Edwards Lifesciences Risk Analysis

Edwards Lifesciences Corporation -- USA Stock  

USD 111.06  0.14  0.13%

Macroaxis considers Edwards Lifesciences to be not too risky. Edwards Lifesciences secures Sharpe Ratio (or Efficiency) of -0.0047 which denotes Edwards Lifesciences had -0.0047% 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. Edwards Lifesciences Corporation exposes twenty-eight different technical indicators which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Edwards Lifesciences Coefficient Of Variation of 85984.8, Mean Deviation of 0.7367 and Downside Deviation of 1.06 to check risk estimate we provide.
Investment Horizon     30 Days    Login   to change

Edwards Lifesciences Market Sensitivity

As returns on market increase, Edwards Lifesciences returns are expected to increase less than the market. However during bear market, the loss on holding Edwards Lifesciences will be expected to be smaller as well.
One Month Beta |Analyze Edwards Lifesciences Demand Trend
Check current 30 days Edwards Lifesciences correlation with market (DOW)
β = 0.5208
Edwards Lifesciences Small BetaEdwards Lifesciences Beta Legend

Projected Return Density Against Market

Allowing for the 30-days total investment horizon, Edwards Lifesciences has beta of 0.5208 suggesting as returns on market go up, Edwards Lifesciences average returns are expected to increase less than the benchmark. However during bear market, the loss on holding Edwards Lifesciences Corporation will be expected to be much smaller as well. Additionally, Edwards Lifesciences Corporation 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 
Allowing for the 30-days total investment horizon, the coefficient of variation of Edwards Lifesciences is -21228.89. The daily returns are destributed with a variance of 0.88 and standard deviation of 0.94. The mean deviation of Edwards Lifesciences Corporation is currently at 0.71. For similar time horizon, the selected benchmark (DOW) has volatility of 0.23
α
Alpha over DOW
=(0.0734) 
βBeta against DOW= 0.52 
σ
Overall volatility
= 0.94 
 IrInformation ratio =(0.14) 

Actual Return Volatility

Edwards Lifesciences Corporation accepts 0.9359% volatility on return distribution over the 30 days horizon. DOW inherits 0.2303% 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

Follows market closely

Total Debt

Edwards Lifesciences Total Debt History

Total Debt

Largest Trends

Edwards Lifesciences Largest Period Trend
 110.15 
  
 108.23 
1.92  1.74%
Lowest period price (30 days)
 110.25 
  
 111.63 
1.38  1.25%
Highest period price (30 days)

Investment Outlook

Edwards Lifesciences Investment Opportunity
Edwards Lifesciences Corporation has a volatility of 0.94 and is 4.09 times more volatile than DOW. 8% 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 8 (%) of all global equities and portfolios over the last 30 days. Use Edwards Lifesciences Corporation to protect against small markets fluctuations. The stock experiences normal downward trend and little activity. Check odds of Edwards Lifesciences to be traded at $109.95 in 30 days. As returns on market increase, Edwards Lifesciences returns are expected to increase less than the market. However during bear market, the loss on holding Edwards Lifesciences will be expected to be smaller as well.

Edwards Lifesciences correlation with market

Average 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