Norfolk Southern Stock Market Value
| NSC Stock | USD 247.22 24.32 10.91% |
| Symbol | Norfolk |
Is Ground Transportation space 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 Norfolk Southern. If investors know Norfolk 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 Norfolk Southern listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Norfolk Southern is measured differently than its book value, which is the value of Norfolk that is recorded on the company's balance sheet. Investors also form their own opinion of Norfolk Southern's value that differs from its market value or its book value, called intrinsic value, which is Norfolk Southern'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 Norfolk Southern's market value can be influenced by many factors that don't directly affect Norfolk Southern'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 Norfolk Southern's value and its price as these two are different measures arrived at by different means. Investors typically determine if Norfolk Southern is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Norfolk Southern'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.
Norfolk Southern '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 Norfolk Southern'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 Norfolk Southern.
| 06/26/2024 |
| 07/26/2024 |
If you would invest 0.00 in Norfolk Southern on June 26, 2024 and sell it all today you would earn a total of 0.00 from holding Norfolk Southern or generate 0.0% return on investment in Norfolk Southern over 30 days. Norfolk Southern is related to or competes with Union Pacific, Canadian Pacific, Canadian National, Westinghouse Air, CSX, Trinity Industries, and Greenbrier Companies. Norfolk Southern Corporation, together with its subsidiaries, engages in the rail transportation of raw materials, inter... More
Norfolk Southern 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 Norfolk Southern'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 Norfolk Southern upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.59 | |||
| Information Ratio | (0.01) | |||
| Maximum Drawdown | 5.38 | |||
| Value At Risk | (2.44) | |||
| Potential Upside | 2.84 |
Norfolk Southern Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Norfolk Southern's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Norfolk Southern's standard deviation. In reality, there are many statistical measures that can use Norfolk Southern historical prices to predict the future Norfolk Southern's volatility.| Risk Adjusted Performance | 0.029 | |||
| Jensen Alpha | 0.0141 | |||
| Total Risk Alpha | (0.16) | |||
| Sortino Ratio | (0.01) | |||
| Treynor Ratio | 0.0953 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Norfolk Southern'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.
Norfolk Southern Backtested Returns
At this point, Norfolk Southern is very steady. Norfolk Southern has Sharpe Ratio of 0.0327, which conveys that the firm had a 0.0327% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for Norfolk Southern, which you can use to evaluate the volatility of the firm. Please verify Norfolk Southern's Downside Deviation of 1.59, risk adjusted performance of 0.029, and Mean Deviation of 1.26 to check out if the risk estimate we provide is consistent with the expected return of 0.0684%. Norfolk Southern has a performance score of 2 on a scale of 0 to 100. The company secures a Beta (Market Risk) of 0.61, which conveys possible diversification benefits within a given portfolio. As returns on the market increase, Norfolk Southern's returns are expected to increase less than the market. However, during the bear market, the loss of holding Norfolk Southern is expected to be smaller as well. Norfolk Southern right now secures a risk of 2.09%. Please verify Norfolk Southern expected short fall, and the relationship between the value at risk and daily balance of power , to decide if Norfolk Southern will be following its current price movements.
Auto-correlation | 0.18 |
Very weak predictability
Norfolk Southern has very weak predictability. Overlapping area represents the amount of predictability between Norfolk Southern time series from 26th of June 2024 to 11th of July 2024 and 11th of July 2024 to 26th of July 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 Norfolk Southern price movement. The serial correlation of 0.18 indicates that over 18.0% of current Norfolk Southern price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.18 | |
| Spearman Rank Test | -0.14 | |
| Residual Average | 0.0 | |
| Price Variance | 23.12 |
Norfolk Southern lagged returns against current returns
Autocorrelation, which is Norfolk Southern 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 Norfolk Southern's stock expected returns. We can calculate the autocorrelation of Norfolk Southern returns to help us make a trade decision. For example, suppose you find that Norfolk Southern 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 |
Norfolk Southern 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 Norfolk Southern stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Norfolk Southern stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Norfolk Southern stock over time.
Current vs Lagged Prices |
| Timeline |
Norfolk Southern Lagged Returns
When evaluating Norfolk Southern's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Norfolk Southern stock have on its future price. Norfolk Southern 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, Norfolk Southern autocorrelation shows the relationship between Norfolk Southern stock current value and its past values and can show if there is a momentum factor associated with investing in Norfolk Southern.
Regressed Prices |
| Timeline |
Also Currently Popular
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.Additional Information and Resources on Investing in Norfolk Stock
When determining whether Norfolk Southern offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Norfolk Southern's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Norfolk Southern Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Norfolk Southern Stock:Check out Norfolk Southern Correlation, Norfolk Southern Volatility and Norfolk Southern Alpha and Beta module to complement your research on Norfolk Southern. For information on how to trade Norfolk Stock refer to our How to Trade Norfolk Stock guide.You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Norfolk Southern 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.