Madison Story

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MSGS -- USA Stock  

USD 144.31  3.59  2.43%

As many rational traders are trying to avoid consumer cyclical space, it makes sense to sum up Madison Square Garden a little further and understand how it stands against Lions Gate and other similar entities. We are going to discuss some of the competitive aspects of both Madison and Lions.
Published over a month ago
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Will Lions Gate retail investors switch to Madison (NYSE:MSGS)?
By analyzing existing basic indicators between Madison Square and Lions, 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 Lions with a short position in Madison Square. 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. Madison Square has an asset utilization ratio of 38.29 percent. This connotes that the company is making $0.38 for each dollar of assets. An increasing asset utilization means that Madison Square Garden 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 companies, such as Madison or Lions is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Madison Square's Liquidity

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

Correlation Between Madison and Lions Gate Entertainment

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 Madison Square together with similar or unrelated positions with a negative correlation. For example, you can also add Lions Gate to your portfolio. If Lions Gate is not perfectly correlated to Madison Square 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 Madison Square for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between MSGS and LGF for more information.

Will price continue to spike in September 2020?

The standard deviation is down to 2.21 as of today. Madison Square Garden currently demonstrates below-verage downside deviation. It has Information Ratio of -0.05 and Jensen Alpha of 0.18. However, we do advice investors to further question Madison Square Garden expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Conclusion on Madison Square

When is the right time to buy or sell Madison Square Garden? Buying stocks such as Madison Square isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily bases. In closing, as of the 14th of August 2020, our analysis shows that Madison Square moves indifferently to market moves. The enterprise is undervalued and projects low probability of bankruptcy for the next 2 years. However, our ongoing 30 days recommendation on the enterprise is Sell.

About Contributor

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 Madison Square Garden. Please refer to our Terms of Use for any information regarding our disclosure principles.

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