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What does a latest World Acceptance volatility dip mean for shareholders?
 | By Gabriel Shpitalnik | Macroaxis Story |
It looks as if World Acceptance may not recover as fast as we have hopped for as its price went down 0.24% today. The company current daily volatility is 3.76 percent, with a beta of -0.02 and an alpha of 0.22 over DOW. As many millenniums are trying to avoid the latest volatility, we are going to digest World Acceptance a little further to understand its historical price patterns. We will evaluate why we are still optimistic in anticipation of a recovery.
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Reviewed by Michael Smolkin
World Acceptance currently holds roughly 13.99 M in cash with 219.15 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.25. Macroaxis provides trade recommendation on World Acceptance to complement and cross-verify current analyst consensus on World Acceptance. Our trade advice engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as World Acceptance. Your research has to be compared to or analyzed against World Acceptance's peers to derive any actionable benefits. When done correctly, World Acceptance'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 World Acceptance.
Investing in World Acceptance, 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 World Acceptance 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 World Acceptance'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 World Acceptance's Liquidity
World Acceptance financial leverage refers to using borrowed capital as a funding source to finance World Acceptance ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. World Acceptance 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 World Acceptance'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 World Acceptance'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 World Acceptance's total debt and its cash.
World Acceptance Gross Profit
World Acceptance Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing World Acceptance 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 World Acceptance Gross Profit growth over the last 10 years. Please check World Acceptance's gross profit and other fundamental indicators for more details.
World Acceptance Correlation with Peers
Investors in World can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in World Acceptance. Diversification will allow for the same portfolio return with reduced risk. The correlation table of World Acceptance and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities World 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 World for more details
An Additional Perspective On World Acceptance
World Acceptance appears to be very steady, given 1 month investment horizon. World Acceptance shows Sharpe Ratio of 0.11, which attests that the company had 0.11% of return per unit of risk over the last month. Our standpoint towards determining 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-eight technical indicators for World Acceptance, which you can use to evaluate future volatility of the company. Please utilize World Acceptance Market Risk Adjusted Performance of (14.48), downside deviation of 4.58, and Mean Deviation of 2.83 to validate if our risk estimates are consistent with your expectations.
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