In general, Fund analysis is a method for investors and traders to make individual buying and selling decisions. Mutual Fund correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Ancora Microcap together with similar or unrelated positions with a negative correlation. For example, you can also add Lebenthal Lisanti to your portfolio. If Lebenthal Lisanti is not perfectly correlated to Ancora Microcap it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Ancora Microcap, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Ancora Microcap and Lebenthal Lisanti in your portfolio? Please note if you are using this as a pair-trade strategy between Ancora Microcap and Lebenthal Lisanti, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check The asset allocation of funds such as Ancora Microcap usually varies among a different mix of asset classes. Balanced mutual funds invest not only in bonds, which focus primarily on income, and stocks, which aim for investment growth, but also keep some reserve in cash or even exotic instruments. Below we show the current asset allocation of Ancora Microcap Fund
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now check Richardson Electronics revenue. Based on the latest financial disclosure, Richardson Electronics reported 262.66
M of revenue. This is 93.56% lower than that of the Electronic Equipment, Instruments & Components sector and 82.93% lower than that of the
Information Technology industry.
The revenue for all United States stocks is 97.22% higher than that of Richardson Electronics. As for Electromed we see revenue of 48.07
M, which is 96.88% lower than that of the Information Technology
| RELL | 262.66 Million | 14.2 |
| Sector | 1.54 Billion | 83.2 |
| ELMD | 48.07 Million | 2.6 |
As Warren Buffet once wisely noted, risk comes from not knowing what you're doing. In the case of Richardson Electronics, a company in the Electronic Components industry, there are several factors to consider when assessing its volatility compared to Electromed. With a beta of 1, Richardson Electronics moves in line with the market, indicating a moderate level of risk. However, its negative operating margin of 0.04 and a quarterly revenue growth of -0.33 suggest potential financial instability. Furthermore, the company's risk-adjusted performance of -0.07 and a total risk alpha of -0.57 indicate that the stock has underperformed when considering the risk taken. Therefore, Richardson Electronics may indeed be a more volatile investment than Electromed. .
Richardson showing proof of lower volatility
Richardson Electronics' Jensen Alpha is currently -0.44, which could suggest lower volatility rather than poor performance. A negative Jensen's Alpha can indicate the stock is less risky compared to the market, aligning with Richardson Electronics' recent trend of lower volatility. This could appeal to investors seeking stability, as it implies the stock's returns are less prone to significant market swings. With a skewness of -3.87 and kurtosis of 24.07, Richardson Electronics shows very low volatility. Understanding these
market volatility trends can help investors time the market. Utilizing volatility indicators correctly allows traders to assess Richardson Electronics' stock risk against market volatility in both bullish and bearish trends. The increased volatility of bear markets can affect
Richardson Electronics' stock price, causing investor stress as share values drop, often leading to portfolio rebalancing with diverse financial instruments.
The Current Takeaway on Richardson Electronics Investment
Whereas some companies under the electronic components industry are still a bit expensive, Richardson Electronics may offer a potential longer-term growth to institutional investors. While some institutional investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. 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 Richardson Electronics.
Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
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 Gabriel Shpitalnik do not own shares of Ancora Microcap Fund. Please refer to our
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