DigitalTown Risk Analysis And Volatility Evaluation

DGTW -- USA Stock  

USD 0.07  0.005  6.67%

Macroaxis considers DigitalTown to be abnormally risky. DigitalTown secures Sharpe Ratio (or Efficiency) of -0.2389 which denotes DigitalTown had -0.2389% of return per unit of risk over the last 1 month. Macroaxis philosophy towards predicting 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. DigitalTown exposes twenty-one different technical indicators which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm DigitalTown Coefficient Of Variation of 430.40 and Mean Deviation of 7.4 to check risk estimate we provide.
 Time 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 Demand Trend
Check current 30 days DigitalTown correlation with market (DOW)
β = 4.9859
DigitalTown Large BetaDigitalTown Beta Legend

DigitalTown Technical Analysis

Transformation
The output start index for this execution was zero with a total number of output elements of seventeen. DigitalTown 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

Given the investment horizon of 30 days, the stock has beta coefficient of 4.9859 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 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 
Given the investment horizon of 30 days, the coefficient of variation of DigitalTown is -418.66. The daily returns are destributed with a variance of 112.43 and standard deviation of 10.6. The mean deviation of DigitalTown is currently at 7.09. For similar time horizon, the selected benchmark (DOW) has volatility of 0.59
α
Alpha over DOW
=3.15
β
Beta against DOW=4.99
σ
Overall volatility
=10.60
Ir
Information ratio =0.24

Actual Return Volatility

DigitalTown inherits 10.6032% risk (volatility on return distribution) over the 30 days horizon. DOW inherits 0.5978% risk (volatility on return distribution) over the 30 days horizon.
 Performance (%) 
      Timeline 

Market Risk Breakdown

DigitalTown Volatility Factors

30 Days Market Risk

Abnormally risky

Chance of Distress in 24 months

Above average

30 Days Economic Sensitivity

Hypersensitive to market

Investment Outlook

DigitalTown Investment Opportunity
DigitalTown has a volatility of 10.6 and is 17.67 times more volatile than DOW. 96% of all equities and portfolios are less risky than DigitalTown. Compared to the overall equity markets, volatility of historical daily returns of DigitalTown is higher than 96 (%) of all global equities and portfolios over the last 30 days. Use DigitalTown to protect against small markets fluctuations. The stock experiences very speculative upward sentiment.. Check odds of DigitalTown to be traded at $0.0665 in 30 days. As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, DigitalTown will likely underperform.

DigitalTown correlation with market

Modest diversification
Overlapping area represents the amount of risk that can be diversified away by holding DigitalTown Inc and equity matching DJI index in the same portfolio.
Additionally see Investing Opportunities. Please also try Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
vendors/bower_components/jquery.easy-pie-chart/dist/jquery.easypiechart.min.js">