By analyzing existing forward indicators between Iridex Cp and Electromed, 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 Electromed with a short position in Iridex Cp. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Iridex Cp has an asset utilization ratio of 85.6 percent. This suggests that the company is making $0.86 for each dollar of assets. An increasing asset utilization means that Iridex Cp is more efficient with each dollar of assets it utilizes for everyday operations.
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 entities, such as IRIDEX or Aziyo is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is IRIDEX's Liquidity
IRIDEX
financial leverage refers to using borrowed capital as a funding source to finance IRIDEX ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. IRIDEX 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 IRIDEX'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 IRIDEX'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 IRIDEX's total debt and its cash.
Correlation Between IRIDEX and Aziyo BiologicsInc
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 IRIDEX together with similar or unrelated positions with a negative correlation. For example, you can also add Aziyo BiologicsInc to your portfolio. If Aziyo BiologicsInc is not perfectly correlated to IRIDEX 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 IRIDEX, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both IRIDEX and Aziyo BiologicsInc in your portfolio? Please note if you are using this as a pair-trade strategy between IRIDEX and Aziyo BiologicsInc, 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. Please check
pair correlation details between IRIX and AZYO for more information.
Breaking down the case for IRIDEX
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now take a look at Iridex Cp revenue. Based on the latest financial disclosure, Iridex Cp reported 35.8
M of revenue. This is 99.53% lower than that of the Healthcare sector and 98.6% lower than that of the
Medical Devices industry. The revenue for all United States stocks is 99.62% higher than that of Iridex Cp. As for Electromed we see revenue of 33.12
M, which is 98.7% lower than that of the Medical Devices
| IRIX | 35.8 Million | 1.37 |
| Sector | 2.55 Billion | 97.37 |
| ELMD | 33.12 Million | 1.26 |
Anything left for Iridex Cp after the slide?
Current downside variance is at 35.58. Iridex Cp is displaying above-average volatility over the selected time horizon. Investors should scrutinize Iridex Cp independently to ensure intended market timing strategies are aligned with expectations about Iridex Cp volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Iridex Cp'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 Iridex Cp'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.
Our Bottom Line On Iridex Cp
While some other firms within the medical devices industry are still a little expensive, even after the recent corrections, Iridex Cp may offer a potential longer-term growth to investors. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither acquire new shares of Iridex nor trade your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Iridex Cp.
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
Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste 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 IRIDEX. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com
