Electronic Arts (Germany) Market Value
ERT Stock | 155.14 0.24 0.15% |
Symbol | Electronic |
Electronic Arts '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 Electronic Arts' 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 Electronic Arts.
05/06/2024 |
| 12/02/2024 |
If you would invest 0.00 in Electronic Arts on May 6, 2024 and sell it all today you would earn a total of 0.00 from holding Electronic Arts or generate 0.0% return on investment in Electronic Arts over 210 days. Electronic Arts is related to or competes with TOTAL GABON, and Walgreens Boots. More
Electronic Arts 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 Electronic Arts' 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 Electronic Arts upside and downside potential and time the market with a certain degree of confidence.
Downside Deviation | 1.08 | |||
Information Ratio | 0.0635 | |||
Maximum Drawdown | 5.66 | |||
Value At Risk | (1.46) | |||
Potential Upside | 1.85 |
Electronic Arts Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Electronic Arts' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Electronic Arts' standard deviation. In reality, there are many statistical measures that can use Electronic Arts historical prices to predict the future Electronic Arts' volatility.Risk Adjusted Performance | 0.1465 | |||
Jensen Alpha | 0.1819 | |||
Total Risk Alpha | 0.0129 | |||
Sortino Ratio | 0.065 | |||
Treynor Ratio | 1.57 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Electronic Arts' 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.
Electronic Arts Backtested Returns
Electronic Arts appears to be very steady, given 3 months investment horizon. Electronic Arts secures Sharpe Ratio (or Efficiency) of 0.2, which denotes the company had a 0.2% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Electronic Arts, which you can use to evaluate the volatility of the firm. Please utilize Electronic Arts' Coefficient Of Variation of 533.16, downside deviation of 1.08, and Mean Deviation of 0.8408 to check if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Electronic Arts holds a performance score of 15. The firm shows a Beta (market volatility) of 0.13, which means not very significant fluctuations relative to the market. As returns on the market increase, Electronic Arts' returns are expected to increase less than the market. However, during the bear market, the loss of holding Electronic Arts is expected to be smaller as well. Please check Electronic Arts' value at risk, and the relationship between the jensen alpha and skewness , to make a quick decision on whether Electronic Arts' price patterns will revert.
Auto-correlation | 0.61 |
Good predictability
Electronic Arts has good predictability. Overlapping area represents the amount of predictability between Electronic Arts time series from 6th of May 2024 to 19th of August 2024 and 19th of August 2024 to 2nd 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 Electronic Arts price movement. The serial correlation of 0.61 indicates that roughly 61.0% of current Electronic Arts price fluctuation can be explain by its past prices.
Correlation Coefficient | 0.61 | |
Spearman Rank Test | 0.65 | |
Residual Average | 0.0 | |
Price Variance | 101.26 |
Electronic Arts lagged returns against current returns
Autocorrelation, which is Electronic Arts 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 Electronic Arts' stock expected returns. We can calculate the autocorrelation of Electronic Arts returns to help us make a trade decision. For example, suppose you find that Electronic Arts 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 |
Electronic Arts 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 Electronic Arts stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Electronic Arts stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Electronic Arts stock over time.
Current vs Lagged Prices |
Timeline |
Electronic Arts Lagged Returns
When evaluating Electronic Arts' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Electronic Arts stock have on its future price. Electronic Arts 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, Electronic Arts autocorrelation shows the relationship between Electronic Arts stock current value and its past values and can show if there is a momentum factor associated with investing in Electronic Arts.
Regressed Prices |
Timeline |
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Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.Additional Tools for Electronic Stock Analysis
When running Electronic Arts' price analysis, check to measure Electronic Arts' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Electronic Arts is operating at the current time. Most of Electronic Arts' value examination focuses on studying past and present price action to predict the probability of Electronic Arts' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Electronic Arts' price. Additionally, you may evaluate how the addition of Electronic Arts to your portfolios can decrease your overall portfolio volatility.