Macroaxis Stories

Will Safestore Hldgs (OTC:SFSHF) volatility surge before May

April 30, 2022  By
Lets try to digest the odds of Safestore Hldgs to fully recover from the latest dip as its shares went up 7.41%. This firm current daily volatility is 1.83 percent, with a beta of 0.1 and an alpha of -0.1 over DOW. While many traders are getting carried away by overanalyzing overall trading value increase, it is reasonable to digest Safestore Hldgs Plc. We will evaluate if Safestore Hldgs shares are reasonably priced going into May.
Published over a year ago
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Reviewed by Michael Smolkin

Safestore Hldgs classifies itself under null sector and is part of null industry.
The entity has a beta of 0.1023, which indicates not very significant fluctuations relative to the market. Let's try to break down what Safestore's beta means in this case. As returns on the market increase, Safestore Hldgs returns are expected to increase less than the market. However, during the bear market, the loss on holding Safestore Hldgs will be expected to be smaller as well. Even though it is essential to pay attention to Safestore Hldgs Plc current price movements, it is always good to be careful when utilizing equity historical returns. Our philosophy towards measuring 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. Safestore Hldgs Plc exposes twenty-one different technical indicators, which can help you to evaluate its performance. Safestore Hldgs Plc has an expected return of -0.0999%. Please be advised to validate Safestore Hldgs information ratio, as well as the relationship between the value at risk and expected short fall to decide if Safestore Hldgs Plc performance from the past will be repeated at some point in the near future.
Investing in Safestore Holdings, 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 Safestore Holdings 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.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Safestore Holdings. Your research has to be compared to or analyzed against Safestore Holdings' peers to derive any actionable benefits. When done correctly, Safestore Holdings' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Safestore Holdings plc.

How important is Safestore Holdings's Liquidity

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

How is Safestore allocating its cash?

To perform a cash flow analysis of Safestore Holdings, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Safestore Holdings is receiving and how much cash it distributes out in a given period. The Safestore Holdings cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Safestore Holdings Correlation with Peers

Investors in Safestore can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Safestore Holdings plc. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Safestore Holdings and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Safestore 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 Safestore for more details

What is the case for Safestore Holdings Investors

Safestore Hldgs Plc owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0545, which indicates the firm had -0.0545% of return per unit of risk over the last 3 months. Macroaxis standpoint towards measuring the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Safestore Hldgs Plc exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to validate Safestore Hldgs coefficient of variation of (1,879), and Risk Adjusted Performance of (0.06) to confirm the risk estimate we provide.
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Are Safestore Hldgs technical ratios showing a collapse?

Safestore Hldgs latest potential upside ascents over 1.3. Safestore Hldgs Plc exhibits very low volatility with skewness of -3.31 and kurtosis of 33.26. However, we advise investors to further study Safestore Hldgs Plc technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Safestore Hldgs' otc stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Safestore Hldgs' otc stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Safestore Hldgs Implied Volatility

Safestore Hldgs' implied volatility exposes the market's sentiment of Safestore Hldgs Plc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Safestore Hldgs' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Safestore Hldgs stock will not fluctuate a lot when Safestore Hldgs' options are near their expiration.

Our Bottom Line On Safestore Hldgs Plc

Although other entities within the reit—industrial industry are still a little expensive, even after the recent corrections, Safestore Hldgs may offer a potential longer-term growth to shareholders. To conclude, as of the 30th of April 2022, we believe that at this point, Safestore Hldgs is fairly valued with low chance of distress within the next 2 years. Our current buy-or-sell advice on the firm is Hold.

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Editorial Staff

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. 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 Vlad Skutelnik do not own shares of Safestore Holdings plc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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