Teradyne Stock Market Value
| TER Stock | USD 103.58 0.78 0.76% |
| Symbol | Teradyne |
Teradyne 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 Teradyne. If investors know Teradyne 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 Teradyne 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 0.141 | Dividend Share 0.47 | Earnings Share 3.14 | Revenue Per Share 17.474 | Quarterly Revenue Growth 0.048 |
The market value of Teradyne is measured differently than its book value, which is the value of Teradyne that is recorded on the company's balance sheet. Investors also form their own opinion of Teradyne's value that differs from its market value or its book value, called intrinsic value, which is Teradyne'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 Teradyne's market value can be influenced by many factors that don't directly affect Teradyne'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 Teradyne's value and its price as these two are different measures arrived at by different means. Investors typically determine if Teradyne is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Teradyne'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.
Teradyne '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 Teradyne'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 Teradyne.
| 05/25/2024 |
| 11/21/2024 |
If you would invest 0.00 in Teradyne on May 25, 2024 and sell it all today you would earn a total of 0.00 from holding Teradyne or generate 0.0% return on investment in Teradyne over 180 days. Teradyne is related to or competes with IPG Photonics, Ultra Clean, Onto Innovation, Cohu, Lam Research, Applied Materials, and ASML Holding. Teradyne, Inc. designs, develops, manufactures, sells, and supports automatic test equipment worldwide More
Teradyne 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 Teradyne'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 Teradyne upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.15) | |||
| Maximum Drawdown | 16.21 | |||
| Value At Risk | (3.70) | |||
| Potential Upside | 3.61 |
Teradyne Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Teradyne's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Teradyne's standard deviation. In reality, there are many statistical measures that can use Teradyne historical prices to predict the future Teradyne's volatility.| Risk Adjusted Performance | (0.08) | |||
| Jensen Alpha | (0.50) | |||
| Total Risk Alpha | (0.65) | |||
| Treynor Ratio | (0.17) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Teradyne'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.
Teradyne Backtested Returns
Teradyne owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.14, which indicates the firm had a -0.14% return per unit of risk over the last 3 months. Teradyne exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Teradyne's Variance of 7.78, coefficient of variation of (863.73), and Risk Adjusted Performance of (0.08) to confirm the risk estimate we provide. The entity has a beta of 1.99, which indicates 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, Teradyne will likely underperform. At this point, Teradyne has a negative expected return of -0.38%. Please make sure to validate Teradyne's maximum drawdown, accumulation distribution, as well as the relationship between the Accumulation Distribution and market facilitation index , to decide if Teradyne performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.76 |
Good predictability
Teradyne has good predictability. Overlapping area represents the amount of predictability between Teradyne time series from 25th of May 2024 to 23rd of August 2024 and 23rd of August 2024 to 21st 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 Teradyne price movement. The serial correlation of 0.76 indicates that around 76.0% of current Teradyne price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.76 | |
| Spearman Rank Test | 0.4 | |
| Residual Average | 0.0 | |
| Price Variance | 113.41 |
Teradyne lagged returns against current returns
Autocorrelation, which is Teradyne 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 Teradyne's stock expected returns. We can calculate the autocorrelation of Teradyne returns to help us make a trade decision. For example, suppose you find that Teradyne 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 |
Teradyne 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 Teradyne stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Teradyne stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Teradyne stock over time.
Current vs Lagged Prices |
| Timeline |
Teradyne Lagged Returns
When evaluating Teradyne's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Teradyne stock have on its future price. Teradyne 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, Teradyne autocorrelation shows the relationship between Teradyne stock current value and its past values and can show if there is a momentum factor associated with investing in Teradyne.
Regressed Prices |
| Timeline |
Pair Trading with Teradyne
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 Teradyne 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 Teradyne will appreciate offsetting losses from the drop in the long position's value.Moving together with Teradyne Stock
Moving against Teradyne Stock
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The ability to find closely correlated positions to Teradyne could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Teradyne 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 Teradyne - 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 Teradyne to buy it.
The correlation of Teradyne 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 Teradyne moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Teradyne 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 Teradyne 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 Teradyne Stock Analysis
When running Teradyne's price analysis, check to measure Teradyne'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 Teradyne is operating at the current time. Most of Teradyne's value examination focuses on studying past and present price action to predict the probability of Teradyne's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Teradyne's price. Additionally, you may evaluate how the addition of Teradyne to your portfolios can decrease your overall portfolio volatility.