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Will Seagate Technology (NASDAQ:STX) volatility rise before February
 | By Vlad Skutelnik | Macroaxis Story |
It appears Seagate Technology will continue to recover much faster as its share price surged up 2.47% today. The company current daily volatility is 1.66 percent, with a beta of 1.03 and an alpha of 0.16 over DOW. As many millenniums are excited about saving accounts, it is only fair to break down Seagate Technology PLC. What exactly are Seagate Technology shareholders getting in February?
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Reviewed by Michael Smolkin
This firm runs under Technology sector within Computer Hardware industry. On a scale of 0 to 100, Seagate Technology holds a performance score of 13. The entity has a beta of 1.0298, which indicates a somewhat significant risk relative to the market. Let's try to break down what Seagate's beta means in this case. Seagate Technology returns are very sensitive to returns on the market. As the market goes up or down, Seagate Technology is expected to follow. Although it is vital to follow Seagate Technology PLC current price movements, it is good to be conservative about what you can do with the information regarding equity historical returns. The philosophy towards measuring future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By inspecting Seagate Technology PLC technical indicators, you can presently evaluate if the expected return of 0.33% will be sustainable into the future. Please operates Seagate Technology coefficient of variation, maximum drawdown, skewness, as well as the relationship between the total risk alpha and downside variance to make a quick decision on whether Seagate Technology PLC existing price patterns will revert.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Seagate Technology. Your research has to be compared to or analyzed against Seagate Technology's peers to derive any actionable benefits. When done correctly, Seagate Technology'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 Seagate Technology PLC.
Investing in Seagate Technology, 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 Seagate Technology 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 Seagate Technology'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 Seagate Technology's Liquidity
Seagate Technology financial leverage refers to using borrowed capital as a funding source to finance Seagate Technology PLC ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Seagate Technology 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 Seagate Technology'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 Seagate Technology'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 Seagate Technology's total debt and its cash.
Seagate Technology Gross Profit
Seagate Technology Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Seagate Technology 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 Seagate Technology Gross Profit growth over the last 10 years. Please check Seagate Technology's gross profit and other fundamental indicators for more details.
Seagate Technology Correlation with Peers
Investors in Seagate can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Seagate Technology PLC. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Seagate Technology and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Seagate 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 Seagate for more details
Detailed Perspective On Seagate Technology
Seagate Technology appears to be very steady, given 1 month investment horizon. Seagate Technology PLC owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.2, which indicates the firm had 0.2% 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. We have found twenty-seven technical indicators for Seagate Technology PLC, which you can use to evaluate future volatility of the company. Please operate Seagate Technology Coefficient Of Variation of 563.41, semi deviation of 1.24, and Risk Adjusted Performance of 0.1816 to confirm if our risk estimates are consistent with your expectations.
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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 Vlad Skutelnik do not own shares of Seagate Technology PLC. Please refer to our Terms of Use for any information regarding our disclosure principles.