Cboe Global has a beta of -0.1189. Let's try to break down what Cboe Global's beta means in this case. As returns on the market increase, Cboe Global returns are expected to increase less than the market. However, during the bear market, the loss on holding Cboe Global will be expected to be smaller as well. The beta indicator helps investors understand whether Cboe Global moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Cboe Global deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as
predicting future values of individual securities such as Cboe Global Markets. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the
market sentiment and impact your forecasting results.
Predictive Modules for Cboe Global
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Cboe Global'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 Cboe Global. Your research has to be compared to or analyzed against Cboe Global's peers to derive any actionable benefits. When done correctly, Cboe Global'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 Cboe Global Markets.
How important is Cboe Global's Liquidity
Cboe Global
financial leverage refers to using borrowed capital as a funding source to finance Cboe Global Markets ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cboe Global 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 Cboe Global'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 Cboe Global'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 Cboe Global's total debt and its cash.
A Deeper look at Cboe
The small dip in market price for the last few months could raise concerns from shareholders as the firm closed today at a share price of
86.89 on
911,753 in volume. The company management teams did not add much value to Cboe Global investors in
July. However, diversifying your holdings with Cboe Global Markets or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.43. The current volatility is consistent with the ongoing market swings in
July 2020 as well as with Cboe Global unsystematic, company-specific events.
Margin Breakdown
| Operating Margin | 33.9 |
| EBITDA Margin | 0.35 |
| Gross Margin | 0.59 |
| Profit Margin | 0.18 |
Another setback for Cboe Global shareholders
Cboe Global latest potential upside ascents over 3.79. Cboe Global Markets exhibits very low volatility with skewness of -0.11 and kurtosis of 0.1. However, we advise investors to further study Cboe Global Markets technical indicators to make sure all market info is available and is reliable.
Our Final Take On Cboe Global
Although many of the other players in the financial data & stock exchanges industry are either recovering or due for a correction, Cboe Global may not be as strong as the others in terms of longer-term growth potentials. The inconsistency in the assessment between current Cboe Global valuation and our trade advice on Cboe Global is due to the recent market swings and your selection of investing horizon. 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 Cboe Global.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
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 Ellen Johnson do not own shares of Cboe Global Markets. Please refer to our
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