China Automotive Systems Stock Market Value
| CAAS Stock | USD 3.57 0.06 1.65% |
| Symbol | China |
China Automotive Systems Price To Book Ratio
Is China Automotive'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 China Automotive. If investors know China 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 China Automotive 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 1.582 | Earnings Share 1.25 | Revenue Per Share 19.094 | Quarterly Revenue Growth 0.236 | Return On Assets 0.0331 |
The market value of China Automotive Systems is measured differently than its book value, which is the value of China that is recorded on the company's balance sheet. Investors also form their own opinion of China Automotive's value that differs from its market value or its book value, called intrinsic value, which is China Automotive'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 China Automotive's market value can be influenced by many factors that don't directly affect China Automotive'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 China Automotive's value and its price as these two are different measures arrived at by different means. Investors typically determine if China Automotive is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, China Automotive'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.
China Automotive '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 China Automotive'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 China Automotive.
| 05/01/2023 |
| 04/25/2024 |
If you would invest 0.00 in China Automotive on May 1, 2023 and sell it all today you would earn a total of 0.00 from holding China Automotive Systems or generate 0.0% return on investment in China Automotive over 360 days. China Automotive is related to or competes with Fox Factory, Douglas Dynamics, and Monro Muffler. China Automotive Systems, Inc., through its subsidiaries, manufactures and sells automotive systems and components in th... More
China Automotive 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 China Automotive'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 China Automotive Systems upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 2.78 | |||
| Information Ratio | 0.0251 | |||
| Maximum Drawdown | 16.88 | |||
| Value At Risk | (4.07) | |||
| Potential Upside | 5.34 |
China Automotive Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for China Automotive's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as China Automotive's standard deviation. In reality, there are many statistical measures that can use China Automotive historical prices to predict the future China Automotive's volatility.| Risk Adjusted Performance | 0.0427 | |||
| Jensen Alpha | 0.054 | |||
| Total Risk Alpha | (0.26) | |||
| Sortino Ratio | 0.028 | |||
| Treynor Ratio | 0.1275 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of China Automotive'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.
China Automotive Systems Backtested Returns
We consider China Automotive slightly risky. China Automotive Systems secures Sharpe Ratio (or Efficiency) of 0.0086, which signifies that the company had a 0.0086% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for China Automotive Systems, which you can use to evaluate the volatility of the firm. Please confirm China Automotive's Mean Deviation of 2.44, downside deviation of 2.78, and Risk Adjusted Performance of 0.0427 to double-check if the risk estimate we provide is consistent with the expected return of 0.0236%. The firm shows a Beta (market volatility) of 1.28, 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, China Automotive will likely underperform. China Automotive Systems right now shows a risk of 2.75%. Please confirm China Automotive Systems jensen alpha, semi variance, day typical price, as well as the relationship between the maximum drawdown and accumulation distribution , to decide if China Automotive Systems will be following its price patterns.
Auto-correlation | -0.33 |
Poor reverse predictability
China Automotive Systems has poor reverse predictability. Overlapping area represents the amount of predictability between China Automotive time series from 1st of May 2023 to 28th of October 2023 and 28th of October 2023 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 China Automotive Systems price movement. The serial correlation of -0.33 indicates that nearly 33.0% of current China Automotive price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.33 | |
| Spearman Rank Test | -0.06 | |
| Residual Average | 0.0 | |
| Price Variance | 0.04 |
China Automotive Systems lagged returns against current returns
Autocorrelation, which is China Automotive 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 China Automotive's stock expected returns. We can calculate the autocorrelation of China Automotive returns to help us make a trade decision. For example, suppose you find that China Automotive 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 |
China Automotive 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 China Automotive stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if China Automotive stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in China Automotive stock over time.
Current vs Lagged Prices |
| Timeline |
China Automotive Lagged Returns
When evaluating China Automotive's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of China Automotive stock have on its future price. China Automotive 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, China Automotive autocorrelation shows the relationship between China Automotive stock current value and its past values and can show if there is a momentum factor associated with investing in China Automotive Systems.
Regressed Prices |
| Timeline |
Pair Trading with China Automotive
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 China Automotive 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 China Automotive will appreciate offsetting losses from the drop in the long position's value.Moving against China Stock
| 0.53 | LI | Li AutoInc Financial Report 8th of May 2024 | PairCorr |
| 0.46 | NIO | Nio Class A Aggressive Push | PairCorr |
| 0.46 | XPEV | Xpeng Inc Financial Report 22nd of May 2024 | PairCorr |
The ability to find closely correlated positions to China Automotive could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace China Automotive 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 China Automotive - 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 China Automotive Systems to buy it.
The correlation of China Automotive 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 China Automotive moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if China Automotive Systems 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 China Automotive 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 China Automotive Correlation, China Automotive Volatility and China Automotive Alpha and Beta module to complement your research on China Automotive. Note that the China Automotive Systems information on this page should be used as a complementary analysis to other China Automotive'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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Complementary Tools for China Stock analysis
When running China Automotive's price analysis, check to measure China Automotive'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 China Automotive is operating at the current time. Most of China Automotive's value examination focuses on studying past and present price action to predict the probability of China Automotive's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move China Automotive's price. Additionally, you may evaluate how the addition of China Automotive to your portfolios can decrease your overall portfolio volatility.
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China Automotive 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.