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How risky is Renesola Ltd American after the new volatility hike?
 | By Rifka Kats | Macroaxis Story |
It appears without question that Renesola will continue to recover much faster as its share price surged up 25.24% today. The entity's current daily volatility is 6.53 percent, with a beta of -0.06 and an alpha of 0.44 over DOW. While some millenniums are indifferent towards current market changes, it makes sense to summarize Renesola Ltd American. We will cover the possibilities of making Renesola into a steady grower in October.
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Reviewed by Vlad Skutelnik
Renesola American runs under Technology sector within Solar industry. We provide trade recommendations to complement the recent expert consensus on Renesola American. Our dynamic recommendation engine exercises a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Emeren. Your research has to be compared to or analyzed against Emeren's peers to derive any actionable benefits. When done correctly, Emeren'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 Emeren Group.
Investing in Emeren, 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 Emeren 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 Emeren'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 Emeren's Liquidity
Emeren financial leverage refers to using borrowed capital as a funding source to finance Emeren Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Emeren 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 Emeren'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 Emeren'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 Emeren's total debt and its cash.
Emeren Gross Profit
Emeren Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Emeren 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 Emeren Gross Profit growth over the last 10 years. Please check Emeren's gross profit and other fundamental indicators for more details.
Emeren Correlation with Peers
Investors in Emeren can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Emeren Group. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Emeren and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Emeren 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 Emeren for more details
A Deeper look at Emeren
Renesola is dangerous given 1 month investment horizon. Renesola American maintains Sharpe Ratio (i.e. Efficiency) of 0.21, which implies the firm had 0.21% of return per unit of risk over the last month. Our standpoint towards forecasting the risk of a stock is to use both market data as well as company specific technical data. We are able to interpolate and collect twenty-eight different technical indicators, which can help you to evaluate if expected returns of 1.39% are justified by taking the suggested risk. Use Renesola Risk Adjusted Performance of 0.1164, coefficient of variation of 1017.83, and Semi Deviation of 3.87 to evaluate company specific risk that cannot be diversified away.
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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 Rifka Kats do not own shares of Emeren Group. Please refer to our Terms of Use for any information regarding our disclosure principles.