Denbury Resources Stock Forecast - Naive Prediction
| DENDelisted Stock | USD 86.53 0.68 0.79% |
The Naive Prediction forecasted value of Denbury Resources on the next trading day is expected to be 84.95 with a mean absolute deviation of 1.21 and the sum of the absolute errors of 73.97. Denbury Stock Forecast is based on your current time horizon.
Denbury |
Denbury Resources Naive Prediction Price Forecast For the 17th of December 2024
Given 90 days horizon, the Naive Prediction forecasted value of Denbury Resources on the next trading day is expected to be 84.95 with a mean absolute deviation of 1.21, mean absolute percentage error of 2.23, and the sum of the absolute errors of 73.97.Please note that although there have been many attempts to predict Denbury Stock prices using its time series forecasting, we generally do not recommend using it to place bets in the real market. The most commonly used models for forecasting predictions are the autoregressive models, which specify that Denbury Resources' next future price depends linearly on its previous prices and some stochastic term (i.e., imperfectly predictable multiplier).
Denbury Resources Stock Forecast Pattern
| Backtest Denbury Resources | Denbury Resources Price Prediction | Buy or Sell Advice |
Model Predictive Factors
The below table displays some essential indicators generated by the model showing the Naive Prediction forecasting method's relative quality and the estimations of the prediction error of Denbury Resources stock data series using in forecasting. Note that when a statistical model is used to represent Denbury Resources stock, the representation will rarely be exact; so some information will be lost using the model to explain the process. AIC estimates the relative amount of information lost by a given model: the less information a model loses, the higher its quality.| AIC | Akaike Information Criteria | 118.9118 |
| Bias | Arithmetic mean of the errors | None |
| MAD | Mean absolute deviation | 1.2127 |
| MAPE | Mean absolute percentage error | 0.0138 |
| SAE | Sum of the absolute errors | 73.9729 |
Predictive Modules for Denbury Resources
There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Denbury Resources. Regardless of method or technology, however, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Denbury Resources' 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.
View Denbury Resources Related Equities
| Risk & Return | Correlation |
Denbury Resources Market Strength Events
Market strength indicators help investors to evaluate how Denbury Resources stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Denbury Resources shares will generate the highest return on investment. By undertsting and applying Denbury Resources stock market strength indicators, traders can identify Denbury Resources entry and exit signals to maximize returns.
Denbury Resources Risk Indicators
The analysis of Denbury Resources' basic risk indicators is one of the essential steps in accurately forecasting its future price. The process involves identifying the amount of risk involved in Denbury Resources' investment and either accepting that risk or mitigating it. Along with some essential techniques for forecasting denbury stock prices, we also provide a set of basic risk indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Mean Deviation | 1.32 | |||
| Standard Deviation | 1.73 | |||
| Variance | 2.99 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Pair Trading with Denbury Resources
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 Denbury Resources 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 Denbury Resources will appreciate offsetting losses from the drop in the long position's value.Moving together with Denbury Stock
Moving against Denbury Stock
| 0.83 | DIS | Walt Disney | PairCorr |
| 0.78 | AXP | American Express Fiscal Year End 24th of January 2025 | PairCorr |
| 0.76 | CVX | Chevron Corp Fiscal Year End 7th of February 2025 | PairCorr |
| 0.75 | WMT | Walmart | PairCorr |
| 0.74 | JPM | JPMorgan Chase Fiscal Year End 10th of January 2025 | PairCorr |
The ability to find closely correlated positions to Denbury Resources could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Denbury Resources 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 Denbury Resources - 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 Denbury Resources to buy it.
The correlation of Denbury Resources 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 Denbury Resources moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Denbury Resources 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 Denbury Resources 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 Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income. You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Consideration for investing in Denbury Stock
If you are still planning to invest in Denbury Resources check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Denbury Resources' history and understand the potential risks before investing.
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