Should you take up Invesco Mortgage (NYSE:IVR) based on latest technical indicators?


USD 11.57  0.38  3.18%   

With so much uncertainty about the real estate space, it is fair to sum up Invesco Mortgage Capital against current market trends. As we have suggested previously, Invesco Mortgage is beginning its fall as retail investors shift to be more bearish due to the increased sector volatility. The company returns are correlated to each other to returns on the market. As market moves up or down, the company is expected to follow. Weak basic indicators of the enterprise may also connote signs of long-running losses for Invesco retail investors. The stock is currently experiencing a very aggressive trading activities.
Published over three months ago
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Invesco Mortgage's average rating is Sell from 1 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Invesco Mortgage market sentiment investors' perception of the future value of Invesco. Let us look at a few aspects of Invesco technical analysis.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Invesco Mortgage Capital. In general, we focus on analyzing Invesco Mortgage stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Invesco Mortgage's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Invesco Mortgage's intrinsic value. In addition to deriving basic predictive indicators for Invesco Mortgage, we also check how macroeconomic factors affect Invesco Mortgage price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Invesco Mortgage'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 use the tools below to analyze the current value of Invesco Mortgage in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Invesco Mortgage. Your research has to be compared to or analyzed against Invesco Mortgage's peers to derive any actionable benefits. When done correctly, Invesco Mortgage's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Invesco Mortgage Capital.

How important is Invesco Mortgage's Liquidity

Invesco Mortgage financial leverage refers to using borrowed capital as a funding source to finance Invesco Mortgage Capital ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Invesco Mortgage 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 Invesco Mortgage's total debt and its cash.

How does Invesco utilize its cash?

To perform a cash flow analysis of Invesco Mortgage, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Invesco Mortgage is receiving and how much cash it distributes out in a given period. The Invesco Mortgage cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Another angle On Invesco Mortgage

This firm has a beta of 1.1009. Let's try to break down what Invesco's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Invesco Mortgage will likely underperform. The beta indicator helps investors understand whether Invesco Mortgage moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Invesco deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
Invesco Mortgage price fall over the last few months may raise some interest from retail investors. The stock closed today at a share price of 1.75 on 6,783,918 in trading volume. The company directors and management were not very successful in positioning the firm resources to exploit market volatility in May. However, diversifying your holdings with Invesco Mortgage Capital or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.65. The current volatility is consistent with the ongoing market swings in May 2022 as well as with Invesco Mortgage Capital unsystematic, company-specific events.

Is Invesco showing record of lower volatility?

Latest jensen alpha is at -0.16. Invesco Mortgage Capital exhibits very low volatility with skewness of -0.18 and kurtosis of 1.77. However, we advise investors to further study Invesco Mortgage Capital technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Invesco Mortgage's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Invesco Mortgage'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.

Invesco Mortgage Implied Volatility

Invesco Mortgage's implied volatility exposes the market's sentiment of Invesco Mortgage Capital stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Invesco Mortgage's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Invesco Mortgage stock will not fluctuate a lot when Invesco Mortgage's options are near their expiration.

Our Bottom Line On Invesco Mortgage Capital

While few other entities in the reit—mortgage industry are either recovering or due for a correction, Invesco may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither buy new shares of Invesco nor sell your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. 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 Invesco Mortgage.

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 Ellen Johnson do not own shares of Invesco Mortgage Capital. Please refer to our Terms of Use for any information regarding our disclosure principles.

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