Canadian Tire Stock Market Value
| CTC Stock | CAD 233.56 11.31 5.09% |
| Symbol | Canadian |
Canadian Tire Price To Book Ratio
Canadian Tire '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 Canadian Tire'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 Canadian Tire.
| 12/06/2022 |
| 11/25/2024 |
If you would invest 0.00 in Canadian Tire on December 6, 2022 and sell it all today you would earn a total of 0.00 from holding Canadian Tire or generate 0.0% return on investment in Canadian Tire over 720 days. Canadian Tire is related to or competes with Canadian Tire, Loblaw Companies, Metro, George Weston, and Dollarama. Canadian Tire Corporation, Limited provides a range of retail goods and services in Canada More
Canadian Tire 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 Canadian Tire'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 Canadian Tire upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.08) | |||
| Maximum Drawdown | 11.18 | |||
| Value At Risk | (2.91) | |||
| Potential Upside | 4.2 |
Canadian Tire Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Canadian Tire's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Canadian Tire's standard deviation. In reality, there are many statistical measures that can use Canadian Tire historical prices to predict the future Canadian Tire's volatility.| Risk Adjusted Performance | (0.01) | |||
| Jensen Alpha | (0.02) | |||
| Total Risk Alpha | (0.38) | |||
| Treynor Ratio | 0.1893 |
Canadian Tire Backtested Returns
As of now, Canadian Stock is very steady. Canadian Tire secures Sharpe Ratio (or Efficiency) of 0.0302, which signifies that the company had a 0.0302% return per unit of risk over the last 3 months. We have found twenty-two technical indicators for Canadian Tire, which you can use to evaluate the volatility of the firm. Please confirm Canadian Tire's Mean Deviation of 0.967, standard deviation of 2.13, and Risk Adjusted Performance of (0.01) to double-check if the risk estimate we provide is consistent with the expected return of 0.0505%. Canadian Tire has a performance score of 2 on a scale of 0 to 100. The firm shows a Beta (market volatility) of -0.24, which signifies not very significant fluctuations relative to the market. As returns on the market increase, returns on owning Canadian Tire are expected to decrease at a much lower rate. During the bear market, Canadian Tire is likely to outperform the market. Canadian Tire right now shows a risk of 1.67%. Please confirm Canadian Tire skewness, and the relationship between the treynor ratio and rate of daily change , to decide if Canadian Tire will be following its price patterns.
Auto-correlation | -0.03 |
Very weak reverse predictability
Canadian Tire has very weak reverse predictability. Overlapping area represents the amount of predictability between Canadian Tire time series from 6th of December 2022 to 1st of December 2023 and 1st of December 2023 to 25th 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 Canadian Tire price movement. The serial correlation of -0.03 indicates that only 3.0% of current Canadian Tire price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.03 | |
| Spearman Rank Test | 0.37 | |
| Residual Average | 0.0 | |
| Price Variance | 340.79 |
Canadian Tire lagged returns against current returns
Autocorrelation, which is Canadian Tire 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 Canadian Tire's stock expected returns. We can calculate the autocorrelation of Canadian Tire returns to help us make a trade decision. For example, suppose you find that Canadian Tire 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 |
Canadian Tire 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 Canadian Tire stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Canadian Tire stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Canadian Tire stock over time.
Current vs Lagged Prices |
| Timeline |
Canadian Tire Lagged Returns
When evaluating Canadian Tire's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Canadian Tire stock have on its future price. Canadian Tire 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, Canadian Tire autocorrelation shows the relationship between Canadian Tire stock current value and its past values and can show if there is a momentum factor associated with investing in Canadian Tire.
Regressed Prices |
| Timeline |
Pair Trading with Canadian Tire
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 Canadian Tire 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 Canadian Tire will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to Canadian Tire could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Canadian Tire 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 Canadian Tire - 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 Canadian Tire to buy it.
The correlation of Canadian Tire 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 Canadian Tire moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Canadian Tire 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 Canadian Tire 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 Canadian Stock
Canadian Tire financial ratios help investors to determine whether Canadian 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 Canadian with respect to the benefits of owning Canadian Tire security.