The current indifference towards the small price fluctuations of Concentrix Corp could raise concerns from investors as the firm it trading at a share price of 165.02 on very low momentum in volume. The company directors and management did not add any value to Concentrix Corp investors in August. However, most investors can still diversify their portfolios with Concentrix Corp to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.38. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
Is Concentrix Corp (NASDAQ:CNXC) low volatility a good sign for investors?
 | By Gabriel Shpitalnik | Macroaxis Story |
Concentrix Corp is currently generating 0.06% in daily expected returns and assumes 1.3808% risk (volatility on return distribution) over the 60 days horizon. Although many risk-takers are getting more into concentrix corp space, some of us are not very happy with Concentrix Corp's current volatility. We are going to analyze if the current expected returns justify Concentrix Corp's volatility. Concentrix Corp's very low volatility may have no significant impact on the stock's value as we estimate Concentrix Corp as currently overvalued. The real value, based on our calculations, is getting close to 93.89 per share.
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Rifka Kats
This firm conducts business under null sector and is part of null industry. Volatility is a rate at which the price of Concentrix 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 Concentrix may increase or decrease. In other words, similar to Concentrix's beta indicator, it measures the risk of Concentrix and helps estimate the fluctuations that may happen in a short period of time. So if prices of Concentrix 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 Concentrix's Liquidity
Concentrix financial leverage refers to using borrowed capital as a funding source to finance Concentrix ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Concentrix 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 Concentrix'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 Concentrix'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 Concentrix's total debt and its cash.
Details
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial 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 Gabriel Shpitalnik do not own shares of Concentrix. Please refer to our Terms of Use for any information regarding our disclosure principles.