Advance Auto (Brazil) Probability of Future Stock Price Finishing Under 11.05
| A1AP34 Stock | BRL 16.44 0.68 4.31% |
Advance |
Advance Auto Target Price Odds to finish below 11.05
The tendency of Advance Stock price to converge on an average value over time is a known aspect in finance that investors have used since the beginning of the stock market for forecasting. However, many studies suggest that some traded equity instruments are consistently mispriced before traders' demand and supply correct the spread. One possible conclusion to this anomaly is that these stocks have additional risk, for which investors demand compensation in the form of extra returns.
| Current Price | Horizon | Target Price | Odds to drop to R$ 11.05 or more in 90 days |
| 16.44 | 90 days | 11.05 | near 1 |
Based on a normal probability distribution, the odds of Advance Auto to drop to R$ 11.05 or more in 90 days from now is near 1 (This Advance Auto Parts probability density function shows the probability of Advance Stock to fall within a particular range of prices over 90 days) . Probability of Advance Auto Parts price to stay between R$ 11.05 and its current price of R$16.44 at the end of the 90-day period is about 99.0 .
Assuming the 90 days trading horizon Advance Auto has a beta of 0.64. This suggests as returns on the market go up, Advance Auto average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Advance Auto Parts will be expected to be much smaller as well. Additionally Advance Auto Parts has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial. Advance Auto Price Density |
| Price |
Predictive Modules for Advance Auto
There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Advance Auto Parts. 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.Advance Auto Risk Indicators
For the most part, the last 10-20 years have been a very volatile time for the stock market. Advance Auto is not an exception. The market had few large corrections towards the Advance Auto's value, including both sudden drops in prices as well as massive rallies. These swings have made and broken many portfolios. An investor can limit the violent swings in their portfolio by implementing a hedging strategy designed to limit downside losses. If you hold Advance Auto Parts, one way to have your portfolio be protected is to always look up for changing volatility and market elasticity of Advance Auto within the framework of very fundamental risk indicators.α | Alpha over Dow Jones | -0.14 | |
β | Beta against Dow Jones | 0.64 | |
σ | Overall volatility | 0.99 | |
Ir | Information ratio | -0.07 |
Advance Auto Price Density Drivers
Market volatility will typically increase when nervous long traders begin to feel the short-sellers pressure to drive the market lower. The future price of Advance Stock often depends not only on the future outlook of the current and potential Advance Auto'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. Advance Auto's indicators that are reflective of the short sentiment are summarized in the table below.
| Common Stock Shares Outstanding | 62 M | |
| Dividends Paid | 160.9 M |
Advance Auto Technical Analysis
Advance Auto's future price can be derived by breaking down and analyzing its technical indicators over time. Advance Stock technical analysis helps investors analyze different prices and returns patterns as well as diagnose historical swings to determine the real value of Advance Auto Parts. In general, you should focus on analyzing Advance Stock price patterns and their correlations with different microeconomic environments and drivers.
Advance Auto Predictive Forecast Models
Advance Auto's time-series forecasting models is one of many Advance Auto's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models are widely used for non-stationary data. Non-stationary data are called the data whose statistical properties, e.g., the mean and standard deviation, are not constant over time, but instead, these metrics vary over time. This non-stationary Advance Auto's historical data is usually called time series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the stock market movement and maximize returns from investment trading.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Advance Auto in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Advance Auto's short interest history, or implied volatility extrapolated from Advance Auto options trading.
Additional Information and Resources on Investing in Advance Stock
When determining whether Advance Auto Parts is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Advance Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Advance Auto Parts Stock. Highlighted below are key reports to facilitate an investment decision about Advance Auto Parts Stock:Check out Advance Auto Backtesting, Advance Auto Valuation, Advance Auto Correlation, Advance Auto Hype Analysis, Advance Auto Volatility, Advance Auto History as well as Advance Auto Performance. You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.