DigitalTown Risk Analysis

DigitalTown Inc -- USA Stock  

USD 0.3  0.04  11.76%

Macroaxis considers DigitalTown to be abnormally risky. DigitalTown Inc secures Sharpe Ratio (or Efficiency) of -0.0376 which denotes DigitalTown Inc had -0.0376% 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 Inc exposes twenty-one different technical indicators which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm DigitalTown Inc Coefficient Of Variation of (2,606) and Mean Deviation of 4.35 to check risk estimate we provide.
Investment Horizon     30 Days    Login   to change

DigitalTown Market Sensitivity

As returns on market increase, returns on owning DigitalTown are expected to decrease by larger amounts. On the other hand, during market turmoil, DigitalTown is expected to significantly outperform it.
One Month Beta |Analyze DigitalTown Inc Demand Trend
Check current 30 days DigitalTown correlation with market (DOW)
β = -7.8677
DigitalTown Large Negative BetaDigitalTown Inc Beta Legend

Projected Return Density Against Market

Given the investment horizon of 30 days, DigitalTown Inc has beta of -7.8677 suggesting as returns on its benchmark rise, returns on holding DigitalTown Inc are expected to decrease by similarly larger amounts. On the other hand, during market turmoils, DigitalTown is expected to outperform its benchmark. In addition to that, DigitalTown Inc has an alpha of 1.1362 implying that it can potentially generate 1.1362% excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 
Given the investment horizon of 30 days, the coefficient of variation of DigitalTown is -2661.46. The daily returns are destributed with a variance of 57.21 and standard deviation of 7.56. The mean deviation of DigitalTown Inc is currently at 4.17. For similar time horizon, the selected benchmark (DOW) has volatility of 0.27
α
Alpha over DOW
= 1.14 
βBeta against DOW=(7.87) 
σ
Overall volatility
= 7.56 
 IrInformation ratio =(0.0634) 

Actual Return Volatility

DigitalTown Inc inherits 7.564% risk (volatility on return distribution) over the 30 days horizon. DOW inherits 0.2475% 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

About average

30 Days Economic Sensitivity

Completely opposite to market

Largest Trends

DigitalTown Largest Period Trend

Investment Outlook

DigitalTown Investment Opportunity
DigitalTown Inc has a volatility of 7.56 and is 30.24 times more volatile than DOW. 71% of all equities and portfolios are less risky than DigitalTown. Compared to the overall equity markets, volatility of historical daily returns of DigitalTown Inc is higher than 71 (%) of all global equities and portfolios over the last 30 days. Use DigitalTown Inc to protect against small markets fluctuations. The stock experiences very speculative upward sentiment.. Check odds of DigitalTown to be traded at $0.285 in 30 days. As returns on market increase, returns on owning DigitalTown are expected to decrease by larger amounts. On the other hand, during market turmoil, DigitalTown is expected to significantly outperform it.

DigitalTown correlation with market

Very good 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.

Volatility Indicators

DigitalTown Current Risk Indicators