DigitalTown is abnormally risky given 1 month investment horizon. DigitalTown Inc secures Sharpe Ratio (or Efficiency) of 0.0885 which denotes DigitalTown Inc had 0.0885% of return per unit of risk over the last 1 month. Our philosophy towards predicting risk of a stock is to use both market data as well as company specific technical data. We found twenty-one different technical indicators which can help you to evaluate if expected returns of 1.5035% are justified by taking the suggested risk. Use DigitalTown Coefficient Of Variation of 998.2 and Mean Deviation of 8.86 to evaluate company specific risk that cannot be diversified away.
|Investment Horizon||30 Days Login to change|
DigitalTown Market Sensitivity
|As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, DigitalTown will likely underperform.One Month Beta |Analyze DigitalTown Inc Demand TrendCheck current 30 days DigitalTown correlation with market (DOW)|
β = 13.5239
DigitalTown Inc Technical Analysis
Projected Return Density Against MarketGiven the investment horizon of 30 days, the stock has beta coefficient of 13.5239 suggesting as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are expected to be negative, DigitalTown will likely underperform. Additionally, DigitalTown Inc has a negative alpha implying that the risk taken by holding this equity is not justified. The company is significantly underperforming DOW
Given the investment horizon of 30 days, the coefficient of variation of DigitalTown is 1129.83. The daily returns are destributed with a variance of 288.54 and standard deviation of 16.99. The mean deviation of DigitalTown Inc is currently at 9.06. For similar time horizon, the selected benchmark (DOW) has volatility of 0.47