Watsco Inc Stock Market Value
| WSO-B Stock | USD 535.00 15.30 2.94% |
| Symbol | Watsco |
Watsco Inc Price To Book Ratio
Watsco '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 Watsco'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 Watsco.
| 07/05/2023 |
| 11/26/2024 |
If you would invest 0.00 in Watsco on July 5, 2023 and sell it all today you would earn a total of 0.00 from holding Watsco Inc or generate 0.0% return on investment in Watsco over 510 days. Watsco is related to or competes with DXP Enterprises, Global Industrial, EVI Industries, Core Main, Distribution Solutions, WESCO International, and BlueLinx Holdings. Watsco, Inc., together with its subsidiaries, distributes air conditioning, heating, and refrigeration equipment and rel... More
Watsco 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 Watsco'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 Watsco Inc upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | 0.0416 | |||
| Maximum Drawdown | 11.25 | |||
| Potential Upside | 2.13 |
Watsco Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Watsco's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Watsco's standard deviation. In reality, there are many statistical measures that can use Watsco historical prices to predict the future Watsco's volatility.| Risk Adjusted Performance | 0.0912 | |||
| Jensen Alpha | 0.162 | |||
| Total Risk Alpha | (0.09) | |||
| Treynor Ratio | 0.7043 |
Watsco Inc Backtested Returns
At this point, Watsco is very steady. Watsco Inc shows Sharpe Ratio of 0.0972, which attests that the company had a 0.0972% return per unit of risk over the last 3 months. We have found twenty technical indicators for Watsco Inc, which you can use to evaluate the volatility of the company. Please check out Watsco's Market Risk Adjusted Performance of 0.7143, standard deviation of 1.83, and Mean Deviation of 0.7022 to validate if the risk estimate we provide is consistent with the expected return of 0.18%. Watsco has a performance score of 7 on a scale of 0 to 100. The firm maintains a market beta of 0.28, which attests to not very significant fluctuations relative to the market. As returns on the market increase, Watsco's returns are expected to increase less than the market. However, during the bear market, the loss of holding Watsco is expected to be smaller as well. Watsco Inc right now maintains a risk of 1.86%. Please check out Watsco Inc daily balance of power, day median price, and the relationship between the kurtosis and rate of daily change , to decide if Watsco Inc will be following its historical returns.
Auto-correlation | 0.68 |
Good predictability
Watsco Inc has good predictability. Overlapping area represents the amount of predictability between Watsco time series from 5th of July 2023 to 16th of March 2024 and 16th of March 2024 to 26th 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 Watsco Inc price movement. The serial correlation of 0.68 indicates that around 68.0% of current Watsco price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.68 | |
| Spearman Rank Test | 0.84 | |
| Residual Average | 0.0 | |
| Price Variance | 1092.39 |
Watsco Inc lagged returns against current returns
Autocorrelation, which is Watsco 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 Watsco's stock expected returns. We can calculate the autocorrelation of Watsco returns to help us make a trade decision. For example, suppose you find that Watsco 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 |
Watsco 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 Watsco stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Watsco stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Watsco stock over time.
Current vs Lagged Prices |
| Timeline |
Watsco Lagged Returns
When evaluating Watsco's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Watsco stock have on its future price. Watsco 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, Watsco autocorrelation shows the relationship between Watsco stock current value and its past values and can show if there is a momentum factor associated with investing in Watsco Inc.
Regressed Prices |
| Timeline |
Also Currently Popular
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.When determining whether Watsco Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Watsco's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Watsco Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Watsco Inc Stock:Check out Watsco Correlation, Watsco Volatility and Watsco Alpha and Beta module to complement your research on Watsco. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Watsco 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.