Corsair Stock Story

CRSR -  USA Stock  

USD 21.03  0.75  3.44%

While many traders are getting carried away by overanalyzing competition within technology space, it is quite reasonable to sum up both, Corsair Gaming and Canaan Inc as potential short-term investments. We are going to discuss some of the competitive aspects of both Corsair and Canaan.
Published over a month ago
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Should we be buying Canaan or Corsair Gaming?
By analyzing existing basic indicators between Corsair Gaming and Canaan, 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 Canaan with a short position in Corsair Gaming. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The latest return on assets of Corsair connotes not a very effective usage of assets in October.
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 companies, such as Corsair or Canaan is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Corsair Gaming's Liquidity

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

Correlation Between Corsair and Canaan Inc ADR

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 Corsair Gaming together with similar or unrelated positions with a negative correlation. For example, you can also add Canaan Inc to your portfolio. If Canaan Inc is not perfectly correlated to Corsair Gaming 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 Corsair Gaming for example, 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 CRSR and CAN for more information.

Note

Are you currently holding both Corsair Gaming and Canaan Inc in your portfolio?
Please note if you are using this as a pair-trade strategy between Corsair Gaming and Canaan Inc, 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.

Another 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

Let me take a closer look at Corsair Gaming revenue. Based on the latest financial disclosure, Corsair Gaming reported 1.92 B of revenue. This is 52.89% lower than that of the Technology sector and significantly higher than that of the Computer Hardware industry. The revenue for all United States stocks is 79.65% higher than that of Corsair Gaming. As for Canaan Inc we see revenue of 782.19 M, which is much higher than that of the Computer Hardware

Corsair1.92 Billion
Sector0.0
Canaan782.19 Million
1.9 B
Corsair
Sector
782.2 M
Canaan

Corsair Gaming bad headlines are not so bad

Latest total risk alpha indicator falls down to -0.3. Possible price gain?
As of the 16th of October 2021, Corsair Gaming shows the mean deviation of 1.68, and Risk Adjusted Performance of (0.09). Corsair Gaming technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We are able to interpolate and collect nineteen technical drivers for Corsair Gaming, which can be compared to its rivals. Please confirm Corsair Gaming standard deviation, value at risk, as well as the relationship between the Value At Risk and kurtosis to decide if Corsair Gaming is priced correctly, providing market reflects its regular price of 24.79 per share. Given that Corsair Gaming has jensen alpha of (0.29), we suggest you to validate Corsair Gaming's prevailing market performance to make sure the company can sustain itself at a future point.

Our Conclusion on Corsair Gaming

While some companies in the computer hardware industry are either recovering or due for a correction, Corsair 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 take in new shares of Corsair nor drop 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 Corsair Gaming.

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 Corsair Gaming. Please refer to our Terms of Use for any information regarding our disclosure principles.

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