ResMed Risk Analysis

ResMed -- USA Stock  

USD 97.87  0.93  0.94%

We consider ResMed not too risky. ResMed maintains Sharpe Ratio (i.e. Efficiency) of 0.1052 which implies ResMed had 0.1052% of return per unit of risk over the last 2 months. Our philosophy towards forecasting volatility of a stock is to use all available market data together with company specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for ResMed which you can use to evaluate future volatility of the company. Please check ResMed Coefficient Of Variation of 989.36, Semi Deviation of 1.07 and Risk Adjusted Performance of 0.166 to confirm if risk estimate we provide are consistent with the epected return of 0.1319%.
 Time Horizon     30 Days    Login   to change

ResMed Market Sensitivity

As returns on market increase, ResMed returns are expected to increase less than the market. However during bear market, the loss on holding ResMed will be expected to be smaller as well.
2 Months Beta |Analyze ResMed Demand Trend
Check current 30 days ResMed correlation with market (DOW)
β = 0.1551
ResMed Small BetaResMed Beta Legend

ResMed Technical Analysis

Transformation
The output start index for this execution was zero with a total number of output elements of thirty-nine. ResMed 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

Considering 30-days investment horizon, ResMed has beta of 0.1551 . This implies as returns on market go up, ResMed average returns are expected to increase less than the benchmark. However during bear market, the loss on holding ResMed will be expected to be much smaller as well. Moreover, ResMed has an alpha of 0.1304 implying that it can potentially generate 0.1304% excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 
Considering 30-days investment horizon, the coefficient of variation of ResMed is 950.65. The daily returns are destributed with a variance of 1.57 and standard deviation of 1.25. The mean deviation of ResMed is currently at 1.01. For similar time horizon, the selected benchmark (DOW) has volatility of 1.68
α
Alpha over DOW
=0.13
β
Beta against DOW=0.16
σ
Overall volatility
=1.25
Ir
Information ratio =0.17

Actual Return Volatility

ResMed has volatility of 1.2539% on return distribution over 30 days investment horizon. DOW inherits 1.4105% risk (volatility on return distribution) over the 30 days horizon.
 Performance (%) 
      Timeline 

Market Risk Breakdown

ResMed Volatility Factors

60 Days Market Risk

Not too risky

Chance of Distress in 24 months

Very low

60 Days Economic Sensitivity

Barely shadows market

Total Debt

ResMed Total Debt History

Total Debt

Investment Outlook

ResMed Investment Opportunity
DOW has a standard deviation of returns of 1.41 and is 1.13 times more volatile than ResMed. 11% of all equities and portfolios are less risky than ResMed. Compared to the overall equity markets, volatility of historical daily returns of ResMed is lower than 11 (%) of all global equities and portfolios over the last 30 days. Use ResMed to protect against small markets fluctuations. The stock experiences moderate downward daily trend and can be a good diversifier. Check odds of ResMed to be traded at $95.91 in 30 days. As returns on market increase, ResMed returns are expected to increase less than the market. However during bear market, the loss on holding ResMed will be expected to be smaller as well.

ResMed correlation with market

Modest diversification
Overlapping area represents the amount of risk that can be diversified away by holding ResMed Inc and equity matching DJI index in the same portfolio.
Additionally take a look at Your Equity Center. Please also try Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.