Is it time to pull out from Social Reality?

Today article will break down Social Reality. I will cover the possibilities of making Social Reality into a steady grower in February. Social Reality almost neglects market trends. The returns on the market and returns on Social Reality appear slightly correlated for the last few months. Weak basic indicators of the company may also suggest signs of long term losses for the company investors. What is Social Reality Target Price Odds to finish over Current Price? Based on normal probability distribution, the odds of Social Reality to move above current price in 30 days from now is about 5.92%. The Social Reality probability density function shows the probability of Social Reality Stock to fall within a particular range of prices over 30 days . Given the investment horizon of 30 days, Social Reality has beta of -0.3862 . This entails as returns on benchmark increase, returns on holding Social Reality are expected to decrease at a much smaller rate. During bear market, however, Social Reality is likely to outperform the market. Additionally, the company has an alpha of 0.613 implying that it can potentially generate 0.613% excess return over Russell 2000 after adjusting for the inherited market risk (beta).
Published over a year ago
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Reviewed by Rifka Kats

This firm average rating is Strong Buy from 2 analysts. As of the 21th of January Social Reality has Semi Deviation of 5.92, Risk Adjusted Performance of 0.0646 and Coefficient Of Variation of 1365.64. In relation to Fundamental Indicators, Macroaxis technical analysis interface makes it possible for you to check existing technical drivers of Social Reality as well as the relationship between them. In other words you can use this information to find out if the company will indeed mirror its model of past prices and volume data or the prices will eventually revert. We found nineteen technical drivers for Social Reality which can be compared to its competition. Please validate Social Reality Semi Deviation, Jensen Alpha as well as the relationship between Jensen Alpha and Semi Variance to decide if Social Reality is priced more or less accurately providing market reflects its prevalent price of 2.39 per share. Please also confirm Social Reality Total Risk Alpha which is currently at (1.00) to double-check the company can sustain itself at future point.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of SRAX Inc. In general, sophisticated investors focus on analyzing SRAX stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build SRAX'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 SRAX's intrinsic value. In addition to deriving basic predictive indicators for SRAX, many experienced traders also check how macroeconomic factors affect SRAX 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, anticipate that the market will even out over time. This tendency of SRAX'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 note, it is not enough to conduct a financial or market analysis of a single entity such as SRAX. Your research has to be compared to or analyzed against SRAX's peers to derive any actionable benefits. When done correctly, SRAX's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in SRAX Inc.

Watch out for price decline

Please consider monitoring SRAX on a daily basis if you are holding a position in it. SRAX is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as SRAX stock to be traded above the $1 level to remain listed. If SRAX stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How does SRAX Stands against Peers?

Analyzing SRAX competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to SRAX across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be. Check out SRAX Competition Details

Breaking down SRAX Indicators

The latest price spikes of Social Reality has created some momentum for investors as it was traded today as low as 2.32 and as high as 2.55 per share. The company management were quite successful positioning the company resources to exploit market volatility in February 2020. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 7.88. The very high volatility is mostly attributed to the latest market swings and not very good earning reports from some ot the Social Reality partners. Social Reality is trading at 2.39 which is 1.24% down. Opened at 2.39.
All things considered, our overall buy/sell recommendation on the company is Strong Sell. Social Reality is currently undervalued with very low probability of distress for the next two years.

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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 SRAX Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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