Rede Energia (Brazil) Probability of Future Stock Price Finishing Under 6.58
| REDE3 Stock | BRL 6.62 0.02 0.30% |
Rede |
Rede Energia Target Price Odds to finish below 6.58
The tendency of Rede 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$ 6.58 or more in 90 days |
| 6.62 | 90 days | 6.58 | roughly 2.42 |
Based on a normal probability distribution, the odds of Rede Energia to drop to R$ 6.58 or more in 90 days from now is roughly 2.42 (This Rede Energia Participaes probability density function shows the probability of Rede Stock to fall within a particular range of prices over 90 days) . Probability of Rede Energia Participaes price to stay between R$ 6.58 and its current price of R$6.62 at the end of the 90-day period is nearly 4.61 .
Assuming the 90 days trading horizon Rede Energia has a beta of 0.0443 indicating as returns on the market go up, Rede Energia average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Rede Energia Participaes will be expected to be much smaller as well. Additionally Rede Energia Participaes 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. Rede Energia Price Density |
| Price |
Predictive Modules for Rede Energia
There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Rede Energia Participaes. 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.Rede Energia Risk Indicators
For the most part, the last 10-20 years have been a very volatile time for the stock market. Rede Energia is not an exception. The market had few large corrections towards the Rede Energia'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 Rede Energia Participaes, one way to have your portfolio be protected is to always look up for changing volatility and market elasticity of Rede Energia within the framework of very fundamental risk indicators.α | Alpha over Dow Jones | -0.05 | |
β | Beta against Dow Jones | 0.04 | |
σ | Overall volatility | 0.08 | |
Ir | Information ratio | -0.18 |
Rede Energia 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 Rede Energia for significant developments is a great way to find new opportunities for your next move. Suggestions and notifications for Rede Energia Participaes can help investors quickly react to important events or material changes in technical or fundamental conditions and significant headlines that can affect investment decisions.| Rede Energia generated a negative expected return over the last 90 days | |
| About 100.0% of the company outstanding shares are owned by corporate insiders |
Rede Energia 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 Rede Stock often depends not only on the future outlook of the current and potential Rede Energia'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. Rede Energia's indicators that are reflective of the short sentiment are summarized in the table below.
| Common Stock Shares Outstanding | 2.1 B | |
| Cash And Short Term Investments | 2.5 B |
Rede Energia Technical Analysis
Rede Energia's future price can be derived by breaking down and analyzing its technical indicators over time. Rede Stock technical analysis helps investors analyze different prices and returns patterns as well as diagnose historical swings to determine the real value of Rede Energia Participaes. In general, you should focus on analyzing Rede Stock price patterns and their correlations with different microeconomic environments and drivers.
Rede Energia Predictive Forecast Models
Rede Energia's time-series forecasting models is one of many Rede Energia'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 Rede Energia'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 Rede Energia Participaes
Checking the ongoing alerts about Rede Energia for important developments is a great way to find new opportunities for your next move. Our stock alerts and notifications screener for Rede Energia Participaes help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
| Rede Energia generated a negative expected return over the last 90 days | |
| About 100.0% of the company outstanding shares are owned by corporate insiders |
Additional Tools for Rede Stock Analysis
When running Rede Energia's price analysis, check to measure Rede Energia'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 Rede Energia is operating at the current time. Most of Rede Energia's value examination focuses on studying past and present price action to predict the probability of Rede Energia's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Rede Energia's price. Additionally, you may evaluate how the addition of Rede Energia to your portfolios can decrease your overall portfolio volatility.