Talen Energy Stock Market Value
| TLN Stock | 159.19 8.70 5.18% |
| Symbol | Talen |
Talen Energy Price To Book Ratio
Is Independent Power and Renewable Electricity Producers 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 Talen Energy. If investors know Talen 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 Talen Energy 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 14.51 | Revenue Per Share 35.938 | Quarterly Revenue Growth (0.05) | Return On Assets 0.0145 | Return On Equity 0.3533 |
The market value of Talen Energy is measured differently than its book value, which is the value of Talen that is recorded on the company's balance sheet. Investors also form their own opinion of Talen Energy's value that differs from its market value or its book value, called intrinsic value, which is Talen Energy'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 Talen Energy's market value can be influenced by many factors that don't directly affect Talen Energy'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 Talen Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Talen Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Talen Energy'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.
Talen Energy '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 Talen Energy'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 Talen Energy.
| 09/14/2024 |
| 10/14/2024 |
If you would invest 0.00 in Talen Energy on September 14, 2024 and sell it all today you would earn a total of 0.00 from holding Talen Energy or generate 0.0% return on investment in Talen Energy over 30 days. Talen Energy is related to or competes with Integral, NioCorp Developments, Lithium Americas, Nextplat Corp, Pinterest, Harmony Gold, and Summit Materials. Talen Energy Corporationration, through its subsidiary, Talen Energy Supply, operates as an energy and power generation and marketing company in North America. More
Talen Energy 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 Talen Energy'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 Talen Energy upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 4.4 | |||
| Information Ratio | 0.0649 | |||
| Maximum Drawdown | 20.01 | |||
| Value At Risk | (6.20) | |||
| Potential Upside | 4.98 |
Talen Energy Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Talen Energy's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Talen Energy's standard deviation. In reality, there are many statistical measures that can use Talen Energy historical prices to predict the future Talen Energy's volatility.| Risk Adjusted Performance | 0.0863 | |||
| Jensen Alpha | 0.2004 | |||
| Total Risk Alpha | (0.15) | |||
| Sortino Ratio | 0.0586 | |||
| Treynor Ratio | 0.2386 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Talen Energy'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.
Talen Energy Backtested Returns
Talen Energy appears to be very steady, given 3 months investment horizon. Talen Energy owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0866, which indicates the firm had a 0.0866% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Talen Energy, which you can use to evaluate the volatility of the company. Please review Talen Energy's Semi Deviation of 4.27, risk adjusted performance of 0.0863, and Coefficient Of Variation of 1057.12 to confirm if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Talen Energy holds a performance score of 6. The entity has a beta of 1.53, which indicates 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, Talen Energy will likely underperform. Please check Talen Energy's expected short fall, and the relationship between the maximum drawdown and rate of daily change , to make a quick decision on whether Talen Energy's existing price patterns will revert.
Auto-correlation | -0.15 |
Insignificant reverse predictability
Talen Energy has insignificant reverse predictability. Overlapping area represents the amount of predictability between Talen Energy time series from 14th of September 2024 to 29th of September 2024 and 29th of September 2024 to 14th of October 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 Talen Energy price movement. The serial correlation of -0.15 indicates that less than 15.0% of current Talen Energy price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.15 | |
| Spearman Rank Test | -0.53 | |
| Residual Average | 0.0 | |
| Price Variance | 82.01 |
Talen Energy lagged returns against current returns
Autocorrelation, which is Talen Energy 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 Talen Energy's stock expected returns. We can calculate the autocorrelation of Talen Energy returns to help us make a trade decision. For example, suppose you find that Talen Energy 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 |
Talen Energy 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 Talen Energy stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Talen Energy stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Talen Energy stock over time.
Current vs Lagged Prices |
| Timeline |
Talen Energy Lagged Returns
When evaluating Talen Energy's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Talen Energy stock have on its future price. Talen Energy 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, Talen Energy autocorrelation shows the relationship between Talen Energy stock current value and its past values and can show if there is a momentum factor associated with investing in Talen Energy.
Regressed Prices |
| Timeline |
Pair Trading with Talen Energy
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 Talen Energy 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 Talen Energy will appreciate offsetting losses from the drop in the long position's value.Moving together with Talen Stock
| 0.87 | NRG | NRG Energy | PairCorr |
| 0.9 | PAM | Pampa Energia SA | PairCorr |
| 0.92 | TAC | TransAlta Corp | PairCorr |
| 0.85 | VST | Vistra Energy Corp | PairCorr |
Moving against Talen Stock
| 0.82 | HE | Hawaiian Electric | PairCorr |
| 0.82 | VSTE | Vast Renewables | PairCorr |
| 0.37 | VGAS | Verde Clean Fuels | PairCorr |
The ability to find closely correlated positions to Talen Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Talen Energy 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 Talen Energy - 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 Talen Energy to buy it.
The correlation of Talen Energy 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 Talen Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Talen Energy 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 Talen Energy 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 Talen Energy Correlation, Talen Energy Volatility and Talen Energy Alpha and Beta module to complement your research on Talen Energy. To learn how to invest in Talen Stock, please use our How to Invest in Talen Energy guide.You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Talen Energy 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.