Microchip Technology Stock Market Value
| MCHP Stock | USD 66.69 0.63 0.95% |
| Symbol | Microchip |
Microchip Technology Price To Book Ratio
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 Microchip Technology. If investors know Microchip 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 Microchip 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 (0.88) | Dividend Share 1.795 | Earnings Share 1.44 | Revenue Per Share 10.211 | Quarterly Revenue Growth (0.48) |
The market value of Microchip Technology is measured differently than its book value, which is the value of Microchip that is recorded on the company's balance sheet. Investors also form their own opinion of Microchip Technology's value that differs from its market value or its book value, called intrinsic value, which is Microchip 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 Microchip Technology's market value can be influenced by many factors that don't directly affect Microchip 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 Microchip Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine if Microchip Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Microchip 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.
Microchip 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 Microchip 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 Microchip Technology.
| 02/29/2024 |
| 11/25/2024 |
If you would invest 0.00 in Microchip Technology on February 29, 2024 and sell it all today you would earn a total of 0.00 from holding Microchip Technology or generate 0.0% return on investment in Microchip Technology over 270 days. Microchip Technology is related to or competes with Texas Instruments, ON Semiconductor, Analog Devices, Qorvo, Monolithic Power, NXP Semiconductors, and Wolfspeed. Microchip Technology Incorporated develops, manufactures, and sells smart, connected, and secure embedded control soluti... More
Microchip 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 Microchip 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 Microchip Technology upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.16) | |||
| Maximum Drawdown | 10.27 | |||
| Value At Risk | (4.17) | |||
| Potential Upside | 3.0 |
Microchip Technology Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Microchip Technology's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Microchip Technology's standard deviation. In reality, there are many statistical measures that can use Microchip Technology historical prices to predict the future Microchip Technology's volatility.| Risk Adjusted Performance | (0.07) | |||
| Jensen Alpha | (0.41) | |||
| Total Risk Alpha | (0.60) | |||
| Treynor Ratio | (0.18) |
Microchip Technology Backtested Returns
Microchip Technology has Sharpe Ratio of -0.12, which conveys that the firm had a -0.12% return per unit of risk over the last 3 months. Microchip Technology exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify Microchip Technology's Mean Deviation of 1.73, risk adjusted performance of (0.07), and Standard Deviation of 2.24 to check out the risk estimate we provide. The company secures a Beta (Market Risk) of 1.37, which conveys 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, Microchip Technology will likely underperform. At this point, Microchip Technology has a negative expected return of -0.27%. Please make sure to verify Microchip Technology's treynor ratio, as well as the relationship between the kurtosis and day typical price , to decide if Microchip Technology performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.35 |
Poor reverse predictability
Microchip Technology has poor reverse predictability. Overlapping area represents the amount of predictability between Microchip Technology time series from 29th of February 2024 to 13th of July 2024 and 13th of July 2024 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 Microchip Technology price movement. The serial correlation of -0.35 indicates that nearly 35.0% of current Microchip Technology price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.35 | |
| Spearman Rank Test | -0.33 | |
| Residual Average | 0.0 | |
| Price Variance | 37.62 |
Microchip Technology lagged returns against current returns
Autocorrelation, which is Microchip 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 Microchip Technology's stock expected returns. We can calculate the autocorrelation of Microchip Technology returns to help us make a trade decision. For example, suppose you find that Microchip 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 |
Microchip 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 Microchip Technology stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Microchip Technology stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Microchip Technology stock over time.
Current vs Lagged Prices |
| Timeline |
Microchip Technology Lagged Returns
When evaluating Microchip Technology's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Microchip Technology stock have on its future price. Microchip 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, Microchip Technology autocorrelation shows the relationship between Microchip Technology stock current value and its past values and can show if there is a momentum factor associated with investing in Microchip Technology.
Regressed Prices |
| Timeline |
Pair Trading with Microchip 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 Microchip 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 Microchip Technology will appreciate offsetting losses from the drop in the long position's value.Moving together with Microchip Stock
Moving against Microchip Stock
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The ability to find closely correlated positions to Microchip 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 Microchip 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 Microchip 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 Microchip Technology to buy it.
The correlation of Microchip 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 Microchip Technology moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Microchip 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 Microchip 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.Additional Tools for Microchip Stock Analysis
When running Microchip Technology's price analysis, check to measure Microchip Technology'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 Microchip Technology is operating at the current time. Most of Microchip Technology's value examination focuses on studying past and present price action to predict the probability of Microchip Technology's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Microchip Technology's price. Additionally, you may evaluate how the addition of Microchip Technology to your portfolios can decrease your overall portfolio volatility.