Is Bank Of Montreal (NYSE:BMO) a new disruptor?

It seems Bank Of Montreal may not have a good chance to recover from the latest slide as its shares fell again. The entity current daily volatility is 1.55 percent, with a beta of 0.94 and an alpha of -0.08 over DOW. While some baby boomers are getting worried growing market volatility, it is reasonable to outline Bank Of Montreal based on its historical price movement. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over a year ago
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Reviewed by Gabriel Shpitalnik

Bank Of Montreal has roughly 330.04 B in cash with (47.36 B) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 491.45.
The firm shows a Beta (market volatility) of 0.9449, which signifies possible diversification benefits within a given portfolio. Let's try to break down what Bank Of Montreal's beta means in this case. Bank Of Montreal returns are very sensitive to returns on the market. As the market goes up or down, Bank Of Montreal is expected to follow. Even though it is essential to pay attention to Bank Of Montreal historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards foreseeing any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Bank Of Montreal exposes twenty-eight different technical indicators, which can help you to evaluate its performance. Bank Of Montreal has an expected return of -0.14%. Please be advised to confirm Bank Of Montreal semi variance, and the relationship between the treynor ratio and daily balance of power to decide if Bank Of Montreal performance from the past will be repeated at some point in the near future.
Investing in Bank of Montreal, 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 Bank of Montreal 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 Bank of Montreal'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 note, it is not enough to conduct a financial or market analysis of a single entity such as Bank of Montreal. Your research has to be compared to or analyzed against Bank of Montreal's peers to derive any actionable benefits. When done correctly, Bank of Montreal'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 Bank of Montreal.

How important is Bank of Montreal's Liquidity

Bank of Montreal financial leverage refers to using borrowed capital as a funding source to finance Bank of Montreal ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Bank of Montreal 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 Montreal'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 Montreal'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 Montreal's total debt and its cash.

Bank of Montreal Gross Profit

Bank of Montreal 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 Montreal 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 Montreal Gross Profit growth over the last 10 years. Please check Bank of Montreal's gross profit and other fundamental indicators for more details.

Bank of Montreal Correlation with Peers

Investors in Bank can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Bank of Montreal. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Bank of Montreal and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Bank 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 Bank for more details

Breaking it down

Bank Of Montreal secures Sharpe Ratio (or Efficiency) of -0.0889, which signifies that the company had -0.0889% of return per unit of risk over the last 3 months. Macroaxis standpoint towards foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Bank Of Montreal exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Bank Of Montreal mean deviation of 1.29, and Risk Adjusted Performance of (0.04162) to double-check the risk estimate we provide.
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Bank Of Montreal is likely finish below $100 in 30 days

Latest standard deviation is at 1.57.
As of the 29th of August, Bank Of Montreal shows the mean deviation of 1.29, and Risk Adjusted Performance of (0.04162). Bank Of Montreal technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We have collected data for nineteen technical drivers for Bank Of Montreal, which can be compared to its rivals. Please confirm Bank Of Montreal coefficient of variation, treynor ratio, as well as the relationship between the Treynor Ratio and semi variance to decide if Bank Of Montreal is priced correctly, providing market reflects its regular price of 98.08 per share. Given that Bank Of Montreal has jensen alpha of (0.08), we suggest you to validate Bank Of Montreal's prevailing market performance to make sure the company can sustain itself at a future point.

Our Conclusion on Bank Of Montreal

Whereas some firms in the banks—diversified industry are either recovering or due for a correction, Bank Of Montreal may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Bank Of Montreal as the current risk-reward utility is not appealing enough. 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 Bank Of Montreal.

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Editorial Staff

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 Montreal. Please refer to our Terms of Use for any information regarding our disclosure principles.

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