Pure Cycle Stock Market Value
| PCYO Stock | USD 14.45 0.03 0.21% |
| Symbol | Pure |
Pure Cycle Price To Book Ratio
Is Water Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Pure Cycle. If investors know Pure will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Pure Cycle listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 5.767 | Earnings Share 0.48 | Revenue Per Share 1.194 | Quarterly Revenue Growth 2.729 | Return On Assets 0.0545 |
The market value of Pure Cycle is measured differently than its book value, which is the value of Pure that is recorded on the company's balance sheet. Investors also form their own opinion of Pure Cycle's value that differs from its market value or its book value, called intrinsic value, which is Pure Cycle's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Pure Cycle's market value can be influenced by many factors that don't directly affect Pure Cycle's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Pure Cycle's value and its price as these two are different measures arrived at by different means. Investors typically determine if Pure Cycle is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Pure Cycle's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Pure Cycle '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 Pure Cycle'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 Pure Cycle.
| 05/09/2023 |
| 11/29/2024 |
If you would invest 0.00 in Pure Cycle on May 9, 2023 and sell it all today you would earn a total of 0.00 from holding Pure Cycle or generate 0.0% return on investment in Pure Cycle over 570 days. Pure Cycle is related to or competes with California Water, Consolidated Water, SJW Group, Middlesex Water, York Water, and Global Water. Pure Cycle Corporation designs, constructs, operates, and maintains water and wastewater systems in the Denver metropoli... More
Pure Cycle 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 Pure Cycle'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 Pure Cycle upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.78 | |||
| Information Ratio | 0.1587 | |||
| Maximum Drawdown | 13.79 | |||
| Value At Risk | (3.22) | |||
| Potential Upside | 4.75 |
Pure Cycle Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Pure Cycle's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Pure Cycle's standard deviation. In reality, there are many statistical measures that can use Pure Cycle historical prices to predict the future Pure Cycle's volatility.| Risk Adjusted Performance | 0.1677 | |||
| Jensen Alpha | 0.3197 | |||
| Total Risk Alpha | 0.1352 | |||
| Sortino Ratio | 0.2177 | |||
| Treynor Ratio | 0.3159 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Pure Cycle's 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.
Pure Cycle Backtested Returns
Pure Cycle appears to be somewhat reliable, given 3 months investment horizon. Pure Cycle maintains Sharpe Ratio (i.e., Efficiency) of 0.24, which implies the firm had a 0.24% return per unit of risk over the last 3 months. By analyzing Pure Cycle's technical indicators, you can evaluate if the expected return of 0.58% is justified by implied risk. Please evaluate Pure Cycle's Coefficient Of Variation of 476.47, risk adjusted performance of 0.1677, and Semi Deviation of 1.4 to confirm if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Pure Cycle holds a performance score of 18. The company holds a Beta of 1.59, which implies a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Pure Cycle will likely underperform. Please check Pure Cycle's downside variance, as well as the relationship between the daily balance of power and period momentum indicator , to make a quick decision on whether Pure Cycle's historical price patterns will revert.
Auto-correlation | -0.35 |
Poor reverse predictability
Pure Cycle has poor reverse predictability. Overlapping area represents the amount of predictability between Pure Cycle time series from 9th of May 2023 to 18th of February 2024 and 18th of February 2024 to 29th 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 Pure Cycle price movement. The serial correlation of -0.35 indicates that nearly 35.0% of current Pure Cycle price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.35 | |
| Spearman Rank Test | -0.28 | |
| Residual Average | 0.0 | |
| Price Variance | 1.09 |
Pure Cycle lagged returns against current returns
Autocorrelation, which is Pure Cycle 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 Pure Cycle's stock expected returns. We can calculate the autocorrelation of Pure Cycle returns to help us make a trade decision. For example, suppose you find that Pure Cycle 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 |
Pure Cycle 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 Pure Cycle stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Pure Cycle stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Pure Cycle stock over time.
Current vs Lagged Prices |
| Timeline |
Pure Cycle Lagged Returns
When evaluating Pure Cycle's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Pure Cycle stock have on its future price. Pure Cycle 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, Pure Cycle autocorrelation shows the relationship between Pure Cycle stock current value and its past values and can show if there is a momentum factor associated with investing in Pure Cycle.
Regressed Prices |
| Timeline |
Pair Trading with Pure Cycle
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 Pure Cycle 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 Pure Cycle will appreciate offsetting losses from the drop in the long position's value.Moving together with Pure Stock
Moving against Pure Stock
| 0.65 | ES | Eversource Energy | PairCorr |
| 0.59 | SJW | SJW Group Common | PairCorr |
| 0.59 | FE | FirstEnergy | PairCorr |
| 0.57 | ED | Consolidated Edison Sell-off Trend | PairCorr |
| 0.54 | CWT | California Water Service | PairCorr |
The ability to find closely correlated positions to Pure Cycle could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Pure Cycle 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 Pure Cycle - 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 Pure Cycle to buy it.
The correlation of Pure Cycle 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 Pure Cycle moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Pure Cycle 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 Pure Cycle 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 Pure Cycle Correlation, Pure Cycle Volatility and Pure Cycle Alpha and Beta module to complement your research on Pure Cycle. To learn how to invest in Pure Stock, please use our How to Invest in Pure Cycle guide.You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Pure Cycle technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.