Should you buy World Wrestling Entertainment after the latest volatility surge?

WWE
 Stock
  

USD 67.96  0.24  0.35%   

It looks as if World Wrestling will continue to recover much faster as its share price surged up 1.87% today. This firm current daily volatility is 2.03 percent, with a beta of 0.56 and an alpha of 0.32 over DOW. As many of us are excited about entertainment, it is fair to digest World Wrestling Entertainment. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over a month ago
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World Wrestling Entertainment has roughly 447.81 M in cash with 214.14 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 6.02.
Macroaxis provides unbiased trade advice on World Wrestling that should be used to complement current analysts and expert consensus on World Wrestling Ente. Our recommendation engine determines the company's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon.
Investing in World Wrestling, 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 World Wrestling 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 World Wrestling'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 World Wrestling 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 World Wrestling. Your research has to be compared to or analyzed against World Wrestling's peers to derive any actionable benefits. When done correctly, World Wrestling'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 World Wrestling Ente.

How important is World Wrestling's Liquidity

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

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for World Wrestling, but it might be worth checking our own buy vs. sell analysis

World Wrestling Correlation with Peers

Investors in World can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in World Wrestling Entertainment. Diversification will allow for the same portfolio return with reduced risk. The correlation table of World Wrestling and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities World 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 World for more details

Another Outlook On World Wrestling

World Wrestling appears to be very steady, given 3 months investment horizon. World Wrestling Ente shows Sharpe Ratio of 0.18, which attests that the company had 0.18% of return per unit of risk over the last 3 months. Our standpoint towards determining the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for World Wrestling Ente, which you can use to evaluate the future volatility of the company. Please utilize World Wrestling's Market Risk Adjusted Performance of 0.6667, downside deviation of 1.85, and Mean Deviation of 1.33 to validate if our risk estimates are consistent with your expectations.
DIS
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0.740.660.32
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0.740.92-0.3
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0.660.92-0.3
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0.32-0.3-0.3
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Possible September throwback of World?

Latest maximum drawdown is at 11.81. World Wrestling Entertainment has relatively low volatility with skewness of 0.84 and kurtosis of 3.91. However, we advise all investors to independently investigate World Wrestling Entertainment to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure World Wrestling'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 World Wrestling'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.

World Wrestling Implied Volatility

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

Our Final Take On World Wrestling

Although some companies within the entertainment industry are still a little expensive, even after the recent corrections, World Wrestling may offer a potential longer-term growth to shareholders. While some shareholders may not share our view, we believe that right now is not a good time to increase your holdings in World. 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 World Wrestling.

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 World Wrestling Entertainment. Please refer to our Terms of Use for any information regarding our disclosure principles.

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