Constellation Software Stock Market Value
| CSU Stock | CAD 4,722 42.56 0.91% |
| Symbol | Constellation |
Constellation Software Price To Book Ratio
Constellation Software '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 Constellation Software'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 Constellation Software.
| 10/29/2024 |
| 11/28/2024 |
If you would invest 0.00 in Constellation Software on October 29, 2024 and sell it all today you would earn a total of 0.00 from holding Constellation Software or generate 0.0% return on investment in Constellation Software over 30 days. Constellation Software is related to or competes with Kinaxis, Open Text, Enghouse Systems, CGI, and Topicus. Constellation Software Inc., together with its subsidiaries, engages in the development, installation, and customization... More
Constellation Software 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 Constellation Software'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 Constellation Software upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.37 | |||
| Information Ratio | 0.0136 | |||
| Maximum Drawdown | 6.34 | |||
| Value At Risk | (1.85) | |||
| Potential Upside | 2.24 |
Constellation Software Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Constellation Software's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Constellation Software's standard deviation. In reality, there are many statistical measures that can use Constellation Software historical prices to predict the future Constellation Software's volatility.| Risk Adjusted Performance | 0.0862 | |||
| Jensen Alpha | 0.0946 | |||
| Total Risk Alpha | (0.07) | |||
| Sortino Ratio | 0.0133 | |||
| Treynor Ratio | 0.3956 |
Constellation Software Backtested Returns
As of now, Constellation Stock is very steady. Constellation Software secures Sharpe Ratio (or Efficiency) of 0.0908, which signifies that the company had a 0.0908% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Constellation Software, which you can use to evaluate the volatility of the firm. Please confirm Constellation Software's Risk Adjusted Performance of 0.0862, downside deviation of 1.37, and Mean Deviation of 1.05 to double-check if the risk estimate we provide is consistent with the expected return of 0.12%. Constellation Software has a performance score of 7 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 0.34, which signifies possible diversification benefits within a given portfolio. As returns on the market increase, Constellation Software's returns are expected to increase less than the market. However, during the bear market, the loss of holding Constellation Software is expected to be smaller as well. Constellation Software right now shows a risk of 1.33%. Please confirm Constellation Software sortino ratio, skewness, price action indicator, as well as the relationship between the potential upside and rate of daily change , to decide if Constellation Software will be following its price patterns.
Auto-correlation | 0.92 |
Excellent predictability
Constellation Software has excellent predictability. Overlapping area represents the amount of predictability between Constellation Software time series from 29th of October 2024 to 13th of November 2024 and 13th of November 2024 to 28th of November 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 Constellation Software price movement. The serial correlation of 0.92 indicates that approximately 92.0% of current Constellation Software price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.92 | |
| Spearman Rank Test | 0.55 | |
| Residual Average | 0.0 | |
| Price Variance | 10.9 K |
Constellation Software lagged returns against current returns
Autocorrelation, which is Constellation Software 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 Constellation Software's stock expected returns. We can calculate the autocorrelation of Constellation Software returns to help us make a trade decision. For example, suppose you find that Constellation Software 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 |
Constellation Software 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 Constellation Software stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Constellation Software stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Constellation Software stock over time.
Current vs Lagged Prices |
| Timeline |
Constellation Software Lagged Returns
When evaluating Constellation Software's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Constellation Software stock have on its future price. Constellation Software 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, Constellation Software autocorrelation shows the relationship between Constellation Software stock current value and its past values and can show if there is a momentum factor associated with investing in Constellation Software.
Regressed Prices |
| Timeline |
Pair Trading with Constellation Software
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 Constellation Software 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 Constellation Software will appreciate offsetting losses from the drop in the long position's value.Moving together with Constellation Stock
Moving against Constellation Stock
The ability to find closely correlated positions to Constellation Software could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Constellation Software 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 Constellation Software - 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 Constellation Software to buy it.
The correlation of Constellation Software 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 Constellation Software moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Constellation Software 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 Constellation Software 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 Constellation Stock
Constellation Software financial ratios help investors to determine whether Constellation 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 Constellation with respect to the benefits of owning Constellation Software security.