By analyzing existing forward-looking signals between Heska Corp and ABAXIS, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in ABAXIS with a short position in Heska Corp. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Heska Corp has an asset utilization ratio of 231.26 percent. This suggests that the company is making $2.31 for each dollar of assets. An increasing asset utilization means that Heska Corp is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Heska or Orthofix is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Heska's Liquidity
Heska
financial leverage refers to using borrowed capital as a funding source to finance Heska ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Heska 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 Heska'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 Heska'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 Heska's total debt and its cash.
Correlation Between Heska and Orthofix Medical
In general, Delisted Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Heska together with similar or unrelated positions with a negative correlation. For example, you can also add Orthofix Medical to your portfolio. If Orthofix Medical is not perfectly correlated to Heska it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Heska, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Heska and Orthofix Medical in your portfolio? Please note if you are using this as a pair-trade strategy between Heska and Orthofix Medical, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between HSKA and OFIX for more information.
Time to exit Heska Corp is now
Current treynor ratio is at -0.33.
As of the 8th of May, Heska Corp retains the
risk adjusted performance of
(0.15), and Market Risk Adjusted Performance of
(0.32). Heska Corp
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 collect data for nineteen
technical drivers for Heska Corp, which can be compared to its competitors. Please check out
Heska Corp treynor ratio, as well as the
relationship between the potential upside and
expected short fall to decide if Heska Corp is priced fairly, providing market reflects its last-minute price of 100.84 per share. Given that Heska Corp has
jensen alpha of
(0.25), we strongly advise you to confirm Heska Corp's regular market performance to make sure the company can sustain itself at a future point.
Our Final Takeaway
Whereas some companies in the medical devices industry are either recovering or due for a correction, Heska Corp may not be performing as strong as the other in terms of long-term growth potentials. While some investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. 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 Heska Corp.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
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 Gabriel Shpitalnik do not own shares of Heska. Please refer to our
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