Erie Indemnity Stock Market Value
| ERIE Stock | USD 428.50 3.47 0.82% |
| Symbol | Erie |
Erie Indemnity Price To Book Ratio
Is Property & Casualty Insurance 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 Erie Indemnity. If investors know Erie 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 Erie Indemnity 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 0.22 | Dividend Share 5.1 | Earnings Share 10.7 | Revenue Per Share 79.861 | Quarterly Revenue Growth 0.164 |
The market value of Erie Indemnity is measured differently than its book value, which is the value of Erie that is recorded on the company's balance sheet. Investors also form their own opinion of Erie Indemnity's value that differs from its market value or its book value, called intrinsic value, which is Erie Indemnity'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 Erie Indemnity's market value can be influenced by many factors that don't directly affect Erie Indemnity'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 Erie Indemnity's value and its price as these two are different measures arrived at by different means. Investors typically determine if Erie Indemnity is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Erie Indemnity'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.
Erie Indemnity '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 Erie Indemnity'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 Erie Indemnity.
| 12/03/2022 |
| 11/22/2024 |
If you would invest 0.00 in Erie Indemnity on December 3, 2022 and sell it all today you would earn a total of 0.00 from holding Erie Indemnity or generate 0.0% return on investment in Erie Indemnity over 720 days. Erie Indemnity is related to or competes with Arthur J, Brown Brown, Aon PLC, and CorVel Corp. Erie Indemnity Company operates as a managing attorney-in-fact for the subscribers at the Erie Insurance Exchange in the... More
Erie Indemnity 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 Erie Indemnity'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 Erie Indemnity upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.13) | |||
| Maximum Drawdown | 10.81 | |||
| Value At Risk | (3.12) | |||
| Potential Upside | 2.13 |
Erie Indemnity Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Erie Indemnity's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Erie Indemnity's standard deviation. In reality, there are many statistical measures that can use Erie Indemnity historical prices to predict the future Erie Indemnity's volatility.| Risk Adjusted Performance | (0.05) | |||
| Jensen Alpha | (0.24) | |||
| Total Risk Alpha | (0.41) | |||
| Treynor Ratio | (0.19) |
Erie Indemnity Backtested Returns
Erie Indemnity secures Sharpe Ratio (or Efficiency) of -0.0881, which denotes the company had a -0.0881% return per unit of risk over the last 3 months. Erie Indemnity exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Erie Indemnity's Variance of 3.8, mean deviation of 1.42, and Standard Deviation of 1.95 to check the risk estimate we provide. The firm shows a Beta (market volatility) of 0.83, which means possible diversification benefits within a given portfolio. As returns on the market increase, Erie Indemnity's returns are expected to increase less than the market. However, during the bear market, the loss of holding Erie Indemnity is expected to be smaller as well. At this point, Erie Indemnity has a negative expected return of -0.17%. Please make sure to confirm Erie Indemnity's jensen alpha, kurtosis, price action indicator, as well as the relationship between the maximum drawdown and rate of daily change , to decide if Erie Indemnity performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.66 |
Good predictability
Erie Indemnity has good predictability. Overlapping area represents the amount of predictability between Erie Indemnity time series from 3rd of December 2022 to 28th of November 2023 and 28th of November 2023 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 Erie Indemnity price movement. The serial correlation of 0.66 indicates that around 66.0% of current Erie Indemnity price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.66 | |
| Spearman Rank Test | 0.41 | |
| Residual Average | 0.0 | |
| Price Variance | 4213.92 |
Erie Indemnity lagged returns against current returns
Autocorrelation, which is Erie Indemnity 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 Erie Indemnity's stock expected returns. We can calculate the autocorrelation of Erie Indemnity returns to help us make a trade decision. For example, suppose you find that Erie Indemnity 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 |
Erie Indemnity 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 Erie Indemnity stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Erie Indemnity stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Erie Indemnity stock over time.
Current vs Lagged Prices |
| Timeline |
Erie Indemnity Lagged Returns
When evaluating Erie Indemnity's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Erie Indemnity stock have on its future price. Erie Indemnity 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, Erie Indemnity autocorrelation shows the relationship between Erie Indemnity stock current value and its past values and can show if there is a momentum factor associated with investing in Erie Indemnity.
Regressed Prices |
| Timeline |
Also Currently Popular
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.When determining whether Erie Indemnity is a strong investment it is important to analyze Erie Indemnity's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Erie Indemnity's future performance. For an informed investment choice regarding Erie Stock, refer to the following important reports:Check out Erie Indemnity Correlation, Erie Indemnity Volatility and Erie Indemnity Alpha and Beta module to complement your research on Erie Indemnity. For information on how to trade Erie Stock refer to our How to Trade Erie Stock guide.You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Erie Indemnity 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.