Allison Transmission Holdings Stock Market Value
| ALSN Stock | USD 119.20 0.45 0.38% |
| Symbol | Allison |
Allison Transmission Price To Book Ratio
Is Construction Machinery & Heavy Transportation Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Allison Transmission. If investors know Allison will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Allison Transmission listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.17 | Dividend Share 0.98 | Earnings Share 8.19 | Revenue Per Share 36.828 | Quarterly Revenue Growth 0.204 |
The market value of Allison Transmission is measured differently than its book value, which is the value of Allison that is recorded on the company's balance sheet. Investors also form their own opinion of Allison Transmission's value that differs from its market value or its book value, called intrinsic value, which is Allison Transmission's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Allison Transmission's market value can be influenced by many factors that don't directly affect Allison Transmission's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Allison Transmission's value and its price as these two are different measures arrived at by different means. Investors typically determine if Allison Transmission is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Allison Transmission'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.
Allison Transmission '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 Allison Transmission'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 Allison Transmission.
| 07/05/2023 |
| 11/26/2024 |
If you would invest 0.00 in Allison Transmission on July 5, 2023 and sell it all today you would earn a total of 0.00 from holding Allison Transmission Holdings or generate 0.0% return on investment in Allison Transmission over 510 days. Allison Transmission is related to or competes with Gentex, Adient PLC, Autoliv, Fox Factory, Dana, Aptiv PLC, and LKQ. Allison Transmission Holdings, Inc., together with its subsidiaries, designs, manufactures, and sells commercial and def... More
Allison Transmission 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 Allison Transmission'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 Allison Transmission Holdings upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.2 | |||
| Information Ratio | 0.1735 | |||
| Maximum Drawdown | 9.25 | |||
| Value At Risk | (1.39) | |||
| Potential Upside | 2.73 |
Allison Transmission Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Allison Transmission's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Allison Transmission's standard deviation. In reality, there are many statistical measures that can use Allison Transmission historical prices to predict the future Allison Transmission's volatility.| Risk Adjusted Performance | 0.1938 | |||
| Jensen Alpha | 0.2501 | |||
| Total Risk Alpha | 0.1509 | |||
| Sortino Ratio | 0.2551 | |||
| Treynor Ratio | 0.2877 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Allison Transmission'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.
Allison Transmission Backtested Returns
Allison Transmission appears to be very steady, given 3 months investment horizon. Allison Transmission secures Sharpe Ratio (or Efficiency) of 0.25, which signifies that the company had a 0.25% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Allison Transmission Holdings, which you can use to evaluate the volatility of the firm. Please makes use of Allison Transmission's Mean Deviation of 1.2, downside deviation of 1.2, and Risk Adjusted Performance of 0.1938 to double-check if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Allison Transmission holds a performance score of 19. The firm shows a Beta (market volatility) of 1.48, which signifies a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Allison Transmission will likely underperform. Please check Allison Transmission's downside variance, and the relationship between the sortino ratio and accumulation distribution , to make a quick decision on whether Allison Transmission's price patterns will revert.
Auto-correlation | 0.73 |
Good predictability
Allison Transmission Holdings has good predictability. Overlapping area represents the amount of predictability between Allison Transmission time series from 5th of July 2023 to 16th of March 2024 and 16th of March 2024 to 26th 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 Allison Transmission price movement. The serial correlation of 0.73 indicates that around 73.0% of current Allison Transmission price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.73 | |
| Spearman Rank Test | 0.4 | |
| Residual Average | 0.0 | |
| Price Variance | 169.79 |
Allison Transmission lagged returns against current returns
Autocorrelation, which is Allison Transmission 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 Allison Transmission's stock expected returns. We can calculate the autocorrelation of Allison Transmission returns to help us make a trade decision. For example, suppose you find that Allison Transmission 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 |
Allison Transmission 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 Allison Transmission stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Allison Transmission stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Allison Transmission stock over time.
Current vs Lagged Prices |
| Timeline |
Allison Transmission Lagged Returns
When evaluating Allison Transmission's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Allison Transmission stock have on its future price. Allison Transmission 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, Allison Transmission autocorrelation shows the relationship between Allison Transmission stock current value and its past values and can show if there is a momentum factor associated with investing in Allison Transmission Holdings.
Regressed Prices |
| Timeline |
Pair Trading with Allison Transmission
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 Allison Transmission 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 Allison Transmission will appreciate offsetting losses from the drop in the long position's value.Moving together with Allison Stock
Moving against Allison Stock
| 0.92 | RUN | Sunrun Inc Buyout Trend | PairCorr |
| 0.88 | EBET | Ebet Inc | PairCorr |
| 0.8 | SLDP | Solid Power | PairCorr |
| 0.75 | EFSH | 1847 Holdings LLC | PairCorr |
| 0.75 | PITA | Heramba Electric plc | PairCorr |
The ability to find closely correlated positions to Allison Transmission could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Allison Transmission 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 Allison Transmission - 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 Allison Transmission Holdings to buy it.
The correlation of Allison Transmission 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 Allison Transmission moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Allison Transmission 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 Allison Transmission 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.Check out Allison Transmission Correlation, Allison Transmission Volatility and Allison Transmission Alpha and Beta module to complement your research on Allison Transmission. You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Allison Transmission technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.