Mckesson Story

Closer look at McKesson Downside Variance

McKesson has current Downside Variance of 3.41. Downside Variance (or DV) is measured by target semi-variance and is termed downside volatility. It is expressed in percentages and therefore allows for rankings in the same way as variance. One way to view downside volatility is the annualized variance of returns below the target.

Downside Variance is the probability-weighted squared below-target returns. The squaring of the below-target returns has the effect of penalizing failures at an exponential rate. This is consistent with observations made on the behavior of individual decision-making under.

Downside Variance   =  SUM(RET DEV)2  N(ER)

=

3.41

SUM	=	Summation notation
RET DEV	=	Actual returns deviation over selected period
N(ER)	=	Number of points with returns less than expected return for the period

Let's now compare McKesson Downside Variance to its closest peers:

	MCK	3.41
	ABC	2.86
	CAH	3.18
	FZMD	470.76

Some McKesson technical indicators suggest bounce back

McKesson recent risk adjusted performance hikes over 0.11. McKesson has relatively low volatility with skewness of -0.02 and kurtosis of 0.93. However, we advise all investors to independently investigate McKesson to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Final Take On McKesson

Although other entities within the medical distribution industry are still a little expensive, even after the recent corrections, McKesson may offer a potential longer-term growth to traders. The inconsistency in the assessment between current McKesson valuation and our trade advice on McKesson is due to the recent market swings and your selection of investing horizon. 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 McKesson.