Canopy Growth Corp Stock Market Value
| WEED Stock | CAD 4.63 0.32 6.46% |
| Symbol | Canopy |
Canopy Growth Corp Price To Book Ratio
Canopy Growth '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 Canopy Growth'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 Canopy Growth.
| 11/12/2024 |
| 12/12/2024 |
If you would invest 0.00 in Canopy Growth on November 12, 2024 and sell it all today you would earn a total of 0.00 from holding Canopy Growth Corp or generate 0.0% return on investment in Canopy Growth over 30 days. Canopy Growth is related to or competes with Aurora Cannabis, Cronos, Air Canada, and Shopify. Canopy Growth Corporation, together with its subsidiaries, engages in the production, distribution, and sale of cannabis... More
Canopy Growth 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 Canopy Growth'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 Canopy Growth Corp upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.11) | |||
| Maximum Drawdown | 35.85 | |||
| Value At Risk | (6.58) | |||
| Potential Upside | 6.26 |
Canopy Growth Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Canopy Growth's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Canopy Growth's standard deviation. In reality, there are many statistical measures that can use Canopy Growth historical prices to predict the future Canopy Growth's volatility.| Risk Adjusted Performance | (0.05) | |||
| Jensen Alpha | (0.40) | |||
| Total Risk Alpha | (1.20) | |||
| Treynor Ratio | 3.74 |
Canopy Growth Corp Backtested Returns
Canopy Growth Corp secures Sharpe Ratio (or Efficiency) of -0.0805, which signifies that the company had a -0.0805% return per unit of risk over the last 3 months. Canopy Growth Corp exposes twenty-two different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Canopy Growth's Mean Deviation of 3.32, risk adjusted performance of (0.05), and Standard Deviation of 4.97 to double-check the risk estimate we provide. The firm shows a Beta (market volatility) of -0.11, which signifies not very significant fluctuations relative to the market. As returns on the market increase, returns on owning Canopy Growth are expected to decrease at a much lower rate. During the bear market, Canopy Growth is likely to outperform the market. At this point, Canopy Growth Corp has a negative expected return of -0.41%. Please make sure to confirm Canopy Growth's potential upside, kurtosis, and the relationship between the maximum drawdown and skewness , to decide if Canopy Growth Corp performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.28 |
Weak reverse predictability
Canopy Growth Corp has weak reverse predictability. Overlapping area represents the amount of predictability between Canopy Growth time series from 12th of November 2024 to 27th of November 2024 and 27th of November 2024 to 12th of December 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 Canopy Growth Corp price movement. The serial correlation of -0.28 indicates that nearly 28.0% of current Canopy Growth price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.28 | |
| Spearman Rank Test | 0.08 | |
| Residual Average | 0.0 | |
| Price Variance | 0.07 |
Canopy Growth Corp lagged returns against current returns
Autocorrelation, which is Canopy Growth 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 Canopy Growth's stock expected returns. We can calculate the autocorrelation of Canopy Growth returns to help us make a trade decision. For example, suppose you find that Canopy Growth 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 |
Canopy Growth 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 Canopy Growth stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Canopy Growth stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Canopy Growth stock over time.
Current vs Lagged Prices |
| Timeline |
Canopy Growth Lagged Returns
When evaluating Canopy Growth's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Canopy Growth stock have on its future price. Canopy Growth 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, Canopy Growth autocorrelation shows the relationship between Canopy Growth stock current value and its past values and can show if there is a momentum factor associated with investing in Canopy Growth Corp.
Regressed Prices |
| Timeline |
Pair Trading with Canopy Growth
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 Canopy Growth 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 Canopy Growth will appreciate offsetting losses from the drop in the long position's value.Moving against Canopy Stock
The ability to find closely correlated positions to Canopy Growth could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Canopy Growth 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 Canopy Growth - 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 Canopy Growth Corp to buy it.
The correlation of Canopy Growth 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 Canopy Growth moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Canopy Growth Corp 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 Canopy Growth 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 Canopy Growth Correlation, Canopy Growth Volatility and Canopy Growth Alpha and Beta module to complement your research on Canopy Growth. You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Canopy Growth 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.