PARAMOUNT Story

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PRMRF -- USA Stock  

USD 2.74  0.10  3.52%

It looks as if PARAMOUNT RESOURCES will continue to recover much faster as its share price surged up 16.13% today. The firm's current daily volatility is 5.44 percent, with a beta of 0.65 and an alpha of 0.38 over DOW. Whilst many millenniums are getting more into current market swings, it makes sense to digest PARAMOUNT RESOURCES LIMITED. We will analyze why PARAMOUNT RESOURCES investors may still consider a stake in the business.
Published over two weeks ago
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Is PARAMOUNT RESOURCES (OTC:PRMRF) way too risky for millennials?
The company classifies itself under Energy sector and is part of Oil & Gas E&P industry. PARAMOUNT RESOURCES has accumulated 522.52 M in total debt with debt to equity ratio (D/E) of 0.47, which is about average as compared to similar companies. The entity has a current ratio of 0.6, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due.
Investing in PARAMOUNT RESOURCES, 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 PARAMOUNT RESOURCES 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.

How important is PARAMOUNT RESOURCES's Liquidity

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

How PARAMOUNT utilizes its cash?

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

PARAMOUNT RESOURCES Correlation with Peers

Investors in PARAMOUNT can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in PARAMOUNT RESOURCES LIMITED. Diversification will allow for the same portfolio return with reduced risk. The correlation table of PARAMOUNT RESOURCES and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities PARAMOUNT 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 PARAMOUNT for more details

Breaking it down

PARAMOUNT RESOURCES appears to be dangerous, given 1 month investment horizon. PARAMOUNT RESOURCES maintains Sharpe Ratio (i.e. Efficiency) of 0.0562, which implies the company had 0.0562% of return per unit of standard deviation over the last month. Our approach into 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 PARAMOUNT RESOURCES, which you can use to evaluate future volatility of the entity. Please employ PARAMOUNT RESOURCES Market Risk Adjusted Performance of 0.6106, coefficient of variation of 1321.77, and Mean Deviation of 3.86 to confirm if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Another 3 percent surge for PARAMOUNT RESOURCES

Latest variance is at 28.21. As of the 8th of November, PARAMOUNT RESOURCES holds the Mean Deviation of 3.86, market risk adjusted performance of 0.6106, and Coefficient Of Variation of 1321.77. Concerning fundamental indicators, the technical analysis model allows you to check practical technical drivers of PARAMOUNT RESOURCES, as well as the relationship between them. Put it differently, you can use this information to find out if the entity will indeed mirror its model of past market data, or the prices will eventually revert. We have collected data for nineteen technical drivers for PARAMOUNT RESOURCES, which can be compared to its competitors. Please check PARAMOUNT RESOURCES information ratio, potential upside, as well as the relationship between the Potential Upside and kurtosis to decide if PARAMOUNT RESOURCES is priced more or less accurately, providing market reflects its current price of 2.16 per share. Please also confirm PARAMOUNT RESOURCES total risk alpha, which is currently at 0.2735 to check out the company can sustain itself at some point in the future.

Our Final Take On PARAMOUNT RESOURCES

Although some companies within the oil & gas e&p industry are still a little expensive, even after the recent corrections, PARAMOUNT RESOURCES may offer a potential longer-term growth to shareholders. To sum up, as of the 8th of November 2020, our primary 30 days buy vs. sell advice on the firm is Strong Sell. However, we believe PARAMOUNT RESOURCES is fairly valued with high probability of distress for the next two years.

About Contributor

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 PARAMOUNT RESOURCES LIMITED. Please refer to our Terms of Use for any information regarding our disclosure principles.

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