| Click cells to compare fundamentals | Check Volatility | Backtest Portfolio |
Will Dominion Energy (NYSE:D) latest volatility surge scare shareholders?
 | By Raphi Shpitalnik | Macroaxis Story |
It looks as if Dominion Energy may not recover as fast as we have hopped for as its price went down 0.9% today. Dominion Energy's current daily volatility is 1.98 percent, with a beta of 0.23 and an alpha of 0.02 over DOW. As many millenniums are excited about the latest volatility, it is fair to digest Dominion Energy based on its historical price patterns. We will cover the possibilities of making Dominion Energy into a steady grower in August.
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 Michael Smolkin
Dominion Energy has accumulated roughly 1.2 B in cash with 5.67 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.43. This firm has accumulated 41.3 B in total debt with debt to equity ratio (D/E) of 1.26, which looks OK as compared to the sector. The company has a current ratio of 0.62, which means it has a negative working capital and may have difficulties to pay out interest payments when they become due.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Dominion Energy. Your research has to be compared to or analyzed against Dominion Energy's peers to derive any actionable benefits. When done correctly, Dominion Energy'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 Dominion Energy.
Investing in Dominion Energy, 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 Dominion Energy 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 Dominion Energy'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 Dominion Energy's Liquidity
Dominion Energy financial leverage refers to using borrowed capital as a funding source to finance Dominion Energy ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Dominion Energy 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 Dominion Energy'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 Dominion Energy'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 Dominion Energy's total debt and its cash.
Dominion Energy Gross Profit
Dominion Energy Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Dominion Energy 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 Dominion Energy Gross Profit growth over the last 10 years. Please check Dominion Energy's gross profit and other fundamental indicators for more details.
Dominion Energy Correlation with Peers
Investors in Dominion can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Dominion Energy. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Dominion Energy and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Dominion 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 Dominion for more details
Is Dominion Energy valued correctly by the market?
We consider Dominion Energy very steady. Dominion Energy secures Sharpe Ratio (or Efficiency) of 0.0685, which denotes the company had 0.0685% of return per unit of risk over the last month. Our standpoint towards predicting 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-seven technical indicators for Dominion Energy, which you can use to evaluate future volatility of the firm. Please confirm Dominion Energy Downside Deviation of 2.6, coefficient of variation of 3163.5, and Mean Deviation of 1.29 to check if the risk estimate we provide is consistent with the expected return of 0.14%.
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 Raphi Shpitalnik do not own shares of Dominion Energy. Please refer to our Terms of Use for any information regarding our disclosure principles.