J Sainsbury PLC classifies itself under
Consumer Defensive sector and is part of
Grocery Stores industry.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. J Sainsbury has an asset utilization ratio of 111.08 percent. This suggests that the company is making $1.11 for each dollar of assets. An increasing asset utilization means that J Sainsbury PLC is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in J Sainsbury, 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 J Sainsbury 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.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of J Sainsbury'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 J Sainsbury. Your research has to be compared to or analyzed against J Sainsbury's peers to derive any actionable benefits. When done correctly, J Sainsbury'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 J Sainsbury PLC.
How important is J Sainsbury's Liquidity
J Sainsbury
financial leverage refers to using borrowed capital as a funding source to finance J Sainsbury PLC ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. J Sainsbury 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 J Sainsbury'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 J Sainsbury'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 J Sainsbury's total debt and its cash.
J Sainsbury Correlation with Peers
Investors in JSAIY can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in J Sainsbury PLC. Diversification will allow for the same portfolio return with reduced risk. The correlation table of J Sainsbury and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities JSAIY 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 JSAIY for more details
Breaking down the case for J Sainsbury
J Sainsbury appears to be not too volatile, given 3 months investment horizon.
J Sainsbury PLC holds Efficiency (Sharpe) Ratio of 0.39, which attests that the company had 0.39% of return per unit of volatility over the last 3 months. Our approach to determining the volatility of a stock is to use all available market data together with stock-specific
technical indicators that cannot be
diversified away. By analyzing
J Sainsbury PLC technical indicators you can at this moment evaluate if the expected return of 0.7% is justified by implied risk. Please utilize J Sainsbury's
semi deviation of 0.5016, and Market Risk Adjusted Performance of 0.9882 to validate if our risk estimates are consistent with your expectations.
J Sainsbury has 93 percent likelihood to slide below USD11.7 in February
The market risk adjusted performance is down to 0.99 as of today. J Sainsbury PLC has relatively low volatility with skewness of 0.88 and kurtosis of 0.72. However, we advise all investors to independently investigate J Sainsbury PLC to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure J Sainsbury's otc stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact J Sainsbury's otc 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 Takeaway
While some other companies in the grocery stores industry are either recovering or due for a correction, J Sainsbury may not be performing as strong as the other in terms of long-term growth potentials. While some investors may not share our view, we believe it may be a good time to increase your existing holdings in JSAIY as the risk-reward trade off is appealing enough to hold a position. 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 J Sainsbury.
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
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 J Sainsbury PLC. 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