American States Water Stock Market Value
| AWR Stock | USD 85.39 0.36 0.42% |
| Symbol | American |
American States Water Price To Book Ratio
Is Water Utilities 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 American States. If investors know American 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 American States 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 0.117 | Dividend Share 1.756 | Earnings Share 2.96 | Revenue Per Share 15.516 | Quarterly Revenue Growth 0.066 |
The market value of American States Water is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American States' value that differs from its market value or its book value, called intrinsic value, which is American States' 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 American States' market value can be influenced by many factors that don't directly affect American States' 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 American States' value and its price as these two are different measures arrived at by different means. Investors typically determine if American States is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American States' 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.
American States '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 American States' 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 American States.
| 01/31/2024 |
| 11/26/2024 |
If you would invest 0.00 in American States on January 31, 2024 and sell it all today you would earn a total of 0.00 from holding American States Water or generate 0.0% return on investment in American States over 300 days. American States is related to or competes with Middlesex Water, SJW Group, York Water, Artesian Resources, California Water, Global Water, and American Water. American States Water Company, through its subsidiaries, provides water and electric services to residential, commercial... More
American States 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 American States' 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 American States Water upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.07 | |||
| Information Ratio | (0.02) | |||
| Maximum Drawdown | 6.07 | |||
| Value At Risk | (1.57) | |||
| Potential Upside | 2.25 |
American States Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for American States' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as American States' standard deviation. In reality, there are many statistical measures that can use American States historical prices to predict the future American States' volatility.| Risk Adjusted Performance | 0.0694 | |||
| Jensen Alpha | 0.043 | |||
| Total Risk Alpha | (0.09) | |||
| Sortino Ratio | (0.03) | |||
| Treynor Ratio | 0.2244 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of American States' 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.
American States Water Backtested Returns
Currently, American States Water is very steady. American States Water secures Sharpe Ratio (or Efficiency) of 0.0832, which signifies that the company had a 0.0832% return per unit of standard deviation over the last 3 months. We have found twenty-nine technical indicators for American States Water, which you can use to evaluate the volatility of the firm. Please confirm American States' risk adjusted performance of 0.0694, and Mean Deviation of 0.9074 to double-check if the risk estimate we provide is consistent with the expected return of 0.0987%. American States has a performance score of 6 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 0.41, which signifies possible diversification benefits within a given portfolio. As returns on the market increase, American States' returns are expected to increase less than the market. However, during the bear market, the loss of holding American States is expected to be smaller as well. American States Water right now shows a risk of 1.19%. Please confirm American States Water standard deviation, expected short fall, period momentum indicator, as well as the relationship between the maximum drawdown and rate of daily change , to decide if American States Water will be following its price patterns.
Auto-correlation | -0.16 |
Insignificant reverse predictability
American States Water has insignificant reverse predictability. Overlapping area represents the amount of predictability between American States time series from 31st of January 2024 to 29th of June 2024 and 29th of June 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 American States Water price movement. The serial correlation of -0.16 indicates that over 16.0% of current American States price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.16 | |
| Spearman Rank Test | 0.04 | |
| Residual Average | 0.0 | |
| Price Variance | 11.23 |
American States Water lagged returns against current returns
Autocorrelation, which is American States 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 American States' stock expected returns. We can calculate the autocorrelation of American States returns to help us make a trade decision. For example, suppose you find that American States 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 |
American States 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 American States stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if American States stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in American States stock over time.
Current vs Lagged Prices |
| Timeline |
American States Lagged Returns
When evaluating American States' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of American States stock have on its future price. American States 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, American States autocorrelation shows the relationship between American States stock current value and its past values and can show if there is a momentum factor associated with investing in American States Water.
Regressed Prices |
| Timeline |
Pair Trading with American States
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 American States 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 American States will appreciate offsetting losses from the drop in the long position's value.Moving against American Stock
The ability to find closely correlated positions to American States could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American States 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 American States - 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 American States Water to buy it.
The correlation of American States 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 American States moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American States Water 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 American States 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.Additional Tools for American Stock Analysis
When running American States' price analysis, check to measure American States' 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 American States is operating at the current time. Most of American States' value examination focuses on studying past and present price action to predict the probability of American States' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American States' price. Additionally, you may evaluate how the addition of American States to your portfolios can decrease your overall portfolio volatility.