Foresight Story

FRSX -- USA Stock

USD 9.13 0.15 1.67%

Macroaxis Story

It looks like Garrett Motion will continue to recover much faster as its share price surged up 7.29% today to Foresight Autonomous's 78.0186%. As many rational traders are trying to avoid consumer cyclical space, it makes sense to break down Foresight Autonomous Holdings a little further and understand how it stands against Garrett Motion and other similar entities. We are going to inspect some of the competitive aspects of both Foresight and Garrett.

Published over three weeks ago

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What is our outlook on Foresight (NASDAQ:FRSX) and Garrett (OTC:GTXMQ)?

By analyzing existing basic indicators between Foresight Autonomous and Garrett, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Garrett with a short position in Foresight Autonomous. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. One of the ways to look at asset utilization of Foresight is to check how much profit was generated for every dollar of assets it reports. Foresight Autonomous Holdings shows a negative utilization of assets of -37.19 percent, losing $0.37 for each dollar of assets held by the firm. Inadequate asset utilization denotes the company is being less effective with each dollar of assets it shows. Put another way, asset utilization of Foresight Autonomous Holdings shows how discouraging it operates for each dollar spent on its assets.

Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Foresight or Cooper is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Foresight Autonomous's Liquidity

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

Correlation Between Foresight and Cooper Standard Hold

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Foresight Autonomous together with similar or unrelated positions with a negative correlation. For example, you can also add Cooper Standard to your portfolio. If Cooper Standard is not perfectly correlated to Foresight Autonomous it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Foresight Autonomous for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between FRSX and CPS for more information.

Note

Are you currently holding both Foresight Autonomous and Cooper Standard in your portfolio? Please note if you are using this as a pair-trade strategy between Foresight Autonomous and Cooper Standard, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Our perspective of the current Foresight Autonomous rise

Current potential upside is at 16.24. Foresight Autonomous Holdings is displaying above-average volatility over the selected time horizon. Investors should scrutinize Foresight Autonomous Holdings independently to ensure intended market timing strategies are aligned with expectations about Foresight Autonomous volatility.

The Current Takeaway on Foresight Autonomous Investment

While some companies under the auto parts industry are still a bit expensive, Foresight Autonomous may offer a potential longer-term growth to investors. To summarize, as of the 24th of December 2020, we believe that Foresight Autonomous is currently overvalued with very small chance of financial distress in the next two years. Our ongoing 30 days buy-hold-sell recommendation on the company is Hold.

About Contributor

Raphi Shpitalnik is a Junior Member of Macroaxs Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. 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 Raphi Shpitalnik do not own shares of Foresight Autonomous Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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