Is Arrow Financial (USA Stocks:AROW) a new disruptor?

Lets try to focus on the odds of Arrow Financial to fully recover from the latest fall as its shares went up 2.10%. Arrow Financial current daily volatility is 2.03 percent, with a beta of 1.37 and an alpha of -0.75 over Dow Jones Industrial. As many millenniums are trying to avoid banks, it makes sense to focus on Arrow Financial a little further and try to understand its current market patterns. We will cover the possibilities of making Arrow Financial into a steady grower in June.
Published over a year ago
View all stories for Arrow Financial | View All Stories
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.

Reviewed by Gabriel Shpitalnik

Arrow Financial currently holds roughly 224.22 M in cash with 68.21 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 13.58.
The firm shows a Beta (market volatility) of 1.37, which signifies a somewhat significant risk relative to the market. Let's try to break down what Arrow's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Arrow Financial will likely underperform. Even though it is essential to pay attention to Arrow Financial historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards foreseeing any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Arrow Financial exposes twenty-eight different technical indicators, which can help you to evaluate its performance. Arrow Financial has an expected return of -0.8%. Please make sure to confirm Arrow Financial value at risk, as well as the relationship between the kurtosis and market facilitation index to decide if Arrow Financial performance from the past will be repeated at some point in the near future.
Investing in Arrow Financial, 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 Arrow Financial 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.

How important is Arrow Financial's Liquidity

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

Arrow Financial Gross Profit

Arrow Financial Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Arrow Financial 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 Arrow Financial Gross Profit growth over the last 10 years. Please check Arrow Financial's gross profit and other fundamental indicators for more details.

Arrow Financial Correlation with Peers

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

A Deeper look at Arrow

Arrow Financial secures Sharpe Ratio (or Efficiency) of -0.4, which signifies that the company had -0.4% of return per unit of risk over the last 3 months. Our standpoint towards foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Arrow Financial exposes twenty-eight different technical indicators, which can help you to evaluate volatility embedded in its stock price that cannot be diversified away. Please confirm Arrow Financial mean deviation of 1.58, and Risk Adjusted Performance of (0.32) to double-check the risk estimate we provide.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Our perspective of the latest Arrow Financial climb

Market Risk Adjusted Performance just dropped to -0.58, may cause upcoming price decrease.
Arrow Financial exhibits very low volatility with skewness of -0.4 and kurtosis of 0.61. However, we advise investors to further study Arrow Financial technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Arrow Financial's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Arrow Financial's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

While other companies under the banks—regional industry are still a bit expensive, Arrow Financial may offer a potential longer-term growth to sophisticated investors. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Arrow as the current risk-reward utility is not appealing enough. 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 Arrow Financial.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

Editorial Staff

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 Rifka Kats do not own shares of Arrow Financial. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to [email protected]