We consider Netsol Tech slightly risky. Netsol Tech has Sharpe Ratio of 0.0431, which conveys that the firm had 0.0431% of return per unit of risk over the last 3 months. Our standpoint towards estimating the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Netsol Tech, which you can use to evaluate the future volatility of the firm. Please verify Netsol Tech Downside Deviation of 2.79, risk adjusted performance of 0.0508, and Mean Deviation of 2.0 to check out if the risk estimate we provide is consistent with the expected return of 0.11%.
Is Netsol Tech (NASDAQ:NTWK) stock way too aggressive for baby boomers?
 | By Aina Ster | Macroaxis Story |
It feels like Netsol Tech will continue to recover much faster as its share price surged up 0.30% today. Netsol Tech current daily volatility is 2.65 percent, with a beta of 0.35 and an alpha of 0.11 over DOW. While some baby boomers are getting worried about current volatility, it is reasonable to examine Netsol Tech. We will evaluate if Netsol Tech shares are reasonably priced going into October.
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Gabriel Shpitalnik
The company conducts business under Technology sector and is part of Software—Application industry.
We provide investment recommendation to complement the last-minute expert consensus on Netsol Tech. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the entity's potential to grow using all technical and fundamental data available at the time.
Investing in NetSol Technologies, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding NetSol Technologies along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of NetSol Technologies' 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.
How important is NetSol Technologies's Liquidity
NetSol Technologies financial leverage refers to using borrowed capital as a funding source to finance NetSol Technologies ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. NetSol Technologies 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 NetSol Technologies' 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 NetSol Technologies' 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 NetSol Technologies's total debt and its cash.
NetSol Technologies Gross Profit
NetSol Technologies Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing NetSol Technologies previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show NetSol Technologies Gross Profit growth over the last 10 years. Please check NetSol Technologies' gross profit and other fundamental indicators for more details.
NetSol Technologies Correlation with Peers
Investors in NetSol can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in NetSol Technologies. Diversification will allow for the same portfolio return with reduced risk. The correlation table of NetSol Technologies and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities NetSol is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of NetSol for more details
Another Outlook On NetSol Technologies
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
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 Aina Ster do not own shares of NetSol Technologies. Please refer to our Terms of Use for any information regarding our disclosure principles.