Should you keep an eye on Social Reality (NASDAQ:SRAX) management before April?

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Social Reality has an asset utilization ratio of 20.1 percent. This suggests that the company is making $0.2 for each dollar of assets. An increasing asset utilization means that Social Reality is more efficient with each dollar of assets it utilizes for everyday operations.

Investing in SRAX, 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 SRAX 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 SRAX'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.

Please consider monitoring SRAX on a daily basis if you are holding a position in it. SRAX is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as SRAX stock to be traded above the $1 level to remain listed. If SRAX stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

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

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