Canoo Stock Story


USD 3.59  0.18  5.28%   

It appears Canoo may not have a good chance to recover from the latest fall as its shares fell again. This firm current daily volatility is 5.79 percent, with a beta of 2.16 and an alpha of -0.62 over DOW. While some millenniums are indifferent towards current market swings, it makes sense to focus on Canoo Inc based on its technical indicators. We will look into some reasons why it is still possible for Canoo to maintain above-average margins while minimizing volatility.
Published over a month ago
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Are Canoo (NASDAQ:GOEV) sophisticated investors starting to panic?

Canoo Inc currently holds roughly 231.75 M in cash with (300.82 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.97.
We provide trade advice to complement the prevailing expert consensus on Canoo Inc. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
Investing in Canoo, 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 Canoo 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 Canoo'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. Please use the tools below to analyze the current value of Canoo in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Canoo. Your research has to be compared to or analyzed against Canoo's peers to derive any actionable benefits. When done correctly, Canoo'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 Canoo Inc.

How important is Canoo's Liquidity

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

How does Canoo utilize its cash?

To perform a cash flow analysis of Canoo, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Canoo is receiving and how much cash it distributes out in a given period. The Canoo cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Canoo Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Canoo reported Net Cash Flow from Operations of (300.82 Million) in 2021

Canoo Correlation with Peers

Investors in Canoo can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Canoo Inc. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Canoo and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Canoo 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 Canoo for more details

What is driving Canoo Investor Appetite?

Canoo Inc secures Sharpe Ratio (or Efficiency) of -0.16, which signifies that the company had -0.16% of return per unit of risk over the last 3 months. Macroaxis standpoint towards foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Canoo Inc exposes twenty-seven different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Canoo Inc risk adjusted performance of (0.18), and Mean Deviation of 4.43 to double-check the risk estimate we provide.

Will Canoo sophisticated investors go out of control after another fall?

Treynor Ratio just dropped to -0.38, may cause upcoming price decrease. Canoo Inc exhibits very low volatility with skewness of -0.56 and kurtosis of 2.48. However, we advise investors to further study Canoo Inc technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Canoo's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Canoo's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Canoo Implied Volatility

Canoo's implied volatility exposes the market's sentiment of Canoo Inc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Canoo's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Canoo stock will not fluctuate a lot when Canoo's options are near their expiration.

Our Conclusion on Canoo

While some other entities in the auto manufacturers industry are either recovering or due for a correction, Canoo may not be as strong as the others in terms of longer-term growth potentials. To summarize, as of the 13th of June 2022, our analysis shows that Canoo hyperactively responds to market trends. The venture is undervalued and projects below average chance of distress for the next 2 years. Our concluding 90 days recommendation on the venture is Cautious Hold.

Editorial 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 Ellen Johnson do not own shares of Canoo Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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