Digital Brands Beta vs. Number Of Shares Shorted
Based on Digital Brands' profitability indicators, Digital Brands Group may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in April. Profitability indicators assess Digital Brands' ability to earn profits and add value for shareholders.
Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product.
Please note, there is a significant difference between Digital Brands' value and its price as these two are different measures arrived at by different means. Investors typically determine if Digital Brands is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Digital Brands' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
For Digital Brands profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Digital Brands to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Digital Brands Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Digital Brands's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Digital Brands Group over time as well as its relative position and ranking within its peers.
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Digital Brands Group Number Of Shares Shorted vs. Beta Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Digital Brands's current stock value. Our valuation model uses many indicators to compare Digital Brands value to that of its competitors to determine the firm's financial worth. Digital Brands Group is one of the top stocks in beta category among its peers. It also is one of the top stocks in number of shares shorted category among its peers making about 15.78 of Number Of Shares Shorted per Beta. Comparative valuation analysis is a catch-all technique that is used if you cannot value Digital Brands by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Digital Number Of Shares Shorted vs. Beta
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Digital Brands |
| = | 1.14 |
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
Number of Shares Shorted is the total amount of shares that are currently sold short by investors. When a stock is sold short, the short seller assumes the responsibility of repurchasing the stock at a lower price. The speculator will make money if the stock goes down in price or will experience a loss if the stock price goes up.
Digital Brands |
| = | 18 |
If a large number of investors decide to short sell an equity instrument within a small period of time, their combined action can significantly affect the price of the stock.
Digital Number Of Shares Shorted Comparison
Digital Brands is currently under evaluation in number of shares shorted category among its peers.
Beta Analysis
Digital Brands returns are very sensitive to returns on the market. As the market goes up or down, Digital Brands is expected to follow.
Digital Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Digital Brands. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Digital Brands position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Digital Brands' important profitability drivers and their relationship over time.
Use Digital Brands in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Digital Brands position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Digital Brands will appreciate offsetting losses from the drop in the long position's value.Digital Brands Pair Trading
Digital Brands Group Pair Trading Analysis
The ability to find closely correlated positions to Mattel could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Mattel when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Mattel - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Mattel Inc to buy it.
The correlation of Mattel is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Mattel moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Mattel Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Mattel can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Digital Brands position
In addition to having Digital Brands in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Data Storage Thematic Idea Now
Data Storage
Companies making data storages or providing data storage services. The Data Storage theme has 48 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Data Storage Theme or any other thematic opportunities.
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Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product. You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Consideration for investing in Digital Stock
If you are still planning to invest in Digital Brands Group check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Digital Brands' history and understand the potential risks before investing.
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