LPA Volatility: A High-Risk Investment with Potential Rewards
The U.S. Dollar Index (DXY) is currently in a neutral state, which has a neutral effect on the Real Estate Operations domestic-focused industry. This means that Logistic Properties of The Americas (LPA), a company operating in this sector, will not be significantly impacted by currency fluctuations.
However, LPA's risk assessment score is 2.01, ranking it 35 out of 47 in the Real Estate Operations industry. Its beta value is 5.65, indicating that the stock tends to outperform the index during upward trending markets but experiences larger declines during downward trending markets.
The company's volatility and maximum drawdown over the past 240 days have been significant, with a realised volatility of 92.72% and a maximum drawdown of 64.64%. This suggests that LPA is a high-risk investment, but also potentially high-reward for those who can stomach its volatility.
LPA's return-to-drawdown ratio over the past five years has been -0.14, indicating that it has not performed well in times of market stress. However, its skewness over this period has been 28.22, suggesting that it has tended to outperform the S&P 500 index.