Valero Energy Stock Market Value
| VLO Stock | USD 141.11 0.09 0.06% |
| Symbol | Valero |
Valero Energy Price To Book Ratio
Is Oil & Gas Refining & Marketing 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 Valero Energy. If investors know Valero 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 Valero Energy 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 (0.85) | Dividend Share 4.23 | Earnings Share 11.38 | Revenue Per Share 393.974 | Quarterly Revenue Growth (0.15) |
The market value of Valero Energy is measured differently than its book value, which is the value of Valero that is recorded on the company's balance sheet. Investors also form their own opinion of Valero Energy's value that differs from its market value or its book value, called intrinsic value, which is Valero Energy'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 Valero Energy's market value can be influenced by many factors that don't directly affect Valero Energy'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 Valero Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Valero Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Valero Energy'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.
Valero Energy '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 Valero Energy'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 Valero Energy.
| 10/22/2024 |
| 11/21/2024 |
If you would invest 0.00 in Valero Energy on October 22, 2024 and sell it all today you would earn a total of 0.00 from holding Valero Energy or generate 0.0% return on investment in Valero Energy over 30 days. Valero Energy is related to or competes with Phillips, HF Sinclair, PBF Energy, CVR Energy, Marathon Petroleum, Sunoco LP, and Delek Energy. Valero Energy Corporation manufactures, markets, and sells transportation fuels and petrochemical products in the United... More
Valero Energy 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 Valero Energy'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 Valero Energy upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 2.1 | |||
| Information Ratio | (0.03) | |||
| Maximum Drawdown | 11.46 | |||
| Value At Risk | (3.31) | |||
| Potential Upside | 2.87 |
Valero Energy Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Valero Energy's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Valero Energy's standard deviation. In reality, there are many statistical measures that can use Valero Energy historical prices to predict the future Valero Energy's volatility.| Risk Adjusted Performance | 0.0177 | |||
| Jensen Alpha | (0.06) | |||
| Total Risk Alpha | (0.21) | |||
| Sortino Ratio | (0.03) | |||
| Treynor Ratio | 0.0215 |
Valero Energy Backtested Returns
Valero Energy owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.01, which indicates the firm had a -0.01% return per unit of risk over the last 3 months. Valero Energy exposes twenty-nine different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Valero Energy's Risk Adjusted Performance of 0.0177, coefficient of variation of 6566.37, and Semi Deviation of 2.05 to confirm the risk estimate we provide. The entity has a beta of 0.95, which indicates possible diversification benefits within a given portfolio. Valero Energy returns are very sensitive to returns on the market. As the market goes up or down, Valero Energy is expected to follow. At this point, Valero Energy has a negative expected return of -0.0202%. Please make sure to validate Valero Energy's value at risk, as well as the relationship between the kurtosis and price action indicator , to decide if Valero Energy performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.14 |
Insignificant reverse predictability
Valero Energy has insignificant reverse predictability. Overlapping area represents the amount of predictability between Valero Energy time series from 22nd of October 2024 to 6th of November 2024 and 6th of November 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 Valero Energy price movement. The serial correlation of -0.14 indicates that less than 14.0% of current Valero Energy price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.14 | |
| Spearman Rank Test | -0.51 | |
| Residual Average | 0.0 | |
| Price Variance | 5.74 |
Valero Energy lagged returns against current returns
Autocorrelation, which is Valero Energy 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 Valero Energy's stock expected returns. We can calculate the autocorrelation of Valero Energy returns to help us make a trade decision. For example, suppose you find that Valero Energy 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 |
Valero Energy 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 Valero Energy stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Valero Energy stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Valero Energy stock over time.
Current vs Lagged Prices |
| Timeline |
Valero Energy Lagged Returns
When evaluating Valero Energy's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Valero Energy stock have on its future price. Valero Energy 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, Valero Energy autocorrelation shows the relationship between Valero Energy stock current value and its past values and can show if there is a momentum factor associated with investing in Valero Energy.
Regressed Prices |
| Timeline |
Pair Trading with Valero Energy
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 Valero Energy 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 Valero Energy will appreciate offsetting losses from the drop in the long position's value.Moving together with Valero Stock
Moving against Valero Stock
The ability to find closely correlated positions to Valero Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Valero Energy 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 Valero Energy - 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 Valero Energy to buy it.
The correlation of Valero Energy 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 Valero Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Valero Energy 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 Valero Energy 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 Valero Energy Correlation, Valero Energy Volatility and Valero Energy Alpha and Beta module to complement your research on Valero Energy. To learn how to invest in Valero Stock, please use our How to Invest in Valero Energy guide.You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Valero Energy 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.