Power Stock Market Value
| POW Stock | CAD 47.16 0.12 0.26% |
| Symbol | Power |
Power Price To Book Ratio
Power '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 Power'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 Power.
| 10/31/2024 |
| 11/30/2024 |
If you would invest 0.00 in Power on October 31, 2024 and sell it all today you would earn a total of 0.00 from holding Power or generate 0.0% return on investment in Power over 30 days. Power is related to or competes with Great West, Manulife Financial, Sun Life, Fortis, and BCE. Power Corporation of Canada operates as an international management and holding company in North America, Europe, and As... More
Power 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 Power'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 Power upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.12 | |||
| Information Ratio | 0.1365 | |||
| Maximum Drawdown | 6.28 | |||
| Value At Risk | (0.90) | |||
| Potential Upside | 1.27 |
Power Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Power's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Power's standard deviation. In reality, there are many statistical measures that can use Power historical prices to predict the future Power's volatility.| Risk Adjusted Performance | 0.229 | |||
| Jensen Alpha | 0.1961 | |||
| Total Risk Alpha | 0.1017 | |||
| Sortino Ratio | 0.1033 | |||
| Treynor Ratio | 0.6529 |
Power Backtested Returns
Power appears to be very steady, given 3 months investment horizon. Power maintains Sharpe Ratio (i.e., Efficiency) of 0.26, which implies the firm had a 0.26% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Power, which you can use to evaluate the volatility of the company. Please evaluate Power's Risk Adjusted Performance of 0.229, semi deviation of 0.7449, and Coefficient Of Variation of 335.29 to confirm if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Power holds a performance score of 20. The company holds a Beta of 0.37, which implies possible diversification benefits within a given portfolio. As returns on the market increase, Power's returns are expected to increase less than the market. However, during the bear market, the loss of holding Power is expected to be smaller as well. Please check Power's kurtosis, and the relationship between the downside variance and day median price , to make a quick decision on whether Power's historical price patterns will revert.
Auto-correlation | 0.69 |
Good predictability
Power has good predictability. Overlapping area represents the amount of predictability between Power time series from 31st of October 2024 to 15th of November 2024 and 15th of November 2024 to 30th 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 Power price movement. The serial correlation of 0.69 indicates that around 69.0% of current Power price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.69 | |
| Spearman Rank Test | 0.71 | |
| Residual Average | 0.0 | |
| Price Variance | 0.26 |
Power lagged returns against current returns
Autocorrelation, which is Power 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 Power's stock expected returns. We can calculate the autocorrelation of Power returns to help us make a trade decision. For example, suppose you find that Power 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 |
Power 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 Power stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Power stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Power stock over time.
Current vs Lagged Prices |
| Timeline |
Power Lagged Returns
When evaluating Power's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Power stock have on its future price. Power 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, Power autocorrelation shows the relationship between Power stock current value and its past values and can show if there is a momentum factor associated with investing in Power.
Regressed Prices |
| Timeline |
Pair Trading with Power
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 Power 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 Power will appreciate offsetting losses from the drop in the long position's value.Moving against Power Stock
The ability to find closely correlated positions to Power could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Power 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 Power - 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 Power to buy it.
The correlation of Power 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 Power moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Power 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 Power 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 Power Stock
Power financial ratios help investors to determine whether Power 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 Power with respect to the benefits of owning Power security.