The current rise in Diversey Holdings short term price appreciation could raise concerns from investors as the firm it trading at a share price of 17.01 on 996,377 in volume. The company directors and management have successfully maneuvered the firm at convenient times to take advantage of all market conditions in April. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.33. The current volatility is consistent with the ongoing market swings in April 2021 as well as with Diversey Holdings unsystematic, company-specific events.
Is Diversey Holdings (NASDAQ:DSEY) a good hedge for your existing portfolios?
 | By Raphi Shpitalnik | Macroaxis Story |
Diversey Holdings is currently generating 0.3054% in daily expected returns and assumes 2.3321% risk (volatility on return distribution) over the 60 days horizon. As many old-fashioned traders are trying to avoid consumer cyclical space, it makes sense to break down Diversey Holdings a little further and try to understand its current volatility patterns. We will evaluate if Diversey Holdings' current volatility will continue into June.
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Gabriel Shpitalnik
Diversey Holdings has a current ratio of 0.97, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Volatility is a rate at which the price of Diversey Holdings or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Diversey Holdings may increase or decrease. In other words, similar to Diversey's beta indicator, it measures the risk of Diversey Holdings and helps estimate the fluctuations that may happen in a short period of time. So if prices of Diversey Holdings fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
How important is Diversey Holdings's Liquidity
Diversey Holdings financial leverage refers to using borrowed capital as a funding source to finance Diversey Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Diversey 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 Diversey 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 Diversey 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 Diversey Holdings's total debt and its cash.
What is driving Diversey Holdings Investor Appetite?
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.
Try AI Portfolio ArchitectEditorial Staff
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 Diversey Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.