Steel Connect Stock Market Value
| STCN Stock | USD 10.25 0.04 0.39% |
| Symbol | Steel |
Steel Connect Price To Book Ratio
Is Data Processing & Outsourced Services 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 Steel Connect. If investors know Steel 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 Steel Connect 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 (0.20) | Earnings Share 3.11 | Revenue Per Share 28.001 | Quarterly Revenue Growth 0.124 | Return On Assets 0.0104 |
The market value of Steel Connect is measured differently than its book value, which is the value of Steel that is recorded on the company's balance sheet. Investors also form their own opinion of Steel Connect's value that differs from its market value or its book value, called intrinsic value, which is Steel Connect'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 Steel Connect's market value can be influenced by many factors that don't directly affect Steel Connect'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 Steel Connect's value and its price as these two are different measures arrived at by different means. Investors typically determine if Steel Connect is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Steel Connect'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.
Steel Connect '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 Steel Connect'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 Steel Connect.
| 10/30/2024 |
| 11/29/2024 |
If you would invest 0.00 in Steel Connect on October 30, 2024 and sell it all today you would earn a total of 0.00 from holding Steel Connect or generate 0.0% return on investment in Steel Connect over 30 days. Steel Connect is related to or competes with Baosheng Media, CyberAgent, Advantage Solutions, Townsquare Media, Entravision Communications, MGO Global, and Direct Digital. Steel Connect, Inc., together with its subsidiaries, provides direct marketing and supply chain services in the United S... More
Steel Connect 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 Steel Connect'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 Steel Connect upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.10) | |||
| Maximum Drawdown | 16.18 | |||
| Value At Risk | (5.29) | |||
| Potential Upside | 4.41 |
Steel Connect Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Steel Connect's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Steel Connect's standard deviation. In reality, there are many statistical measures that can use Steel Connect historical prices to predict the future Steel Connect's volatility.| Risk Adjusted Performance | (0.04) | |||
| Jensen Alpha | (0.21) | |||
| Total Risk Alpha | (0.66) | |||
| Treynor Ratio | (2.41) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Steel Connect'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.
Steel Connect Backtested Returns
Steel Connect owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0175, which indicates the firm had a -0.0175% return per unit of risk over the last 3 months. Steel Connect exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Steel Connect's Variance of 9.63, coefficient of variation of (1,671), and Risk Adjusted Performance of (0.04) to confirm the risk estimate we provide. The entity has a beta of 0.0812, which indicates not very significant fluctuations relative to the market. As returns on the market increase, Steel Connect's returns are expected to increase less than the market. However, during the bear market, the loss of holding Steel Connect is expected to be smaller as well. At this point, Steel Connect has a negative expected return of -0.0522%. Please make sure to validate Steel Connect's maximum drawdown, as well as the relationship between the accumulation distribution and market facilitation index , to decide if Steel Connect performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.78 |
Almost perfect reverse predictability
Steel Connect has almost perfect reverse predictability. Overlapping area represents the amount of predictability between Steel Connect time series from 30th of October 2024 to 14th of November 2024 and 14th of November 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 Steel Connect price movement. The serial correlation of -0.78 indicates that around 78.0% of current Steel Connect price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.78 | |
| Spearman Rank Test | -0.28 | |
| Residual Average | 0.0 | |
| Price Variance | 0.05 |
Steel Connect lagged returns against current returns
Autocorrelation, which is Steel Connect 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 Steel Connect's stock expected returns. We can calculate the autocorrelation of Steel Connect returns to help us make a trade decision. For example, suppose you find that Steel Connect 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 |
Steel Connect 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 Steel Connect stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Steel Connect stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Steel Connect stock over time.
Current vs Lagged Prices |
| Timeline |
Steel Connect Lagged Returns
When evaluating Steel Connect's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Steel Connect stock have on its future price. Steel Connect 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, Steel Connect autocorrelation shows the relationship between Steel Connect stock current value and its past values and can show if there is a momentum factor associated with investing in Steel Connect.
Regressed Prices |
| Timeline |
Pair Trading with Steel Connect
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 Steel Connect 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 Steel Connect will appreciate offsetting losses from the drop in the long position's value.Moving together with Steel Stock
Moving against Steel Stock
| 0.75 | B | Barnes Group | PairCorr |
| 0.73 | CRAI | CRA International | PairCorr |
| 0.71 | J | Jacobs Solutions | PairCorr |
| 0.62 | EVGOW | EVgo Equity Warrants | PairCorr |
| 0.61 | CTAS | Cintas | PairCorr |
The ability to find closely correlated positions to Steel Connect could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Steel Connect 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 Steel Connect - 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 Steel Connect to buy it.
The correlation of Steel Connect 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 Steel Connect moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Steel Connect 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 Steel Connect 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 Steel Connect Correlation, Steel Connect Volatility and Steel Connect Alpha and Beta module to complement your research on Steel Connect. To learn how to invest in Steel Stock, please use our How to Invest in Steel Connect guide.You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Steel Connect 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.