Cadence Design Systems Stock Market Value
| CDNS Stock | USD 280.25 5.65 1.98% |
| Symbol | Cadence |
Cadence Design Systems Price To Book Ratio
Is Cadence Design'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 Cadence Design. If investors know Cadence 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 Cadence Design 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 0.351 | Earnings Share 3.83 | Revenue Per Share 15.183 | Quarterly Revenue Growth 0.188 | Return On Assets 0.1474 |
The market value of Cadence Design Systems is measured differently than its book value, which is the value of Cadence that is recorded on the company's balance sheet. Investors also form their own opinion of Cadence Design's value that differs from its market value or its book value, called intrinsic value, which is Cadence Design'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 Cadence Design's market value can be influenced by many factors that don't directly affect Cadence Design'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 Cadence Design's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cadence Design is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cadence Design'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.
Cadence Design '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 Cadence Design'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 Cadence Design.
| 02/19/2024 |
| 04/19/2024 |
If you would invest 0.00 in Cadence Design on February 19, 2024 and sell it all today you would earn a total of 0.00 from holding Cadence Design Systems or generate 0.0% return on investment in Cadence Design over 60 days. Cadence Design is related to or competes with Workday, Salesforce, Intuit, Snowflake, Atlassian Corp, Zoom Video, and ServiceNow. Cadence Design Systems, Inc. provides software, hardware, services, and reusable integrated circuit design blocks worldw... More
Cadence Design 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 Cadence Design'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 Cadence Design Systems upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.76 | |||
| Information Ratio | (0) | |||
| Maximum Drawdown | 8.7 | |||
| Value At Risk | (2.66) | |||
| Potential Upside | 3.57 |
Cadence Design Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Cadence Design's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Cadence Design's standard deviation. In reality, there are many statistical measures that can use Cadence Design historical prices to predict the future Cadence Design's volatility.| Risk Adjusted Performance | 0.0272 | |||
| Jensen Alpha | (0.04) | |||
| Total Risk Alpha | (0.12) | |||
| Sortino Ratio | (0) | |||
| Treynor Ratio | 0.0325 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Cadence Design'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.
Cadence Design Systems Backtested Returns
Cadence Design Systems secures Sharpe Ratio (or Efficiency) of -0.0215, which signifies that the company had a -0.0215% return per unit of standard deviation over the last 3 months. Cadence Design Systems exposes twenty-eight different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Cadence Design's mean deviation of 1.44, and Risk Adjusted Performance of 0.0272 to double-check the risk estimate we provide. The firm shows a Beta (market volatility) of 1.59, 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, Cadence Design will likely underperform. Cadence Design Systems has an expected return of -0.0386%. Please make sure to confirm Cadence Design Systems maximum drawdown, and the relationship between the information ratio and expected short fall , to decide if Cadence Design Systems performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.41 |
Modest reverse predictability
Cadence Design Systems has modest reverse predictability. Overlapping area represents the amount of predictability between Cadence Design time series from 19th of February 2024 to 20th of March 2024 and 20th 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 Cadence Design Systems price movement. The serial correlation of -0.41 indicates that just about 41.0% of current Cadence Design price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.41 | |
| Spearman Rank Test | -0.36 | |
| Residual Average | 0.0 | |
| Price Variance | 104.1 |
Cadence Design Systems lagged returns against current returns
Autocorrelation, which is Cadence Design 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 Cadence Design's stock expected returns. We can calculate the autocorrelation of Cadence Design returns to help us make a trade decision. For example, suppose you find that Cadence Design 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 |
Cadence Design 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 Cadence Design stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Cadence Design stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Cadence Design stock over time.
Current vs Lagged Prices |
| Timeline |
Cadence Design Lagged Returns
When evaluating Cadence Design's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Cadence Design stock have on its future price. Cadence Design 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, Cadence Design autocorrelation shows the relationship between Cadence Design stock current value and its past values and can show if there is a momentum factor associated with investing in Cadence Design Systems.
Regressed Prices |
| Timeline |
Cadence Design Investors Sentiment
The influence of Cadence Design's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Cadence. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Cadence Design's public news can be used to forecast risks associated with an investment in Cadence. The trend in average sentiment can be used to explain how an investor holding Cadence can time the market purely based on public headlines and social activities around Cadence Design Systems. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Cadence Design's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Cadence Design's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Cadence Design's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Cadence Design.
Cadence Design Implied Volatility | 60.04 |
Cadence Design's implied volatility exposes the market's sentiment of Cadence Design Systems stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Cadence Design's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Cadence Design stock will not fluctuate a lot when Cadence Design's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Cadence Design in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Cadence Design's short interest history, or implied volatility extrapolated from Cadence Design options trading.
Pair Trading with Cadence Design
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 Cadence Design 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 Cadence Design will appreciate offsetting losses from the drop in the long position's value.Moving together with Cadence Stock
| 0.67 | DJCO | Daily Journal Corp | PairCorr |
Moving against Cadence Stock
| 0.71 | NOGWQ | Nogin Inc | PairCorr |
| 0.65 | DT | Dynatrace Holdings LLC Buyout Trend | PairCorr |
| 0.57 | EB | Eventbrite Class A Financial Report 14th of May 2024 | PairCorr |
| 0.57 | DMAN | Innovativ Media Group | PairCorr |
| 0.54 | U | Unity Software Financial Report 8th of May 2024 | PairCorr |
The ability to find closely correlated positions to Cadence Design could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cadence Design 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 Cadence Design - 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 Cadence Design Systems to buy it.
The correlation of Cadence Design 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 Cadence Design moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cadence Design Systems 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 Cadence Design 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 Cadence Design Correlation, Cadence Design Volatility and Cadence Design Alpha and Beta module to complement your research on Cadence Design. You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Complementary Tools for Cadence Stock analysis
When running Cadence Design's price analysis, check to measure Cadence Design'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 Cadence Design is operating at the current time. Most of Cadence Design's value examination focuses on studying past and present price action to predict the probability of Cadence Design's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cadence Design's price. Additionally, you may evaluate how the addition of Cadence Design to your portfolios can decrease your overall portfolio volatility.
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Cadence Design 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.