Social Story

<div class='circular--portrait' style='background:#FF0F00;color: #FFFAFA;font-size:4em;'>SR</div>
SRAX -- USA Stock  

USD 4.38  0.14  3.10%

It appears Social Reality will continue to recover much faster as its share price surged up 0.94% today. The company current daily volatility is 8.98 percent, with a beta of -0.28 and an alpha of 1.17 over DOW. As many millenniums are excited about current market swings, it is only fair to break down Social Reality. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over two weeks ago
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Should you keep an eye on Social Reality (NASDAQ:SRAX) management before April?
This firm conducts business under Communication Services sector and is part of Advertising Agencies industry.
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 Social Reality, 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 Social Reality 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 Social Reality'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 Social Reality 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 Social Reality. Your research has to be compared to or analyzed against Social Reality's peers to derive any actionable benefits. When done correctly, Social Reality'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 Social Reality.

How important is Social Reality's Liquidity

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

How Social utilizes its cash?

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

Social Reality Correlation with Peers

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

Social Reality exotic insider transaction detected

Legal trades by Social Reality insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Social insider trading alert for general transaction of class a common stock by Lahiji Behzad Christopher, Pres. LD Micro (Subsidiary), on 12th of January 2021. This event was filed by Srax Inc with SEC on 2021-01-12. Initial filing of beneficial ownership - SEC Form 3 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Social Reality Indicators

Social Reality appears to be very risky, given 1 month investment horizon. Social Reality owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.11, which indicates the firm had 0.11% of return per unit of risk over the last month. Our standpoint towards measuring the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By inspecting Social Reality technical indicators you can presently evaluate if the expected return of 0.96% is justified by implied risk. Please operate Social Reality Coefficient Of Variation of 793.79, semi deviation of 6.51, and Risk Adjusted Performance of 0.1155 to confirm if our risk estimates are consistent with your expectations.
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0.820.870.880.96
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0.820.770.80.89
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0.870.770.970.89
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0.880.80.970.91
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0.960.890.890.91
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Momentum Analysis of Social Reality suggests possible reversal in April

The variance is down to 82.13 as of today.
As of the 29th of March, Social Reality has the Coefficient Of Variation of 793.79, risk adjusted performance of 0.1155, and Semi Deviation of 6.51. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Social Reality, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to analyze nineteen technical drivers for Social Reality, which can be compared to its competition. Please validate Social Reality semi deviation, jensen alpha, as well as the relationship between the Jensen Alpha and semi variance to decide if Social Reality is priced more or less accurately, providing market reflects its prevalent price of 4.28 per share. Given that Social Reality has jensen alpha of 1.17, we advise you to double-check Social Reality's current market performance to make sure the company can sustain itself at a future point.

Our Final Take On Social Reality

While some firms within the advertising agencies industry are still a little expensive, even after the recent corrections, Social Reality may offer a potential longer-term growth to investors. The inconsistency in the assessment between current Social valuation and our trade advice on Social Reality is due to the recent market swings and your selection of investing horizon. 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 Social Reality.

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 Vlad Skutelnik do not own shares of Social Reality. Please refer to our Terms of Use for any information regarding our disclosure principles.

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