Direct Digital Holdings Alpha and Beta Analysis
| DRCTWDelisted Stock | USD 0.56 0.05 8.20% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Direct Digital Holdings. It also helps investors analyze the systematic and unsystematic risks associated with investing in Direct Digital over a specified time horizon. Remember, high Direct Digital's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to Direct Digital's market risk premium analysis include:
Beta 2.32 | Alpha (0.32) | Risk 0.0 | Sharpe Ratio 0.0 | Expected Return 0.0 |
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
Direct |
Direct Digital Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Direct Digital market risk premium is the additional return an investor will receive from holding Direct Digital long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Direct Digital. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Direct Digital's performance over market.| α | -0.32 | β | 2.32 |
Direct Digital Fundamentals Vs Peers
Comparing Direct Digital's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Direct Digital's direct or indirect competition across all of the common fundamentals between Direct Digital and the related equities. This way, we can detect undervalued stocks with similar characteristics as Direct Digital or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Direct Digital's fundamental indicators could also be used in its relative valuation, which is a method of valuing Direct Digital by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Direct Digital to competition |
| Fundamentals | Direct Digital | Peer Average |
| Profit Margin | 0 % | (1.27) % |
| Operating Margin | 0.10 % | (5.51) % |
| Number Of Shares Shorted | 21.64 K | 4.71 M |
| Price To Earning | 0.11 X | 28.72 X |
| Revenue | 88.04 M | 9.43 B |
| EBITDA | 8.78 M | 3.9 B |
| Net Income | 2.92 M | 570.98 M |
Direct Digital Opportunities
Direct Digital Return and Market Media
The Stock received some media coverage during the period. Price Growth (%) |
| Timeline |
1 | Valideas Top 5 Financial Stocks Based On Martin Zweig - 4212023 - Nasdaq | 04/21/2023 |
2 | 2023-05-15 NDAQMARA Press Release Marathon Digital ... - Stockhouse Publishing | 05/15/2023 |
3 | Lumos Diagnostics Secures US FDA Clearance for Bacterial Respiratory Infection Test - Marketscreener.com | 07/03/2023 |
About Direct Digital Beta and Alpha
For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Direct or other delisted stocks. Alpha measures the amount that position in Direct Digital Holdings has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Direct Digital in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Direct Digital's short interest history, or implied volatility extrapolated from Direct Digital options trading.
Build Portfolio with Direct Digital
Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.Build Diversified Portfolios
Align your risk with return expectations
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 estimate. You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Consideration for investing in Direct Stock
If you are still planning to invest in Direct Digital Holdings 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 Direct Digital's history and understand the potential risks before investing.
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