| Click cells to compare fundamentals | Check Volatility | Backtest Portfolio |
Will EQT (NYSE:EQT) newest volatility gain scare private investors?
 | By Vlad Skutelnik | Macroaxis Story |
It appears EQT may not recover as fast as we have hopped for as its price went down 0.42% today. The firm's current daily volatility is 4.39 percent, with a beta of 0.47 and an alpha of 0.02 over DOW. As many millenniums are excited about the newest volatility, it is fair to review EQT Corporation based on its historical price patterns. We will evaluate why we are still optimistic in anticipation of a recovery.
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
EQT Corporation has roughly 18.65 M in cash with 1.48 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.07. EQT Corporation has 5.09 B in debt with debt to equity (D/E) ratio of 0.53, which is OK given its current industry classification. The entity has a current ratio of 1.29, demonstrating that it is not liquid enough and may have problems paying out its financial commitments when the payables are due.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as EQT. Your research has to be compared to or analyzed against EQT's peers to derive any actionable benefits. When done correctly, EQT'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 EQT Corporation.
Investing in EQT, 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 EQT 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 EQT'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 EQT's Liquidity
EQT financial leverage refers to using borrowed capital as a funding source to finance EQT Corporation ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. EQT 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 EQT'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 EQT'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 EQT's total debt and its cash.
EQT Gross Profit
EQT Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing EQT 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 EQT Gross Profit growth over the last 10 years. Please check EQT's gross profit and other fundamental indicators for more details.
EQT Correlation with Peers
Investors in EQT can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in EQT Corporation. Diversification will allow for the same portfolio return with reduced risk. The correlation table of EQT and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities EQT 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 EQT for more details
A Deeper Analysis
We consider EQT somewhat reliable. EQT Corporation secures Sharpe Ratio (or Efficiency) of 0.0309, which denotes the company had 0.0309% of return per unit of volatility over the last month. Our approach 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-one technical indicators for EQT Corporation, which you can use to evaluate future volatility of the firm. Please confirm EQT Corporation Mean Deviation of 3.72, downside deviation of 4.0, and Market Risk Adjusted Performance of 0.1968 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 Vlad Skutelnik do not own shares of EQT Corporation. Please refer to our Terms of Use for any information regarding our disclosure principles.