DSX Diana stock Story

DSX -  USA Stock  

USD 5.02  0.11  2.14%

It appears Diana Shipping will continue to recover much faster as its share price surged up 2.37% today. The entity's current daily volatility is 2.39 percent, with a beta of 0.31 and an alpha of 0.23 over DOW. While some millenniums are indifferent towards transportation, it makes sense to break down Diana Shipping. We will cover the possibilities of making Diana Shipping into a steady grower in December.
Published over six months ago
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Will Diana Shipping (NYSE:DSX) current volatility rise scare investors?
Diana Shipping has roughly 101.69 M in cash with 49.88 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.19. The company has 454.28 M in debt with debt to equity (D/E) ratio of 1.02, which is OK given its current industry classification. Diana Shipping has a current ratio of 2.05, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due.
Investing in Diana Shipping, 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 Diana Shipping 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, frequently view the market will even out over time. This tendency of Diana Shipping'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 use the tools below to analyze the current value of Diana Shipping in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Diana Shipping. Your research has to be compared to or analyzed against Diana Shipping's peers to derive any actionable benefits. When done correctly, Diana Shipping's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Diana Shipping.

How important is Diana Shipping's Liquidity

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

How DSX Diana utilizes its cash?

To perform a cash flow analysis of Diana Shipping, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Diana Shipping is receiving and how much cash it distributes out in a given period. The Diana Shipping cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Diana Shipping Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Diana Shipping reported Net Cash Flow from Operations of 17.23 Million in 2020

Diana Shipping Correlation with Peers

Investors in DSX Diana can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Diana Shipping. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Diana Shipping and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities DSX Diana 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 DSX Diana for more details

Another Deeper Perspective

Diana Shipping appears to be risky, given 1 month investment horizon. Diana Shipping secures Sharpe Ratio (or Efficiency) of 0.12, which denotes the company had 0.12% of return per unit of standard deviation over the last month. Our philosophy in 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 Diana Shipping, which you can use to evaluate future volatility of the firm. Please utilize Diana Shipping Mean Deviation of 1.63, downside deviation of 2.37, and Semi Deviation of 1.82 to check if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Will Diana Shipping growth be trustworthy after the rise?

The downside deviation is down to 2.37 as of today. Diana Shipping currently demonstrates below-verage downside deviation. It has Information Ratio of 0.08 and Jensen Alpha of 0.23. However, we do advice investors to further question Diana Shipping expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

The Current Takeaway on Diana Shipping Investment

While some other entities under the marine shipping industry are still a bit expensive, Diana Shipping may offer a potential longer-term growth to investors. All things considered, as of the 22nd of November 2020, we believe that Diana Shipping is currently fairly valued with below average odds of distress in the next two years. Our final 30 days buy-hold-sell advice on the company is Buy.

About Contributor

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 Achuva Shats do not own shares of Diana Shipping. Please refer to our Terms of Use for any information regarding our disclosure principles.

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