide.
Investment Horizon     30 Days    Login   to change

Cinemark Holdings Market Sensitivity

As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, Cinemark Holdings will likely underperform.
One Month Beta |Analyze Cinemark Holdings Inc Demand Trend
Check current 30 days Cinemark Holdings correlation with market (DOW)
β = 1.648
Cinemark Holdings Large BetaCinemark Holdings Inc Beta Legend

Projected Return Density Against Market

Considering 30-days investment horizon, the stock has beta coefficient of 1.648 . This suggests as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are expected to be negative, Cinemark Holdings will likely underperform. Additionally, Cinemark Holdings 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 Cinemark Holdings is -3648.4. The daily returns are destributed with a variance of 1.95 and standard deviation of 1.4. The mean deviation of Cinemark Holdings Inc is currently at 0.9. For similar time horizon, the selected benchmark (DOW) has volatility of 0.23
α
Alpha over DOW
=(0.14) 
βBeta against DOW= 1.65 
σ
Overall volatility
= 1.4 
 IrInformation ratio =(0.0403) 

Actual Return Volatility

Cinemark Holdings Inc has volatility of 1.3963% 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

Cinemark Holdings Volatility Factors

30 Days Market Risk

Not too risky

Chance of Distress in 24 months

Below average

30 Days Economic Sensitivity

Very susceptible to market

Total Debt

Cinemark Holdings Inc Total Debt History

Total Debt

Largest Trends

Cinemark Holdings Largest Period Trend

Investment Outlook

Cinemark Holdings Investment Opportunity
Cinemark Holdings Inc has a volatility of 1.4 and is 6.09 times more volatile than DOW. 13% of all equities and portfolios are less risky than Cinemark Holdings. Compared to the overall equity markets, volatility of historical daily returns of Cinemark Holdings Inc is lower than 13 (%) of all global equities and portfolios over the last 30 days. Use Cinemark Holdings Inc to protect against small markets fluctuations. The stock experiences moderate downward daily trend and can be a good diversifier. Check odds of Cinemark Holdings to be traded at $35.07 in 30 days. As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, Cinemark Holdings will likely underperform.

Cinemark Holdings correlation with market

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