Erie Indemnity Stock Beta

ERIE Stock  USD 401.57  6.60  1.62%   
Erie Indemnity fundamentals help investors to digest information that contributes to Erie Indemnity's financial success or failures. It also enables traders to predict the movement of Erie Stock. The fundamental analysis module provides a way to measure Erie Indemnity's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Erie Indemnity stock.
  
This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.

Erie Beta Analysis

Erie Indemnity's Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
 2021 2022 2023 2024 (projected)
Gross Profit2.7B376.8M511.2M485.7M
Total Revenue2.7B2.8B3.3B2.2B

Beta

 = 

Covariance

Variance

More About Beta | All Equity Analysis

Current Erie Indemnity Beta

    
  0.42  
Most of Erie Indemnity's fundamental indicators, such as Beta, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Erie Indemnity is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Erie Beta Driver Correlations

Understanding the fundamental principles of building solid financial models for Erie Indemnity is extremely important. It helps to project a fair market value of Erie Stock properly, considering its historical fundamentals such as Beta. Since Erie Indemnity's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Erie Indemnity's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Erie Indemnity's interrelated accounts and indicators.
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In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
Competition

In accordance with the recently published financial statements, Erie Indemnity has a Beta of 0.421. This is 48.66% lower than that of the Insurance sector and 53.22% lower than that of the Financials industry. The beta for all United States stocks is notably lower than that of the firm.

Erie Beta Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Erie Indemnity's direct or indirect competition against its Beta to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Erie Indemnity could also be used in its relative valuation, which is a method of valuing Erie Indemnity by comparing valuation metrics of similar companies.
Erie Indemnity is currently under evaluation in beta category among related companies.

Erie Indemnity ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Erie Indemnity's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Erie Indemnity's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

Erie Indemnity Institutional Holders

Institutional Holdings refers to the ownership stake in Erie Indemnity that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of Erie Indemnity's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing Erie Indemnity's value.
Shares
Apg All Pensions Group2023-12-31
175.9 K
Morgan Stanley - Brokerage Accounts2023-09-30
163.4 K
Amvescap Plc.2023-12-31
151.5 K
Atlantic Union Bankshares Corp2023-09-30
148.1 K
Charles Schwab Investment Management Inc2023-09-30
133 K
Legal & General Group Plc2023-09-30
120.3 K
Amundi2023-09-30
110.9 K
Jpmorgan Chase & Co2023-09-30
102.6 K
Goldman Sachs Group Inc2023-09-30
98.6 K
Pnc Financial Services Group Inc2023-09-30
4.9 M
Blackrock Inc2023-12-31
2.5 M
As returns on the market increase, Erie Indemnity's returns are expected to increase less than the market. However, during the bear market, the loss of holding Erie Indemnity is expected to be smaller as well.

Erie Fundamentals

About Erie Indemnity Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Erie Indemnity's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Erie Indemnity using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Erie Indemnity based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Erie Indemnity Company operates as a managing attorney-in-fact for the subscribers at the Erie Insurance Exchange in the United States. Erie Indemnity Company was incorporated in 1925 and is based in Erie, Pennsylvania. Erie Indemnity operates under Insurance Brokers classification in the United States and is traded on NASDAQ Exchange. It employs 5805 people.

Pair Trading with Erie Indemnity

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 Erie Indemnity 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 Erie Indemnity will appreciate offsetting losses from the drop in the long position's value.

Moving together with Erie Stock

  0.88AJG Arthur J Gallagher Fiscal Quarter End 31st of March 2024 PairCorr

Moving against Erie Stock

  0.9FANH Fanhua IncPairCorr
  0.69RELI Reliance Global GroupPairCorr
  0.64EHTH EHealth Financial Report 14th of May 2024 PairCorr
  0.52TIRX Tian Ruixiang HoldingsPairCorr
  0.51HUIZ Huize HoldingLtdPairCorr
The ability to find closely correlated positions to Erie Indemnity could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Erie Indemnity 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 Erie Indemnity - 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 Erie Indemnity to buy it.
The correlation of Erie Indemnity 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 Erie Indemnity moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Erie Indemnity 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 Erie Indemnity 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.
Pair CorrelationCorrelation Matching
When determining whether Erie Indemnity is a strong investment it is important to analyze Erie Indemnity's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Erie Indemnity's future performance. For an informed investment choice regarding Erie Stock, refer to the following important reports:
Check out Erie Indemnity Piotroski F Score and Erie Indemnity Altman Z Score analysis.
For information on how to trade Erie Stock refer to our How to Trade Erie Stock guide.
You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

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When running Erie Indemnity's price analysis, check to measure Erie Indemnity'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 Erie Indemnity is operating at the current time. Most of Erie Indemnity's value examination focuses on studying past and present price action to predict the probability of Erie Indemnity's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Erie Indemnity's price. Additionally, you may evaluate how the addition of Erie Indemnity to your portfolios can decrease your overall portfolio volatility.
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Is Erie Indemnity'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 Erie Indemnity. If investors know Erie 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 Erie Indemnity 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
0.697
Dividend Share
4.845
Earnings Share
8.55
Revenue Per Share
70.773
Quarterly Revenue Growth
0.167
The market value of Erie Indemnity is measured differently than its book value, which is the value of Erie that is recorded on the company's balance sheet. Investors also form their own opinion of Erie Indemnity's value that differs from its market value or its book value, called intrinsic value, which is Erie Indemnity'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 Erie Indemnity's market value can be influenced by many factors that don't directly affect Erie Indemnity'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 Erie Indemnity's value and its price as these two are different measures arrived at by different means. Investors typically determine if Erie Indemnity is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Erie Indemnity'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.