Is Clearwater more volatile than Azure Power Global (NYSE:AZRE)?


USD 5.32  0.10  1.92%   

Clearwater Paper would recover faster from the latest fall as its shares price went up 2.42% to Azure Power's 4.99%As many rational traders are trying to avoid utilities space, it makes sense to digest Azure Power Global a little further and understand how it stands against Clearwater Paper and other similar entities. We are going to discuss some of the competitive aspects of both Azure and Clearwater.
Published over two months ago
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By analyzing existing basic indicators between Azure Power and Clearwater, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Clearwater with a short position in Azure Power. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Azure Power has an asset utilization ratio of 38.41 percent. This indicates that the company is making $0.38 for each dollar of assets. An increasing asset utilization means that Azure Power Global is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Azure or Linde is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Azure Power's Liquidity

Azure Power financial leverage refers to using borrowed capital as a funding source to finance Azure Power Global ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Azure Power 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. Please check the breakdown between Azure Power's total debt and its cash.

Correlation Between Azure and Linde PLC

In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock 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 Azure Power together with similar or unrelated positions with a negative correlation. For example, you can also add Linde PLC to your portfolio. If Linde PLC is not perfectly correlated to Azure Power 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 Azure Power, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between AZRE and LIN for more information.

A Deeper Perspective

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 product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now take a look at Azure Power revenue. Based on the latest financial disclosure, Azure Power Global reported 17.58 B of revenue. This is 343.9% higher than that of the Utilities sector and significantly higher than that of the Utilities—Renewable industry. The revenue for all United States stocks is 86.33% lower than that of Azure Power Global. As for Clearwater Paper we see revenue of 1.83 B, which is much higher than that of the Utilities—Renewable

17.6 B
AZRE17.58 Billion90.57
CLW1.83 Billion9.43

Will Azure Power slide back in October?

The kurtosis is down to 7.52 as of today. Azure Power Global is displaying above-average volatility over the selected time horizon. Investors should scrutinize Azure Power Global independently to ensure intended market timing strategies are aligned with expectations about Azure Power volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Azure Power'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 Azure Power'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 stocks as prices fall.

Our Final Take On Azure Power

Although many other companies in the utilities—renewable industry are either recovering or due for a correction, Azure may not be as strong as the others in terms of longer-term growth potentials. In closing, as of the 26th of September 2022, our present 90 days buy-hold-sell recommendation on the firm is Cautious Hold. We believe Azure Power is undervalued with average chance of distress for the next two years.

Editorial 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 Gabriel Shpitalnik do not own shares of Azure Power Global. Please refer to our Terms of Use for any information regarding our disclosure principles.

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