Canadian Pacific Railway Stock Market Value
| CP Stock | USD 83.94 0.01 0.01% |
| Symbol | Canadian |
Canadian Pacific Railway Price To Book Ratio
Is Canadian Pacific's industry 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 Canadian Pacific. If investors know Canadian 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 Canadian Pacific 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 (0.19) | Dividend Share 0.76 | Earnings Share 3.05 | Revenue Per Share 13.481 | Quarterly Revenue Growth 0.534 |
The market value of Canadian Pacific Railway is measured differently than its book value, which is the value of Canadian that is recorded on the company's balance sheet. Investors also form their own opinion of Canadian Pacific's value that differs from its market value or its book value, called intrinsic value, which is Canadian Pacific'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 Canadian Pacific's market value can be influenced by many factors that don't directly affect Canadian Pacific'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 Canadian Pacific's value and its price as these two are different measures arrived at by different means. Investors typically determine if Canadian Pacific is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Canadian Pacific'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.
Canadian Pacific '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 Canadian Pacific'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 Canadian Pacific.
| 01/20/2024 |
| 04/19/2024 |
If you would invest 0.00 in Canadian Pacific on January 20, 2024 and sell it all today you would earn a total of 0.00 from holding Canadian Pacific Railway or generate 0.0% return on investment in Canadian Pacific over 90 days. Canadian Pacific is related to or competes with Union Pacific, CSX, Norfolk Southern, Westinghouse Air, Canadian National, Trinity Industries, and Greenbrier Companies. Canadian Pacific Railway Limited, together with its subsidiaries, owns and operates a transcontinental freight railway i... More
Canadian Pacific 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 Canadian Pacific'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 Canadian Pacific Railway upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.03 | |||
| Information Ratio | 0.0554 | |||
| Maximum Drawdown | 5.58 | |||
| Value At Risk | (1.79) | |||
| Potential Upside | 2.04 |
Canadian Pacific Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Canadian Pacific's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Canadian Pacific's standard deviation. In reality, there are many statistical measures that can use Canadian Pacific historical prices to predict the future Canadian Pacific's volatility.| Risk Adjusted Performance | 0.0756 | |||
| Jensen Alpha | 0.0478 | |||
| Total Risk Alpha | 0.0131 | |||
| Sortino Ratio | 0.0622 | |||
| Treynor Ratio | 0.096 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Canadian Pacific'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.
Canadian Pacific Railway Backtested Returns
We consider Canadian Pacific very steady. Canadian Pacific Railway secures Sharpe Ratio (or Efficiency) of 0.11, which signifies that the company had a 0.11% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Canadian Pacific Railway, which you can use to evaluate the volatility of the firm. Please confirm Canadian Pacific's Risk Adjusted Performance of 0.0756, mean deviation of 0.8985, and Downside Deviation of 1.03 to double-check if the risk estimate we provide is consistent with the expected return of 0.12%. Canadian Pacific has a performance score of 8 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 1.28, which signifies 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, Canadian Pacific will likely underperform. Canadian Pacific Railway right now shows a risk of 1.12%. Please confirm Canadian Pacific Railway sortino ratio, skewness, price action indicator, as well as the relationship between the potential upside and rate of daily change , to decide if Canadian Pacific Railway will be following its price patterns.
Auto-correlation | -0.46 |
Modest reverse predictability
Canadian Pacific Railway has modest reverse predictability. Overlapping area represents the amount of predictability between Canadian Pacific time series from 20th of January 2024 to 5th of March 2024 and 5th of March 2024 to 19th of April 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 Canadian Pacific Railway price movement. The serial correlation of -0.46 indicates that about 46.0% of current Canadian Pacific price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.46 | |
| Spearman Rank Test | -0.45 | |
| Residual Average | 0.0 | |
| Price Variance | 2.94 |
Canadian Pacific Railway lagged returns against current returns
Autocorrelation, which is Canadian Pacific 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 Canadian Pacific's stock expected returns. We can calculate the autocorrelation of Canadian Pacific returns to help us make a trade decision. For example, suppose you find that Canadian Pacific 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 |
Canadian Pacific 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 Canadian Pacific stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Canadian Pacific stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Canadian Pacific stock over time.
Current vs Lagged Prices |
| Timeline |
Canadian Pacific Lagged Returns
When evaluating Canadian Pacific's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Canadian Pacific stock have on its future price. Canadian Pacific 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, Canadian Pacific autocorrelation shows the relationship between Canadian Pacific stock current value and its past values and can show if there is a momentum factor associated with investing in Canadian Pacific Railway.
Regressed Prices |
| Timeline |
Pair Trading with Canadian Pacific
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 Canadian Pacific 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 Canadian Pacific will appreciate offsetting losses from the drop in the long position's value.Moving against Canadian Stock
| 0.84 | ATSG | Air Transport Services Financial Report 2nd of May 2024 | PairCorr |
| 0.73 | VLRS | Volaris Buyout Trend | PairCorr |
| 0.66 | SAVE | Spirit Airlines Financial Report 24th of April 2024 | PairCorr |
| 0.53 | SRFM | Surf Air Mobility | PairCorr |
| 0.45 | HA | Hawaiian Holdings Earnings Call This Week | PairCorr |
The ability to find closely correlated positions to Canadian Pacific could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Canadian Pacific 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 Canadian Pacific - 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 Canadian Pacific Railway to buy it.
The correlation of Canadian Pacific 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 Canadian Pacific moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Canadian Pacific Railway 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 Canadian Pacific 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 Canadian Pacific Correlation, Canadian Pacific Volatility and Canadian Pacific Alpha and Beta module to complement your research on Canadian Pacific. You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Complementary Tools for Canadian Stock analysis
When running Canadian Pacific's price analysis, check to measure Canadian Pacific's 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 Canadian Pacific is operating at the current time. Most of Canadian Pacific's value examination focuses on studying past and present price action to predict the probability of Canadian Pacific's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Canadian Pacific's price. Additionally, you may evaluate how the addition of Canadian Pacific to your portfolios can decrease your overall portfolio volatility.
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Canadian Pacific 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.