Our viewpoint on Alpha (USA Stocks:AOSL) and Diodes Incorporated (USA Stocks:DIOD)?

AOSL Stock

USD 25.87 0.28 1.07%

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It looks like Diodes Incorporated will be up for a correction faster as its share price went up 1.35% today to Alpha's 2.59%. While some millenniums may be indifferent towards semiconductors & semiconductor equipment space, we will examine how steady are Alpha fundamentals compared to Diodes Incorporated. We are going to summarize some of the competitive aspects of both Alpha and Diodes.

Published over a month ago

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Reviewed by Raphi Shpitalnik

By analyzing existing basic indicators between Alpha and Diodes, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Diodes with a short position in Alpha. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Alpha has an asset utilization ratio of 59.87 percent. This denotes that the company is making $0.6 for each dollar of assets. An increasing asset utilization means that Alpha And Omega is more efficient with each dollar of assets it utilizes for everyday operations.

Our viewpoint on Alpha (USA Stocks:AOSL) and Diodes Incorporated (USA Stocks:DIOD)?

Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Alpha or Shelf is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Alpha's Liquidity

Alpha financial leverage refers to using borrowed capital as a funding source to finance Alpha And Omega ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Alpha 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. Please check the breakdown between Alpha's total debt and its cash.

Correlation Between Alpha and Shelf Drilling

In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Alpha together with similar or unrelated positions with a negative correlation. For example, you can also add Shelf Drilling to your portfolio. If Shelf Drilling is not perfectly correlated to Alpha it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Alpha, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.

Please check pair correlation details between AOSL and SHLLF for more information.

Another Deeper Perspective

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now take a look at Alpha revenue. Based on the latest financial disclosure, Alpha And Omega reported 777.55 M of revenue. This is 80.92% lower than that of the Semiconductors & Semiconductor Equipment sector and 85.81% lower than that of the Information Technology industry. The revenue for all United States stocks is 91.76% higher than that of Alpha. As for Diodes Incorporated we see revenue of 1.81 B, which is 67.06% lower than that of the Information Technology

Sector

4.1 B

DIOD

1.8 B

AOSL	777.55 Million	11.68
Sector	4.08 Billion	61.21
DIOD	1.81 Billion	27.11

Is Alpha showing trail of lower volatility?

New variance is at 11.3. Alpha And Omega currently demonstrates below-average downside deviation. It has Information Ratio of 0.06 and Jensen Alpha of 0.12. However, we advise investors to further question Alpha And Omega expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Alpha's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Alpha's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Takeaway on Alpha Investment

While other companies under the semiconductors industry are still a bit expensive, Alpha may offer a potential longer-term growth to stakeholders. While some stakeholders may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Alpha.

Editorial Staff

Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies. View Profile

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 Gabriel Shpitalnik do not own shares of Alpha And Omega. Please refer to our Terms of Use for any information regarding our disclosure principles.

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