Is that a good time to trade Bank of New York (NYSE:BK)?
 | By Raphi Shpitalnik | Macroaxis Story |
Bank of New York is generating 0.0719% of daily returns and assumes 1.7696% volatility on return distribution over the 90 days horizon. Since many greedy investors are excited about financial services space, let's examine Bank of New York against its current volatility. We will concentrate on why it could be a different year for Bank of New York shareholders.
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Reviewed by Gabriel Shpitalnik
The company reports 73.26 B of total liabilities with total debt to equity ratio (D/E) of 0.57, which is normal for its line of buisiness. Volatility is a rate at which the price of Bank of New York or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Bank of New York may increase or decrease. In other words, similar to Bank's beta indicator, it measures the risk of Bank of New York and helps estimate the fluctuations that may happen in a short period of time. So if prices of Bank of New York fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
How important is Bank of New York's Liquidity
Bank of New York financial leverage refers to using borrowed capital as a funding source to finance Bank of New ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Bank of New York 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 Bank of New York'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 Bank of New York'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 Bank of New York's total debt and its cash.
Bank of New York Gross Profit
Bank of New York Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Bank of New York previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Bank of New York Gross Profit growth over the last 10 years. Please check Bank of New York's gross profit and other fundamental indicators for more details.
Bank of New York Volatility Drivers
Bank of New York unsystematic risk is unique to Bank of New York and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Bank of New York you can also buy Federated Premier Municipal. You can also mitigate this risk by investing in the financials sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Bank of New York important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Bank of New York income statement and balance sheet. Here are more details about Bank volatility.Click cells to compare fundamentals
A Deeper Perspective On Bank of New York
The recent indifference towards the small price fluctuations of Bank of New York could raise concerns from traders as the firm it trading at a share price of 36.88 on 4,178,200 in volume. The company executives did not add any value to Bank of New York investors in September. However, most investors can still diversify their portfolios with Bank of New York to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.77. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
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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 Bank of New. Please refer to our Terms of Use for any information regarding our disclosure principles.