Lloyds Stock Story


USD 2.17  0.01  0.46%   

It looks as if Lloyds Banking may not have a good chance to recover from the latest dip as its shares fell again. This firm current daily volatility is 2.18 percent, with a beta of 1.21 and an alpha of -0.01 over DOW. As many shareholders getting excited about latest market fluctuations it is important to digest Lloyds Banking based on its critical indicators. We will analyze why it could be a much better year for Lloyds Banking shareholders.
Published over a month ago
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Breaking down Lloyds Banking (NYSE:LYG) volatility dip

Lloyds Banking Group has about 378.47 B in cash with (16.94 B) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 19.28, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
Investing in Lloyds Banking, 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 Lloyds Banking 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 Lloyds Banking'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 Lloyds Banking 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 Lloyds Banking. Your research has to be compared to or analyzed against Lloyds Banking's peers to derive any actionable benefits. When done correctly, Lloyds Banking'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 Lloyds Banking Group.

How important is Lloyds Banking's Liquidity

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

How does Lloyds utilize its cash?

To perform a cash flow analysis of Lloyds Banking, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Lloyds Banking is receiving and how much cash it distributes out in a given period. The Lloyds Banking cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Lloyds Banking Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 6.62 Billion

Lloyds Banking Correlation with Peers

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


Lloyds Banking Group has Sharpe Ratio of -0.0693, which conveys that the firm had -0.0693% of return per unit of risk over the last 3 months. Macroaxis standpoint towards estimating 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. Lloyds Banking exposes twenty-seven different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to verify Lloyds Banking Group risk adjusted performance of (0.06), and Mean Deviation of 1.77 to check out the risk estimate we provide.

Will Lloyds price dip impact its balance sheet?

Latest kurtosis is at 1.4. Lloyds Banking Group exhibits very low volatility with skewness of -0.53 and kurtosis of 1.4. However, we advise investors to further study Lloyds Banking Group 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 Lloyds Banking'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 Lloyds Banking'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.

Lloyds Banking Implied Volatility

Lloyds Banking's implied volatility exposes the market's sentiment of Lloyds Banking Group stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Lloyds Banking'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 Lloyds Banking stock will not fluctuate a lot when Lloyds Banking's options are near their expiration.

Our Conclusion on Lloyds Banking

Although some other firms in the banks—regional industry are either recovering or due for a correction, Lloyds may not be as strong as the others in terms of longer-term growth potentials. On the whole, as of the 11th of June 2022, our analysis shows that Lloyds Banking responds to the market. The firm is undervalued and projects below average probability of distress for the next 2 years. Our present 90 days 'Buy-Sell' recommendation on the firm is Strong 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 Gabriel Shpitalnik do not own shares of Lloyds Banking Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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