Park Electrochemical Corp runs under
Industrials sector within
Aerospace & Defense industry.
Volatility is a rate at which the price of Park Electrochemical 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 Park Electrochemical may increase or decrease. In other words, similar to Park's
beta indicator, it measures the risk of Park Electrochemical and helps estimate the fluctuations that may happen in a short period of time. So if prices of Park Electrochemical 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 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 Volatility Drivers
Park Electrochemical unsystematic risk is unique to Park Electrochemical and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Park Electrochemical you can also buy
Innovative Solutions and. You can also mitigate this risk by investing in the industrials sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Park Electrochemical important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Park Electrochemical income statement and balance sheet. Here are more
details about Park volatility.
Click cells to compare fundamentals
A Deeper Perspective On Park Electrochemical
Park Electrochemical Corp price dip over the last few months may encourage shareholders to take a closer look at the company as it is trading at a share price of
11.83 on
36,341 in trading volume. The company management teams were not very successful in positioning the company resources to exploit
market volatility in
April. However, diversifying your holdings with Park Electrochemical Corp or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.41. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
Park Electrochemical has 95 percent odds to go over $11.59 this year
Park Electrochemical information ratio is up to 0.01. Park Electrochemical Corp exhibits very low volatility with skewness of 0.18 and kurtosis of 0.03. However, we advise investors to further study Park Electrochemical Corp 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 Park Electrochemical'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 Park Electrochemical'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.
Park Electrochemical Implied Volatility
Park Electrochemical's implied volatility exposes the market's sentiment of Park Electrochemical Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Park Electrochemical'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 Park Electrochemical stock will not fluctuate a lot when Park Electrochemical's options are near their expiration.
Our Bottom Line On Park Electrochemical Corp
Although some other companies in the aerospace & defense industry are either recovering or due for a correction, Park Electrochemical may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither pick up new shares of Park Electrochemical nor exit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. 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 Park Electrochemical.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in 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 Ellen Johnson do not own shares of Park Electrochemical. Please refer to our
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