| Click cells to compare fundamentals | Check Volatility | Backtest Portfolio |
Will AeroCentury Corp (NYSEMKT:ACY) current volatility rise scare investors?
 | By Rifka Kats | Macroaxis Story |
It appears AeroCentury Corp will continue to recover much faster as its share price surged up 3.61% today. The entity's current daily volatility is 11.52 percent, with a beta of -0.2 and an alpha of 1.9 over DOW. While some of us are getting more passionate about business services, it makes sense to break down AeroCentury Corp in greater detail to make a better estimate of its volatility. We will evaluate why we are still optimistic in anticipation of a recovery.
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Michael Smolkin
AeroCentury Corp has roughly 1.75 M in cash with 3.59 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.13. The company has 112.1 M in debt with debt to equity (D/E) ratio of 8.2, demonstrating that AeroCentury Corp may be unable to create cash to meet all of its financial commitments. AeroCentury Corp has a current ratio of 4.85, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due.
How important is AeroCentury Corp's Liquidity
AeroCentury Corp financial leverage refers to using borrowed capital as a funding source to finance AeroCentury Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. AeroCentury Corp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to AeroCentury Corp's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of AeroCentury Corp's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between AeroCentury Corp's total debt and its cash.
AeroCentury Corp Correlation with Peers
Investors in AeroCentury can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in AeroCentury Corp. Diversification will allow for the same portfolio return with reduced risk. The correlation table of AeroCentury Corp and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities AeroCentury is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of AeroCentury for more details
Is AeroCentury Corp valued reasonably by the market?
AeroCentury Corp is dangerous given 1 month investment horizon. AeroCentury Corp secures Sharpe Ratio (or Efficiency) of 0.18, which signifies that the company had 0.18% of return per unit of risk over the last month. Our standpoint towards foreseeing the volatility of a stock is to use AeroCentury Corp market data together with company specific technical indicators. We were able to break down twenty-eight different technical indicators, which can help you to evaluate if expected returns of 2.06% are justified by taking the suggested risk. Use AeroCentury Corp Downside Deviation of 6.62, mean deviation of 7.5, and Risk Adjusted Performance of 0.2759 to evaluate company specific risk that cannot be diversified away.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of AeroCentury Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.