Credit Acceptance Stock Market Value
| CACC Stock | USD 522.22 0.04 0.01% |
| Symbol | Credit |
Credit Acceptance Price To Book Ratio
Is Credit Acceptance'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 Credit Acceptance. If investors know Credit 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 Credit Acceptance 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 (0.24) | Earnings Share 21.99 | Revenue Per Share 69.418 | Quarterly Revenue Growth (0.11) | Return On Assets 0.0394 |
The market value of Credit Acceptance is measured differently than its book value, which is the value of Credit that is recorded on the company's balance sheet. Investors also form their own opinion of Credit Acceptance's value that differs from its market value or its book value, called intrinsic value, which is Credit Acceptance'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 Credit Acceptance's market value can be influenced by many factors that don't directly affect Credit Acceptance'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 Credit Acceptance's value and its price as these two are different measures arrived at by different means. Investors typically determine if Credit Acceptance is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Credit Acceptance'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.
Credit Acceptance '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 Credit Acceptance'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 Credit Acceptance.
| 05/06/2022 |
| 04/25/2024 |
If you would invest 0.00 in Credit Acceptance on May 6, 2022 and sell it all today you would earn a total of 0.00 from holding Credit Acceptance or generate 0.0% return on investment in Credit Acceptance over 720 days. Credit Acceptance is related to or competes with Orix Corp, FirstCash, and Enova International. Credit Acceptance Corporation provides financing programs, and related products and services to independent and franchis... More
Credit Acceptance 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 Credit Acceptance'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 Credit Acceptance upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.07) | |||
| Maximum Drawdown | 10.59 | |||
| Value At Risk | (2.39) | |||
| Potential Upside | 2.15 |
Credit Acceptance Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Credit Acceptance's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Credit Acceptance's standard deviation. In reality, there are many statistical measures that can use Credit Acceptance historical prices to predict the future Credit Acceptance's volatility.| Risk Adjusted Performance | (0.01) | |||
| Jensen Alpha | (0.15) | |||
| Total Risk Alpha | (0.26) | |||
| Treynor Ratio | (0.03) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Credit Acceptance'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.
Credit Acceptance Backtested Returns
Credit Acceptance secures Sharpe Ratio (or Efficiency) of -0.0396, which signifies that the company had a -0.0396% return per unit of standard deviation over the last 3 months. Credit Acceptance exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Credit Acceptance's risk adjusted performance of (0.01), and Mean Deviation of 1.17 to double-check the risk estimate we provide. The firm shows a Beta (market volatility) of 1.42, 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, Credit Acceptance will likely underperform. Credit Acceptance has an expected return of -0.069%. Please make sure to confirm Credit Acceptance coefficient of variation, treynor ratio, skewness, as well as the relationship between the jensen alpha and value at risk , to decide if Credit Acceptance performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.19 |
Insignificant reverse predictability
Credit Acceptance has insignificant reverse predictability. Overlapping area represents the amount of predictability between Credit Acceptance time series from 6th of May 2022 to 1st of May 2023 and 1st of May 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 Credit Acceptance price movement. The serial correlation of -0.19 indicates that over 19.0% of current Credit Acceptance price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.19 | |
| Spearman Rank Test | -0.34 | |
| Residual Average | 0.0 | |
| Price Variance | 2339.68 |
Credit Acceptance lagged returns against current returns
Autocorrelation, which is Credit Acceptance 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 Credit Acceptance's stock expected returns. We can calculate the autocorrelation of Credit Acceptance returns to help us make a trade decision. For example, suppose you find that Credit Acceptance 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 |
Credit Acceptance 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 Credit Acceptance stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Credit Acceptance stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Credit Acceptance stock over time.
Current vs Lagged Prices |
| Timeline |
Credit Acceptance Lagged Returns
When evaluating Credit Acceptance's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Credit Acceptance stock have on its future price. Credit Acceptance 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, Credit Acceptance autocorrelation shows the relationship between Credit Acceptance stock current value and its past values and can show if there is a momentum factor associated with investing in Credit Acceptance.
Regressed Prices |
| Timeline |
Credit Acceptance Investors Sentiment
The influence of Credit Acceptance'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 Credit. 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 Credit Acceptance's public news can be used to forecast risks associated with an investment in Credit. The trend in average sentiment can be used to explain how an investor holding Credit can time the market purely based on public headlines and social activities around Credit Acceptance. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Credit Acceptance'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 Credit Acceptance'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 Credit Acceptance's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Credit Acceptance.
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 Credit Acceptance 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, Credit Acceptance's short interest history, or implied volatility extrapolated from Credit Acceptance options trading.
Pair Trading with Credit Acceptance
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 Credit Acceptance 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 Credit Acceptance will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to Credit Acceptance could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Credit Acceptance 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 Credit Acceptance - 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 Credit Acceptance to buy it.
The correlation of Credit Acceptance 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 Credit Acceptance moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Credit Acceptance 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 Credit Acceptance 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 Credit Acceptance Correlation, Credit Acceptance Volatility and Credit Acceptance Alpha and Beta module to complement your research on Credit Acceptance. For information on how to trade Credit Stock refer to our How to Trade Credit Stock guide.Note that the Credit Acceptance information on this page should be used as a complementary analysis to other Credit Acceptance'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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Complementary Tools for Credit Stock analysis
When running Credit Acceptance's price analysis, check to measure Credit Acceptance'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 Credit Acceptance is operating at the current time. Most of Credit Acceptance's value examination focuses on studying past and present price action to predict the probability of Credit Acceptance's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Credit Acceptance's price. Additionally, you may evaluate how the addition of Credit Acceptance to your portfolios can decrease your overall portfolio volatility.
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Credit Acceptance 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.