Canadian Historical Valuation
| CNR Stock | CAD 151.82 0.44 0.29% |
Some fundamental drivers such as market cap or Canadian National enterprice value can be analyzed from historical perspective to project value of the company into the future. Some investors analyze Canadian National Railway valuation indicators such as Working Capital of 0.0 or Enterprise Value of 30.1 B to time the market or to short-sell their positions based on the trend in valuation ratios. It is a perfect tool to project the direction of Canadian National's future value.
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About Canadian Valuation Data Analysis
Valuation is the financial process of determining what Canadian National is worth. Canadian National valuation ratios put that insight into the context of a company's share price, where they serve as useful tools for evaluating and utilizing investment potential. Canadian National valuation ratios help investors to determine whether Canadian 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 Canadian with respect to the benefits of owning Canadian National security.
Canadian National Valuation Data Chart
Enterprise Value
Enterprise Value (or EV) is usually referred to as Canadian National theoretical takeover price. In the event of an acquisition, an acquirer would have to take on Canadian National Railway debt, but would also pocket its cash. Enterprise Value is more accurate representation of Canadian National value than its market capitalization because it takes into account all of Canadian National Railway existing debt. A measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization that includes the market capitalization, plus total debt, minority interest and preferred shares, minus total cash and cash equivalents.Pair Trading with Canadian National
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 Canadian National 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 Canadian National will appreciate offsetting losses from the drop in the long position's value.Moving against Canadian Stock
| 0.59 | IVS | Inventus Mining Corp | PairCorr |
| 0.52 | STC | Sangoma Technologies Corp Earnings Call This Week | PairCorr |
| 0.51 | PPL-PA | Pembina Pipeline Corp | PairCorr |
| 0.45 | SPRX | Sparx Technology | PairCorr |
| 0.36 | SBIO | Sabio Holdings | PairCorr |
The ability to find closely correlated positions to Canadian National could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Canadian National 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 Canadian National - 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 Canadian National Railway to buy it.
The correlation of Canadian National 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 Canadian National moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Canadian National Railway 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 Canadian National 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 Trending Equities to better understand how to build diversified portfolios, which includes a position in Canadian National Railway. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.