Erie Indemnity Stock Market Value
| ERIE Stock | USD 382.66 3.03 0.79% |
| Symbol | Erie |
Erie Indemnity Price To Book Ratio
Is Erie Indemnity'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 Erie Indemnity. If investors know Erie 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 Erie Indemnity 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 0.697 | Dividend Share 4.845 | Earnings Share 8.53 | Revenue Per Share 70.773 | Quarterly Revenue Growth 0.167 |
The market value of Erie Indemnity is measured differently than its book value, which is the value of Erie that is recorded on the company's balance sheet. Investors also form their own opinion of Erie Indemnity's value that differs from its market value or its book value, called intrinsic value, which is Erie Indemnity'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 Erie Indemnity's market value can be influenced by many factors that don't directly affect Erie Indemnity'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 Erie Indemnity's value and its price as these two are different measures arrived at by different means. Investors typically determine if Erie Indemnity is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Erie Indemnity'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.
Erie Indemnity '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 Erie Indemnity'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 Erie Indemnity.
| 03/26/2024 |
| 04/25/2024 |
If you would invest 0.00 in Erie Indemnity on March 26, 2024 and sell it all today you would earn a total of 0.00 from holding Erie Indemnity or generate 0.0% return on investment in Erie Indemnity over 30 days. Erie Indemnity is related to or competes with CorVel Corp, Huize HoldingLtd, Crawford, EHealth, Fanhua, Crawford, and Brp. Erie Indemnity Company operates as a managing attorney-in-fact for the subscribers at the Erie Insurance Exchange in the... More
Erie Indemnity 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 Erie Indemnity'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 Erie Indemnity upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.27 | |||
| Information Ratio | 0.0653 | |||
| Maximum Drawdown | 13.03 | |||
| Value At Risk | (1.62) | |||
| Potential Upside | 1.98 |
Erie Indemnity Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Erie Indemnity's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Erie Indemnity's standard deviation. In reality, there are many statistical measures that can use Erie Indemnity historical prices to predict the future Erie Indemnity's volatility.| Risk Adjusted Performance | 0.0808 | |||
| Jensen Alpha | 0.1606 | |||
| Total Risk Alpha | (0.04) | |||
| Sortino Ratio | 0.0908 | |||
| Treynor Ratio | 0.4264 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Erie Indemnity'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.
Erie Indemnity Backtested Returns
We consider Erie Indemnity very steady. Erie Indemnity secures Sharpe Ratio (or Efficiency) of 0.1, which denotes the company had a 0.1% return per unit of risk over the last 3 months. We have found thirty technical indicators for Erie Indemnity, which you can use to evaluate the volatility of the firm. Please confirm Erie Indemnity's Downside Deviation of 1.27, coefficient of variation of 838.68, and Mean Deviation of 1.06 to check if the risk estimate we provide is consistent with the expected return of 0.19%. Erie Indemnity has a performance score of 8 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 0.47, which means possible diversification benefits within a given portfolio. As returns on the market increase, Erie Indemnity's returns are expected to increase less than the market. However, during the bear market, the loss of holding Erie Indemnity is expected to be smaller as well. Erie Indemnity right now shows a risk of 1.8%. Please confirm Erie Indemnity value at risk, kurtosis, and the relationship between the sortino ratio and semi variance , to decide if Erie Indemnity will be following its price patterns.
Auto-correlation | 0.31 |
Below average predictability
Erie Indemnity has below average predictability. Overlapping area represents the amount of predictability between Erie Indemnity time series from 26th of March 2024 to 10th of April 2024 and 10th of April 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 Erie Indemnity price movement. The serial correlation of 0.31 indicates that nearly 31.0% of current Erie Indemnity price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.31 | |
| Spearman Rank Test | -0.22 | |
| Residual Average | 0.0 | |
| Price Variance | 15.64 |
Erie Indemnity lagged returns against current returns
Autocorrelation, which is Erie Indemnity 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 Erie Indemnity's stock expected returns. We can calculate the autocorrelation of Erie Indemnity returns to help us make a trade decision. For example, suppose you find that Erie Indemnity 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 |
Erie Indemnity 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 Erie Indemnity stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Erie Indemnity stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Erie Indemnity stock over time.
Current vs Lagged Prices |
| Timeline |
Erie Indemnity Lagged Returns
When evaluating Erie Indemnity's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Erie Indemnity stock have on its future price. Erie Indemnity 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, Erie Indemnity autocorrelation shows the relationship between Erie Indemnity stock current value and its past values and can show if there is a momentum factor associated with investing in Erie Indemnity.
Regressed Prices |
| Timeline |
Pair Trading with Erie Indemnity
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 Erie Indemnity 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 Erie Indemnity will appreciate offsetting losses from the drop in the long position's value.Moving together with Erie Stock
| 0.75 | AJG | Arthur J Gallagher Earnings Call Today | PairCorr |
| 0.75 | AON | Aon PLC Earnings Call Tomorrow | PairCorr |
Moving against Erie Stock
| 0.67 | FANH | Fanhua Inc | PairCorr |
| 0.57 | DHIL | Diamond Hill Investment | PairCorr |
| 0.53 | ALIZY | Allianz SE ADR | PairCorr |
| 0.44 | RELI | Reliance Global Group | PairCorr |
The ability to find closely correlated positions to Erie Indemnity could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Erie Indemnity 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 Erie Indemnity - 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 Erie Indemnity to buy it.
The correlation of Erie Indemnity 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 Erie Indemnity moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Erie Indemnity 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 Erie Indemnity 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 Erie Indemnity Correlation, Erie Indemnity Volatility and Erie Indemnity Alpha and Beta module to complement your research on Erie Indemnity. For information on how to trade Erie Stock refer to our How to Trade Erie Stock guide.You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Complementary Tools for Erie Stock analysis
When running Erie Indemnity's price analysis, check to measure Erie Indemnity'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 Erie Indemnity is operating at the current time. Most of Erie Indemnity's value examination focuses on studying past and present price action to predict the probability of Erie Indemnity's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Erie Indemnity's price. Additionally, you may evaluate how the addition of Erie Indemnity to your portfolios can decrease your overall portfolio volatility.
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Erie Indemnity 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.