Credo Technology Group Stock Market Value
| CRDO Stock | USD 46.28 3.31 7.70% |
| Symbol | Credo |
Credo Technology Company Valuation
Is Semiconductors & Semiconductor 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 Credo Technology. If investors know Credo 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 Credo Technology 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 (0.87) | Earnings Share (0.16) | Revenue Per Share 1.368 | Quarterly Revenue Growth 0.702 | Return On Assets (0.04) |
The market value of Credo Technology is measured differently than its book value, which is the value of Credo that is recorded on the company's balance sheet. Investors also form their own opinion of Credo Technology's value that differs from its market value or its book value, called intrinsic value, which is Credo Technology'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 Credo Technology's market value can be influenced by many factors that don't directly affect Credo Technology'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 Credo Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine if Credo Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Credo Technology'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.
Credo Technology '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 Credo Technology'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 Credo Technology.
| 10/23/2024 |
| 11/22/2024 |
If you would invest 0.00 in Credo Technology on October 23, 2024 and sell it all today you would earn a total of 0.00 from holding Credo Technology Group or generate 0.0% return on investment in Credo Technology over 30 days. Credo Technology is related to or competes with Zebra Technologies, Ubiquiti Networks, Ciena Corp, Clearfield, Viavi Solutions, Infinera, and Applied Opt. Credo Technology Group Holding Ltd provides various high-speed connectivity solutions for optical and electrical Etherne... More
Credo Technology 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 Credo Technology'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 Credo Technology Group upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 4.68 | |||
| Information Ratio | 0.083 | |||
| Maximum Drawdown | 18.35 | |||
| Value At Risk | (8.52) | |||
| Potential Upside | 7.13 |
Credo Technology Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Credo Technology's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Credo Technology's standard deviation. In reality, there are many statistical measures that can use Credo Technology historical prices to predict the future Credo Technology's volatility.| Risk Adjusted Performance | 0.0905 | |||
| Jensen Alpha | 0.1643 | |||
| Total Risk Alpha | (0.11) | |||
| Sortino Ratio | 0.0783 | |||
| Treynor Ratio | 0.1537 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Credo Technology'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.
Credo Technology Backtested Returns
Credo Technology appears to be not too volatile, given 3 months investment horizon. Credo Technology secures Sharpe Ratio (or Efficiency) of 0.12, which signifies that the company had a 0.12% return per unit of standard deviation over the last 3 months. By analyzing Credo Technology's technical indicators, you can evaluate if the expected return of 0.53% is justified by implied risk. Please makes use of Credo Technology's mean deviation of 3.33, and Risk Adjusted Performance of 0.0905 to double-check if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Credo Technology holds a performance score of 9. The firm shows a Beta (market volatility) of 3.03, 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, Credo Technology will likely underperform. Please check Credo Technology's standard deviation, expected short fall, period momentum indicator, as well as the relationship between the maximum drawdown and rate of daily change , to make a quick decision on whether Credo Technology's price patterns will revert.
Auto-correlation | 0.24 |
Weak predictability
Credo Technology Group has weak predictability. Overlapping area represents the amount of predictability between Credo Technology time series from 23rd of October 2024 to 7th of November 2024 and 7th of November 2024 to 22nd 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 Credo Technology price movement. The serial correlation of 0.24 indicates that over 24.0% of current Credo Technology price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.24 | |
| Spearman Rank Test | -0.5 | |
| Residual Average | 0.0 | |
| Price Variance | 6.79 |
Credo Technology lagged returns against current returns
Autocorrelation, which is Credo Technology 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 Credo Technology's stock expected returns. We can calculate the autocorrelation of Credo Technology returns to help us make a trade decision. For example, suppose you find that Credo Technology 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 |
Credo Technology 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 Credo Technology stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Credo Technology stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Credo Technology stock over time.
Current vs Lagged Prices |
| Timeline |
Credo Technology Lagged Returns
When evaluating Credo Technology's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Credo Technology stock have on its future price. Credo Technology 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, Credo Technology autocorrelation shows the relationship between Credo Technology stock current value and its past values and can show if there is a momentum factor associated with investing in Credo Technology Group.
Regressed Prices |
| Timeline |
Pair Trading with Credo Technology
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 Credo Technology 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 Credo Technology will appreciate offsetting losses from the drop in the long position's value.Moving against Credo Stock
| 0.85 | BKRKY | Bank Rakyat | PairCorr |
| 0.73 | ICG | Intchains Group | PairCorr |
| 0.7 | TER | Teradyne | PairCorr |
| 0.65 | ACLS | Axcelis Technologies | PairCorr |
| 0.61 | CDW | CDW Corp | PairCorr |
The ability to find closely correlated positions to Credo Technology could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Credo Technology 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 Credo Technology - 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 Credo Technology Group to buy it.
The correlation of Credo Technology 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 Credo Technology moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Credo Technology 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 Credo Technology 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 Credo Technology Correlation, Credo Technology Volatility and Credo Technology Alpha and Beta module to complement your research on Credo Technology. You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Credo Technology 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.