Paramount Resources Stock Market Value
| POU Stock | CAD 31.02 0.04 0.13% |
| Symbol | Paramount |
Paramount Resources Price To Book Ratio
Paramount Resources '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 Paramount Resources' 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 Paramount Resources.
| 12/10/2022 |
| 11/29/2024 |
If you would invest 0.00 in Paramount Resources on December 10, 2022 and sell it all today you would earn a total of 0.00 from holding Paramount Resources or generate 0.0% return on investment in Paramount Resources over 720 days. Paramount Resources is related to or competes with InPlay Oil, Queens Road, Canlan Ice, Economic Investment, NeXGold Mining, and Dream Office. Paramount Resources Ltd., an independent energy company, explores for, develops, produces, and markets natural gas, crud... More
Paramount Resources 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 Paramount Resources' 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 Paramount Resources upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.64 | |||
| Information Ratio | 0.0334 | |||
| Maximum Drawdown | 16.84 | |||
| Value At Risk | (2.74) | |||
| Potential Upside | 3.07 |
Paramount Resources Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Paramount Resources' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Paramount Resources' standard deviation. In reality, there are many statistical measures that can use Paramount Resources historical prices to predict the future Paramount Resources' volatility.| Risk Adjusted Performance | 0.0715 | |||
| Jensen Alpha | 0.1886 | |||
| Total Risk Alpha | (0.17) | |||
| Sortino Ratio | 0.05 | |||
| Treynor Ratio | 2.53 |
Paramount Resources Backtested Returns
Paramount Resources appears to be very steady, given 3 months investment horizon. Paramount Resources maintains Sharpe Ratio (i.e., Efficiency) of 0.12, which implies the firm had a 0.12% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Paramount Resources, which you can use to evaluate the volatility of the company. Please evaluate Paramount Resources' Semi Deviation of 1.41, coefficient of variation of 1185.12, and Risk Adjusted Performance of 0.0715 to confirm if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Paramount Resources holds a performance score of 9. The company holds a Beta of 0.0782, which implies not very significant fluctuations relative to the market. As returns on the market increase, Paramount Resources' returns are expected to increase less than the market. However, during the bear market, the loss of holding Paramount Resources is expected to be smaller as well. Please check Paramount Resources' expected short fall, and the relationship between the value at risk and daily balance of power , to make a quick decision on whether Paramount Resources' historical price patterns will revert.
Auto-correlation | -0.03 |
Very weak reverse predictability
Paramount Resources has very weak reverse predictability. Overlapping area represents the amount of predictability between Paramount Resources time series from 10th of December 2022 to 5th of December 2023 and 5th of December 2023 to 29th 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 Paramount Resources price movement. The serial correlation of -0.03 indicates that only 3.0% of current Paramount Resources price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.03 | |
| Spearman Rank Test | 0.16 | |
| Residual Average | 0.0 | |
| Price Variance | 5.62 |
Paramount Resources lagged returns against current returns
Autocorrelation, which is Paramount Resources 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 Paramount Resources' stock expected returns. We can calculate the autocorrelation of Paramount Resources returns to help us make a trade decision. For example, suppose you find that Paramount Resources 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 |
Paramount Resources 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 Paramount Resources stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Paramount Resources stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Paramount Resources stock over time.
Current vs Lagged Prices |
| Timeline |
Paramount Resources Lagged Returns
When evaluating Paramount Resources' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Paramount Resources stock have on its future price. Paramount Resources 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, Paramount Resources autocorrelation shows the relationship between Paramount Resources stock current value and its past values and can show if there is a momentum factor associated with investing in Paramount Resources.
Regressed Prices |
| Timeline |
Pair Trading with Paramount Resources
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 Paramount Resources 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 Paramount Resources will appreciate offsetting losses from the drop in the long position's value.Moving together with Paramount Stock
Moving against Paramount Stock
The ability to find closely correlated positions to Paramount Resources could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Paramount Resources 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 Paramount Resources - 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 Paramount Resources to buy it.
The correlation of Paramount Resources 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 Paramount Resources moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Paramount Resources 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 Paramount Resources 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.Other Information on Investing in Paramount Stock
Paramount Resources financial ratios help investors to determine whether Paramount Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Paramount with respect to the benefits of owning Paramount Resources security.