Regions Story

<div class='circular--portrait' style='background:#754DEB;color: #F0FFF0;font-size:4em;'>RF</div>
RF -- USA Stock  

USD 21.32  0.69  3.34%

It looks as if Regions Financial may not recover as fast as we have hopped for as its price went down 0.28% today. Regions Financial current daily volatility is 3.18 percent, with a beta of 0.05 and an alpha of 0.57 over DOW. As many millenniums are trying to avoid the latest volatility, we are going to digest Regions Financial a little further to understand its historical price patterns. We will analyze why Regions Financial investors may still consider a stake in the business.
Published over a month ago
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Will Regions Financial (NYSE:RF) latest volatility surge scare shareholders?
Regions Financial reports roughly 5.85 B in cash with 2.82 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 6.09. The company reports 6.72 B of total liabilities with total debt to equity ratio (D/E) of 6.48, which implies that Regions Financial may not be able to produce enough cash to satisfy its debt commitments.
Investing in Regions Financial, 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 Regions Financial 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, frequently view the market will even out over time. This tendency of Regions Financial's stock 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. Please use the tools below to analyze the current value of Regions Financial in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Regions Financial. Your research has to be compared to or analyzed against Regions Financial's peers to derive any actionable benefits. When done correctly, Regions Financial's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Regions Financial Corp.

How important is Regions Financial's Liquidity

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

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Regions Financial, but it might be worth checking our own buy vs. sell analysis

Regions Financial Correlation with Peers

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

A Deeper look at Regions

Regions Financial appears to be not too volatile, given 1 month investment horizon. Regions Financial 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. By analyzing Regions Financial technical indicators you can presently evaluate if the expected return of 0.51% is justified by implied risk. Please employ Regions Financial Risk Adjusted Performance of 0.1817, semi deviation of 1.86, and Coefficient Of Variation of 555.45 to confirm if our risk estimates are consistent with your expectations.
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Regions Financial has 87 percent chance to finish below $17.39 next week

Regions Financial latest risk adjusted performance ascents over 0.18. Regions Financial currently demonstrates below-verage downside deviation. It has Information Ratio of 0.12 and Jensen Alpha of 0.57. However, we do advice investors to further question Regions Financial expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Conclusion on Regions Financial

Although some other firms under the banks?regional industry are still a bit expensive, Regions Financial may offer a potential longer-term growth to shareholders. To conclude, as of the 22nd of January 2021, our analysis shows that Regions Financial barely shadows the market. The firm is overvalued and projects below average chance of distress for the next 2 years. However, our primary 30 days buy vs. sell advice on the firm is Buy.

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 Regions Financial Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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