Western Forest Products Stock Market Value
| WEF Stock | CAD 0.45 0.02 4.26% |
| Symbol | Western |
Western Forest Products Price To Book Ratio
Western Forest '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 Western Forest'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 Western Forest.
| 10/28/2024 |
| 11/27/2024 |
If you would invest 0.00 in Western Forest on October 28, 2024 and sell it all today you would earn a total of 0.00 from holding Western Forest Products or generate 0.0% return on investment in Western Forest over 30 days. Western Forest is related to or competes with Interfor Corp, Canfor, West Fraser, Stella Jones, and Martinrea International. Western Forest Products Inc. operates as an integrated forest products company More
Western Forest 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 Western Forest'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 Western Forest Products upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 4.57 | |||
| Information Ratio | 2.0E-4 | |||
| Maximum Drawdown | 20.91 | |||
| Value At Risk | (6.12) | |||
| Potential Upside | 6.0 |
Western Forest Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Western Forest's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Western Forest's standard deviation. In reality, there are many statistical measures that can use Western Forest historical prices to predict the future Western Forest's volatility.| Risk Adjusted Performance | 0.0355 | |||
| Jensen Alpha | 0.241 | |||
| Total Risk Alpha | (0.44) | |||
| Sortino Ratio | 2.0E-4 | |||
| Treynor Ratio | (0.12) |
Western Forest Products Backtested Returns
As of now, Western Stock is out of control. Western Forest Products shows Sharpe Ratio of 0.0282, which attests that the company had a 0.0282% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Western Forest Products, which you can use to evaluate the volatility of the company. Please check out Western Forest's Mean Deviation of 2.53, market risk adjusted performance of (0.11), and Downside Deviation of 4.57 to validate if the risk estimate we provide is consistent with the expected return of 0.1%. Western Forest has a performance score of 2 on a scale of 0 to 100. The firm maintains a market beta of -1.03, which attests to a somewhat significant risk relative to the market. As the market becomes more bullish, returns on owning Western Forest are expected to decrease slowly. On the other hand, during market turmoil, Western Forest is expected to outperform it slightly. Western Forest Products right now maintains a risk of 3.72%. Please check out Western Forest Products potential upside and the relationship between the skewness and period momentum indicator , to decide if Western Forest Products will be following its historical returns.
Auto-correlation | -0.09 |
Very weak reverse predictability
Western Forest Products has very weak reverse predictability. Overlapping area represents the amount of predictability between Western Forest time series from 28th of October 2024 to 12th of November 2024 and 12th of November 2024 to 27th 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 Western Forest Products price movement. The serial correlation of -0.09 indicates that less than 9.0% of current Western Forest price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.09 | |
| Spearman Rank Test | -0.09 | |
| Residual Average | 0.0 | |
| Price Variance | 0.0 |
Western Forest Products lagged returns against current returns
Autocorrelation, which is Western Forest 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 Western Forest's stock expected returns. We can calculate the autocorrelation of Western Forest returns to help us make a trade decision. For example, suppose you find that Western Forest 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 |
Western Forest 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 Western Forest stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Western Forest stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Western Forest stock over time.
Current vs Lagged Prices |
| Timeline |
Western Forest Lagged Returns
When evaluating Western Forest's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Western Forest stock have on its future price. Western Forest 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, Western Forest autocorrelation shows the relationship between Western Forest stock current value and its past values and can show if there is a momentum factor associated with investing in Western Forest Products.
Regressed Prices |
| Timeline |
Pair Trading with Western Forest
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 Western Forest 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 Western Forest will appreciate offsetting losses from the drop in the long position's value.Moving together with Western Stock
The ability to find closely correlated positions to Western Forest could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Western Forest 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 Western Forest - 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 Western Forest Products to buy it.
The correlation of Western Forest 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 Western Forest moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Western Forest Products 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 Western Forest 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 Western Stock
Western Forest financial ratios help investors to determine whether Western 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 Western with respect to the benefits of owning Western Forest security.