NeuroMetrix conducts business under
Health Care Equipment & Supplies sector and is part of
Health Care industry.
Investing in NeuroMetrix, 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 NeuroMetrix 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 NeuroMetrix's Liquidity
NeuroMetrix
financial leverage refers to using borrowed capital as a funding source to finance NeuroMetrix ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. NeuroMetrix 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 NeuroMetrix'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 NeuroMetrix'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 NeuroMetrix's total debt and its cash.
NeuroMetrix Gross Profit
NeuroMetrix Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing NeuroMetrix 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 NeuroMetrix Gross Profit growth over the last 10 years. Please check NeuroMetrix's
gross profit and other
fundamental indicators for more details.
NeuroMetrix Correlation with Peers
Investors in NeuroMetrix can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in NeuroMetrix. Diversification will allow for the same portfolio return with reduced risk. The correlation table of NeuroMetrix and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities NeuroMetrix 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 NeuroMetrix for more details
A Deeper Perspective
NeuroMetrix appears to be dangerous, given 3 months investment horizon.
NeuroMetrix has Sharpe Ratio of 0.0738, which conveys that the firm had 0.0738% of return per unit of risk over the last 3 months. Our standpoint towards estimating the volatility of a stock is to use all available market data together with stock-specific
technical indicators that cannot be
diversified away. We have found twenty-seven
technical indicators for NeuroMetrix, which you can use to evaluate the future volatility of the firm. Please exercise NeuroMetrix's Risk Adjusted Performance of 0.0281,
mean deviation of 3.37, and Downside Deviation of 3.95 to check out if our risk estimates are consistent with your expectations.
Odds of NeuroMetrix to rebound after the slide
Latest Market Risk Adjusted Performance is up to 0.07. Price may slide again. NeuroMetrix shows above-average downside volatility for the selected time horizon. We advise investors to inspect NeuroMetrix further and ensure that all market timing and asset allocation strategies are consistent with the estimation of NeuroMetrix future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure NeuroMetrix'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 NeuroMetrix'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.
Our Final Perspective on NeuroMetrix
Whereas other companies under the medical devices industry are still a bit expensive, NeuroMetrix may offer a potential longer-term growth to institutional investors. In closing, as of the 27th of January 2023, we believe that at this point, NeuroMetrix is dangerous with
low probability of distress within the next 2 years. From a slightly different point of view, the entity appears to be
overvalued. Our primary 90 days Buy-Hold-Sell recommendation on the company is
Strong Sell.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile 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 Vlad Skutelnik do not own shares of NeuroMetrix. Please refer to our
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