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Is Park Electrochemical (NYSE:PKE) a good short-term trade as volatility ascents?
 | By Rifka Kats | Macroaxis Story |
It looks as if Park Electrochemical will continue to recover much faster as its share price surged up 4.09% today. Park Electrochemical current daily volatility is 2.49 percent, with a beta of 1.42 and an alpha of 0.15 over DOW. While some of us are getting more passionate about park electrochemical corporation, it makes sense to digest Park Electrochemical Corporation in greater detail to make a better estimate of its volatility. We will evaluate why recent Park Electrochemical price moves suggest a bounce in February.
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Reviewed by Gabriel Shpitalnik
Park Electrochemical Corporation has roughly 118.69 M in cash with 12.3 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 5.82. Our trade recommendations tool can cross-verify current analyst consensus on Park Electrochemical and to analyze the firm potential to grow in the current economic cycle.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Park Electrochemical. Your research has to be compared to or analyzed against Park Electrochemical's peers to derive any actionable benefits. When done correctly, Park Electrochemical'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 Park Electrochemical.
Investing in Park Electrochemical, 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 Park Electrochemical 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 Park Electrochemical'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.
How important is Park Electrochemical's Liquidity
Park Electrochemical financial leverage refers to using borrowed capital as a funding source to finance Park Electrochemical ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Park Electrochemical 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 Park Electrochemical'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 Park Electrochemical'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 Park Electrochemical's total debt and its cash.
Park Electrochemical Gross Profit
Park Electrochemical Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Park Electrochemical 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 Park Electrochemical Gross Profit growth over the last 10 years. Please check Park Electrochemical's gross profit and other fundamental indicators for more details.
Park Electrochemical Correlation with Peers
Investors in Park can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Park Electrochemical. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Park Electrochemical and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Park 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 Park for more details
A Deeper Perspective On Park Electrochemical
Park Electrochemical appears to be not too volatile, given 1 month investment horizon. Park Electrochemical maintains Sharpe Ratio (i.e. Efficiency) of 0.16, which implies the firm had 0.16% of return per unit of risk over the last month. Our standpoint towards forecasting the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Park Electrochemical, which you can use to evaluate future volatility of the company. Please employ Park Electrochemical Semi Deviation of 1.44, risk adjusted performance of 0.1727, and Coefficient Of Variation of 636.43 to confirm if our risk estimates are consistent with your expectations.
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