Ironwood Pharmaceuticals Stock Market Value
| IRWD Stock | USD 3.34 0.18 5.11% |
| Symbol | Ironwood |
Is Pharmaceutical Products 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 Ironwood Pharmaceuticals. If investors know Ironwood 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 Ironwood Pharmaceuticals listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Ironwood Pharmaceuticals is measured differently than its book value, which is the value of Ironwood that is recorded on the company's balance sheet. Investors also form their own opinion of Ironwood Pharmaceuticals' value that differs from its market value or its book value, called intrinsic value, which is Ironwood Pharmaceuticals' 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 Ironwood Pharmaceuticals' market value can be influenced by many factors that don't directly affect Ironwood Pharmaceuticals' 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 Ironwood Pharmaceuticals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Ironwood Pharmaceuticals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ironwood Pharmaceuticals' 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.
Ironwood Pharmaceuticals '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 Ironwood Pharmaceuticals' 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 Ironwood Pharmaceuticals.
| 12/03/2022 |
| 11/22/2024 |
If you would invest 0.00 in Ironwood Pharmaceuticals on December 3, 2022 and sell it all today you would earn a total of 0.00 from holding Ironwood Pharmaceuticals or generate 0.0% return on investment in Ironwood Pharmaceuticals over 720 days. Ironwood Pharmaceuticals is related to or competes with Neurocrine Biosciences, Amphastar, Collegium Pharmaceutical, ANI Pharmaceuticals, Alkermes Plc, Intracellular, and Pacira BioSciences,. Ironwood Pharmaceuticals, Inc., a healthcare company, focuses on the development and commercialization of gastrointestin... More
Ironwood Pharmaceuticals 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 Ironwood Pharmaceuticals' 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 Ironwood Pharmaceuticals upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.15) | |||
| Maximum Drawdown | 20.41 | |||
| Value At Risk | (7.54) | |||
| Potential Upside | 6.62 |
Ironwood Pharmaceuticals Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Ironwood Pharmaceuticals' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Ironwood Pharmaceuticals' standard deviation. In reality, there are many statistical measures that can use Ironwood Pharmaceuticals historical prices to predict the future Ironwood Pharmaceuticals' volatility.| Risk Adjusted Performance | (0.09) | |||
| Jensen Alpha | (0.48) | |||
| Total Risk Alpha | (1.12) | |||
| Treynor Ratio | 0.7015 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Ironwood Pharmaceuticals' 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.
Ironwood Pharmaceuticals Backtested Returns
Ironwood Pharmaceuticals holds Efficiency (Sharpe) Ratio of -0.13, which attests that the entity had a -0.13% return per unit of risk over the last 3 months. Ironwood Pharmaceuticals exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check out Ironwood Pharmaceuticals' Risk Adjusted Performance of (0.09), standard deviation of 4.33, and Market Risk Adjusted Performance of 0.7115 to validate the risk estimate we provide. The company retains a Market Volatility (i.e., Beta) of -0.8, which attests to possible diversification benefits within a given portfolio. As returns on the market increase, returns on owning Ironwood Pharmaceuticals are expected to decrease at a much lower rate. During the bear market, Ironwood Pharmaceuticals is likely to outperform the market. At this point, Ironwood Pharmaceuticals has a negative expected return of -0.55%. Please make sure to check out Ironwood Pharmaceuticals' skewness, as well as the relationship between the day median price and relative strength index , to decide if Ironwood Pharmaceuticals performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.76 |
Good predictability
Ironwood Pharmaceuticals has good predictability. Overlapping area represents the amount of predictability between Ironwood Pharmaceuticals 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 Ironwood Pharmaceuticals price movement. The serial correlation of 0.76 indicates that around 76.0% of current Ironwood Pharmaceuticals price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.76 | |
| Spearman Rank Test | 0.81 | |
| Residual Average | 0.0 | |
| Price Variance | 11.1 |
Ironwood Pharmaceuticals lagged returns against current returns
Autocorrelation, which is Ironwood Pharmaceuticals 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 Ironwood Pharmaceuticals' stock expected returns. We can calculate the autocorrelation of Ironwood Pharmaceuticals returns to help us make a trade decision. For example, suppose you find that Ironwood Pharmaceuticals 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 |
Ironwood Pharmaceuticals 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 Ironwood Pharmaceuticals stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Ironwood Pharmaceuticals stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Ironwood Pharmaceuticals stock over time.
Current vs Lagged Prices |
| Timeline |
Ironwood Pharmaceuticals Lagged Returns
When evaluating Ironwood Pharmaceuticals' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Ironwood Pharmaceuticals stock have on its future price. Ironwood Pharmaceuticals 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, Ironwood Pharmaceuticals autocorrelation shows the relationship between Ironwood Pharmaceuticals stock current value and its past values and can show if there is a momentum factor associated with investing in Ironwood Pharmaceuticals.
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 Ironwood Pharmaceuticals is a strong investment it is important to analyze Ironwood Pharmaceuticals' 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 Ironwood Pharmaceuticals' future performance. For an informed investment choice regarding Ironwood Stock, refer to the following important reports:Check out Ironwood Pharmaceuticals Correlation, Ironwood Pharmaceuticals Volatility and Ironwood Pharmaceuticals Alpha and Beta module to complement your research on Ironwood Pharmaceuticals. For information on how to trade Ironwood Stock refer to our How to Trade Ironwood Stock guide.You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Ironwood Pharmaceuticals 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.