Direct Line Insurance Stock Probability of Future Pink Sheet Price Finishing Under 7.45
| DIISY Stock | USD 9.41 1.52 19.26% |
Direct |
Direct Line Target Price Odds to finish below 7.45
The tendency of Direct Pink Sheet price to converge on an average value over time is a known aspect in finance that investors have used since the beginning of the stock market for forecasting. However, many studies suggest that some traded equity instruments are consistently mispriced before traders' demand and supply correct the spread. One possible conclusion to this anomaly is that these stocks have additional risk, for which investors demand compensation in the form of extra returns.
| Current Price | Horizon | Target Price | Odds to drop to $ 7.45 or more in 90 days |
| 9.41 | 90 days | 7.45 | near 1 |
Based on a normal probability distribution, the odds of Direct Line to drop to $ 7.45 or more in 90 days from now is near 1 (This Direct Line Insurance probability density function shows the probability of Direct Pink Sheet to fall within a particular range of prices over 90 days) . Probability of Direct Line Insurance price to stay between $ 7.45 and its current price of $9.41 at the end of the 90-day period is about 61.7 .
Assuming the 90 days horizon Direct Line has a beta of 0.0226 suggesting as returns on the market go up, Direct Line average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Direct Line Insurance will be expected to be much smaller as well. Additionally Direct Line Insurance has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Direct Line Price Density |
| Price |
Predictive Modules for Direct Line
There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Direct Line Insurance. Regardless of method or technology, however, to accurately forecast the pink sheet market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the pink sheet market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Direct Line's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Direct Line Risk Indicators
For the most part, the last 10-20 years have been a very volatile time for the stock market. Direct Line is not an exception. The market had few large corrections towards the Direct Line's value, including both sudden drops in prices as well as massive rallies. These swings have made and broken many portfolios. An investor can limit the violent swings in their portfolio by implementing a hedging strategy designed to limit downside losses. If you hold Direct Line Insurance, one way to have your portfolio be protected is to always look up for changing volatility and market elasticity of Direct Line within the framework of very fundamental risk indicators.α | Alpha over Dow Jones | -0.04 | |
β | Beta against Dow Jones | 0.02 | |
σ | Overall volatility | 0.72 | |
Ir | Information ratio | -0.05 |
Direct Line Alerts and Suggestions
In today's market, stock alerts give investors the competitive edge they need to time the market and increase returns. Checking the ongoing alerts of Direct Line for significant developments is a great way to find new opportunities for your next move. Suggestions and notifications for Direct Line Insurance can help investors quickly react to important events or material changes in technical or fundamental conditions and significant headlines that can affect investment decisions.| Direct Line generated a negative expected return over the last 90 days | |
| Direct Line has high historical volatility and very poor performance | |
| Direct Line Insurance has accumulated 513.6 M in total debt with debt to equity ratio (D/E) of 0.17, which may suggest the company is not taking enough advantage from borrowing. Direct Line Insurance has a current ratio of 0.52, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Direct Line until it has trouble settling it off, either with new capital or with free cash flow. So, Direct Line's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Direct Line Insurance sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Direct to invest in growth at high rates of return. When we think about Direct Line's use of debt, we should always consider it together with cash and equity. |
Direct Line Price Density Drivers
Market volatility will typically increase when nervous long traders begin to feel the short-sellers pressure to drive the market lower. The future price of Direct Pink Sheet often depends not only on the future outlook of the current and potential Direct Line's investors but also on the ongoing dynamics between investors with different trading styles. Because the market risk indicators may have small false signals, it is better to identify suitable times to hedge a portfolio using different long/short signals. Direct Line's indicators that are reflective of the short sentiment are summarized in the table below.
| Common Stock Shares Outstanding | 1.3 B |
Direct Line Technical Analysis
Direct Line's future price can be derived by breaking down and analyzing its technical indicators over time. Direct Pink Sheet technical analysis helps investors analyze different prices and returns patterns as well as diagnose historical swings to determine the real value of Direct Line Insurance. In general, you should focus on analyzing Direct Pink Sheet price patterns and their correlations with different microeconomic environments and drivers.
Direct Line Predictive Forecast Models
Direct Line's time-series forecasting models is one of many Direct Line's pink sheet analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models are widely used for non-stationary data. Non-stationary data are called the data whose statistical properties, e.g., the mean and standard deviation, are not constant over time, but instead, these metrics vary over time. This non-stationary Direct Line's historical data is usually called time series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the pink sheet market movement and maximize returns from investment trading.
Things to note about Direct Line Insurance
Checking the ongoing alerts about Direct Line for important developments is a great way to find new opportunities for your next move. Our stock alerts and notifications screener for Direct Line Insurance help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
| Direct Line generated a negative expected return over the last 90 days | |
| Direct Line has high historical volatility and very poor performance | |
| Direct Line Insurance has accumulated 513.6 M in total debt with debt to equity ratio (D/E) of 0.17, which may suggest the company is not taking enough advantage from borrowing. Direct Line Insurance has a current ratio of 0.52, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Direct Line until it has trouble settling it off, either with new capital or with free cash flow. So, Direct Line's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Direct Line Insurance sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Direct to invest in growth at high rates of return. When we think about Direct Line's use of debt, we should always consider it together with cash and equity. |
Additional Tools for Direct Pink Sheet Analysis
When running Direct Line's price analysis, check to measure Direct Line's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Direct Line is operating at the current time. Most of Direct Line's value examination focuses on studying past and present price action to predict the probability of Direct Line's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Direct Line's price. Additionally, you may evaluate how the addition of Direct Line to your portfolios can decrease your overall portfolio volatility.