Vale SA (Germany) Odds of Future Stock Price Finishing Under 2.80

CVLC Stock  EUR 9.31  0.18  1.90%   
Vale SA's future price is the expected price of Vale SA instrument. It is based on its current growth rate as well as the projected cash flow expected by the investors. This tool provides a mechanism to make assumptions about the upside potential and downside risk of Vale SA performance during a given time horizon utilizing its historical volatility. Check out Vale SA Backtesting, Vale SA Valuation, Vale SA Correlation, Vale SA Hype Analysis, Vale SA Volatility, Vale SA History as well as Vale SA Performance.
  
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Vale SA Target Price Odds to finish below 2.80

The tendency of Vale 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 PriceHorizonTarget PriceOdds to drop to € 2.80  or more in 90 days
 9.31 90 days 2.80 
near 1
Based on a normal probability distribution, the odds of Vale SA to drop to € 2.80  or more in 90 days from now is near 1 (This Vale SA probability density function shows the probability of Vale Stock to fall within a particular range of prices over 90 days) . Probability of Vale SA price to stay between € 2.80  and its current price of €9.31 at the end of the 90-day period is about 5.46 .
Assuming the 90 days trading horizon Vale SA has a beta of -0.2 suggesting as returns on the benchmark increase, returns on holding Vale SA are expected to decrease at a much lower rate. During a bear market, however, Vale SA is likely to outperform the market. Additionally Vale SA has an alpha of 0.062, implying that it can generate a 0.062 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta).
   Vale SA Price Density   
       Price  

Predictive Modules for Vale SA

There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Vale SA. 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 Vale SA'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.
Hype
Prediction
LowEstimatedHigh
7.599.4911.39
Details
Intrinsic
Valuation
LowRealHigh
6.418.3110.21
Details
Naive
Forecast
LowNextHigh
7.489.3811.29
Details
Bollinger
Band Projection (param)
LowerMiddle BandUpper
9.529.659.78
Details

Vale SA Risk Indicators

For the most part, the last 10-20 years have been a very volatile time for the stock market. Vale SA is not an exception. The market had few large corrections towards the Vale SA'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 Vale SA, one way to have your portfolio be protected is to always look up for changing volatility and market elasticity of Vale SA within the framework of very fundamental risk indicators.
α
Alpha over Dow Jones
0.06
β
Beta against Dow Jones-0.2
σ
Overall volatility
0.45
Ir
Information ratio -0.03

Vale SA 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 Vale Stock often depends not only on the future outlook of the current and potential Vale SA'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. Vale SA's indicators that are reflective of the short sentiment are summarized in the table below.
Common Stock Shares Outstanding4.5 B

Vale SA Technical Analysis

Vale SA's future price can be derived by breaking down and analyzing its technical indicators over time. Vale Stock technical analysis helps investors analyze different prices and returns patterns as well as diagnose historical swings to determine the real value of Vale SA. In general, you should focus on analyzing Vale Stock price patterns and their correlations with different microeconomic environments and drivers.

Vale SA Predictive Forecast Models

Vale SA's time-series forecasting models is one of many Vale SA'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 Vale SA'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 Vale SA 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, Vale SA's short interest history, or implied volatility extrapolated from Vale SA options trading.

Other Information on Investing in Vale Stock

Vale SA financial ratios help investors to determine whether Vale Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Vale with respect to the benefits of owning Vale SA security.