DigitalTown Risk Analysis

DigitalTown Inc -- USA Stock  

USD 0.22  0.05  18.52%

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 Trend
Check current 30 days DigitalTown correlation with market (DOW)
β = 13.5239
DigitalTown Large BetaDigitalTown Inc Beta Legend

DigitalTown Inc Technical Analysis

Transformation
The output start index for this execution was zero with a total number of output elements of seventeen. DigitalTown Inc 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 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
 Predicted Return Density 
      Returns 
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
α
Alpha over DOW
=1.77
βBeta against DOW=13.52
σ
Overall volatility
=16.99
 IrInformation ratio =0.0843

Actual Return Volatility

DigitalTown Inc inherits 16.9866% risk (volatility on return distribution) over the 30 days horizon. DOW inherits 0.4705% 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

Close to average

30 Days Economic Sensitivity

Hypersensitive to market

Largest Trends

DigitalTown Largest Period Trend

Investment Outlook

DigitalTown Investment Opportunity
DigitalTown Inc has a volatility of 16.99 and is 36.15 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 Inc is higher than 96 (%) 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 $0.209 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

Weak 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