Bank of New York Stock Story

BK
 Stock
  

USD 44.90  0.53  1.19%   

Allowing for the 90-day total investment horizon Bank of New York is expected to under-perform the market. In addition to that, the company is 1.28 times more volatile than its market benchmark. It trades about -0.1 of its total potential returns per unit of risk. The DOW is currently generating roughly -0.12 per unit of volatility. As many adventurous traders are excited about financial services space, it is only fair to examine the risk of shorting Bank Of New based on its current volatility spike. We will concentrate on how risky is to take a position in Bank of New York at this time.
Published over three weeks ago
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Is Bank of New York (NYSE:BK) low volatility a good sign for traders?

Bank of New York reports 65.35 B of total liabilities with total debt to equity ratio (D/E) of 0.57, which is normal for its line of buisiness. Debt can assist Bank of New York until it has trouble settling it off, either with new capital or with free cash flow. So, Bank of New York's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Bank of New York sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Bank of New York to invest in growth at high rates of return. When we think about Bank of New York's use of debt, we should always consider it together with cash and equity.
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 of New York'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. Please check the breakdown between Bank of New York's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Bank of New York, but it might be worth checking our own buy vs. sell analysis

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 Blackstone. You can also mitigate this risk by investing in the asset management 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 of New York volatility.
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