Linamar Stock Market Value
| LNR Stock | CAD 62.02 0.52 0.83% |
| Symbol | Linamar |
Linamar Price To Book Ratio
Linamar '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 Linamar'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 Linamar.
| 07/20/2023 |
| 12/11/2024 |
If you would invest 0.00 in Linamar on July 20, 2023 and sell it all today you would earn a total of 0.00 from holding Linamar or generate 0.0% return on investment in Linamar over 510 days. Linamar is related to or competes with Martinrea International, Magna International, CCL Industries, Stella Jones, and NFI. Linamar Corporation together with its subsidiaries design, develop, and produce engineered products in Canada, Rest of N... More
Linamar 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 Linamar'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 Linamar upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.78 | |||
| Information Ratio | (0.04) | |||
| Maximum Drawdown | 10.57 | |||
| Value At Risk | (2.63) | |||
| Potential Upside | 1.83 |
Linamar Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Linamar's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Linamar's standard deviation. In reality, there are many statistical measures that can use Linamar historical prices to predict the future Linamar's volatility.| Risk Adjusted Performance | 0.037 | |||
| Jensen Alpha | 0.0193 | |||
| Total Risk Alpha | (0.19) | |||
| Sortino Ratio | (0.03) | |||
| Treynor Ratio | 0.1703 |
Linamar Backtested Returns
As of now, Linamar Stock is out of control. Linamar has Sharpe Ratio of 0.0475, which conveys that the firm had a 0.0475% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Linamar, which you can use to evaluate the volatility of the firm. Please verify Linamar's Downside Deviation of 1.78, risk adjusted performance of 0.037, and Mean Deviation of 1.19 to check out if the risk estimate we provide is consistent with the expected return of 0.0758%. Linamar has a performance score of 3 on a scale of 0 to 100. The company secures a Beta (Market Risk) of 0.35, which conveys possible diversification benefits within a given portfolio. As returns on the market increase, Linamar's returns are expected to increase less than the market. However, during the bear market, the loss of holding Linamar is expected to be smaller as well. Linamar right now secures a risk of 1.6%. Please verify Linamar downside variance, and the relationship between the treynor ratio and kurtosis , to decide if Linamar will be following its current price movements.
Auto-correlation | 0.15 |
Insignificant predictability
Linamar has insignificant predictability. Overlapping area represents the amount of predictability between Linamar time series from 20th of July 2023 to 31st of March 2024 and 31st of March 2024 to 11th 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 Linamar price movement. The serial correlation of 0.15 indicates that less than 15.0% of current Linamar price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.15 | |
| Spearman Rank Test | 0.15 | |
| Residual Average | 0.0 | |
| Price Variance | 12.63 |
Linamar lagged returns against current returns
Autocorrelation, which is Linamar 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 Linamar's stock expected returns. We can calculate the autocorrelation of Linamar returns to help us make a trade decision. For example, suppose you find that Linamar 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 |
Linamar 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 Linamar stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Linamar stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Linamar stock over time.
Current vs Lagged Prices |
| Timeline |
Linamar Lagged Returns
When evaluating Linamar's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Linamar stock have on its future price. Linamar 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, Linamar autocorrelation shows the relationship between Linamar stock current value and its past values and can show if there is a momentum factor associated with investing in Linamar.
Regressed Prices |
| Timeline |
Pair Trading with Linamar
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 Linamar 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 Linamar will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to Linamar could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Linamar 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 Linamar - 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 Linamar to buy it.
The correlation of Linamar 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 Linamar moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Linamar 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 Linamar 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 Linamar Stock
Linamar financial ratios help investors to determine whether Linamar 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 Linamar with respect to the benefits of owning Linamar security.