The firm shows a Beta (market volatility) of 1.3608, which signifies a somewhat significant risk relative to the market. Let's try to break down what Cara Therapeutic's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Cara Therapeutic will likely underperform. Even though it is essential to pay attention to
Cara Therapeutic historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards foreseeing 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. Cara Therapeutic exposes twenty-one different technical indicators, which can help you to evaluate its performance.
Cara Therapeutic has an expected return of -0.26%. Please be advised to confirm Cara Therapeutic
value at risk, and the
relationship between the
jensen alpha and
semi variance to decide if
Cara Therapeutic performance from the past will be repeated at some point in the near future.
There are currently many different techniques concerning forecasting the market as a whole as well as
predicting future values of individual securities such as Cara Therapeutic. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the
market sentiment and impact your forecasting results.
Predictive Modules for Cara Therapeutic
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Cara Therapeutic's 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.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Cara Therapeutic. Your research has to be compared to or analyzed against Cara Therapeutic's peers to derive any actionable benefits. When done correctly, Cara Therapeutic'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 Cara Therapeutic.
Watch out for price decline
Please consider monitoring Cara Therapeutic on a daily basis if you are holding a position in it. Cara Therapeutic is trading at a penny-stock level, and the possibility of delisting is much higher compared to other 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 Cara Therapeutic stock to be traded above the $1 level to remain listed. If Cara Therapeutic 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 Cara Therapeutic's Liquidity
Cara Therapeutic
financial leverage refers to using borrowed capital as a funding source to finance Cara Therapeutic ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cara Therapeutic 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 Cara Therapeutic'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 Cara Therapeutic'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 Cara Therapeutic's total debt and its cash.
Cara Therapeutic Gross Profit
Cara Therapeutic Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Cara Therapeutic 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 Cara Therapeutic Gross Profit growth over the last 10 years. Please check Cara Therapeutic's
gross profit and other
fundamental indicators for more details.
A Deeper Perspective
The current Cara Therapeutic price slip could raise concerns from investors as the firm is trading at a share price of
10.28 on very low momentum in volume. The company directors and management were unable to exploit market volatilities in
February. However, diversifying your overall positions with Cara Therapeutic can protect your principal portfolio during market swings. The stock standard deviation of daily returns for 90 days investing horizon is currently 3.38. The above-average risk is mostly attributed to
market volatility and speculations regarding some of the upcoming earning calls from Cara Therapeutic partners.
Returns Breakdown
| Return on Investment | (36.31) |
| Return on Assets | (0.46) |
| Return on Equity | (0.39) |
| Return Capital | (0.4) |
| Return on Sales | (4.77) |
Our perspective of the current Cara Therapeutic rise
Current Treynor Ratio is up to -0.05. Price may slip again. Cara Therapeutic exhibits very low volatility with skewness of 0.1 and kurtosis of 0.06. However, we advise investors to further study Cara Therapeutic 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 Cara Therapeutic'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 Cara Therapeutic'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 Final Take On Cara Therapeutic
Whereas some firms in the biotechnology industry are either recovering or due for a correction, Cara Therapeutic may not be as strong as the others in terms of longer-term growth potentials. To sum up, as of the 5th of March 2023, our concluding 90 days advice on the company is
Strong Hold. We believe Cara Therapeutic is
undervalued with
close to average probability of distress for the next two years.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
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 Raphi Shpitalnik do not own shares of Cara Therapeutic. Please refer to our
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