Red Cat Stock Forecast - Double Exponential Smoothing

RCAT Stock  USD 16.06  1.30  7.49%   
Red Stock outlook is based on your current time horizon.
The value of RSI of Red Cat's stock price is slightly above 66 indicating that the stock is rather overbought by investors at this time. The main point of the Relative Strength Index (RSI) is to track how fast people are buying or selling Red, making its price go up or down.

Momentum 66

 Buy Stretched

 
Oversold
 
Overbought
The successful prediction of Red Cat's future price could yield a significant profit. We analyze noise-free headlines and recent hype associated with Red Cat Holdings, which may create opportunities for some arbitrage if properly timed.
Using Red Cat hype-based prediction, you can estimate the value of Red Cat Holdings from the perspective of Red Cat response to recently generated media hype and the effects of current headlines on its competitors.
The Double Exponential Smoothing forecasted value of Red Cat Holdings on the next trading day is expected to be 16.42 with a mean absolute deviation of 0.55 and the sum of the absolute errors of 32.47.

Red Cat after-hype prediction price

    
  USD 16.06  
There is no one specific way to measure market sentiment using hype analysis or a similar predictive technique. This prediction method should be used in combination with more fundamental and traditional techniques such as stock price forecasting, technical analysis, analysts consensus, earnings estimates, and various momentum models.
Check out Historical Fundamental Analysis of Red Cat to cross-verify your projections.

Red Cat Additional Predictive Modules

Most predictive techniques to examine Red price help traders to determine how to time the market. We provide a combination of tools to recognize potential entry and exit points for Red using various technical indicators. When you analyze Red charts, please remember that the event formation may indicate an entry point for a short seller, and look at other indicators across different periods to confirm that a breakdown or reversion is likely to occur.
Double exponential smoothing - also known as Holt exponential smoothing is a refinement of the popular simple exponential smoothing model with an additional trending component. Double exponential smoothing model for Red Cat works best with periods where there are trends or seasonality.

Red Cat Double Exponential Smoothing Price Forecast For the 26th of January

Given 90 days horizon, the Double Exponential Smoothing forecasted value of Red Cat Holdings on the next trading day is expected to be 16.42 with a mean absolute deviation of 0.55, mean absolute percentage error of 0.48, and the sum of the absolute errors of 32.47.
Please note that although there have been many attempts to predict Red Stock prices using its time series forecasting, we generally do not recommend using it to place bets in the real market. The most commonly used models for forecasting predictions are the autoregressive models, which specify that Red Cat's next future price depends linearly on its previous prices and some stochastic term (i.e., imperfectly predictable multiplier).

Red Cat Stock Forecast Pattern

Backtest Red Cat  Red Cat Price Prediction  Buy or Sell Advice  

Red Cat Forecasted Value

In the context of forecasting Red Cat's Stock value on the next trading day, we examine the predictive performance of the model to find good statistically significant boundaries of downside and upside scenarios. Red Cat's downside and upside margins for the forecasting period are 9.41 and 23.44, respectively. We have considered Red Cat's daily market price to evaluate the above model's predictive performance. Remember, however, there is no scientific proof or empirical evidence that traditional linear or nonlinear forecasting models outperform artificial intelligence and frequency domain models to provide accurate forecasts consistently.
Market Value
16.06
16.42
Expected Value
23.44
Upside

Model Predictive Factors

The below table displays some essential indicators generated by the model showing the Double Exponential Smoothing forecasting method's relative quality and the estimations of the prediction error of Red Cat stock data series using in forecasting. Note that when a statistical model is used to represent Red Cat stock, the representation will rarely be exact; so some information will be lost using the model to explain the process. AIC estimates the relative amount of information lost by a given model: the less information a model loses, the higher its quality.
AICAkaike Information CriteriaHuge
BiasArithmetic mean of the errors -0.0037
MADMean absolute deviation0.5504
MAPEMean absolute percentage error0.058
SAESum of the absolute errors32.4713
When Red Cat Holdings prices exhibit either an increasing or decreasing trend over time, simple exponential smoothing forecasts tend to lag behind observations. Double exponential smoothing is designed to address this type of data series by taking into account any Red Cat Holdings trend in the prices. So in double exponential smoothing past observations are given exponentially smaller weights as the observations get older. In other words, recent Red Cat observations are given relatively more weight in forecasting than the older observations.

Predictive Modules for Red Cat

There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Red Cat Holdings. Regardless of method or technology, however, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Hype
Prediction
LowEstimatedHigh
9.0416.0623.08
Details
Intrinsic
Valuation
LowRealHigh
4.6611.6818.70
Details
Bollinger
Band Projection (param)
LowMiddleHigh
5.7311.5917.44
Details
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Red Cat. Your research has to be compared to or analyzed against Red Cat's peers to derive any actionable benefits. When done correctly, Red Cat'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 Red Cat Holdings.

Red Cat After-Hype Price Density Analysis

As far as predicting the price of Red Cat at your current risk attitude, this probability distribution graph shows the chance that the prediction will fall between or within a specific range. We use this chart to confirm that your returns on investing in Red Cat or, for that matter, your successful expectations of its future price, cannot be replicated consistently. Please note, a large amount of money has been lost over the years by many investors who confused the symmetrical distributions of Stock prices, such as prices of Red Cat, with the unreliable approximations that try to describe financial returns.
   Next price density   
       Expected price to next headline  

Red Cat Estimiated After-Hype Price Volatility

In the context of predicting Red Cat's stock value on the day after the next significant headline, we show statistically significant boundaries of downside and upside scenarios based on Red Cat's historical news coverage. Red Cat's after-hype downside and upside margins for the prediction period are 9.04 and 23.08, respectively. We have considered Red Cat's daily market price in relation to the headlines to evaluate this method's predictive performance. Remember, however, there is no scientific proof or empirical evidence that news-based prediction models outperform traditional linear, nonlinear models or artificial intelligence models to provide accurate predictions consistently.
Current Value
16.06
16.06
After-hype Price
23.08
Upside
Red Cat is slightly risky at this time. Analysis and calculation of next after-hype price of Red Cat Holdings is based on 3 months time horizon.

Red Cat Stock Price Outlook Analysis

Have you ever been surprised when a price of a Company such as Red Cat is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Red Cat backward and forwards among themselves. Have you ever observed a lot of a particular company's price movement is driven by press releases or news about the company that has nothing to do with actual earnings? Usually, hype to individual companies acts as price momentum. If not enough favorable publicity is forthcoming, the Stock price eventually runs out of speed. So, the rule of thumb here is that as long as this news hype has nothing to do with immediate earnings, you should pay more attention to it. If you see this tendency with Red Cat, there might be something going there, and it might present an excellent short sale opportunity.
Expected ReturnPeriod VolatilityHype ElasticityRelated ElasticityNews DensityRelated DensityExpected Hype
  0.78 
7.02
 0.00  
  0.06 
0 Events / Month
3 Events / Month
Within a week
Latest traded priceExpected after-news pricePotential return on next major newsAverage after-hype volatility
16.06
16.06
0.00 
0.00  
Notes

Red Cat Hype Timeline

Red Cat Holdings is at this time traded for 16.06. The entity stock is not elastic to its hype. The average elasticity to hype of competition is 0.06. Red is forecasted not to react to the next headline, with the price staying at about the same level, and average media hype impact volatility is insignificant. The immediate return on the next news is forecasted to be very small, whereas the daily expected return is at this time at 0.78%. %. The volatility of related hype on Red Cat is about 9887.32%, with the expected price after the next announcement by competition of 16.12. About 41.0% of the company shares are owned by institutional investors. The company recorded a loss per share of 0.51. Red Cat Holdings last dividend was issued on the 1st of August 2019. The entity had 1:1200 split on the 1st of August 2019. Given the investment horizon of 90 days the next forecasted press release will be within a week.
Check out Historical Fundamental Analysis of Red Cat to cross-verify your projections.

Red Cat Related Hype Analysis

Having access to credible news sources related to Red Cat's direct competition is more important than ever and may enhance your ability to predict Red Cat's future price movements. Getting to know how Red Cat's peers react to changing market sentiment, related social signals, and mainstream news is a great way to find investing opportunities and time the market. The summary table below summarizes the essential lagging indicators that can help you analyze how Red Cat may potentially react to the hype associated with one of its peers.

Other Forecasting Options for Red Cat

For every potential investor in Red, whether a beginner or expert, Red Cat's price movement is the inherent factor that sparks whether it is viable to invest in it or hold it better. Red Stock price charts are filled with many 'noises.' These noises can hugely alter the decision one can make regarding investing in Red. Basic forecasting techniques help filter out the noise by identifying Red Cat's price trends.

Red Cat Related Equities

One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with Red Cat stock to make a market-neutral strategy. Peer analysis of Red Cat could also be used in its relative valuation, which is a method of valuing Red Cat by comparing valuation metrics with similar companies.
 Risk & Return  Correlation

Red Cat Market Strength Events

Market strength indicators help investors to evaluate how Red Cat stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Red Cat shares will generate the highest return on investment. By undertsting and applying Red Cat stock market strength indicators, traders can identify Red Cat Holdings entry and exit signals to maximize returns.

Red Cat Risk Indicators

The analysis of Red Cat's basic risk indicators is one of the essential steps in accurately forecasting its future price. The process involves identifying the amount of risk involved in Red Cat's investment and either accepting that risk or mitigating it. Along with some essential techniques for forecasting red stock prices, we also provide a set of basic risk indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Story Coverage note for Red Cat

The number of cover stories for Red Cat depends on current market conditions and Red Cat's risk-adjusted performance over time. The coverage that generates the most noise at a given time depends on the prevailing investment theme that Red Cat is classified under. However, while its typical story may have numerous social followers, the rapid visibility can also attract short-sellers, who usually are skeptical about Red Cat's long-term prospects. So, having above-average coverage will typically attract above-average short interest, leading to significant price volatility.

Red Cat Short Properties

Red Cat's future price predictability will typically decrease when Red Cat's long traders begin to feel the short-sellers pressure to drive the price lower. The predictive aspect of Red Cat Holdings often depends not only on the future outlook of the potential Red Cat's investors but also on the ongoing dynamics between investors with different trading styles. Because the market risk indicators may have small false signals, it is better to identify suitable times to hedge a portfolio using different long/short signals. Red Cat's indicators that are reflective of the short sentiment are summarized in the table below.
Common Stock Shares Outstanding77 M
Cash And Short Term Investments9.2 M

Additional Tools for Red Stock Analysis

When running Red Cat's price analysis, check to measure Red Cat's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Red Cat is operating at the current time. Most of Red Cat's value examination focuses on studying past and present price action to predict the probability of Red Cat's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Red Cat's price. Additionally, you may evaluate how the addition of Red Cat to your portfolios can decrease your overall portfolio volatility.