Canadian Pacific Railway Stock Momentum Indicators Average Directional Movement Index
| CP Stock | CAD 107.21 2.13 2.03% |
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The output start index for this execution was five with a total number of output elements of fifty-six. The average directional index (ADX) measures the strength of a prevailing trend of Canadian Pacific Railway and whether movement exists in the market. The ADX is measured on a scale of 0 to 100. A low Canadian Pacific ADX value usually indicates a non-trending market with low volumes, whereas a cross above 20 may indicate the start of a trend. If the ADX is over 40 and begins to fall, it can indicate the slowdown of a current trend. This indicator can also be used to identify non-trending markets, or a deterioration of an ongoing trend. Although market direction is important in its calculation, the ADX is not a directional indicator
Canadian Pacific Technical Analysis Modules
Most technical analysis of Canadian Pacific help investors determine whether a current trend will continue and, if not, when it will shift. We provide a combination of tools to recognize potential entry and exit points for Canadian from various momentum indicators to cycle indicators. When you analyze Canadian charts, please remember that the event formation may indicate an entry point for a short seller, and look at other indicators across different periods to confirm that a breakdown or reversion is likely to occur.| Cycle Indicators | ||
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About Canadian Pacific Predictive Technical Analysis
Predictive technical analysis modules help investors to analyze different prices and returns patterns as well as diagnose historical swings to determine the real value of Canadian Pacific Railway. We use our internally-developed statistical techniques to arrive at the intrinsic value of Canadian Pacific Railway based on widely used predictive technical indicators. In general, we focus on analyzing Canadian Stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Canadian Pacific's daily price indicators and compare them against related drivers, such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Canadian Pacific's intrinsic value. In addition to deriving basic predictive indicators for Canadian Pacific, we also check how macroeconomic factors affect Canadian Pacific price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
| 2021 | 2022 | 2023 | 2024 (projected) | Dividend Yield | 0.008199 | 0.007531 | 0.007241 | 0.006879 | Price To Sales Ratio | 7.73 | 10.65 | 7.78 | 8.17 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Canadian Pacific's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
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Canadian Pacific Railway pair trading
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 Pacific 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 Pacific will appreciate offsetting losses from the drop in the long position's value.Canadian Pacific Pair Trading
Canadian Pacific Railway Pair Trading Analysis
The ability to find closely correlated positions to Canadian Pacific 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 Pacific 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 Pacific - 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 Pacific Railway to buy it.
The correlation of Canadian Pacific 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 Pacific moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Canadian Pacific 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 Pacific 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 Pacific 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 estimate. You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.