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Will BlackRock (NYSE:BLK) volatility surge before November
 | By Rifka Kats | Macroaxis Story |
It feels like BlackRock will continue to recover much faster as its share price surged up 1.18% today. BlackRock's current daily volatility is 1.42 percent, with a beta of 0.88 and an alpha of 0.0 over DOW. As many baby boomers are still indifferent towards top fintech, it makes sense to examine BlackRock. We will evaluate why recent BlackRock price moves suggest a bounce in November.
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Reviewed by Michael Smolkin
BlackRock has roughly 8.3 B in cash with 2.96 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 54.45. BlackRock has performance score of 7 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 0.879, which signifies possible diversification benefits within a given portfolio. Let's try to break down what BlackRock's beta means in this case. BlackRock returns are very sensitive to returns on the market. As the market goes up or down, BlackRock is expected to follow. Although it is extremely important to respect BlackRock historical returns, it is better to be realistic regarding the information on equity current trending patterns. The philosophy in foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing BlackRock technical indicators, you can presently evaluate if the expected return of 0.15% will be sustainable into the future. BlackRock right now shows a risk of 1.42%. Please confirm BlackRock information ratio, and the relationship between the downside deviation and value at risk to decide if BlackRock will be following its price patterns.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as BlackRock. Your research has to be compared to or analyzed against BlackRock's peers to derive any actionable benefits. When done correctly, BlackRock'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 BlackRock.
Investing in BlackRock, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding BlackRock along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of BlackRock'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.
How important is BlackRock's Liquidity
BlackRock financial leverage refers to using borrowed capital as a funding source to finance BlackRock ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. BlackRock 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 BlackRock'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 BlackRock'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 BlackRock's total debt and its cash.
BlackRock Gross Profit
BlackRock Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing BlackRock 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 BlackRock Gross Profit growth over the last 10 years. Please check BlackRock's gross profit and other fundamental indicators for more details.
BlackRock Correlation with Peers
Investors in BlackRock can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in BlackRock. Diversification will allow for the same portfolio return with reduced risk. The correlation table of BlackRock and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities BlackRock 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 BlackRock for more details
An Additional Perspective On BlackRock
We consider BlackRock very steady. BlackRock secures Sharpe Ratio (or Efficiency) of 0.1, which signifies that the company had 0.1% of return per unit of standard deviation over the last month. Our philosophy in foreseeing the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for BlackRock, which you can use to evaluate future volatility of the firm. Please confirm BlackRock risk adjusted performance of 0.1102, and Mean Deviation of 1.09 to double-check if the risk estimate we provide is consistent with the expected return of 0.15%.
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