YRC Worldwide Story

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YRCW -- USA Stock  

USD 4.37  0.20  4.80%

It looks like Old Dominion will continue to recover much faster as its share price surged up 1.45% today to YRC Worldwide's 5.0193%. As many rational traders are trying to avoid industrials space, it makes sense to focus on YRC Worldwide a little further and understand how it stands against Old Dominion and other similar entities. We are going to recap some of the competitive aspects of both YRC Worldwide and Old Dominion.
Published over a month ago
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Will Old Dominion and YRC Worldwide (NASDAQ:YRCW) make up?
By analyzing existing basic indicators between YRC Worldwide and Old Dominion, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Old Dominion with a short position in YRC Worldwide. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. YRC Worldwide has an asset utilization ratio of 257.53 percent. This indicates that the company is making $2.58 for each dollar of assets. An increasing asset utilization means that YRC Worldwide is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as YRC Worldwide or Old Dominion is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is YRC Worldwide's Liquidity

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

Correlation Between YRC Worldwide and Old Dominion Freight

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding YRC Worldwide together with similar or unrelated positions with a negative correlation. For example, you can also add Old Dominion to your portfolio. If Old Dominion is not perfectly correlated to YRC Worldwide it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When YRC Worldwide for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between YRCW and ODFL for more information.


Are you currently holding both YRC Worldwide and Old Dominion in your portfolio? Please note if you are using this as a pair-trade strategy between YRC Worldwide and Old Dominion, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Another Outlook On YRC Worldwide

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now check YRC Worldwide revenue. Based on the latest financial disclosure, YRC Worldwide reported 4.84 B of revenue. This is 38.34% higher than that of the Industrials sector and 58.52% higher than that of the Trucking industry. The revenue for all United States stocks is 48.7% higher than that of YRC Worldwide. As for Old Dominion we see revenue of 3.94 B, which is 29.04% higher than that of the Trucking

YRC Worldwide4.84 Billion
Sector3.05 Billion
Old Dominion3.94 Billion
4.8 B
YRC Worldwide
3.1 B
3.9 B
Old Dominion

Over 3 percent climb for YRC Worldwide. What does it mean for sophisticated investors?

Latest semi deviation is at 6.86. YRC Worldwide is displaying above-average volatility over the selected time horizon. Investors should scrutinize YRC Worldwide independently to ensure intended market timing strategies are aligned with expectations about YRC Worldwide volatility.

Our Conclusion on YRC Worldwide

While other entities within the trucking industry are still a little expensive, even after the recent corrections, YRC Worldwide may offer a potential longer-term growth to sophisticated investors. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither take up new shares of YRC Worldwide nor exit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. 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 YRC Worldwide.

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 Raphi Shpitalnik do not own shares of YRC Worldwide. Please refer to our Terms of Use for any information regarding our disclosure principles.

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