Bright Horizons Family Stock Market Value
| BFAM Stock | USD 105.87 1.42 1.36% |
| Symbol | Bright |
Is Bright Horizons' 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 Bright Horizons. If investors know Bright 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 Bright Horizons listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Bright Horizons Family is measured differently than its book value, which is the value of Bright that is recorded on the company's balance sheet. Investors also form their own opinion of Bright Horizons' value that differs from its market value or its book value, called intrinsic value, which is Bright Horizons' 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 Bright Horizons' market value can be influenced by many factors that don't directly affect Bright Horizons' 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 Bright Horizons' value and its price as these two are different measures arrived at by different means. Investors typically determine if Bright Horizons is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bright Horizons' 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.
Bright Horizons '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 Bright Horizons' 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 Bright Horizons.
| 03/24/2024 |
| 04/23/2024 |
If you would invest 0.00 in Bright Horizons on March 24, 2024 and sell it all today you would earn a total of 0.00 from holding Bright Horizons Family or generate 0.0% return on investment in Bright Horizons over 30 days. Bright Horizons is related to or competes with Frontdoor, Smart Share, Mister Car, Carriage Services, Service International, and Rollins. Bright Horizons Family Solutions Inc. provides early education and child care, back-up care, educational advisory, and o... More
Bright Horizons 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 Bright Horizons' 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 Bright Horizons Family upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.6 | |||
| Information Ratio | 0.0103 | |||
| Maximum Drawdown | 14.4 | |||
| Value At Risk | (2.65) | |||
| Potential Upside | 2.28 |
Bright Horizons Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Bright Horizons' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Bright Horizons' standard deviation. In reality, there are many statistical measures that can use Bright Horizons historical prices to predict the future Bright Horizons' volatility.| Risk Adjusted Performance | 0.0408 | |||
| Jensen Alpha | (0.05) | |||
| Total Risk Alpha | (0.16) | |||
| Sortino Ratio | 0.0129 | |||
| Treynor Ratio | 0.0532 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Bright Horizons' 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.
Bright Horizons Family Backtested Returns
We consider Bright Horizons very steady. Bright Horizons Family secures Sharpe Ratio (or Efficiency) of 0.055, which signifies that the company had a 0.055% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Bright Horizons Family, which you can use to evaluate the volatility of the firm. Please confirm Bright Horizons' Downside Deviation of 1.6, mean deviation of 1.3, and Risk Adjusted Performance of 0.0408 to double-check if the risk estimate we provide is consistent with the expected return of 0.11%. Bright Horizons has a performance score of 4 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 1.88, 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, Bright Horizons will likely underperform. Bright Horizons Family right now shows a risk of 2.0%. Please confirm Bright Horizons Family standard deviation, value at risk, kurtosis, as well as the relationship between the sortino ratio and semi variance , to decide if Bright Horizons Family will be following its price patterns.
Auto-correlation | 0.76 |
Good predictability
Bright Horizons Family has good predictability. Overlapping area represents the amount of predictability between Bright Horizons time series from 24th of March 2024 to 8th of April 2024 and 8th of April 2024 to 23rd 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 Bright Horizons Family price movement. The serial correlation of 0.76 indicates that around 76.0% of current Bright Horizons price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.76 | |
| Spearman Rank Test | 0.35 | |
| Residual Average | 0.0 | |
| Price Variance | 13.21 |
Bright Horizons Family lagged returns against current returns
Autocorrelation, which is Bright Horizons 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 Bright Horizons' stock expected returns. We can calculate the autocorrelation of Bright Horizons returns to help us make a trade decision. For example, suppose you find that Bright Horizons 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 |
Bright Horizons 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 Bright Horizons stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Bright Horizons stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Bright Horizons stock over time.
Current vs Lagged Prices |
| Timeline |
Bright Horizons Lagged Returns
When evaluating Bright Horizons' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Bright Horizons stock have on its future price. Bright Horizons 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, Bright Horizons autocorrelation shows the relationship between Bright Horizons stock current value and its past values and can show if there is a momentum factor associated with investing in Bright Horizons Family.
Regressed Prices |
| Timeline |
Pair Trading with Bright Horizons
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 Bright Horizons 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 Bright Horizons will appreciate offsetting losses from the drop in the long position's value.Moving together with Bright Stock
| 0.87 | H | Hyatt Hotels Earnings Call This Week | PairCorr |
| 0.67 | BH | Biglari Holdings | PairCorr |
| 0.78 | EM | Smart Share Global | PairCorr |
| 0.64 | SG | Sweetgreen Financial Report 2nd of May 2024 | PairCorr |
Moving against Bright Stock
| 0.58 | WW | WW International Financial Report 2nd of May 2024 | PairCorr |
The ability to find closely correlated positions to Bright Horizons could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Bright Horizons 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 Bright Horizons - 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 Bright Horizons Family to buy it.
The correlation of Bright Horizons 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 Bright Horizons moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Bright Horizons Family 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 Bright Horizons 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 Bright Horizons Correlation, Bright Horizons Volatility and Bright Horizons Alpha and Beta module to complement your research on Bright Horizons. Note that the Bright Horizons Family information on this page should be used as a complementary analysis to other Bright Horizons' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Complementary Tools for Bright Stock analysis
When running Bright Horizons' price analysis, check to measure Bright Horizons' 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 Bright Horizons is operating at the current time. Most of Bright Horizons' value examination focuses on studying past and present price action to predict the probability of Bright Horizons' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Bright Horizons' price. Additionally, you may evaluate how the addition of Bright Horizons to your portfolios can decrease your overall portfolio volatility.
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Bright Horizons 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.