Two Harbors Investments Stock Market Value
| TWO Stock | USD 11.74 0.18 1.56% |
| Symbol | Two |
Two Harbors Investments Price To Book Ratio
Is Mortgage Real Estate Investment Trusts (REITs) 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 Two Harbors. If investors know Two 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 Two Harbors 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 (0.76) | Dividend Share 1.8 | Earnings Share (4.80) | Revenue Per Share 1.171 | Quarterly Revenue Growth (0.43) |
The market value of Two Harbors Investments is measured differently than its book value, which is the value of Two that is recorded on the company's balance sheet. Investors also form their own opinion of Two Harbors' value that differs from its market value or its book value, called intrinsic value, which is Two Harbors' 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 Two Harbors' market value can be influenced by many factors that don't directly affect Two Harbors' 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 Two Harbors' value and its price as these two are different measures arrived at by different means. Investors typically determine if Two Harbors is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Two Harbors' 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.
Two Harbors '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 Two Harbors' 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 Two Harbors.
| 10/25/2024 |
| 11/24/2024 |
If you would invest 0.00 in Two Harbors on October 25, 2024 and sell it all today you would earn a total of 0.00 from holding Two Harbors Investments or generate 0.0% return on investment in Two Harbors over 30 days. Two Harbors is related to or competes with New York, ARMOUR Residential, Annaly Capital, AGNC Investment, Orchid Island, Invesco Mortgage, and Chimera Investment. Two Harbors Investment Corp. operates as a real estate investment trust that focuses on investing in, financing, and man... More
Two Harbors 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 Two Harbors' 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 Two Harbors Investments upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.23) | |||
| Maximum Drawdown | 8.41 | |||
| Value At Risk | (2.21) | |||
| Potential Upside | 1.56 |
Two Harbors Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Two Harbors' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Two Harbors' standard deviation. In reality, there are many statistical measures that can use Two Harbors historical prices to predict the future Two Harbors' volatility.| Risk Adjusted Performance | (0.09) | |||
| Jensen Alpha | (0.26) | |||
| Total Risk Alpha | (0.39) | |||
| Treynor Ratio | (0.27) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Two Harbors' 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.
Two Harbors Investments Backtested Returns
Two Harbors Investments owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.16, which indicates the firm had a -0.16% return per unit of risk over the last 3 months. Two Harbors Investments exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Two Harbors' Coefficient Of Variation of (785.19), risk adjusted performance of (0.09), and Variance of 1.75 to confirm the risk estimate we provide. The entity has a beta of 0.66, which indicates possible diversification benefits within a given portfolio. As returns on the market increase, Two Harbors' returns are expected to increase less than the market. However, during the bear market, the loss of holding Two Harbors is expected to be smaller as well. At this point, Two Harbors Investments has a negative expected return of -0.21%. Please make sure to validate Two Harbors' treynor ratio, accumulation distribution, as well as the relationship between the Accumulation Distribution and price action indicator , to decide if Two Harbors Investments performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.60 |
Good predictability
Two Harbors Investments has good predictability. Overlapping area represents the amount of predictability between Two Harbors time series from 25th of October 2024 to 9th of November 2024 and 9th of November 2024 to 24th 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 Two Harbors Investments price movement. The serial correlation of 0.6 indicates that roughly 60.0% of current Two Harbors price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.6 | |
| Spearman Rank Test | -0.11 | |
| Residual Average | 0.0 | |
| Price Variance | 0.01 |
Two Harbors Investments lagged returns against current returns
Autocorrelation, which is Two Harbors 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 Two Harbors' stock expected returns. We can calculate the autocorrelation of Two Harbors returns to help us make a trade decision. For example, suppose you find that Two Harbors 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 |
Two Harbors 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 Two Harbors stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Two Harbors stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Two Harbors stock over time.
Current vs Lagged Prices |
| Timeline |
Two Harbors Lagged Returns
When evaluating Two Harbors' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Two Harbors stock have on its future price. Two Harbors 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, Two Harbors autocorrelation shows the relationship between Two Harbors stock current value and its past values and can show if there is a momentum factor associated with investing in Two Harbors Investments.
Regressed Prices |
| Timeline |
Pair Trading with Two Harbors
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 Two Harbors 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 Two Harbors will appreciate offsetting losses from the drop in the long position's value.Moving against Two Stock
| 0.87 | LC | LendingClub Corp | PairCorr |
| 0.87 | SF | Stifel Financial Earnings Call This Week | PairCorr |
| 0.86 | DIST | Distoken Acquisition | PairCorr |
| 0.86 | MS | Morgan Stanley Sell-off Trend | PairCorr |
| 0.85 | QD | Qudian Inc | PairCorr |
The ability to find closely correlated positions to Two Harbors could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Two Harbors 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 Two Harbors - 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 Two Harbors Investments to buy it.
The correlation of Two Harbors 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 Two Harbors moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Two Harbors Investments 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 Two Harbors 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 Two Harbors Correlation, Two Harbors Volatility and Two Harbors Alpha and Beta module to complement your research on Two Harbors. You can also try the Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Two Harbors 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.