Pc Connection Stock Market Value
| CNXN Stock | USD 75.30 7.19 10.56% |
| Symbol | CNXN |
PC Connection Price To Book Ratio
Is Electronic Equipment, Instruments & Components 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 PC Connection. If investors know CNXN 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 PC Connection 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 0.052 | Dividend Share 0.38 | Earnings Share 3.4 | Revenue Per Share 105.964 | Quarterly Revenue Growth 0.046 |
The market value of PC Connection is measured differently than its book value, which is the value of CNXN that is recorded on the company's balance sheet. Investors also form their own opinion of PC Connection's value that differs from its market value or its book value, called intrinsic value, which is PC Connection'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 PC Connection's market value can be influenced by many factors that don't directly affect PC Connection'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 PC Connection's value and its price as these two are different measures arrived at by different means. Investors typically determine if PC Connection is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, PC Connection'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.
PC Connection '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 PC Connection'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 PC Connection.
| 11/18/2022 |
| 11/07/2024 |
If you would invest 0.00 in PC Connection on November 18, 2022 and sell it all today you would earn a total of 0.00 from holding PC Connection or generate 0.0% return on investment in PC Connection over 720 days. PC Connection is related to or competes with ScanSource, Insight Enterprises, Avnet, Synnex, Arrow Electronics, and Climb Global. PC Connection, Inc., together with its subsidiaries, provides various information technology solutions More
PC Connection 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 PC Connection'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 PC Connection upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.91 | |||
| Information Ratio | (0.02) | |||
| Maximum Drawdown | 9.36 | |||
| Value At Risk | (3.00) | |||
| Potential Upside | 3.11 |
PC Connection Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for PC Connection's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as PC Connection's standard deviation. In reality, there are many statistical measures that can use PC Connection historical prices to predict the future PC Connection's volatility.| Risk Adjusted Performance | 0.0571 | |||
| Jensen Alpha | (0.21) | |||
| Total Risk Alpha | (0.33) | |||
| Sortino Ratio | (0.02) | |||
| Treynor Ratio | 0.064 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of PC Connection'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.
PC Connection Backtested Returns
PC Connection appears to be very steady, given 3 months investment horizon. PC Connection retains Efficiency (Sharpe Ratio) of 0.0938, which implies the company had a 0.0938% return per unit of price deviation over the last 3 months. We have found twenty-nine technical indicators for PC Connection, which you can use to evaluate the volatility of the entity. Please evaluate PC Connection's market risk adjusted performance of 0.074, and Standard Deviation of 2.19 to confirm if our risk estimates are consistent with your expectations. On a scale of 0 to 100, PC Connection holds a performance score of 7. The firm owns a Beta (Systematic Risk) of 2.05, 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, PC Connection will likely underperform. Please check PC Connection's coefficient of variation, semi variance, period momentum indicator, as well as the relationship between the treynor ratio and daily balance of power , to make a quick decision on whether PC Connection's current price history will revert.
Auto-correlation | 0.48 |
Average predictability
PC Connection has average predictability. Overlapping area represents the amount of predictability between PC Connection time series from 18th of November 2022 to 13th of November 2023 and 13th of November 2023 to 7th 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 PC Connection price movement. The serial correlation of 0.48 indicates that about 48.0% of current PC Connection price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.48 | |
| Spearman Rank Test | 0.25 | |
| Residual Average | 0.0 | |
| Price Variance | 15.1 |
PC Connection lagged returns against current returns
Autocorrelation, which is PC Connection 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 PC Connection's stock expected returns. We can calculate the autocorrelation of PC Connection returns to help us make a trade decision. For example, suppose you find that PC Connection 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 |
PC Connection 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 PC Connection stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if PC Connection stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in PC Connection stock over time.
Current vs Lagged Prices |
| Timeline |
PC Connection Lagged Returns
When evaluating PC Connection's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of PC Connection stock have on its future price. PC Connection 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, PC Connection autocorrelation shows the relationship between PC Connection stock current value and its past values and can show if there is a momentum factor associated with investing in PC Connection.
Regressed Prices |
| Timeline |
Pair Trading with PC Connection
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 PC Connection 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 PC Connection will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to PC Connection could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace PC Connection 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 PC Connection - 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 PC Connection to buy it.
The correlation of PC Connection 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 PC Connection moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if PC Connection 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 PC Connection 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 PC Connection Correlation, PC Connection Volatility and PC Connection Alpha and Beta module to complement your research on PC Connection. To learn how to invest in CNXN Stock, please use our How to Invest in PC Connection guide.You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
PC Connection 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.