It appears Social Reality may not have a good chance to recover from the current slide as its shares fell again. The entity current daily volatility is 5.37 percent, with a beta of 1.11 and an alpha of -0.19 over DOW. As many millenniums are excited about the current volatility, it is fair to break down Social Reality based on its historical price patterns. We will evaluate why we are still optimistic in anticipation of a recovery.
Social Reality currently holds roughly 16.96 M in cash with (23.43 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.64.
We provide advice to complement the current expert consensus on Social Reality. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time.
Investing in SRAX, 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 SRAX 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 SRAX. Your research has to be compared to or analyzed against SRAX's peers to derive any actionable benefits. When done correctly, SRAX's 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 SRAX Inc.
Watch out for price decline
Please consider monitoring SRAX on a daily basis if you are holding a position in it. SRAX 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 SRAX stock to be traded above the $1 level to remain listed. If SRAX 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 SRAX's Liquidity
SRAX financial leverage refers to using borrowed capital as a funding source to finance SRAX Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. SRAX 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 SRAX'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 SRAX'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 SRAX's total debt and its cash.
How is SRAX allocating its cash?
To perform a cash flow analysis of SRAX, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash SRAX is receiving and how much cash it distributes out in a given period. The SRAX cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
SRAX Correlation with Peers
Investors in SRAX can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in SRAX Inc. Diversification will allow for the same portfolio return with reduced risk. The correlation table of SRAX and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities SRAX 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 SRAX for more details
Breaking down SRAX Indicators
Social Reality owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0738, which indicates the firm had -0.0738% 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. Social Reality exposes twenty-seven different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to validate Social Reality risk adjusted performance of (0.020061), and Coefficient Of Variation of (5,107) to confirm the risk estimate we provide.
Social Reality is projected to stay a bit over $1.8 in December
Current Risk Adjusted Performance is up to -0.02. Price may slide again. Social Reality exhibits very low volatility with skewness of 0.56 and kurtosis of 1.07. However, we advise investors to further study Social Reality technical indicators to ensure that 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 Social Reality's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Social Reality's 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.
Our Bottom Line On Social Reality
While other entities in the advertising agencies industry are either recovering or due for a correction, Social may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither purchase new shares of Social nor trade your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. 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 Social Reality.
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.
Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in 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 Ellen Johnson do not own shares of SRAX Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com