Edwards Lifesciences Risk Analysis And Volatility Evaluation

EW -- USA Stock  

USD 145.95  2.77  1.86%

Macroaxis considers Edwards Lifesciences not too risky given 1 month investment horizon. Edwards Lifesciences secures Sharpe Ratio (or Efficiency) of 0.2559 which denotes Edwards Lifesciences had 0.2559% 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 stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Edwards Lifesciences Corporation which you can use to evaluate future volatility of the firm. Please utilize Edwards Lifesciences Coefficient Of Variation of 356.61, Mean Deviation of 0.7221 and Downside Deviation of 1.07 to check if our risk estimates are consistent with your expectations.
Horizon     30 Days    Login   to change

Edwards Lifesciences Market Sensitivity

As returns on market increase, returns on owning Edwards Lifesciences are expected to decrease at a much smaller rate. During bear market, Edwards Lifesciences is likely to outperform the market.
One Month Beta |Analyze Edwards Lifesciences Demand Trend
Check current 30 days Edwards Lifesciences correlation with market (DOW)
β = -0.6471
Edwards Lifesciences Almost negative 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.

Edwards Lifesciences Projected Return Density Against Market

Allowing for the 30-days total investment horizon, Edwards Lifesciences Corporation has beta of -0.6471 suggesting as returns on benchmark increase, returns on holding Edwards Lifesciences are expected to decrease at a much smaller rate. During bear market, however, Edwards Lifesciences Corporation is likely to outperform the market. Moreover, Edwards Lifesciences Corporation has an alpha of 0.3161 implying that it can potentially generate 0.3161% 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 390.8. The daily returns are destributed with a variance of 0.9 and standard deviation of 0.95. The mean deviation of Edwards Lifesciences Corporation is currently at 0.72. For similar time horizon, the selected benchmark (DOW) has volatility of 0.39
α
Alpha over DOW
=0.32
β
Beta against DOW=0.65
σ
Overall volatility
=0.95
Ir
Information ratio =0.17

Edwards Lifesciences Return Volatility

Edwards Lifesciences Corporation accepts 0.9497% volatility on return distribution over the 30 days horizon. DOW inherits 0.3914% 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

Very low

30 Days Economic Sensitivity

Slightly opposite to market

Investment Outlook

Edwards Lifesciences Investment Opportunity

Edwards Lifesciences Corporation has a volatility of 0.95 and is 2.44 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 somewhat bearish sentiment, but market may correct it shortly. Check odds of Edwards Lifesciences to be traded at $141.57 in 30 days. As returns on market increase, returns on owning Edwards Lifesciences are expected to decrease at a much smaller rate. During bear market, Edwards Lifesciences is likely to outperform the market.

Edwards Lifesciences correlation with market

Very good 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.

Edwards Lifesciences Volatility Indicators

Edwards Lifesciences Corporation Current Risk Indicators

Additionally see Investing Opportunities. Please also try Equity Valuation module to check real value of public entities based on technical and fundamental data.
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