| Click cells to compare fundamentals | Check Volatility | Backtest Portfolio |
Will Linx SA (NYSE:LINX) current volatility rise scare investors?
 | By Vlad Skutelnik | Macroaxis Story |
It appears Linx SA will continue to recover much faster as its share price surged up 13.18% today. Linx SA ADR's current daily volatility is 5.9 percent, with a beta of 0.5 and an alpha of 1.26 over DOW. While many traders are getting carried away by overanalyzing business services, it is reasonable to break down Linx SA ADR. We will look into some reasons why it is still possible for Linx SA to maintain above-average margins while minimizing volatility.
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Michael Smolkin
Linx SA ADR currently holds about 65.4 M in cash with 129.95 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.61. This firm currently holds 294.84 M in liabilities with Debt to Equity (D/E) ratio of 0.19, which may suggest Linx SA is not taking enough advantage from borrowing. The company has a current ratio of 2.25, suggesting that it is liquid enough and is able to pay its financial obligations when due.
How important is Linx SA's Liquidity
Linx SA financial leverage refers to using borrowed capital as a funding source to finance Linx SA ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Linx SA 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 Linx SA'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 Linx SA'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 Linx SA's total debt and its cash.
Linx SA Correlation with Peers
Investors in Linx can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Linx SA. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Linx SA and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Linx 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 Linx for more details
Breaking it down a bit more
Linx SA is unstable given 1 month investment horizon. Linx SA ADR has Sharpe Ratio of 0.2, which conveys that the firm had 0.2% of return per unit of risk over the last month. Our standpoint towards estimating the risk of a stock is to use both market data as well as company specific technical data. We were able to analyze twenty-one different technical indicators, which can help you to evaluate if expected returns of 1.16% are justified by taking the suggested risk. Use Linx SA ADR Risk Adjusted Performance of 0.3659, mean deviation of 4.06, and Downside Deviation of 3.26 to evaluate company specific risk that cannot be diversified away.
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
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 Linx SA. Please refer to our Terms of Use for any information regarding our disclosure principles.