Canopy Historical Valuation
| WEED Stock | CAD 4.50 0.13 2.81% |
Some fundamental drivers such as market cap or Canopy Growth enterprice value can be analyzed from historical perspective to project value of the company into the future. Some investors analyze Canopy Growth Corp valuation indicators such as Market Cap of 2.4 M or Working Capital of 0.0 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 Canopy Growth's future value.
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About Canopy Valuation Data Analysis
Valuation is the financial process of determining what Canopy Growth is worth. Canopy Growth 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. Canopy Growth valuation ratios help investors to determine whether Canopy 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 Canopy with respect to the benefits of owning Canopy Growth security.
Canopy Growth Valuation Data Chart
Enterprise Value
Enterprise Value (or EV) is usually referred to as Canopy Growth theoretical takeover price. In the event of an acquisition, an acquirer would have to take on Canopy Growth Corp debt, but would also pocket its cash. Enterprise Value is more accurate representation of Canopy Growth value than its market capitalization because it takes into account all of Canopy Growth Corp 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 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 Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Canopy Growth Corp. 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.