Canadian Pacific Railway Stock Probability of Future Stock Price Finishing Over 107.23
| CP Stock | CAD 107.21 2.13 2.03% |
Canadian |
Canadian Pacific Target Price Odds to finish over 107.23
The tendency of Canadian 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 move over C$ 107.23 or more in 90 days |
| 107.21 | 90 days | 107.23 | about 84.51 |
Based on a normal probability distribution, the odds of Canadian Pacific to move over C$ 107.23 or more in 90 days from now is about 84.51 (This Canadian Pacific Railway probability density function shows the probability of Canadian Stock to fall within a particular range of prices over 90 days) . Probability of Canadian Pacific Railway price to stay between its current price of C$ 107.21 and C$ 107.23 at the end of the 90-day period is near 1 .
Assuming the 90 days horizon Canadian Pacific has a beta of 0.22 suggesting as returns on the market go up, Canadian Pacific average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Canadian Pacific Railway will be expected to be much smaller as well. Additionally Canadian Pacific Railway 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. Canadian Pacific Price Density |
| Price |
Predictive Modules for Canadian Pacific
There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Canadian Pacific Railway. 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.Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Canadian Pacific'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.
Canadian Pacific Risk Indicators
For the most part, the last 10-20 years have been a very volatile time for the stock market. Canadian Pacific is not an exception. The market had few large corrections towards the Canadian Pacific'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 Canadian Pacific Railway, one way to have your portfolio be protected is to always look up for changing volatility and market elasticity of Canadian Pacific within the framework of very fundamental risk indicators.α | Alpha over Dow Jones | -0.05 | |
β | Beta against Dow Jones | 0.22 | |
σ | Overall volatility | 3.82 | |
Ir | Information ratio | -0.14 |
Canadian Pacific Alerts and Suggestions
In today's market, stock alerts give investors the competitive edge they need to time the market and increase returns. Checking the ongoing alerts of Canadian Pacific for significant developments is a great way to find new opportunities for your next move. Suggestions and notifications for Canadian Pacific Railway can help investors quickly react to important events or material changes in technical or fundamental conditions and significant headlines that can affect investment decisions.| Canadian Pacific generated a negative expected return over the last 90 days | |
| Canadian Pacific Railway has accumulated 22.84 B in total debt with debt to equity ratio (D/E) of 1.34, which is about average as compared to similar companies. Canadian Pacific Railway has a current ratio of 0.59, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Canadian Pacific until it has trouble settling it off, either with new capital or with free cash flow. So, Canadian Pacific's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Canadian Pacific Railway sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Canadian to invest in growth at high rates of return. When we think about Canadian Pacific's use of debt, we should always consider it together with cash and equity. | |
| Over 76.0% of Canadian Pacific shares are held by institutions such as insurance companies | |
| Latest headline from news.google.com: Canadian Pacific Kansas City Ltd Quote - Press Release - The Globe and Mail |
Canadian Pacific 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 Canadian Stock often depends not only on the future outlook of the current and potential Canadian Pacific'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. Canadian Pacific's indicators that are reflective of the short sentiment are summarized in the table below.
| Common Stock Shares Outstanding | 933.7 M | |
| Cash And Short Term Investments | 464 M |
Canadian Pacific Technical Analysis
Canadian Pacific's future price can be derived by breaking down and analyzing its technical indicators over time. Canadian Stock technical analysis helps investors analyze different prices and returns patterns as well as diagnose historical swings to determine the real value of Canadian Pacific Railway. In general, you should focus on analyzing Canadian Stock price patterns and their correlations with different microeconomic environments and drivers.
Canadian Pacific Predictive Forecast Models
Canadian Pacific's time-series forecasting models is one of many Canadian Pacific'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 Canadian Pacific'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.
Things to note about Canadian Pacific Railway
Checking the ongoing alerts about Canadian Pacific for important developments is a great way to find new opportunities for your next move. Our stock alerts and notifications screener for Canadian Pacific Railway help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
| Canadian Pacific generated a negative expected return over the last 90 days | |
| Canadian Pacific Railway has accumulated 22.84 B in total debt with debt to equity ratio (D/E) of 1.34, which is about average as compared to similar companies. Canadian Pacific Railway has a current ratio of 0.59, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Canadian Pacific until it has trouble settling it off, either with new capital or with free cash flow. So, Canadian Pacific's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Canadian Pacific Railway sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Canadian to invest in growth at high rates of return. When we think about Canadian Pacific's use of debt, we should always consider it together with cash and equity. | |
| Over 76.0% of Canadian Pacific shares are held by institutions such as insurance companies | |
| Latest headline from news.google.com: Canadian Pacific Kansas City Ltd Quote - Press Release - The Globe and Mail |
Check out Canadian Pacific Backtesting, Canadian Pacific Valuation, Canadian Pacific Correlation, Canadian Pacific Hype Analysis, Canadian Pacific Volatility, Canadian Pacific History as well as Canadian Pacific Performance. You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.