Otter Tail Stock Market Value
| OTTR Stock | USD 81.94 1.16 1.44% |
| Symbol | Otter |
Otter Tail Price To Book Ratio
Is Electric Utilities 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 Otter Tail. If investors know Otter 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 Otter Tail 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 (0.07) | Dividend Share 1.84 | Earnings Share 7.24 | Revenue Per Share 32.139 | Quarterly Revenue Growth (0.06) |
The market value of Otter Tail is measured differently than its book value, which is the value of Otter that is recorded on the company's balance sheet. Investors also form their own opinion of Otter Tail's value that differs from its market value or its book value, called intrinsic value, which is Otter Tail'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 Otter Tail's market value can be influenced by many factors that don't directly affect Otter Tail'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 Otter Tail's value and its price as these two are different measures arrived at by different means. Investors typically determine if Otter Tail is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Otter Tail'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.
Otter Tail '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 Otter Tail'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 Otter Tail.
| 10/26/2024 |
| 11/25/2024 |
If you would invest 0.00 in Otter Tail on October 26, 2024 and sell it all today you would earn a total of 0.00 from holding Otter Tail or generate 0.0% return on investment in Otter Tail over 30 days. Otter Tail is related to or competes with NorthWestern, Avista, Black Hills, Companhia Paranaense, Allete, Montauk Renewables, and AES. Otter Tail Corporation, together with its subsidiaries, engages in electric utility, manufacturing, and plastic pipe bus... More
Otter Tail 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 Otter Tail'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 Otter Tail upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.12) | |||
| Maximum Drawdown | 10.11 | |||
| Value At Risk | (3.54) | |||
| Potential Upside | 2.99 |
Otter Tail Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Otter Tail's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Otter Tail's standard deviation. In reality, there are many statistical measures that can use Otter Tail historical prices to predict the future Otter Tail's volatility.| Risk Adjusted Performance | (0.03) | |||
| Jensen Alpha | (0.26) | |||
| Total Risk Alpha | (0.39) | |||
| Treynor Ratio | (0.07) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Otter Tail'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.
Otter Tail Backtested Returns
Otter Tail maintains Sharpe Ratio (i.e., Efficiency) of -0.0401, which implies the firm had a -0.0401% return per unit of risk over the last 3 months. Otter Tail exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check Otter Tail's Variance of 3.51, coefficient of variation of (2,173), and Risk Adjusted Performance of (0.03) to confirm the risk estimate we provide. The company holds a Beta of 1.35, which implies 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, Otter Tail will likely underperform. At this point, Otter Tail has a negative expected return of -0.0673%. Please make sure to check Otter Tail's maximum drawdown, daily balance of power, as well as the relationship between the Daily Balance Of Power and relative strength index , to decide if Otter Tail performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.08 |
Virtually no predictability
Otter Tail has virtually no predictability. Overlapping area represents the amount of predictability between Otter Tail time series from 26th of October 2024 to 10th of November 2024 and 10th of November 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 Otter Tail price movement. The serial correlation of 0.08 indicates that barely 8.0% of current Otter Tail price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.08 | |
| Spearman Rank Test | 0.38 | |
| Residual Average | 0.0 | |
| Price Variance | 0.57 |
Otter Tail lagged returns against current returns
Autocorrelation, which is Otter Tail 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 Otter Tail's stock expected returns. We can calculate the autocorrelation of Otter Tail returns to help us make a trade decision. For example, suppose you find that Otter Tail 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 |
Otter Tail 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 Otter Tail stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Otter Tail stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Otter Tail stock over time.
Current vs Lagged Prices |
| Timeline |
Otter Tail Lagged Returns
When evaluating Otter Tail's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Otter Tail stock have on its future price. Otter Tail 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, Otter Tail autocorrelation shows the relationship between Otter Tail stock current value and its past values and can show if there is a momentum factor associated with investing in Otter Tail.
Regressed Prices |
| Timeline |
Pair Trading with Otter Tail
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 Otter Tail 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 Otter Tail will appreciate offsetting losses from the drop in the long position's value.Moving against Otter Stock
| 0.62 | BIP-PA | Brookfield Infrastructure | PairCorr |
| 0.6 | BIP-PB | Brookfield Infrastructure | PairCorr |
| 0.57 | SO | Southern | PairCorr |
| 0.4 | ED | Consolidated Edison | PairCorr |
| 0.39 | D | Dominion Energy | PairCorr |
The ability to find closely correlated positions to Otter Tail could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Otter Tail 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 Otter Tail - 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 Otter Tail to buy it.
The correlation of Otter Tail 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 Otter Tail moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Otter Tail 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 Otter Tail 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 Otter Stock Analysis
When running Otter Tail's price analysis, check to measure Otter Tail'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 Otter Tail is operating at the current time. Most of Otter Tail's value examination focuses on studying past and present price action to predict the probability of Otter Tail's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Otter Tail's price. Additionally, you may evaluate how the addition of Otter Tail to your portfolios can decrease your overall portfolio volatility.