Innospec Stock Market Value
| IOSP Stock | USD 119.75 1.41 1.19% |
| Symbol | Innospec |
Innospec Price To Book Ratio
Is Specialty Chemicals 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 Innospec. If investors know Innospec 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 Innospec 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 (0.15) | Dividend Share 1.48 | Earnings Share 5.72 | Revenue Per Share 75.197 | Quarterly Revenue Growth (0.04) |
The market value of Innospec is measured differently than its book value, which is the value of Innospec that is recorded on the company's balance sheet. Investors also form their own opinion of Innospec's value that differs from its market value or its book value, called intrinsic value, which is Innospec'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 Innospec's market value can be influenced by many factors that don't directly affect Innospec'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 Innospec's value and its price as these two are different measures arrived at by different means. Investors typically determine if Innospec is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Innospec'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.
Innospec '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 Innospec'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 Innospec.
| 02/04/2023 |
| 11/25/2024 |
If you would invest 0.00 in Innospec on February 4, 2023 and sell it all today you would earn a total of 0.00 from holding Innospec or generate 0.0% return on investment in Innospec over 660 days. Innospec is related to or competes with Oil Dri, H B, Northern Technologies, and Cabot. Innospec Inc. develops, manufactures, blends, markets, and supplies specialty chemicals in the United States, rest of No... More
Innospec 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 Innospec'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 Innospec upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.51 | |||
| Information Ratio | 0.0039 | |||
| Maximum Drawdown | 16.32 | |||
| Value At Risk | (2.10) | |||
| Potential Upside | 2.24 |
Innospec Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Innospec's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Innospec's standard deviation. In reality, there are many statistical measures that can use Innospec historical prices to predict the future Innospec's volatility.| Risk Adjusted Performance | 0.0582 | |||
| Jensen Alpha | (0.13) | |||
| Total Risk Alpha | (0.19) | |||
| Sortino Ratio | 0.0053 | |||
| Treynor Ratio | 0.0606 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Innospec'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.
Innospec Backtested Returns
Currently, Innospec is very steady. Innospec holds Efficiency (Sharpe) Ratio of 0.0527, which attests that the entity had a 0.0527% return per unit of risk over the last 3 months. We have found thirty technical indicators for Innospec, which you can use to evaluate the volatility of the firm. Please check out Innospec's Downside Deviation of 1.51, market risk adjusted performance of 0.0706, and Risk Adjusted Performance of 0.0582 to validate if the risk estimate we provide is consistent with the expected return of 0.11%. Innospec has a performance score of 4 on a scale of 0 to 100. The company retains a Market Volatility (i.e., Beta) of 2.13, which attests to 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, Innospec will likely underperform. Innospec right now retains a risk of 2.07%. Please check out Innospec semi variance, and the relationship between the treynor ratio and daily balance of power , to decide if Innospec will be following its current trending patterns.
Auto-correlation | -0.09 |
Very weak reverse predictability
Innospec has very weak reverse predictability. Overlapping area represents the amount of predictability between Innospec time series from 4th of February 2023 to 31st of December 2023 and 31st 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 Innospec price movement. The serial correlation of -0.09 indicates that less than 9.0% of current Innospec price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.09 | |
| Spearman Rank Test | -0.04 | |
| Residual Average | 0.0 | |
| Price Variance | 45.48 |
Innospec lagged returns against current returns
Autocorrelation, which is Innospec 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 Innospec's stock expected returns. We can calculate the autocorrelation of Innospec returns to help us make a trade decision. For example, suppose you find that Innospec 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 |
Innospec 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 Innospec stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Innospec stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Innospec stock over time.
Current vs Lagged Prices |
| Timeline |
Innospec Lagged Returns
When evaluating Innospec's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Innospec stock have on its future price. Innospec 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, Innospec autocorrelation shows the relationship between Innospec stock current value and its past values and can show if there is a momentum factor associated with investing in Innospec.
Regressed Prices |
| Timeline |
Pair Trading with Innospec
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 Innospec 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 Innospec will appreciate offsetting losses from the drop in the long position's value.Moving together with Innospec Stock
Moving against Innospec Stock
| 0.55 | ASH | Ashland Global Holdings | PairCorr |
| 0.51 | DNMR | Danimer Scientific | PairCorr |
| 0.37 | FF | FutureFuel Corp | PairCorr |
The ability to find closely correlated positions to Innospec could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Innospec 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 Innospec - 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 Innospec to buy it.
The correlation of Innospec 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 Innospec moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Innospec 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 Innospec 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 Innospec Stock Analysis
When running Innospec's price analysis, check to measure Innospec'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 Innospec is operating at the current time. Most of Innospec's value examination focuses on studying past and present price action to predict the probability of Innospec's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Innospec's price. Additionally, you may evaluate how the addition of Innospec to your portfolios can decrease your overall portfolio volatility.