Edesa Biotech Stock Market Value
| EDSA Stock | USD 4.31 0.16 3.58% |
| Symbol | Edesa |
Edesa Biotech Price To Book Ratio
Is Edesa Biotech'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 Edesa Biotech. If investors know Edesa 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 Edesa Biotech listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (20.16) | Quarterly Revenue Growth (1.00) | Return On Assets (0.56) | Return On Equity (0.96) |
The market value of Edesa Biotech is measured differently than its book value, which is the value of Edesa that is recorded on the company's balance sheet. Investors also form their own opinion of Edesa Biotech's value that differs from its market value or its book value, called intrinsic value, which is Edesa Biotech'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 Edesa Biotech's market value can be influenced by many factors that don't directly affect Edesa Biotech'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 Edesa Biotech's value and its price as these two are different measures arrived at by different means. Investors typically determine if Edesa Biotech is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Edesa Biotech'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.
Edesa Biotech '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 Edesa Biotech'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 Edesa Biotech.
| 03/25/2024 |
| 04/24/2024 |
If you would invest 0.00 in Edesa Biotech on March 25, 2024 and sell it all today you would earn a total of 0.00 from holding Edesa Biotech or generate 0.0% return on investment in Edesa Biotech over 30 days. Edesa Biotech is related to or competes with Senti Biosciences, Cingulate, Neurobo Pharmaceuticals, Indaptus Therapeutics, Pasithea Therapeutics, Quoin Pharmaceuticals, and Lixte Biotechnology. Edesa Biotech, Inc., a biopharmaceutical company, engages in acquiring, developing, and commercializing clinical-stage d... More
Edesa Biotech 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 Edesa Biotech'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 Edesa Biotech upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 3.98 | |||
| Information Ratio | 0.01 | |||
| Maximum Drawdown | 22.31 | |||
| Value At Risk | (5.84) | |||
| Potential Upside | 10.09 |
Edesa Biotech Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Edesa Biotech's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Edesa Biotech's standard deviation. In reality, there are many statistical measures that can use Edesa Biotech historical prices to predict the future Edesa Biotech's volatility.| Risk Adjusted Performance | 0.0277 | |||
| Jensen Alpha | 0.1544 | |||
| Total Risk Alpha | (0.50) | |||
| Sortino Ratio | 0.0117 | |||
| Treynor Ratio | (0.50) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Edesa Biotech'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.
Edesa Biotech Backtested Returns
Edesa Biotech secures Sharpe Ratio (or Efficiency) of -0.0084, which denotes the company had a -0.0084% return per unit of risk over the last 3 months. Edesa Biotech exposes thirty different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Edesa Biotech's Mean Deviation of 3.48, coefficient of variation of 3276.9, and Downside Deviation of 3.98 to check the risk estimate we provide. The firm shows a Beta (market volatility) of -0.26, which means not very significant fluctuations relative to the market. As returns on the market increase, returns on owning Edesa Biotech are expected to decrease at a much lower rate. During the bear market, Edesa Biotech is likely to outperform the market. Edesa Biotech has an expected return of -0.0382%. Please make sure to confirm Edesa Biotech maximum drawdown, skewness, and the relationship between the total risk alpha and downside variance , to decide if Edesa Biotech performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.3 |
Weak reverse predictability
Edesa Biotech has weak reverse predictability. Overlapping area represents the amount of predictability between Edesa Biotech time series from 25th of March 2024 to 9th of April 2024 and 9th of April 2024 to 24th 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 Edesa Biotech price movement. The serial correlation of -0.3 indicates that nearly 30.0% of current Edesa Biotech price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.3 | |
| Spearman Rank Test | -0.58 | |
| Residual Average | 0.0 | |
| Price Variance | 0.02 |
Edesa Biotech lagged returns against current returns
Autocorrelation, which is Edesa Biotech 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 Edesa Biotech's stock expected returns. We can calculate the autocorrelation of Edesa Biotech returns to help us make a trade decision. For example, suppose you find that Edesa Biotech 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 |
Edesa Biotech 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 Edesa Biotech stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Edesa Biotech stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Edesa Biotech stock over time.
Current vs Lagged Prices |
| Timeline |
Edesa Biotech Lagged Returns
When evaluating Edesa Biotech's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Edesa Biotech stock have on its future price. Edesa Biotech 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, Edesa Biotech autocorrelation shows the relationship between Edesa Biotech stock current value and its past values and can show if there is a momentum factor associated with investing in Edesa Biotech.
Regressed Prices |
| Timeline |
Pair Trading with Edesa Biotech
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 Edesa Biotech 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 Edesa Biotech will appreciate offsetting losses from the drop in the long position's value.Moving against Edesa Stock
| 0.55 | ELEV | Elevation Oncology Earnings Call Next Week | PairCorr |
| 0.45 | VKTX | Viking Therapeutics Potential Growth | PairCorr |
The ability to find closely correlated positions to Edesa Biotech could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Edesa Biotech 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 Edesa Biotech - 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 Edesa Biotech to buy it.
The correlation of Edesa Biotech 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 Edesa Biotech moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Edesa Biotech 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 Edesa Biotech 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 Edesa Biotech Correlation, Edesa Biotech Volatility and Edesa Biotech Alpha and Beta module to complement your research on Edesa Biotech. For information on how to trade Edesa Stock refer to our How to Trade Edesa Stock guide.You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Complementary Tools for Edesa Stock analysis
When running Edesa Biotech's price analysis, check to measure Edesa Biotech'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 Edesa Biotech is operating at the current time. Most of Edesa Biotech's value examination focuses on studying past and present price action to predict the probability of Edesa Biotech's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Edesa Biotech's price. Additionally, you may evaluate how the addition of Edesa Biotech to your portfolios can decrease your overall portfolio volatility.
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Edesa Biotech 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.