Precision Drilling Stock Market Value
| PD Stock | CAD 90.34 2.36 2.55% |
| Symbol | Precision |
Precision Drilling Price To Book Ratio
Precision Drilling '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 Precision Drilling'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 Precision Drilling.
| 10/26/2024 |
| 11/25/2024 |
If you would invest 0.00 in Precision Drilling on October 26, 2024 and sell it all today you would earn a total of 0.00 from holding Precision Drilling or generate 0.0% return on investment in Precision Drilling over 30 days. Precision Drilling is related to or competes with Trican Well, Ensign Energy, Calfrac Well, and Birchcliff Energy. Precision Drilling Corporation, an oilfield services company, provides oil and natural gas drilling and related services... More
Precision Drilling 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 Precision Drilling'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 Precision Drilling upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 2.4 | |||
| Information Ratio | (0.05) | |||
| Maximum Drawdown | 9.83 | |||
| Value At Risk | (4.14) | |||
| Potential Upside | 3.91 |
Precision Drilling Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Precision Drilling's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Precision Drilling's standard deviation. In reality, there are many statistical measures that can use Precision Drilling historical prices to predict the future Precision Drilling's volatility.| Risk Adjusted Performance | 0.0091 | |||
| Jensen Alpha | (0.04) | |||
| Total Risk Alpha | (0.37) | |||
| Sortino Ratio | (0.05) | |||
| Treynor Ratio | (0.01) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Precision Drilling'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.
Precision Drilling Backtested Returns
Precision Drilling maintains Sharpe Ratio (i.e., Efficiency) of -0.0396, which implies the firm had a -0.0396% return per unit of risk over the last 3 months. Precision Drilling exposes thirty different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please check Precision Drilling's Risk Adjusted Performance of 0.0091, semi deviation of 2.36, and Coefficient Of Variation of 32063.77 to confirm the risk estimate we provide. The company holds a Beta of 0.31, which implies possible diversification benefits within a given portfolio. As returns on the market increase, Precision Drilling's returns are expected to increase less than the market. However, during the bear market, the loss of holding Precision Drilling is expected to be smaller as well. At this point, Precision Drilling has a negative expected return of -0.0899%. Please make sure to check Precision Drilling's potential upside, and the relationship between the total risk alpha and kurtosis , to decide if Precision Drilling performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.68 |
Good predictability
Precision Drilling has good predictability. Overlapping area represents the amount of predictability between Precision Drilling 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 Precision Drilling price movement. The serial correlation of 0.68 indicates that around 68.0% of current Precision Drilling price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.68 | |
| Spearman Rank Test | 0.6 | |
| Residual Average | 0.0 | |
| Price Variance | 3.29 |
Precision Drilling lagged returns against current returns
Autocorrelation, which is Precision Drilling 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 Precision Drilling's stock expected returns. We can calculate the autocorrelation of Precision Drilling returns to help us make a trade decision. For example, suppose you find that Precision Drilling 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 |
Precision Drilling 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 Precision Drilling stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Precision Drilling stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Precision Drilling stock over time.
Current vs Lagged Prices |
| Timeline |
Precision Drilling Lagged Returns
When evaluating Precision Drilling's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Precision Drilling stock have on its future price. Precision Drilling 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, Precision Drilling autocorrelation shows the relationship between Precision Drilling stock current value and its past values and can show if there is a momentum factor associated with investing in Precision Drilling.
Regressed Prices |
| Timeline |
Pair Trading with Precision Drilling
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 Precision Drilling 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 Precision Drilling will appreciate offsetting losses from the drop in the long position's value.Moving against Precision Stock
| 0.72 | MRT-UN | Morguard Real Estate | PairCorr |
| 0.64 | ENB-PFU | Enbridge Pref L | PairCorr |
| 0.59 | PPL-PA | Pembina Pipeline Corp | PairCorr |
| 0.57 | ENB-PFV | Enbridge Pref 5 | PairCorr |
| 0.56 | SGR-U | Slate Grocery REIT | PairCorr |
The ability to find closely correlated positions to Precision Drilling could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Precision Drilling 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 Precision Drilling - 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 Precision Drilling to buy it.
The correlation of Precision Drilling 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 Precision Drilling moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Precision Drilling 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 Precision Drilling 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.Check out Precision Drilling Correlation, Precision Drilling Volatility and Precision Drilling Alpha and Beta module to complement your research on Precision Drilling. To learn how to invest in Precision Stock, please use our How to Invest in Precision Drilling guide.You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Precision Drilling 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.