Edesa Biotech (NASDAQ:EDSA) high volatility trend continues
 | By Rifka Kats | Macroaxis Story |
45% of stocks are less volatile than Edesa, and 99% of all traded equity instruments are projected to make higher returns than the company over the 60 days investment horizon. While many risk-averse investors are getting carried away by overanalyzing healthcare space, it is reasonable to go over Edesa Biotech. We will analyze why some investors are closely monitoring Edesa Biotech's volatility. Edesa Biotech high volatility, while potentially profitable, can lead to more considerable losses for your portfolios.
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 Vlad Skutelnik
Edesa Biotech currently holds roughly 7.21 M in cash with (4.99 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.75. The firm shows a Beta (market volatility) of -0.2163, which means not very significant fluctuations relative to the market. Let's try to break down what Edesa's beta means in this case. As returns on the market increase, returns on owning Edesa Biotech are expected to decrease at a much lower rate. During the bear market, Edesa Biotech is likely to outperform the market. Even though it is essential to pay attention to Edesa Biotech historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards predicting any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Edesa Biotech exposes twenty-eight different technical indicators, which can help you to evaluate its performance. Edesa Biotech has an expected return of -0.39%. Please be advised to confirm Edesa Biotech coefficient of variation, maximum drawdown, skewness, as well as the relationship between the total risk alpha and downside variance to decide if Edesa Biotech stock performance from the past will be repeated at some point in the near future. Volatility is a rate at which the price of Edesa Biotech 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 Edesa Biotech may increase or decrease. In other words, similar to Edesa's beta indicator, it measures the risk of Edesa Biotech and helps estimate the fluctuations that may happen in a short period of time. So if prices of Edesa Biotech 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 Edesa Biotech's Liquidity
Edesa Biotech financial leverage refers to using borrowed capital as a funding source to finance Edesa Biotech ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Edesa Biotech 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 Edesa Biotech'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 Edesa Biotech'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 Edesa Biotech's total debt and its cash.
Edesa Biotech Gross Profit
Edesa Biotech Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Edesa Biotech 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 Edesa Biotech Gross Profit growth over the last 10 years. Please check Edesa Biotech's gross profit and other fundamental indicators for more details.
Edesa Biotech Volatility Drivers
Edesa Biotech unsystematic risk is unique to Edesa Biotech and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Edesa Biotech you can also buy Raphael Pharmaceutical. You can also mitigate this risk by investing in the health care sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Edesa Biotech important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Edesa Biotech income statement and balance sheet. Here are more details about Edesa volatility.Click cells to compare fundamentals
Another Deeper Perspective
This firm reported the previous year's revenue of 328.8 K. Net Loss for the year was (6.36 M) with profit before overhead, payroll, taxes, and interest of 311.2 K.
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 Rifka Kats do not own shares of Edesa Biotech. Please refer to our Terms of Use for any information regarding our disclosure principles.