Direct Line Despite Discounted Valuation, Risk-Reward Profile Is Not Attractive Enough - Seeking Alpha
| DIISY Stock | USD 12.53 0.28 2.19% |
Slightly above 62% of Direct Line's investor base is looking to short. The analysis of overall sentiment of trading Direct Line Insurance pink sheet suggests that many investors are alarmed at this time. Direct Line's investing sentiment can be driven by a variety of factors including economic data, Direct Line's earnings reports, geopolitical events, and overall market trends.
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Direct Line Despite Discounted Valuation, Risk-Reward Profile Is Not Attractive Enough Seeking Alpha
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Direct Line Fundamental Analysis
We analyze Direct Line's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Direct Line using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Direct Line based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Beta
Beta Comparative Analysis
Direct Line is currently under evaluation in beta category among its peers. Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Direct Line Insurance Potential Pair-trading
One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with Direct Line pink sheet to make a market-neutral strategy. Peer analysis of Direct Line could also be used in its relative valuation, which is a method of valuing Direct Line by comparing valuation metrics with similar companies.
Peers
Direct Line Related Equities
| AMKR | Amkor Technology | 2.42 | ||||
| PLXS | Plexus Corp | 0.03 | ||||
| CPAC | Cementos Pacasmayo | 0.50 | ||||
| ELTK | Eltek | 1.08 | ||||
| DFH | Dream Finders | 3.07 | ||||
| HURC | Hurco Companies | 3.94 |
Additional Tools for Direct Pink Sheet Analysis
When running Direct Line's price analysis, check to measure Direct Line's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Direct Line is operating at the current time. Most of Direct Line's value examination focuses on studying past and present price action to predict the probability of Direct Line's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Direct Line's price. Additionally, you may evaluate how the addition of Direct Line to your portfolios can decrease your overall portfolio volatility.