Atlantic Power (NYSE:AT) high volatility trend continues
 | By Ellen Johnson | Macroaxis Story |
Atlantic Power is generating 0.7289% of daily returns and assumes 5.3765% volatility on return distribution over the 90 days horizon. Since many greedy investors are excited about utilities space, let's review Atlantic Power against its current volatility. We will break down why some private investors are closely monitoring Atlantic Power's volatility.
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Reviewed by Vlad Skutelnik
Atlantic Power reports 584.4 M of total liabilities with total debt to equity ratio (D/E) of 4.9, which implies that Atlantic Power may not be able to produce enough cash to satisfy its debt commitments. The entity has a current ratio of 0.68, implying that it has not enough working capital to pay out debt commitments in time. On a scale of 0 to 100, Atlantic Power holds a performance score of 9. The firm shows a Beta (market volatility) of 0.4386, which signifies possible diversification benefits within a given portfolio. Let's try to break down what Atlantic's beta means in this case. As returns on the market increase, Atlantic Power returns are expected to increase less than the market. However, during the bear market, the loss on holding Atlantic Power will be expected to be smaller as well. Although it is vital to follow Atlantic Power historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. The philosophy towards foreseeing 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. We have found twenty-seven technical indicators for Atlantic Power, which you can use to evaluate the performance of the firm. Please makes use of Atlantic Power total risk alpha, expected short fall, price action indicator, as well as the relationship between the value at risk and daily balance of power to make a quick decision on whether Atlantic Power price patterns will revert.
How important is Atlantic Power's Liquidity
Atlantic Power financial leverage refers to using borrowed capital as a funding source to finance Atlantic Power ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Atlantic Power 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 Atlantic Power'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 Atlantic Power'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 Atlantic Power's total debt and its cash.
Detailed Perspective On Atlantic Power
The newest price gain of Atlantic Power could raise concerns from private investors as the firm it trading at a share price of 2.92 on 13,686,300 in volume. The company executives may have good odds in positioning the firm resources to exploit market volatility in February. The stock standard deviation of daily returns for 30 days investing horizon is currently 5.38. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Atlantic Power partners.
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