Capital Power Stock Market Value
CPX Stock | CAD 62.28 0.24 0.39% |
Symbol | Capital |
Capital Power Price To Book Ratio
Capital Power '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 Capital Power'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 Capital Power.
06/04/2024 |
| 12/01/2024 |
If you would invest 0.00 in Capital Power on June 4, 2024 and sell it all today you would earn a total of 0.00 from holding Capital Power or generate 0.0% return on investment in Capital Power over 180 days. Capital Power is related to or competes with Canadian Utilities, Emera, Keyera Corp, and Northland Power. Capital Power Corporation develops, acquires, owns, and operates renewable and thermal power generation facilities in Ca... More
Capital Power 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 Capital Power'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 Capital Power upside and downside potential and time the market with a certain degree of confidence.
Downside Deviation | 1.2 | |||
Information Ratio | 0.2414 | |||
Maximum Drawdown | 10.68 | |||
Value At Risk | (1.36) | |||
Potential Upside | 2.65 |
Capital Power Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Capital Power's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Capital Power's standard deviation. In reality, there are many statistical measures that can use Capital Power historical prices to predict the future Capital Power's volatility.Risk Adjusted Performance | 0.2528 | |||
Jensen Alpha | 0.5736 | |||
Total Risk Alpha | 0.2524 | |||
Sortino Ratio | 0.3362 | |||
Treynor Ratio | (1.63) |
Capital Power Backtested Returns
Capital Power appears to be very steady, given 3 months investment horizon. Capital Power secures Sharpe Ratio (or Efficiency) of 0.33, which signifies that the company had a 0.33% return per unit of risk over the last 3 months. By analyzing Capital Power's technical indicators, you can evaluate if the expected return of 0.56% is justified by implied risk. Please makes use of Capital Power's Downside Deviation of 1.2, mean deviation of 1.16, and Risk Adjusted Performance of 0.2528 to double-check if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Capital Power holds a performance score of 25. The firm shows a Beta (market volatility) of -0.33, which signifies possible diversification benefits within a given portfolio. As returns on the market increase, returns on owning Capital Power are expected to decrease at a much lower rate. During the bear market, Capital Power is likely to outperform the market. Please check Capital Power's sortino ratio, skewness, price action indicator, as well as the relationship between the potential upside and rate of daily change , to make a quick decision on whether Capital Power's price patterns will revert.
Auto-correlation | 0.90 |
Excellent predictability
Capital Power has excellent predictability. Overlapping area represents the amount of predictability between Capital Power time series from 4th of June 2024 to 2nd of September 2024 and 2nd of September 2024 to 1st of December 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 Capital Power price movement. The serial correlation of 0.9 indicates that approximately 90.0% of current Capital Power price fluctuation can be explain by its past prices.
Correlation Coefficient | 0.9 | |
Spearman Rank Test | 0.87 | |
Residual Average | 0.0 | |
Price Variance | 26.24 |
Capital Power lagged returns against current returns
Autocorrelation, which is Capital Power 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 Capital Power's stock expected returns. We can calculate the autocorrelation of Capital Power returns to help us make a trade decision. For example, suppose you find that Capital Power 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 |
Capital Power 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 Capital Power stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Capital Power stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Capital Power stock over time.
Current vs Lagged Prices |
Timeline |
Capital Power Lagged Returns
When evaluating Capital Power's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Capital Power stock have on its future price. Capital Power 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, Capital Power autocorrelation shows the relationship between Capital Power stock current value and its past values and can show if there is a momentum factor associated with investing in Capital Power.
Regressed Prices |
Timeline |
Pair Trading with Capital Power
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 Capital Power 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 Capital Power will appreciate offsetting losses from the drop in the long position's value.Moving against Capital Stock
The ability to find closely correlated positions to Capital Power could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Capital Power 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 Capital Power - 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 Capital Power to buy it.
The correlation of Capital Power 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 Capital Power moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Capital Power 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 Capital Power 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.Other Information on Investing in Capital Stock
Capital Power financial ratios help investors to determine whether Capital 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 Capital with respect to the benefits of owning Capital Power security.