Canopy Growth Corp Stock Market Value
| CGC Stock | USD 6.49 0.21 3.13% |
| Symbol | Canopy |
Canopy Growth Corp Price To Book Ratio
Is Canopy Growth'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 Canopy Growth. If investors know Canopy 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 Canopy Growth listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (15.48) | Revenue Per Share 5.589 | Quarterly Revenue Growth (0.07) | Return On Assets (0.09) | Return On Equity (1.22) |
The market value of Canopy Growth Corp is measured differently than its book value, which is the value of Canopy that is recorded on the company's balance sheet. Investors also form their own opinion of Canopy Growth's value that differs from its market value or its book value, called intrinsic value, which is Canopy Growth'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 Canopy Growth's market value can be influenced by many factors that don't directly affect Canopy Growth'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 Canopy Growth's value and its price as these two are different measures arrived at by different means. Investors typically determine if Canopy Growth is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Canopy Growth'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.
Canopy Growth '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 Canopy Growth'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 Canopy Growth.
| 02/17/2024 |
| 04/17/2024 |
If you would invest 0.00 in Canopy Growth on February 17, 2024 and sell it all today you would earn a total of 0.00 from holding Canopy Growth Corp or generate 0.0% return on investment in Canopy Growth over 60 days. Canopy Growth is related to or competes with PetIQ, Emergent Biosolutions, Neurocrine Biosciences, and Haleon Plc. Canopy Growth Corporation, together with its subsidiaries, engages in the production, distribution, and sale of cannabis... More
Canopy Growth 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 Canopy Growth'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 Canopy Growth Corp upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 6.63 | |||
| Information Ratio | 0.0966 | |||
| Maximum Drawdown | 88.02 | |||
| Value At Risk | (10.51) | |||
| Potential Upside | 20.45 |
Canopy Growth Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Canopy Growth's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Canopy Growth's standard deviation. In reality, there are many statistical measures that can use Canopy Growth historical prices to predict the future Canopy Growth's volatility.| Risk Adjusted Performance | 0.0734 | |||
| Jensen Alpha | 1.1 | |||
| Total Risk Alpha | 0.2973 | |||
| Sortino Ratio | 0.1782 | |||
| Treynor Ratio | 0.445 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Canopy Growth'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.
Canopy Growth Corp Backtested Returns
Canopy Growth is dangerous given 3 months investment horizon. Canopy Growth Corp secures Sharpe Ratio (or Efficiency) of 0.1, which signifies that the company had a 0.1% return per unit of risk over the last 3 months. We were able to analyze and collect data for twenty-nine different technical indicators, which can help you to evaluate if expected returns of 1.29% are justified by taking the suggested risk. Use Canopy Growth Downside Deviation of 6.63, mean deviation of 7.26, and Risk Adjusted Performance of 0.0734 to evaluate company specific risk that cannot be diversified away. Canopy Growth holds a performance score of 8 on a scale of zero to a hundred. The firm shows a Beta (market volatility) of 2.76, 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, Canopy Growth will likely underperform. Use Canopy Growth maximum drawdown, semi variance, and the relationship between the sortino ratio and potential upside , to analyze future returns on Canopy Growth.
Auto-correlation | -0.68 |
Very good reverse predictability
Canopy Growth Corp has very good reverse predictability. Overlapping area represents the amount of predictability between Canopy Growth time series from 17th of February 2024 to 18th of March 2024 and 18th of March 2024 to 17th 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 Canopy Growth Corp price movement. The serial correlation of -0.68 indicates that around 68.0% of current Canopy Growth price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.68 | |
| Spearman Rank Test | -0.28 | |
| Residual Average | 0.0 | |
| Price Variance | 4.47 |
Canopy Growth Corp lagged returns against current returns
Autocorrelation, which is Canopy Growth 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 Canopy Growth's stock expected returns. We can calculate the autocorrelation of Canopy Growth returns to help us make a trade decision. For example, suppose you find that Canopy Growth 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 |
Canopy Growth 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 Canopy Growth stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Canopy Growth stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Canopy Growth stock over time.
Current vs Lagged Prices |
| Timeline |
Canopy Growth Lagged Returns
When evaluating Canopy Growth's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Canopy Growth stock have on its future price. Canopy Growth 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, Canopy Growth autocorrelation shows the relationship between Canopy Growth stock current value and its past values and can show if there is a momentum factor associated with investing in Canopy Growth Corp.
Regressed Prices |
| Timeline |
Canopy Growth Investors Sentiment
The influence of Canopy Growth'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 Canopy. 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 Canopy Growth's public news can be used to forecast risks associated with an investment in Canopy. The trend in average sentiment can be used to explain how an investor holding Canopy can time the market purely based on public headlines and social activities around Canopy Growth Corp. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Canopy Growth'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 Canopy Growth'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 Canopy Growth's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Canopy Growth.
Canopy Growth Implied Volatility | 241.76 |
Canopy Growth's implied volatility exposes the market's sentiment of Canopy Growth Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Canopy Growth'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 Canopy Growth stock will not fluctuate a lot when Canopy Growth'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 Canopy Growth 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, Canopy Growth's short interest history, or implied volatility extrapolated from Canopy Growth options trading.
Pair Trading with Canopy Growth
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 Canopy Growth 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 Canopy Growth will appreciate offsetting losses from the drop in the long position's value.Moving together with Canopy Stock
| 0.79 | DSGN | Design Therapeutics Financial Report 14th of May 2024 | PairCorr |
Moving against Canopy Stock
| 0.63 | JNJ | Johnson Johnson Financial Report 18th of July 2024 | PairCorr |
| 0.55 | DNA | Ginkgo Bioworks Holdings Financial Report 8th of May 2024 | PairCorr |
| 0.46 | NVS | Novartis AG ADR Earnings Call This Week | PairCorr |
| 0.45 | VRTX | Vertex Pharmaceuticals Financial Report 6th of May 2024 | PairCorr |
The ability to find closely correlated positions to Canopy Growth could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Canopy Growth 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 Canopy Growth - 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 Canopy Growth Corp to buy it.
The correlation of Canopy Growth 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 Canopy Growth moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Canopy Growth Corp 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 Canopy Growth 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 Canopy Growth Correlation, Canopy Growth Volatility and Canopy Growth Alpha and Beta module to complement your research on Canopy Growth. Note that the Canopy Growth Corp information on this page should be used as a complementary analysis to other Canopy Growth's 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Complementary Tools for Canopy Stock analysis
When running Canopy Growth's price analysis, check to measure Canopy Growth'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 Canopy Growth is operating at the current time. Most of Canopy Growth's value examination focuses on studying past and present price action to predict the probability of Canopy Growth's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Canopy Growth's price. Additionally, you may evaluate how the addition of Canopy Growth to your portfolios can decrease your overall portfolio volatility.
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Canopy Growth 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.