This firm's average rating is Strong Buy from 4 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Anavex Life market sentiment investors' perception of the future value of Anavex. Let us look at a few aspects of Anavex technical analysis.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Anavex Life Sciences. In general, sophisticated investors focus on analyzing Anavex Life stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Anavex Life's daily price indicators and compare them against related drivers such as
momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional
technical analysis and
fundamental analysis, we attempt to find the most accurate representation of
Anavex Life's intrinsic value. In addition to deriving basic predictive indicators for Anavex Life, many experienced traders also check how macroeconomic factors affect Anavex Life price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed
many market ups and downs, frequently view the market will even out over time. This tendency of Anavex Life's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Anavex Life in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Anavex Life. Your research has to be compared to or analyzed against Anavex Life's peers to derive any actionable benefits. When done correctly, Anavex Life's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Anavex Life Sciences.
How important is Anavex Life's Liquidity
Anavex Life
financial leverage refers to using borrowed capital as a funding source to finance Anavex Life Sciences ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Anavex Life 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 Anavex Life'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 Anavex Life'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 Anavex Life's total debt and its cash.
Closer look at Anavex Life Downside Variance
Anavex Life Sciences has current Downside Variance of 48.24. Downside Variance (or DV) is measured by target semi-variance and is termed downside volatility. It is expressed in percentages and therefore allows for rankings in the same way as variance. One way to view downside volatility is the annualized variance of returns below the target.
Downside Variance is the probability-weighted squared below-target returns. The squaring of the below-target returns has the effect of penalizing failures at an exponential rate. This is consistent with observations made on the behavior of individual decision-making under.
Downside Variance | = | SUM(RET DEV)2 N(ER) |
| = | 48.24 |
SUM | = | Summation notation |
RET DEV | = | Actual returns deviation over selected period |
N(ER) | = | Number of points with returns less than expected return for the period |
Let's now compare Anavex Life Downside Variance to its closest peers:
| AVXL | 48.24079768470137 |
| NK | 28.9 |
| DMAC | 11.32 |
| DNLI | 9.57 |
| DRNA | 6.43 |
Our take on Anavex Life small pull down
The semi deviation is down to 6.32 as of today. Anavex Life Sciences is displaying above-average volatility over the selected time horizon. Investors should scrutinize Anavex Life Sciences independently to ensure intended market timing strategies are aligned with expectations about Anavex Life volatility.
The Bottom Line
While some other entities in the biotechnology industry are either recovering or due for a correction, Anavex may not be as strong as the others in terms of longer-term growth potentials. In closing, as of the 28th of December 2020, our primary 30 days advice on the company is
Cautious Hold. We believe Anavex Life is currently
undervalued with
very high probability of distress for the next two years.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
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 Raphi Shpitalnik do not own shares of Anavex Life Sciences. Please refer to our
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