CME Story

<div class='circular--portrait' style='background:#FF0F00;color: #FFFFF0;font-size:3em;'>CME</div>
CME -- USA Stock  

USD 162.25  0.10  0.06%

Considering the 60-days investment horizon, CME is expected to under-perform the market. In addition to that, the company is 1.22 times more volatile than its market benchmark. It trades about -0.05 of its total potential returns per unit of risk. The DOW is currently generating roughly 0.08 per unit of volatility. As many adventurous traders are excited about financial services space, it is only fair to digest the risk of shorting CME Group based on its current volatility spike. We will go over a few points CME shareholders should remember regarding its volatility. CME's low volatility may still impact the value of the stock as we estimate it as currently fairly valued. The real value, based on our analysis, is getting close to 171.76 per share.
Published over a month ago
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What are the odds of CME (NASDAQ:CME) to dip in August?
The company has 4.17 B in debt with debt to equity (D/E) ratio of 0.16, which may show that the entity is not taking advantage of profits from borrowing. CME Group has a current ratio of 0.99, suggesting that it has not enough short term capital to pay financial commitments when the payables are due.
Volatility is a rate at which the price of CME 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 CME may increase or decrease. In other words, similar to CME's beta indicator, it measures the risk of CME and helps estimate the fluctuations that may happen in a short period of time. So if prices of CME 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 CME's Liquidity

CME financial leverage refers to using borrowed capital as a funding source to finance CME Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. CME 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 CME'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 CME, but it might be worth checking our own buy vs. sell analysis

CME Volatility Drivers

CME unsystematic risk is unique to CME Group 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 CME you can also buy Intercontinental Exchange. You can also mitigate this risk by investing in the financial data & stock exchanges 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 CME 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 CME income statement and balance sheet. Here are more details about CME volatility.
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