Air Canada Stock Market Value
| AC Stock | CAD 24.68 0.01 0.04% |
| Symbol | Air |
Air Canada Price To Book Ratio
Air Canada 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Air Canada's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Air Canada.
| 09/28/2024 |
| 11/27/2024 |
If you would invest 0.00 in Air Canada on September 28, 2024 and sell it all today you would earn a total of 0.00 from holding Air Canada or generate 0.0% return on investment in Air Canada over 60 days. Air Canada is related to or competes with Suncor Energy, Cineplex, Enbridge, BlackBerry, and Toronto Dominion. Air Canada provides domestic, U.S. transborder, and international airline services More
Air Canada Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Air Canada's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Air Canada upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.48 | |||
| Information Ratio | 0.2422 | |||
| Maximum Drawdown | 16.58 | |||
| Value At Risk | (2.16) | |||
| Potential Upside | 4.42 |
Air Canada Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Air Canada's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Air Canada's standard deviation. In reality, there are many statistical measures that can use Air Canada historical prices to predict the future Air Canada's volatility.| Risk Adjusted Performance | 0.2327 | |||
| Jensen Alpha | 0.621 | |||
| Total Risk Alpha | 0.3283 | |||
| Sortino Ratio | 0.4009 | |||
| Treynor Ratio | 0.9174 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Air Canada'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.
Air Canada Backtested Returns
Air Canada appears to be not too volatile, given 3 months investment horizon. Air Canada secures Sharpe Ratio (or Efficiency) of 0.32, which signifies that the company had a 0.32% return per unit of risk over the last 3 months. By analyzing Air Canada's technical indicators, you can evaluate if the expected return of 0.79% is justified by implied risk. Please makes use of Air Canada's Risk Adjusted Performance of 0.2327, downside deviation of 1.48, and Mean Deviation of 1.63 to double-check if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Air Canada holds a performance score of 25. The firm shows a Beta (market volatility) of 0.78, which signifies possible diversification benefits within a given portfolio. As returns on the market increase, Air Canada's returns are expected to increase less than the market. However, during the bear market, the loss of holding Air Canada is expected to be smaller as well. Please check Air Canada's treynor ratio, kurtosis, period momentum indicator, as well as the relationship between the downside variance and day median price , to make a quick decision on whether Air Canada's price patterns will revert.
Auto-correlation | 0.79 |
Good predictability
Air Canada has good predictability. Overlapping area represents the amount of predictability between Air Canada time series from 28th of September 2024 to 28th of October 2024 and 28th of October 2024 to 27th of November 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Air Canada price movement. The serial correlation of 0.79 indicates that around 79.0% of current Air Canada price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.79 | |
| Spearman Rank Test | 0.84 | |
| Residual Average | 0.0 | |
| Price Variance | 3.46 |
Air Canada lagged returns against current returns
Autocorrelation, which is Air Canada stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Air Canada's stock expected returns. We can calculate the autocorrelation of Air Canada returns to help us make a trade decision. For example, suppose you find that Air Canada has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Air Canada regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Air Canada stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Air Canada stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Air Canada stock over time.
Current vs Lagged Prices |
| Timeline |
Air Canada Lagged Returns
When evaluating Air Canada's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Air Canada stock have on its future price. Air Canada autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Air Canada autocorrelation shows the relationship between Air Canada stock current value and its past values and can show if there is a momentum factor associated with investing in Air Canada.
Regressed Prices |
| Timeline |
Pair Trading with Air Canada
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 Air Canada 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 Air Canada will appreciate offsetting losses from the drop in the long position's value.Moving together with Air Stock
| 0.92 | RY-PS | Royal Bank Earnings Call This Week | PairCorr |
| 0.77 | RY | Royal Bank Earnings Call This Week | PairCorr |
| 0.9 | RY-PM | Royal Bank Earnings Call This Week | PairCorr |
| 0.87 | TD-PFI | Toronto Dominion Bank | PairCorr |
Moving against Air Stock
The ability to find closely correlated positions to Air Canada could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Air Canada 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 Air Canada - 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 Air Canada to buy it.
The correlation of Air Canada 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 Air Canada moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Air Canada 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 Air Canada 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.Other Information on Investing in Air Stock
Air Canada financial ratios help investors to determine whether Air 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 Air with respect to the benefits of owning Air Canada security.