Air Canada Stock Market Value
| AC Stock | CAD 19.93 0.07 0.35% |
| Symbol | Air |
Air Canada Price To Book Ratio
Air Canada '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 Air Canada'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 Air Canada.
| 10/28/2023 |
| 04/25/2024 |
If you would invest 0.00 in Air Canada on October 28, 2023 and sell it all today you would earn a total of 0.00 from holding Air Canada or generate 0.0% return on investment in Air Canada over 180 days. Air Canada is related to or competes with Suncor Energy, Cineplex, Enbridge, BlackBerry, and Toronto Dominion. Air Canada provides domestic, U.S. transborder, and international airline services More
Air Canada 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 Air Canada'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 Air Canada upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.81 | |||
| Information Ratio | 0.0452 | |||
| Maximum Drawdown | 9.75 | |||
| Value At Risk | (2.19) | |||
| Potential Upside | 2.93 |
Air Canada Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Air Canada's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Air Canada's standard deviation. In reality, there are many statistical measures that can use Air Canada historical prices to predict the future Air Canada's volatility.| Risk Adjusted Performance | 0.0673 | |||
| Jensen Alpha | 0.0808 | |||
| Total Risk Alpha | (0.05) | |||
| Sortino Ratio | 0.0415 | |||
| Treynor Ratio | 0.1648 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Air Canada'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.
Air Canada Backtested Returns
We consider Air Canada very steady. Air Canada secures Sharpe Ratio (or Efficiency) of 0.0576, which signifies that the company had a 0.0576% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Air Canada, which you can use to evaluate the volatility of the firm. Please confirm Air Canada's Downside Deviation of 1.81, mean deviation of 1.15, and Risk Adjusted Performance of 0.0673 to double-check if the risk estimate we provide is consistent with the expected return of 0.0965%. Air Canada has a performance score of 4 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 0.93, which signifies possible diversification benefits within a given portfolio. Air Canada returns are very sensitive to returns on the market. As the market goes up or down, Air Canada is expected to follow. Air Canada right now shows a risk of 1.68%. Please confirm Air Canada treynor ratio, kurtosis, period momentum indicator, as well as the relationship between the downside variance and day median price , to decide if Air Canada will be following its price patterns.
Auto-correlation | 0.42 |
Average predictability
Air Canada has average predictability. Overlapping area represents the amount of predictability between Air Canada time series from 28th of October 2023 to 26th of January 2024 and 26th of January 2024 to 25th 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 Air Canada price movement. The serial correlation of 0.42 indicates that just about 42.0% of current Air Canada price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.42 | |
| Spearman Rank Test | 0.39 | |
| Residual Average | 0.0 | |
| Price Variance | 0.46 |
Air Canada lagged returns against current returns
Autocorrelation, which is Air Canada 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 Air Canada's stock expected returns. We can calculate the autocorrelation of Air Canada returns to help us make a trade decision. For example, suppose you find that Air Canada 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 |
Air Canada 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 Air Canada stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Air Canada stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Air Canada stock over time.
Current vs Lagged Prices |
| Timeline |
Air Canada Lagged Returns
When evaluating Air Canada's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Air Canada stock have on its future price. Air Canada 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, Air Canada autocorrelation shows the relationship between Air Canada stock current value and its past values and can show if there is a momentum factor associated with investing in Air Canada.
Regressed Prices |
| Timeline |
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 Air Canada 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, Air Canada's short interest history, or implied volatility extrapolated from Air Canada options trading.
Pair Trading with Air Canada
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 Air Canada 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 Air Canada will appreciate offsetting losses from the drop in the long position's value.Moving against Air Stock
| 0.54 | SBUX | Starbucks CDR | PairCorr |
The ability to find closely correlated positions to Air Canada could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Air Canada 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 Air Canada - 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 Air Canada to buy it.
The correlation of Air Canada 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 Air Canada moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Air Canada 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 Air Canada 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 Air Canada Correlation, Air Canada Volatility and Air Canada Alpha and Beta module to complement your research on Air Canada. You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Complementary Tools for Air Stock analysis
When running Air Canada's price analysis, check to measure Air Canada'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 Air Canada is operating at the current time. Most of Air Canada's value examination focuses on studying past and present price action to predict the probability of Air Canada's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Air Canada's price. Additionally, you may evaluate how the addition of Air Canada to your portfolios can decrease your overall portfolio volatility.
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Air Canada 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.