Daktronics Stock Story

DAKT
 Stock
  

USD 4.06  0.02  0.49%   

As many investors are getting excited about technology space, Daktronics and ADVANCED DIGITAL may be going in opposite directions. We are going to break down some of the competitive aspects of both Daktronics and ADVANCED.
Published over two months ago
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Is Daktronics riskier than ADVANCED DIGITAL INFORMATION (NASDAQ:ADIC)?

By analyzing existing forward-looking signals between Daktronics and ADVANCED, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in ADVANCED with a short position in Daktronics. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Daktronics has an asset utilization ratio of 158.13 percent. This implies that the company is making $1.58 for each dollar of assets. An increasing asset utilization means that Daktronics is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Daktronics or Astronova is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Daktronics's Liquidity

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

Correlation Between Daktronics and Astronova

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Daktronics together with similar or unrelated positions with a negative correlation. For example, you can also add Astronova to your portfolio. If Astronova is not perfectly correlated to Daktronics it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Daktronics for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between DAKT and ALOT for more information.

Note

Are you currently holding both Daktronics and Astronova in your portfolio?
Please note if you are using this as a pair-trade strategy between Daktronics and Astronova, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Our perspective of the newest Daktronics gain

The variance is down to 6.42 as of today. Daktronics exhibits very low volatility with skewness of 0.18 and kurtosis of 0.52. However, we advise investors to further study Daktronics technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Daktronics' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Daktronics' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Daktronics Implied Volatility

Daktronics' implied volatility exposes the market's sentiment of Daktronics stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Daktronics' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Daktronics stock will not fluctuate a lot when Daktronics' options are near their expiration.

Our Takeaway on Daktronics Investment

Whereas some other entities in the electronic components industry are either recovering or due for a correction, Daktronics may not be performing as strong as the other in terms of long-term growth potentials. While some private investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. 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 Daktronics.

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 Vlad Skutelnik do not own shares of Daktronics. Please refer to our Terms of Use for any information regarding our disclosure principles.

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