Passage Stock Story

PASG
 Stock
  

USD 2.01  0.15  6.94%   

47% of stocks are less volatile than Passage, and 99% of all traded equity instruments are projected to make higher returns than the company over the 60 days investment horizon. Since many greedy investors are excited about healthcare space, let's digest Passage Bio against its current volatility. We will discuss how risky is to take a position in Passage Bio at this time.
Published over three months ago
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Passage Bio (NASDAQ:PASG) high volatility trend continues

This firm conducts business under Healthcare sector and is part of Biotechnology industry.
The company holds a Beta of -0.0775, which implies not very significant fluctuations relative to the market. Let's try to break down what Passage's beta means in this case. As returns on the market increase, returns on owning Passage Bio are expected to decrease at a much lower rate. During the bear market, Passage Bio is likely to outperform the market. Even though it is essential to pay attention to Passage Bio current trending patterns, it is always good to be careful when utilizing equity existing price patterns. Our philosophy towards forecasting any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Passage Bio exposes twenty-seven different technical indicators, which can help you to evaluate its performance. Passage Bio has an expected return of -1.05%. Please be advised to check Passage Bio expected short fall, and the relationship between the value at risk and daily balance of power to decide if Passage Bio performance from the past will be repeated at some point in the near future.
Volatility is a rate at which the price of Passage Bio or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Passage Bio may increase or decrease. In other words, similar to Passage's beta indicator, it measures the risk of Passage Bio and helps estimate the fluctuations that may happen in a short period of time. So if prices of Passage Bio fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.

How important is Passage Bio's Liquidity

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

How does Passage utilize its cash?

To perform a cash flow analysis of Passage Bio, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Passage Bio is receiving and how much cash it distributes out in a given period. The Passage Bio cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Another Deeper Perspective

Net Loss for the year was (173.18 M).

Our perspective of the latest Passage Bio surge

The treynor ratio is down to 16.84 as of today.
As of the 7th of May, Passage Bio holds the coefficient of variation of (407.12), and Risk Adjusted Performance of (0.31). Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Passage Bio, as well as the relationship between them. Put it differently, you can use this information to find out if the company will indeed mirror its model of past market data, or the prices will eventually revert. We are able to interpolate and collect nineteen technical drivers for Passage Bio, which can be compared to its competitors. Please check Passage Bio information ratio, value at risk, as well as the relationship between the Value At Risk and expected short fall to decide if Passage Bio is priced some-what accurately, providing market reflects its current price of 2.23 per share. Please also confirm Passage Bio total risk alpha, which is currently at (0.80) to check out the company can sustain itself at a future point.

Although few other entities under the biotechnology industry are still a bit expensive, Passage Bio may offer a potential longer-term growth to shareholders. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Passage 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 Passage Bio.

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 Vlad Skutelnik do not own shares of Passage Bio. Please refer to our Terms of Use for any information regarding our disclosure principles.

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