Four Seasons appears to be slightly risky, given 3 months investment horizon. Four Seasons Education secures Sharpe Ratio (or Efficiency) of 0.0737, which denotes the company had 0.0737% of return per unit of risk over the last 3 months. Our standpoint 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. By reviewing Four Seasons Education technical indicators you can presently evaluate if the expected return of 0.51% is justified by implied risk. Please utilize Four Seasons' Mean Deviation of 4.26, downside deviation of 4.59, and Coefficient Of Variation of 1135.13 to check if our risk estimates are consistent with your expectations.
Is Four Seasons (NYSE:FEDU) way too risky for millennials?
 | By Rifka Kats | Macroaxis Story |
It appears Four Seasons may not recover as fast as we have hopped for as its price went down 2.16% today. The entity current daily volatility is 6.93 percent, with a beta of 0.59 and an alpha of 0.62 over DOW. As many baby boomers are still indifferent towards current volatility, Four Seasons Education. We will analyze why Four Seasons investors may still consider a stake in the business.
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Reviewed by Gabriel Shpitalnik
Four Seasons Education conducts business under Consumer Defensive sector and is part of Education & Training Services industry.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Four Seasons. Your research has to be compared to or analyzed against Four Seasons' peers to derive any actionable benefits. When done correctly, Four Seasons' 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 Four Seasons Education.
Investing in Four Seasons, 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 Four Seasons 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 Four Seasons' 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 Four Seasons's Liquidity
Four Seasons financial leverage refers to using borrowed capital as a funding source to finance Four Seasons Education ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Four Seasons 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 Four Seasons' 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 Four Seasons' 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 Four Seasons's total debt and its cash.
Four Seasons Gross Profit
Four Seasons Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Four Seasons 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 Four Seasons Gross Profit growth over the last 10 years. Please check Four Seasons' gross profit and other fundamental indicators for more details.
Four Seasons Correlation with Peers
Investors in Four can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Four Seasons Education. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Four Seasons and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Four 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 Four for more details
Is Four Seasons valued wisely by the market?
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