| CP Stock | | | CAD 107.11 0.81 0.76% |
Canadian Pacific financial indicator trend analysis is way more than just evaluating Canadian Pacific Railway prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Canadian Pacific Railway is a good investment. Please check the relationship between Canadian Pacific Capex To Revenue and its Book Value Per Share accounts. Check out
Trending Equities to better understand how to build diversified portfolios, which includes a position in Canadian Pacific Railway. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
signals in estimate.
Capex To Revenue vs Book Value Per Share
Capex To Revenue vs Book Value Per Share Correlation Analysis
The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of
Canadian Pacific Railway Capex To Revenue account and
Book Value Per Share. At this time, the significance of the direction appears to have pay attention.
The correlation between Canadian Pacific's Capex To Revenue and Book Value Per Share is -0.72. Overlapping area represents the amount of variation of Capex To Revenue that can explain the historical movement of Book Value Per Share in the same time period over historical financial statements of Canadian Pacific Railway, assuming nothing else is changed. The correlation between historical values of Canadian Pacific's Capex To Revenue and Book Value Per Share is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Capex To Revenue of Canadian Pacific Railway are associated (or correlated) with its Book Value Per Share. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Book Value Per Share has no effect on the direction of Capex To Revenue i.e., Canadian Pacific's Capex To Revenue and Book Value Per Share go up and down completely randomly.
Correlation Coefficient | -0.72 |
| Relationship Direction | Negative |
| Relationship Strength | Weak |
Capex To Revenue
The ratio of a company's capital expenditures to its total revenue, indicating how much of the revenue is used for acquiring or maintaining physical assets.
Book Value Per Share
The ratio of equity available to common shareholders divided by the number of outstanding shares. This measure represents the value per share of a company according to its financial statements.
Most indicators from Canadian Pacific's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Canadian Pacific Railway current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out
Trending Equities to better understand how to build diversified portfolios, which includes a position in Canadian Pacific Railway. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
signals in estimate.
At this time, Canadian Pacific's
Sales General And Administrative To Revenue is very stable compared to the past year. As of the 29th of November 2024,
Enterprise Value is likely to grow to about 51.6
B, while
Selling General Administrative is likely to drop about 1.2
B.
Canadian Pacific fundamental ratios Correlations
Click cells to compare fundamentals
Canadian Pacific Account Relationship Matchups
High Positive Relationship
High Negative Relationship
Canadian Pacific fundamental ratios Accounts
Pair Trading with Canadian Pacific
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Canadian Pacific position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Canadian Pacific will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Canadian Pacific could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Canadian Pacific when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Canadian Pacific - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Canadian Pacific Railway to buy it.
The correlation of Canadian Pacific is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Canadian Pacific moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Canadian Pacific Railway moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Canadian Pacific can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
When determining whether Canadian Pacific Railway 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 Canadian 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 Canadian Pacific Railway Stock.
Highlighted below are key reports to facilitate an investment decision about Canadian Pacific Railway Stock: Check out
Trending Equities to better understand how to build diversified portfolios, which includes a position in Canadian Pacific Railway. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
signals in estimate.
You can also try the
Commodity Directory module to find actively traded commodities issued by global exchanges.
Please note, there is a significant difference between Canadian Pacific's value and its price as these two are different measures arrived at by different means. Investors typically determine if Canadian Pacific is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Canadian Pacific's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.