Centerpoint Energy Stock Market Value
| CNP Stock | USD 32.48 0.55 1.72% |
| Symbol | CenterPoint |
CenterPoint Energy Price To Book Ratio
Is Multi-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 CenterPoint Energy. If investors know CenterPoint 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 CenterPoint Energy 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 (0.26) | Dividend Share 0.8 | Earnings Share 1.5 | Revenue Per Share 13.421 | Quarterly Revenue Growth (0) |
The market value of CenterPoint Energy is measured differently than its book value, which is the value of CenterPoint that is recorded on the company's balance sheet. Investors also form their own opinion of CenterPoint Energy's value that differs from its market value or its book value, called intrinsic value, which is CenterPoint Energy'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 CenterPoint Energy's market value can be influenced by many factors that don't directly affect CenterPoint Energy'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 CenterPoint Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if CenterPoint Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CenterPoint Energy'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.
CenterPoint Energy '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 CenterPoint Energy'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 CenterPoint Energy.
| 10/27/2024 |
| 11/26/2024 |
If you would invest 0.00 in CenterPoint Energy on October 27, 2024 and sell it all today you would earn a total of 0.00 from holding CenterPoint Energy or generate 0.0% return on investment in CenterPoint Energy over 30 days. CenterPoint Energy is related to or competes with Entergy, Ameren Corp, Alliant Energy, Pinnacle West, MGE Energy, Evergy,, and DTE Energy. CenterPoint Energy, Inc. operates as a public utility holding company in the United States More
CenterPoint Energy 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 CenterPoint Energy'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 CenterPoint Energy upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.24 | |||
| Information Ratio | 0.1217 | |||
| Maximum Drawdown | 5.92 | |||
| Value At Risk | (1.74) | |||
| Potential Upside | 1.8 |
CenterPoint Energy Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for CenterPoint Energy's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as CenterPoint Energy's standard deviation. In reality, there are many statistical measures that can use CenterPoint Energy historical prices to predict the future CenterPoint Energy's volatility.| Risk Adjusted Performance | 0.1816 | |||
| Jensen Alpha | 0.2702 | |||
| Total Risk Alpha | 0.0784 | |||
| Sortino Ratio | 0.1162 | |||
| Treynor Ratio | (6.03) |
CenterPoint Energy Backtested Returns
CenterPoint Energy appears to be very steady, given 3 months investment horizon. CenterPoint Energy 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 CenterPoint Energy, which you can use to evaluate the volatility of the firm. Please makes use of CenterPoint Energy's Downside Deviation of 1.24, mean deviation of 0.8839, and Risk Adjusted Performance of 0.1816 to double-check if our risk estimates are consistent with your expectations. On a scale of 0 to 100, CenterPoint Energy holds a performance score of 19. The firm shows a Beta (market volatility) of -0.0439, which signifies not very significant fluctuations relative to the market. As returns on the market increase, returns on owning CenterPoint Energy are expected to decrease at a much lower rate. During the bear market, CenterPoint Energy is likely to outperform the market. Please check CenterPoint Energy's semi variance, and the relationship between the treynor ratio and daily balance of power , to make a quick decision on whether CenterPoint Energy's price patterns will revert.
Auto-correlation | 0.37 |
Below average predictability
CenterPoint Energy has below average predictability. Overlapping area represents the amount of predictability between CenterPoint Energy time series from 27th of October 2024 to 11th of November 2024 and 11th of November 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 CenterPoint Energy price movement. The serial correlation of 0.37 indicates that just about 37.0% of current CenterPoint Energy price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.37 | |
| Spearman Rank Test | 0.27 | |
| Residual Average | 0.0 | |
| Price Variance | 0.71 |
CenterPoint Energy lagged returns against current returns
Autocorrelation, which is CenterPoint Energy 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 CenterPoint Energy's stock expected returns. We can calculate the autocorrelation of CenterPoint Energy returns to help us make a trade decision. For example, suppose you find that CenterPoint Energy 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 |
CenterPoint Energy 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 CenterPoint Energy stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if CenterPoint Energy stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in CenterPoint Energy stock over time.
Current vs Lagged Prices |
| Timeline |
CenterPoint Energy Lagged Returns
When evaluating CenterPoint Energy's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of CenterPoint Energy stock have on its future price. CenterPoint Energy 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, CenterPoint Energy autocorrelation shows the relationship between CenterPoint Energy stock current value and its past values and can show if there is a momentum factor associated with investing in CenterPoint Energy.
Regressed Prices |
| Timeline |
Pair Trading with CenterPoint Energy
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 CenterPoint Energy 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 CenterPoint Energy will appreciate offsetting losses from the drop in the long position's value.Moving against CenterPoint Stock
| 0.82 | EBR | Centrais Electricas | PairCorr |
| 0.59 | ES | Eversource Energy | PairCorr |
| 0.59 | HE | Hawaiian Electric | PairCorr |
| 0.49 | FE | FirstEnergy | PairCorr |
| 0.43 | AEP | American Electric Power | PairCorr |
The ability to find closely correlated positions to CenterPoint Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CenterPoint Energy 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 CenterPoint Energy - 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 CenterPoint Energy to buy it.
The correlation of CenterPoint Energy 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 CenterPoint Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CenterPoint Energy 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 CenterPoint Energy 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 CenterPoint Stock Analysis
When running CenterPoint Energy's price analysis, check to measure CenterPoint Energy'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 CenterPoint Energy is operating at the current time. Most of CenterPoint Energy's value examination focuses on studying past and present price action to predict the probability of CenterPoint Energy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CenterPoint Energy's price. Additionally, you may evaluate how the addition of CenterPoint Energy to your portfolios can decrease your overall portfolio volatility.