Diana Story

All StoriesRisk
Gabriel Shpitalnik Story
<div class='circular--portrait' style='background:#FF6600;color: #FFFAFA;font-size:4em;'>DS</div>
DSX -- USA Stock  

USD 3.06  0.13  4.44%

Macroaxis News
By Gabriel Shpitalnik  
Macroaxis Story
It appears Diana Shipping will continue to recover much faster as its share price surged up 4.35% today. The company current daily volatility is 5.57 percent, with a beta of 0.9 and an alpha of 1.12 over DOW. As many millenniums are trying to avoid transportation, it makes sense to break down Diana Shipping a little further and try to understand its current market patterns. We will analyze why Diana Shipping investors may still consider a stake in the business.
Published 3 days ago
View all stories for Diana Shipping | View All Stories
Breaking down Diana Shipping (NYSE:DSX) volatility slide
Diana Shipping has roughly 90.39 M in cash with 49.88 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.05. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Diana Shipping has an asset utilization ratio of 9.72 percent. This suggests that the company is making $0.0972 for each dollar of assets. An increasing asset utilization means that Diana Shipping is more efficient with each dollar of assets it utilizes for everyday operations.
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 stock 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.
Hype
Prediction
Details
Intrinsic
Valuation
Details
Naive
Forecast
Details
3 Analysts
Consensus
Details
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 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 44.89 Million in 2020

Diana Shipping Correlation with Peers

Investors in 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 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 Diana for more details

Breaking down Diana Shipping Indicators

Diana Shipping is very risky given 1 month investment horizon. Diana Shipping secures Sharpe Ratio (or Efficiency) of 0.21, which denotes the company had 0.21% of return per unit of standard deviation over the last month. Our philosophy in predicting the risk of a stock is to use both market data as well as company specific technical data. We were able to analyze twenty-one different technical indicators, which can help you to evaluate if expected returns of 1.17% are justified by taking the suggested risk. Use Diana Shipping Downside Deviation of 3.46, mean deviation of 3.84, and Semi Deviation of 2.87 to evaluate company specific risk that cannot be diversified away.
GSL
NM
EGLE
GNK
ESEA
GSL
0.610.740.680.79
GSL
NM
0.610.880.880.89
NM
EGLE
0.740.880.940.81
EGLE
GNK
0.680.880.940.82
GNK
ESEA
0.790.890.810.82
ESEA
GSL
NM
EGLE
GNK
ESEA
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Will Diana Shipping growth be real after the rise?

Current standard deviation is at 5.53. Diana Shipping shows above-average downside volatility for the selected time horizon. We advise investors to inspect Diana Shipping further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Diana Shipping future alpha.

The Bottom Line

While other companies within the marine shipping industry are still a little expensive, even after the recent corrections, Diana Shipping may offer a potential longer-term growth to investors. On the whole, as of the 22nd of February 2021, our primary 30 days buy-sell recommendation on the company is Strong Buy. We believe Diana Shipping is currently undervalued with below average probability of distress for the next two years.

About Contributor

Gabriel Shpitalnik is a Member of Macroaxs Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies. View Profile
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 Diana Shipping. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
Macroaxis Wealth Optimization Platform
 
Feedback Blog
Made with optimal in San Francisco
2021 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY