Gamida Cell (NASDAQ:GMDA) high volatility trend continues

Gamida Cell is currently does not generate positive expected returns and assumes 5.7401% risk (volatility on return distribution) over the 60 days horizon. While many risk-averse investors are getting carried away by overanalyzing healthcare space, it is reasonable to go over Gamida Cell. We will analyze why some investors are closely monitoring Gamida Cell's volatility. Gamida Cell high volatility, while potentially profitable, can lead to more considerable losses for your portfolios.
Published over a year ago
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Reviewed by Vlad Skutelnik

Gamida Cell currently holds 75.54 M in liabilities with Debt to Equity (D/E) ratio of 1.64, which is about average as compared to similar companies. This firm has a current ratio of 5.12, suggesting that it is liquid enough and is able to pay its financial obligations when due.
The company retains a Market Volatility (i.e., Beta) of -0.5319, which attests to possible diversification benefits within a given portfolio. Let's try to break down what Gamida's beta means in this case. As returns on the market increase, returns on owning Gamida Cell are expected to decrease at a much lower rate. During the bear market, Gamida Cell is likely to outperform the market. Even though it is essential to pay attention to Gamida Cell current price history, it is always good to be careful when utilizing equity current price movements. Our philosophy towards determining any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Gamida Cell exposes twenty-seven different technical indicators, which can help you to evaluate its performance. Gamida Cell has an expected return of -0.18%. Please be advised to check out Gamida Cell jensen alpha, maximum drawdown, semi variance, as well as the relationship between the sortino ratio and potential upside to decide if Gamida Cell performance from the past will be repeated at some point in the near future.
Volatility is a rate at which the price of Gamida Cell 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 Gamida Cell may increase or decrease. In other words, similar to Gamida's beta indicator, it measures the risk of Gamida Cell and helps estimate the fluctuations that may happen in a short period of time. So if prices of Gamida Cell 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.

Watch out for price decline

Please consider monitoring Gamida Cell on a daily basis if you are holding a position in it. Gamida Cell is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Gamida Cell stock to be traded above the $1 level to remain listed. If Gamida Cell stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How important is Gamida Cell's Liquidity

Gamida Cell financial leverage refers to using borrowed capital as a funding source to finance Gamida Cell ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Gamida Cell 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 Gamida Cell'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 Gamida Cell'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 Gamida Cell's total debt and its cash.

Is Gamida Cell valued fairly by the market?

Gamida Cell price slip over the last few months may raise some interest from investors. The stock closed today at a share price of 3.24 on 2,748,200 in trading volume. The company directors and management were not very successful in positioning the firm resources to exploit market volatility in December. However, diversifying your holdings with Gamida Cell or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 5.74. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Gamida Cell partners.

Another 3 percent rise for Gamida Cell

Current Risk Adjusted Performance is up to -0.03. Price may slip again.
As of the 22nd of January, Gamida Cell retains the risk adjusted performance of (0.031212), and Market Risk Adjusted Performance of 0.5292. Gamida Cell technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Simply put, you can use this information to find out if the firm will indeed mirror its model of historical price patterns, or the prices will eventually revert. We were able to break down nineteen technical drivers for Gamida Cell, which can be compared to its competitors. Please check out Gamida Cell maximum drawdown, semi variance, and the relationship between the jensen alpha and potential upside to decide if Gamida Cell is priced fairly, providing market reflects its last-minute price of 3.24 per share. Given that Gamida Cell has jensen alpha of (0.31), we strongly advise you to confirm Gamida Cell's regular market performance to make sure the company can sustain itself at a future point.

Whereas many other companies under the biotechnology industry are still a bit expensive, Gamida Cell may offer a potential longer-term growth to investors. The inconsistency in the assessment between current Gamida valuation and our trade advice on Gamida Cell is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Gamida Cell.

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Editorial Staff

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