Arch Capital (Germany) Buy Hold or Sell Recommendation

RSK Stock  EUR 89.60  2.65  3.05%   
Assuming the 90 days horizon and your above-average risk tolerance, our recommendation regarding Arch Capital Group is 'Strong Sell'. Macroaxis provides Arch Capital buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding RSK positions.
  
Check out Arch Capital Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
Note, we conduct extensive research on individual companies such as Arch and provide practical buy, sell, or hold advice based on investors' constraints. Arch Capital Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

Execute Arch Capital Buy or Sell Advice

The Arch recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Arch Capital Group. Macroaxis does not own or have any residual interests in Arch Capital Group or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Arch Capital's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Arch CapitalBuy Arch Capital
Strong Sell

Market Performance

Very WeakDetails

Volatility

Very steadyDetails

Hype Condition

StaleDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Moves slightly opposite to the marketDetails

Analyst Consensus

Not AvailableDetails

Reporting Quality (M-Score)

InapplicableDetails
For the selected time horizon Arch Capital Group has a Mean Deviation of 1.43, Standard Deviation of 2.01 and Variance of 4.03
Macroaxis provides advice on Arch Capital Group to complement and cross-verify current analyst consensus on Arch Capital Group. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Arch Capital is not overpriced, please confirm all Arch Capital Group fundamentals, including its price to earning, gross profit, and the relationship between the shares owned by insiders and price to sales .

Arch Capital Trading Alerts and Improvement Suggestions

Arch Capital Group generated a negative expected return over the last 90 days
Over 92.0% of the company shares are owned by institutional investors

Arch Capital Returns Distribution Density

The distribution of Arch Capital's historical returns is an attempt to chart the uncertainty of Arch Capital's future price movements. The chart of the probability distribution of Arch Capital daily returns describes the distribution of returns around its average expected value. We use Arch Capital Group price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Arch Capital returns is essential to provide solid investment advice for Arch Capital.
Mean Return
-0.15
Value At Risk
-3.05
Potential Upside
3.28
Standard Deviation
2.01
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Arch Capital historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Arch Capital Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Arch Capital or Financial Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Arch Capital's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Arch stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
-0.14
β
Beta against Dow Jones-0.78
σ
Overall volatility
2.09
Ir
Information ratio -0.09

Arch Capital Volatility Alert

Arch Capital Group exhibits very low volatility with skewness of 0.07 and kurtosis of 2.29. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Arch Capital'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 Arch Capital'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 financial instruments as prices fall.

Arch Capital Fundamentals Vs Peers

Comparing Arch Capital's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Arch Capital's direct or indirect competition across all of the common fundamentals between Arch Capital and the related equities. This way, we can detect undervalued stocks with similar characteristics as Arch Capital or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Arch Capital's fundamental indicators could also be used in its relative valuation, which is a method of valuing Arch Capital by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Arch Capital to competition
FundamentalsArch CapitalPeer Average
Return On Equity0.11-0.31
Return On Asset0.0204-0.14
Profit Margin0.15 %(1.27) %
Operating Margin0.16 %(5.51) %
Current Valuation19.77 B16.62 B
Shares Outstanding371.2 M571.82 M
Shares Owned By Insiders3.07 %10.09 %
Shares Owned By Institutions91.72 %39.21 %
Price To Earning11.35 X28.72 X
Price To Book1.45 X9.51 X
Price To Sales2.40 X11.42 X
Revenue9.6 B9.43 B
Gross Profit2.85 B27.38 B
EBITDA1.63 B3.9 B
Net Income1.48 B570.98 M
Cash And Equivalents1.45 B2.7 B
Cash Per Share3.60 X5.01 X
Total Debt2.73 B5.32 B
Debt To Equity22.60 %48.70 %
Current Ratio1.93 X2.16 X
Book Value Per Share32.81 X1.93 K
Cash Flow From Operations3.82 B971.22 M
Earnings Per Share3.68 X3.12 X
Price To Earnings To Growth1.99 X4.89 X
Target Price47.91
Number Of Employees5.8 K18.84 K
Beta0.76-0.15
Market Capitalization25.25 B19.03 B
Total Asset47.99 B29.47 B
Z Score5.48.72
Net Asset47.99 B

Arch Capital Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Arch . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Arch Capital Buy or Sell Advice

When is the right time to buy or sell Arch Capital Group? Buying financial instruments such as Arch Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Arch Capital in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Corona Opportunity
Corona Opportunity Theme
Firms that are involved in some capacity in making products or providing services to the public to buttle the virus directly or indirectly. This also includes some defencive and contrarian stocks and ETFs that are managing to avoid the big market correction coused by coronavirus. The Corona Opportunity theme has 46 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Corona Opportunity Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Arch Stock

When determining whether Arch Capital Group is a strong investment it is important to analyze Arch Capital's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Arch Capital's future performance. For an informed investment choice regarding Arch Stock, refer to the following important reports:
Check out Arch Capital Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Please note, there is a significant difference between Arch Capital's value and its price as these two are different measures arrived at by different means. Investors typically determine if Arch Capital is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Arch Capital's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.