Essent Group Stock Market Value
| ESNT Stock | USD 52.67 0.34 0.65% |
| Symbol | Essent |
Essent Group Price To Book Ratio
Is Essent'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 Essent. If investors know Essent 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 Essent 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 0.199 | Dividend Share 1 | Earnings Share 6.5 | Revenue Per Share 10.215 | Quarterly Revenue Growth 0.242 |
The market value of Essent Group is measured differently than its book value, which is the value of Essent that is recorded on the company's balance sheet. Investors also form their own opinion of Essent's value that differs from its market value or its book value, called intrinsic value, which is Essent'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 Essent's market value can be influenced by many factors that don't directly affect Essent'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 Essent's value and its price as these two are different measures arrived at by different means. Investors typically determine if Essent is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Essent'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.
Essent '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 Essent'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 Essent.
| 05/30/2022 |
| 04/19/2024 |
If you would invest 0.00 in Essent on May 30, 2022 and sell it all today you would earn a total of 0.00 from holding Essent Group or generate 0.0% return on investment in Essent over 690 days. Essent is related to or competes with Radian, NMI Holdings, MBIA, James River, MGIC Investment, Employers Holdings, and ICC Holdings. Essent Group Ltd., through its subsidiaries, provides private mortgage insurance and reinsurance for mortgages secured b... More
Essent 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 Essent'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 Essent Group upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.46 | |||
| Information Ratio | (0.04) | |||
| Maximum Drawdown | 7.67 | |||
| Value At Risk | (2.18) | |||
| Potential Upside | 2.65 |
Essent Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Essent's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Essent's standard deviation. In reality, there are many statistical measures that can use Essent historical prices to predict the future Essent's volatility.| Risk Adjusted Performance | 0.012 | |||
| Jensen Alpha | (0.08) | |||
| Total Risk Alpha | (0.13) | |||
| Sortino Ratio | (0.04) | |||
| Treynor Ratio | 0.0034 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Essent'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.
Essent Group Backtested Returns
Essent Group secures Sharpe Ratio (or Efficiency) of -0.0394, which denotes the company had a -0.0394% return per unit of risk over the last 3 months. Essent Group exposes twenty-nine different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Essent's Coefficient Of Variation of 9865.9, mean deviation of 1.08, and Downside Deviation of 1.46 to check the risk estimate we provide. The firm shows a Beta (market volatility) of 1.42, 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, Essent will likely underperform. Essent Group has an expected return of -0.0567%. Please make sure to confirm Essent Group potential upside, as well as the relationship between the accumulation distribution and period momentum indicator , to decide if Essent Group performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.45 |
Average predictability
Essent Group has average predictability. Overlapping area represents the amount of predictability between Essent time series from 30th of May 2022 to 10th of May 2023 and 10th of May 2023 to 19th 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 Essent Group price movement. The serial correlation of 0.45 indicates that just about 45.0% of current Essent price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.45 | |
| Spearman Rank Test | 0.19 | |
| Residual Average | 0.0 | |
| Price Variance | 15.08 |
Essent Group lagged returns against current returns
Autocorrelation, which is Essent 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 Essent's stock expected returns. We can calculate the autocorrelation of Essent returns to help us make a trade decision. For example, suppose you find that Essent 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 |
Essent 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 Essent stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Essent stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Essent stock over time.
Current vs Lagged Prices |
| Timeline |
Essent Lagged Returns
When evaluating Essent's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Essent stock have on its future price. Essent 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, Essent autocorrelation shows the relationship between Essent stock current value and its past values and can show if there is a momentum factor associated with investing in Essent Group.
Regressed Prices |
| Timeline |
Pair Trading with Essent
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 Essent 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 Essent will appreciate offsetting losses from the drop in the long position's value.Moving together with Essent Stock
| 0.85 | ACT | Enact Holdings Financial Report 1st of May 2024 | PairCorr |
Moving against Essent Stock
| 0.44 | JRVR | James River Group Normal Trading | PairCorr |
The ability to find closely correlated positions to Essent could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Essent 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 Essent - 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 Essent Group to buy it.
The correlation of Essent 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 Essent moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Essent Group 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 Essent 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 Essent Correlation, Essent Volatility and Essent Alpha and Beta module to complement your research on Essent. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Complementary Tools for Essent Stock analysis
When running Essent's price analysis, check to measure Essent'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 Essent is operating at the current time. Most of Essent's value examination focuses on studying past and present price action to predict the probability of Essent's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Essent's price. Additionally, you may evaluate how the addition of Essent to your portfolios can decrease your overall portfolio volatility.
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