Neurometrix conducts business under
Healthcare sector and is part of
Medical Instruments & Supplies industry.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Neurometrix has an asset utilization ratio of 72.61 percent. This suggests that the company is making $0.73 for each dollar of assets. An increasing asset utilization means that Neurometrix is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in NeuroMetrix, 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 NeuroMetrix 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, anticipate that the market will even out over time. This tendency of NeuroMetrix'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 note, it is not enough to conduct a financial or market analysis of a single entity such as NeuroMetrix. Your research has to be compared to or analyzed against NeuroMetrix's peers to derive any actionable benefits. When done correctly, NeuroMetrix's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in NeuroMetrix.
How important is NeuroMetrix's Liquidity
NeuroMetrix
financial leverage refers to using borrowed capital as a funding source to finance NeuroMetrix ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. NeuroMetrix 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 NeuroMetrix'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 NeuroMetrix'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 NeuroMetrix's total debt and its cash.
NeuroMetrix Gross Profit
NeuroMetrix Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing NeuroMetrix previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show NeuroMetrix Gross Profit growth over the last 10 years. Please check NeuroMetrix's
gross profit and other
fundamental indicators for more details.
NeuroMetrix Correlation with Peers
Investors in NeuroMetrix can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in NeuroMetrix. Diversification will allow for the same portfolio return with reduced risk. The correlation table of NeuroMetrix and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities NeuroMetrix 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 NeuroMetrix for more details
A Deeper Perspective
Neurometrix has Sharpe Ratio of -0.14, which conveys that the firm had -0.14% 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. Neurometrix exposes twenty-eight different
technical indicators, which can help you to evaluate volatility that cannot be
diversified away. Please be advised to verify Neurometrix
risk adjusted performance of
(0.08), and Mean Deviation of 4.0 to check out the risk estimate we provide.
Our Neurometrix analysis suggests possible reversion in February
Latest maximum drawdown is at 43.91. Neurometrix exhibits very low volatility with skewness of 1.9 and kurtosis of 10.19. However, we advise investors to further study Neurometrix 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 Neurometrix'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 Neurometrix'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.
Neurometrix Implied Volatility
Neurometrix's implied volatility exposes the market's sentiment of Neurometrix stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Neurometrix'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 Neurometrix stock will not fluctuate a lot when Neurometrix's options are near their expiration.
Whereas some firms in the medical instruments & supplies industry are either recovering or due for a correction, Neurometrix may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Neurometrix as the current risk-reward utility is not appealing enough. 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 Neurometrix.
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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 NeuroMetrix. Please refer to our
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