Is Staffing 360 (NASDAQ:STAF) a good short-term trade as volatility ascents?


USD 3.17  0.05  1.60%   

Lets try to digest the odds of Staffing 360 to fully recover from the latest dip as its shares went up 0.54%. This firm current daily volatility is 7.07 percent, with a beta of 1.35 and an alpha of -0.6 over DOW. As many millenniums are trying to avoid outsourcing, it makes sense to digest Staffing 360 Solutions a little further and try to understand its current market patterns. We will look into some reasons why it is still possible for Staffing 360 to maintain above-average margins while minimizing volatility.
Published over a month ago
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Staffing 360 Solutions currently holds about 1.35 M in cash with (17.66 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.56.
We provide advice to complement the current expert consensus on Staffing 360. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time.
Investing in Staffing 360, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Staffing 360 along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Staffing 360'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 Staffing 360 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 Staffing 360. Your research has to be compared to or analyzed against Staffing 360's peers to derive any actionable benefits. When done correctly, Staffing 360'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 Staffing 360 Solutions.

How important is Staffing 360's Liquidity

Staffing 360 financial leverage refers to using borrowed capital as a funding source to finance Staffing 360 Solutions ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Staffing 360 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 Staffing 360's total debt and its cash.

How does Staffing utilize its cash?

To perform a cash flow analysis of Staffing 360, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Staffing 360 is receiving and how much cash it distributes out in a given period. The Staffing 360 cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Staffing 360 Correlation with Peers

Investors in Staffing can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Staffing 360 Solutions. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Staffing 360 and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Staffing is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Staffing for more details

Breaking down Staffing 360 Indicators

Staffing 360 Solutions owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0811, which indicates the firm had -0.0811% of return per unit of risk over the last 3 months. Macroaxis standpoint towards measuring the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Staffing 360 Solutions exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to validate Staffing 360 risk adjusted performance of (0.08), and Coefficient Of Variation of (1,456) to confirm the risk estimate we provide.

Staffing technical analysis indicates possible correction

Latest Skewness is up to 0.05. Price may dip again. Staffing 360 Solutions is displaying above-average volatility over the selected time horizon. Investors should scrutinize Staffing 360 Solutions independently to ensure intended market timing strategies are aligned with expectations about Staffing 360 volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Staffing 360'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 Staffing 360'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.

Staffing 360 Implied Volatility

Staffing 360's implied volatility exposes the market's sentiment of Staffing 360 Solutions stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Staffing 360'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 Staffing 360 stock will not fluctuate a lot when Staffing 360's options are near their expiration.

Our Final Perspective on Staffing 360

Although many other companies in the staffing & employment services industry are either recovering or due for a correction, Staffing 360 may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Staffing as the current risk-reward utility is not appealing enough. 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 Staffing 360.

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 Staffing 360 Solutions. Please refer to our Terms of Use for any information regarding our disclosure principles.

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