East West Bancorp Stock Market Value
EWBC Stock | USD 71.35 1.03 1.42% |
Symbol | East |
East West Bancorp Price To Book Ratio
Is East West'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 East West. If investors know East 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 East West 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 (0.29) | Dividend Share 1.92 | Earnings Share 8.18 | Revenue Per Share 16.734 | Quarterly Revenue Growth 0.056 |
The market value of East West Bancorp is measured differently than its book value, which is the value of East that is recorded on the company's balance sheet. Investors also form their own opinion of East West's value that differs from its market value or its book value, called intrinsic value, which is East West'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 East West's market value can be influenced by many factors that don't directly affect East West'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 East West's value and its price as these two are different measures arrived at by different means. Investors typically determine if East West is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, East West'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.
East West '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 East West'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 East West.
03/18/2024 |
| 04/17/2024 |
If you would invest 0.00 in East West on March 18, 2024 and sell it all today you would earn a total of 0.00 from holding East West Bancorp or generate 0.0% return on investment in East West over 30 days. East West is related to or competes with Home Bancorp, and Northfield Bancorp. East West Bancorp, Inc. operates as the bank holding company for East West Bank that provides a range of personal and co... More
East West 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 East West'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 East West Bancorp upside and downside potential and time the market with a certain degree of confidence.
Downside Deviation | 1.62 | |||
Information Ratio | (0.03) | |||
Maximum Drawdown | 8.08 | |||
Value At Risk | (2.72) | |||
Potential Upside | 3.01 |
East West Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for East West's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as East West's standard deviation. In reality, there are many statistical measures that can use East West historical prices to predict the future East West's volatility.Risk Adjusted Performance | 0.0087 | |||
Jensen Alpha | (0.07) | |||
Total Risk Alpha | (0.14) | |||
Sortino Ratio | (0.03) | |||
Treynor Ratio | (0) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of East West'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.
East West Bancorp Backtested Returns
We consider East West very steady. East West Bancorp secures Sharpe Ratio (or Efficiency) of 0.0407, which denotes the company had a 0.0407% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for East West Bancorp, which you can use to evaluate the volatility of the firm. Please confirm East West's Downside Deviation of 1.62, mean deviation of 1.4, and Coefficient Of Variation of 28154.35 to check if the risk estimate we provide is consistent with the expected return of 0.0733%. East West has a performance score of 3 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 1.37, which means 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, East West will likely underperform. East West Bancorp right now shows a risk of 1.8%. Please confirm East West Bancorp expected short fall, day median price, and the relationship between the potential upside and accumulation distribution , to decide if East West Bancorp will be following its price patterns.
Auto-correlation | -0.48 |
Modest reverse predictability
East West Bancorp has modest reverse predictability. Overlapping area represents the amount of predictability between East West time series from 18th of March 2024 to 2nd of April 2024 and 2nd of April 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 East West Bancorp price movement. The serial correlation of -0.48 indicates that about 48.0% of current East West price fluctuation can be explain by its past prices.
Correlation Coefficient | -0.48 | |
Spearman Rank Test | -0.48 | |
Residual Average | 0.0 | |
Price Variance | 2.78 |
East West Bancorp lagged returns against current returns
Autocorrelation, which is East West 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 East West's stock expected returns. We can calculate the autocorrelation of East West returns to help us make a trade decision. For example, suppose you find that East West 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 |
East West 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 East West stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if East West stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in East West stock over time.
Current vs Lagged Prices |
Timeline |
East West Lagged Returns
When evaluating East West's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of East West stock have on its future price. East West 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, East West autocorrelation shows the relationship between East West stock current value and its past values and can show if there is a momentum factor associated with investing in East West Bancorp.
Regressed Prices |
Timeline |
Pair Trading with East West
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 East West 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 East West will appreciate offsetting losses from the drop in the long position's value.Moving together with East Stock
0.72 | NU | Nu Holdings Financial Report 20th of May 2024 | PairCorr |
Moving against East Stock
0.41 | EBTC | Enterprise Bancorp Earnings Call This Week | PairCorr |
The ability to find closely correlated positions to East West could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace East West 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 East West - 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 East West Bancorp to buy it.
The correlation of East West 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 East West moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if East West Bancorp 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 East West 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 East West Correlation, East West Volatility and East West Alpha and Beta module to complement your research on East West. Note that the East West Bancorp information on this page should be used as a complementary analysis to other East West'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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Complementary Tools for East Stock analysis
When running East West's price analysis, check to measure East West'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 East West is operating at the current time. Most of East West's value examination focuses on studying past and present price action to predict the probability of East West's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move East West's price. Additionally, you may evaluate how the addition of East West to your portfolios can decrease your overall portfolio volatility.
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Stocks Directory Find actively traded stocks across global markets | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation |
East West 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.