Compass Diversified is trading at 22.96 as of the 27th of September 2023, a -0.86 percent decrease since the beginning of the trading day. The preferred stock's open price was 23.16. Compass Diversified has a very small chance of experiencing financial distress in the next few years, but has generated negative returns over the last 90 days. Equity ratings for Compass Diversified are calculated daily based on our scoring framework. The performance scores are derived for the period starting the 28th of August 2023 and ending today, the 27th of September 2023. Please note, there could be an existing legal relationship between Compass Diversified (CODI-PA) and Compass Diversified (CODI). Click here to learn more.
Compass Diversified Holdings LLC is a private equity firm specializing in acquisitions, buyouts, industry consolidation, recapitalization, and middle market investments. Compass Diversified Holdings LLC was founded in 2005 and is based in Westport, Connecticut with an additional office in Irvine, California. The company has 59.9 M outstanding shares of which 5.81 K shares are currently shorted by private and institutional investors with about 0.95 days to cover all short positions. More on Compass Diversified
Compass Preferred Stock Highlights
Most reasonable investors view market volatility as an opportunity to invest at a favorable price or to sell short against a bearish trend. Compass Diversified's investment highlights are automatically generated signals that are significant enough to either complement your investing judgment regarding Compass Diversified or challenge it. These highlights can help you better understand the position you are entering and avoid costly mistakes.
Compass Diversified Risk Profiles
Investors will always prefer to have the highest possible return on investment while minimizing volatility. Compass Diversified market risk premium is the additional return an investor will receive from holding Compass Diversified long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Compass Diversified. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Although Compass Diversified's alpha and beta are two of the key measurements used to evaluate Compass Diversified's performance over the market, the standard measures of volatility play an important role as well.
Compass Stock Against Markets
Picking the right benchmark for Compass Diversified preferred stock is fundamental to making educated investment choices. Many naive investors compare their positions with the S&P 500 or with the Nasdaq. But these benchmarks are not all-inclusive and generally should be used only for large-capitalization equities or stock offerings from large companies. When the price of a selected benchmark declines in a down market, there may be an uptick in Compass Diversified preferred stock price where buyers come in believing the asset is cheap. The opposite is true when the market is bullish; so, accurately picking the benchmark for Compass Diversified is critical whether you are bullish or bearish towards Compass Diversified at a given time. Please also check how Compass Diversified's historical prices are related to one of the top price index indicators.
Be your own money managerOur tools can tell you how much better you can do entering a position in Compass Diversified without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.
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Compass Diversified Corporate Management
Elected by the shareholders, the Compass Diversified's board of directors comprises two types of representatives: Compass Diversified inside directors who are chosen from within the company, and outside directors, selected externally and held independent of Compass. The board's role is to monitor Compass Diversified's management team and ensure that shareholders' interests are well served. Compass Diversified's inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, Compass Diversified's outside directors are responsible for providing unbiased perspectives on the board's policies.
How to buy Compass Preferred Stock?Before investing in Compass Diversified, you must ensure you fully understand your financial goals and how diversified (or not) your overall investments are now. Then, after you clearly understand your investment objectives, consider investing in Compass Diversified. To buy Compass Diversified preferred stock, you can follow these steps:
- Choose a brokerage firm: You need to select a brokerage firm to buy shares of Compass Diversified. Some popular options include Charles Schwab, Fidelity, TD Ameritrade, and Robinhood.
- Open an account: Once you have chosen a brokerage firm, you will need to open an account. You will be required to provide personal information, such as your name, address, and Social Security number.
- Fund your account: You will need to deposit funds into your brokerage account to purchase Compass Diversified preferred stock. You can do this by transferring funds from your bank account or other investment accounts.
- Place your order: Once you have located Compass Diversified preferred stock in your brokerage account, you can place your order to buy it. You will need to specify the number of shares you want to buy and the price you are willing to pay.
- Monitor your investment: After you have purchased Compass Diversified preferred stock, you should monitor your investment to track its performance and make informed decisions about buying, selling, or holding the preferred stock
It's important to note that investing in stocks, such as Compass Diversified, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember various factors, including economic indicators, change in net worth, political events, company-specific news, and investor sentiment, can influence the stock market. These factors can cause fluctuations in preferred stock prices and lead to market volatility affecting your buy or sell decision. However, volatility can also present opportunities for investors to make gains by buying stocks when prices are low and selling when they are high. It's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments.
Already Invested in Compass Diversified?
The danger of trading Compass Diversified is mainly related to its market volatility and company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Compass Diversified is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Compass Diversified. The Shape ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Compass Diversified is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Compass Diversified. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in persons. You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Complementary Tools for Compass Preferred Stock analysis
When running Compass Diversified's price analysis, check to measure Compass Diversified's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Compass Diversified is operating at the current time. Most of Compass Diversified's value examination focuses on studying past and present price action to predict the probability of Compass Diversified's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Compass Diversified's price. Additionally, you may evaluate how the addition of Compass Diversified to your portfolios can decrease your overall portfolio volatility.