Park Electrochemical Stock Story


USD 12.64  0.18  1.44%   

Park Electrochemical is generating negative expected returns assuming volatility of 1.4126% on return distribution over 90 days investment horizon. As many old-fashioned traders are trying to avoid industrials space, it makes sense to digest Park Electrochemical Corp a little further and try to understand its current volatility patterns. We will go over odds for Park Electrochemical to generate above-average margins next week.
Published over three months ago
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Breaking down Park Electrochemical volatility

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 Electrochemical'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 Corp 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. Please check the breakdown between Park Electrochemical's total debt and its cash.

How does Park Electrochemical utilize its cash?

To perform a cash flow analysis of Park Electrochemical, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Park Electrochemical is receiving and how much cash it distributes out in a given period. The Park Electrochemical cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Park Electrochemical Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 8.2 Million

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.

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 Ellen Johnson do not own shares of Park Electrochemical Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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