Edwards Lifesciences Risk Analysis

Edwards Lifesciences Corporation -- USA Stock  

USD 118.03  0.58  0.49%

Macroaxis considers Edwards Lifesciences not too risky given 1 month investment horizon. Edwards Lifesciences secures Sharpe Ratio (or Efficiency) of 0.4157 which denotes Edwards Lifesciences had 0.4157% of return per unit of risk over the last 1 month. Our philosophy towards predicting volatility of a stock is to use all available market data together with company specific technical indicators that cannot be diversified away. By reviewing Edwards Lifesciences technical indicators you can presently evaluate if the expected return of 0.6158% is justified by implied risk. Please utilize Edwards Lifesciences Coefficient Of Variation of 269.49, Mean Deviation of 1.09 and Downside Deviation of 0.9584 to check if our risk estimates are consistent with your expectations.
Investment Horizon     30 Days    Login   to change

Edwards Lifesciences Market Sensitivity

As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, Edwards Lifesciences will likely underperform.
One Month Beta |Analyze Edwards Lifesciences Demand Trend
Check current 30 days Edwards Lifesciences correlation with market (DOW)
β = 1.6098
Edwards Lifesciences Large BetaEdwards Lifesciences Beta Legend

Edwards Lifesciences Technical Analysis

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

Allowing for the 30-days total investment horizon, the stock has beta coefficient of 1.6098 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, Edwards Lifesciences will likely underperform. Moreover, Edwards Lifesciences Corporation has an alpha of 0.3023 implying that it can potentially generate 0.3023% excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 
Allowing for the 30-days total investment horizon, the coefficient of variation of Edwards Lifesciences is 240.56. The daily returns are destributed with a variance of 2.19 and standard deviation of 1.48. The mean deviation of Edwards Lifesciences Corporation is currently at 1.13. For similar time horizon, the selected benchmark (DOW) has volatility of 0.51
α
Alpha over DOW
=0.3
βBeta against DOW=1.61
σ
Overall volatility
=1.48
 IrInformation ratio =0.27

Actual Return Volatility

Edwards Lifesciences Corporation accepts 1.4813% volatility on return distribution over the 30 days horizon. DOW inherits 0.5172% risk (volatility on return distribution) over the 30 days horizon.
 Performance (%) 
      Timeline 

Market Risk Breakdown

Edwards Lifesciences Volatility Factors

30 Days Market Risk

Not too risky

Chance of Distress in 24 months

Almost imposible

30 Days Economic Sensitivity

Very susceptible to market

Total Debt

Edwards Lifesciences Total Debt History

Total Debt

Largest Trends

Edwards Lifesciences Largest Period Trend
 104.41 
  
 104.98 
0.57  0.55%
Lowest period price (30 days)
 117.5 
  
 118.03 
0.53  0.45%
Highest period price (30 days)

Investment Outlook

Edwards Lifesciences Investment Opportunity
Edwards Lifesciences Corporation has a volatility of 1.48 and is 2.85 times more volatile than DOW. 13% of all equities and portfolios are less risky than Edwards Lifesciences. Compared to the overall equity markets, volatility of historical daily returns of Edwards Lifesciences Corporation is lower than 13 (%) of all global equities and portfolios over the last 30 days. Use Edwards Lifesciences Corporation to enhance returns of your portfolios. The stock experiences normal upward fluctuation. Check odds of Edwards Lifesciences to be traded at $123.93 in 30 days. As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, Edwards Lifesciences will likely underperform.

Edwards Lifesciences correlation with market

Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Edwards Lifesciences Corp. and equity matching DJI index in the same portfolio.

Volatility Indicators

Edwards Lifesciences Current Risk Indicators