By analyzing existing technical and fundamental indicators between JP Morgan and Freedom, 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 Freedom with a short position in JP Morgan. 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. JP Morgan has an asset utilization ratio of 9.03 percent. This suggests that the company is making $0.0903 for each dollar of assets. An increasing asset utilization means that JMP Group 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 JMP or Warner is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is JP Morgan's Liquidity
JP Morgan
financial leverage refers to using borrowed capital as a funding source to finance JMP Group LLC ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. JP Morgan 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 JP Morgan'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 JP Morgan'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 JP Morgan's total debt and its cash.
Correlation Between JMP and Warner Music Group
In general, Delisted 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 JP Morgan together with similar or unrelated positions with a negative correlation. For example, you can also add Warner Music to your portfolio. If Warner Music is not perfectly correlated to JP Morgan 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 JP Morgan, 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 JP Morgan and Warner Music in your portfolio? Please note if you are using this as a pair-trade strategy between JP Morgan and Warner Music, 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 JMP and WMG for more information.
Breaking it down
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
Now, let's check JP Morgan revenue. Based on the latest financial disclosure, JMP Group reported 114.8
M of revenue. This is 98.98% lower than that of the Financial Services sector and 97.78% lower than that of the
Capital Markets industry. The revenue for all United States stocks is 98.78% higher than that of the firm. As for Freedom Holding we see revenue of 233.66
M, which is 95.49% lower than that of the Capital Markets
| JMP | 114.8 Million | 2.08 |
| Sector | 5.18 Billion | 93.7 |
| FRHC | 233.66 Million | 4.23 |
Our take on today JP Morgan roll up
The standard deviation is down to 5.88 as of today. JMP Group has relatively low volatility with skewness of 6.27 and kurtosis of 46.09. However, we advise all investors to independently investigate JMP Group to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.
Our Conclusion on JP Morgan
Although other companies within the capital markets industry are still a little expensive, even after the recent corrections, JP Morgan may offer a potential longer-term growth to insiders. In closing, as of the 20th of February 2021, our analysis shows that JP Morgan slowly supersedes the market. The firm is
overvalued and projects
below average probability of distress for the next 2 years. However, our current 30 days 'Buy-Sell' recommendation on the firm is
Strong Buy.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
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 Vlad Skutelnik do not own shares of JMP Group LLC. Please refer to our
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