Our latest technical analysis of Renren Inc ADR (NYSE:RENN)

RENN
 Stock
  

USD 30.67  0.62  2.06%   

As many baby boomers are indifferent towards consumer cyclical space, it makes sense to outline Renren Inc ADR against current market trends. As expected, Renren Inc is starting to reaffirm its true potential as institutional investors are becoming more and more confident in the future outlook. The returns on investing in Renren Inc and the market returns of the last few months appear not sensitive to each other. The proof of persistent basic indicators of the company suggests a short-term price swing for institutional investors of Renren. The stock is still going through an active upward rally.
Published over three months ago
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This firm'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 Renren Inc market sentiment investors' perception of the future value of Renren. Let us look at a few aspects of Renren technical analysis.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Renren Inc ADR. In general, we focus on analyzing Renren Inc stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Renren Inc'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 Renren Inc's intrinsic value. In addition to deriving basic predictive indicators for Renren Inc, we also check how macroeconomic factors affect Renren Inc 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 Renren Inc'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 Renren Inc 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 Renren Inc. Your research has to be compared to or analyzed against Renren Inc's peers to derive any actionable benefits. When done correctly, Renren Inc'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 Renren Inc ADR.

How important is Renren Inc's Liquidity

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

How does Renren utilize its cash?

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

Closer look at Renren Inc Variance

Renren Inc ADR has current Variance of 15.49. Variance is another measure of security risk that shows the amount of dispersion of equity returns around their mean value. Variance is calculated as the average squared deviations from the mean. Evaluating a set of investment alternatives one can use variance to help determine the volatility when purchasing a specific security. Similar to Standard Deviation, the variance is a measure of how far a set of numbers is spread out around its mean.

Variance is also a measure of stock volatility and can help determine the risk an investor might take on when purchasing a specific security. A relatively big variance indicates that the daily prices or returns are far from the mean and a small variance indicates that they are located around the mean.

Variance 
 = 
SUM(RET DEV)2 
 = 
15.49
SUM = Summation notation
RET DEV = Actual returns deviation over selected period
N = Number of points for the period
Let's now compare Renren Inc Variance to its closest peers:
RENN
NTES
SATS
VNET
VRSN
RENN15.49212250989043
NTES24.16
SATS8.61
VNET177.53
VRSN3.21

Can Renren Inc build up on the latest rise?

Latest total risk alpha is at 0.9. Renren Inc ADR shows above-average downside volatility for the selected time horizon. We advise investors to inspect Renren Inc ADR further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Renren Inc future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Renren Inc'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 Renren Inc'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.

Renren Inc Implied Volatility

Renren Inc's implied volatility exposes the market's sentiment of Renren Inc ADR stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Renren Inc'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 Renren Inc stock will not fluctuate a lot when Renren Inc's options are near their expiration.

Our Conclusion on Renren Inc

Whereas some firms within the auto & truck dealerships industry are still a little expensive, even after the recent corrections, Renren Inc may offer a potential longer-term growth to institutional investors. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither trade new shares of Renren 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 Renren Inc.

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 Raphi Shpitalnik do not own shares of Renren Inc ADR. Please refer to our Terms of Use for any information regarding our disclosure principles.

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