NVT Stock | | | USD 76.94 0.24 0.31% |
NVent Electric financial indicator trend analysis is infinitely more than just investigating nVent Electric PLC recent accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether nVent Electric PLC is a good investment. Please check the relationship between NVent Electric Inventory and its Total Current Liabilities accounts. Check out
Correlation Analysis to better understand how to build diversified portfolios, which includes a position in nVent Electric PLC. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
signals in real.
Inventory vs Total Current Liabilities
Inventory vs Total Current Liabilities Correlation Analysis
The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of
nVent Electric PLC Inventory account and
Total Current Liabilities. At this time, the significance of the direction appears to have almost identical trend.
The correlation between NVent Electric's Inventory and Total Current Liabilities is 0.97. Overlapping area represents the amount of variation of Inventory that can explain the historical movement of Total Current Liabilities in the same time period over historical financial statements of nVent Electric PLC, assuming nothing else is changed. The correlation between historical values of NVent Electric's Inventory and Total Current Liabilities is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Inventory of nVent Electric PLC are associated (or correlated) with its Total Current Liabilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Total Current Liabilities has no effect on the direction of Inventory i.e., NVent Electric's Inventory and Total Current Liabilities go up and down completely randomly.
Correlation Coefficient | 0.97 |
Relationship Direction | Positive |
Relationship Strength | Very Strong |
Inventory
Total Current Liabilities
Total Current Liabilities is an item on NVent Electric balance sheet that include short term debt, accounts payable, accrued salaries payable, payroll taxes payable, accrued liabilities and other debts. Total Current Liabilities of nVent Electric PLC are important to investors because some useful performance ratios such as Current Ratio and Quick Ratio require Total Current Liabilities to be accurate. The total amount of liabilities that a company is expected to pay within one year, including debts, accounts payable, and other short-term financial obligations.
Most indicators from NVent Electric's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into nVent Electric PLC current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out
Correlation Analysis to better understand how to build diversified portfolios, which includes a position in nVent Electric PLC. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
signals in real.
Issuance Of Capital Stock is likely to gain to about 11.3
M in 2024, whereas
Tax Provision is likely to drop slightly above 57.3
M in 2024.
NVent Electric fundamental ratios Correlations
Click cells to compare fundamentals
NVent Electric Account Relationship Matchups
High Positive Relationship
High Negative Relationship
NVent Electric fundamental ratios Accounts
Pair Trading with NVent Electric
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 NVent Electric 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 NVent Electric will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to NVent Electric could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace NVent Electric 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 NVent Electric - 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 nVent Electric PLC to buy it.
The correlation of NVent Electric 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 NVent Electric moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if nVent Electric PLC 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 NVent Electric 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 MatchingAdditional Tools for NVent Stock Analysis
When running NVent Electric's price analysis, check to
measure NVent Electric'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 NVent Electric is operating at the current time. Most of NVent Electric's value examination focuses on studying past and present price action to
predict the probability of NVent Electric's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move NVent Electric's price. Additionally, you may evaluate how the addition of NVent Electric to your portfolios can decrease your overall portfolio volatility.