Is Electrovaya Common (USA Stocks:ELVA) volatility expected to diminish is January?
 | By Raphi Shpitalnik | Macroaxis Story |
Electrovaya (NASDAQ: ELVA) has demonstrated notable resilience by gaining over 1% even as broader markets face a downturn. This performance is particularly impressive given the stock's standard deviation of 4.55, indicating a relatively high level of volatility. Despite this, the company's ability to maintain a positive trajectory suggests a robust underlying strength, making it an intriguing option for investors seeking opportunities in the Electrical Equipment & Parts industry. With a current quote of 2.45, Electrovaya's market behavior reflects a balance between risk and reward, as evidenced by its risk-adjusted performance of 0.058.
Main Considerations
Electrovaya Common Shares has liabilities amounting to $19.03 million. It's important to evaluate this debt in conjunction with the company's cash reserves and equity. This comprehensive view helps in understanding the overall financial health and risk profile of Electrovaya.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
In turbulent markets, it's often said that the strongest companies are those that can weather the storm. Electrovaya, trading under the ticker ELVA on NASDAQ, has recently demonstrated this resilience by gaining over 1% despite a broader market downturn. This uptick, reflected in a Day Median Price of $2.37, highlights the company's ability to maintain investor confidence even when the market sentiment is less than favorable. With a strong buy consensus from analysts, Electrovaya's performance suggests a robust underlying business model that could appeal to investors seeking stability in the volatile electrical equipment and parts industry. Electrovaya Common Shares are currently offering a daily expected return of 0.2128%, with a volatility of 4.5221% over the next 90 days. While the electrical equipment sector is attracting adventurous investors, some are concerned about Electrovaya's current volatility. We'll be monitoring whether this volatility persists into January. Despite the higher-than-average volatility, we believe Electrovaya Common is undervalued. Our analysis suggests the stock's true value is nearing $3.63 per share.Volatility is a rate at which the price of Electrovaya Common or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Electrovaya Common may increase or decrease. In other words, similar to Electrovaya's beta indicator, it measures the risk of Electrovaya Common and helps estimate the fluctuations that may happen in a short period of time. So if prices of Electrovaya Common fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
How does Electrovaya utilize its cash?
At present, Electrovaya Common's Change In Cash is projected to decrease significantly based on the last few years of reporting. . To perform a cash flow analysis of Electrovaya Common, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Electrovaya Common is receiving and how much cash it distributes out in a given period. The Electrovaya Common cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Electrovaya Common Gross Profit
Electrovaya Common Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Electrovaya Common 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 Electrovaya Common Gross Profit growth over the last 10 years. Please check Electrovaya Common's gross profit and other fundamental indicators for more details.
Electrovaya Common Volatility Drivers
Electrovaya Common unsystematic risk is unique to Electrovaya Common Shares and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Electrovaya Common you can also buy Aquestive Therapeutics. You can also mitigate this risk by investing in the industrials sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Electrovaya Common important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Electrovaya Common income statement and balance sheet. Here are more details about Electrovaya volatility.Click cells to compare fundamentals
Another angle On Electrovaya Common
The current bullish price patterns experienced by current Electrovaya Common Shares shareholders could raise concerns from investors as the firm is trading at a share price of 2.45 on very low momentum in volume. The company executives have been very successful in rebalancing the firm assets at opportune times to take advantage of market volatility in November. The stock standard deviation of daily returns for 90 days investing horizon is currently 4.52. This high volatility is attributed to the latest market swings and not-so-good earnings reports for some of the Electrovaya Common partners.In turbulent markets, the adage that "fortune favors the bold" often rings true, and Electrovaya's recent performance exemplifies this. Despite a challenging market environment, Electrovaya (NASDAQ: ELVA) has managed to gain over 1%, highlighting its resilience. This performance is particularly noteworthy given the company's high probability of bankruptcy at 91.18%, which typically signals significant risk. However, with a market capitalization of $98.75 million and a beta of 1.38, the stock demonstrates a higher volatility, suggesting that while the ride may be bumpy, there is potential for substantial returns for those willing to navigate the risks..
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