Root Inc Stock Market Value
ROOT Stock | USD 65.58 3.77 6.10% |
Symbol | Root |
Root Inc Price To Book Ratio
Is Root'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 Root. If investors know Root 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 Root listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (7.78) | Revenue Per Share 44.124 | Quarterly Revenue Growth 2.636 | Return On Assets (0.03) | Return On Equity (0.36) |
The market value of Root Inc is measured differently than its book value, which is the value of Root that is recorded on the company's balance sheet. Investors also form their own opinion of Root's value that differs from its market value or its book value, called intrinsic value, which is Root'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 Root's market value can be influenced by many factors that don't directly affect Root'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 Root's value and its price as these two are different measures arrived at by different means. Investors typically determine if Root is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Root'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.
Root '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 Root'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 Root.
02/18/2024 |
| 05/18/2024 |
If you would invest 0.00 in Root on February 18, 2024 and sell it all today you would earn a total of 0.00 from holding Root Inc or generate 0.0% return on investment in Root over 90 days. Root is related to or competes with Thrivent High, Morningstar Unconstrained, Via Renewables, and T Rowe. Root, Inc. provides insurance products and services in the United States More
Root 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 Root'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 Root Inc upside and downside potential and time the market with a certain degree of confidence.
Downside Deviation | 8.5 | |||
Information Ratio | 0.3176 | |||
Maximum Drawdown | 74.58 | |||
Value At Risk | (13.13) | |||
Potential Upside | 21.8 |
Root Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Root's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Root's standard deviation. In reality, there are many statistical measures that can use Root historical prices to predict the future Root's volatility.Risk Adjusted Performance | 0.2007 | |||
Jensen Alpha | 3.28 | |||
Total Risk Alpha | 1.94 | |||
Sortino Ratio | 0.4189 | |||
Treynor Ratio | 0.8811 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Root'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.
Root Inc Backtested Returns
Root is slightly risky given 3 months investment horizon. Root Inc maintains Sharpe Ratio (i.e., Efficiency) of 0.33, which implies the firm had a 0.33% return per unit of risk over the last 3 months. We were able to break down and interpolate data for twenty-eight different technical indicators, which can help you to evaluate if expected returns of 3.77% are justified by taking the suggested risk. Use Root Coefficient Of Variation of 306.3, semi deviation of 6.3, and Risk Adjusted Performance of 0.2007 to evaluate company specific risk that cannot be diversified away. Root holds a performance score of 25 on a scale of zero to a hundred. The company holds a Beta of 4.14, which implies 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, Root will likely underperform. Use Root potential upside, as well as the relationship between the accumulation distribution and period momentum indicator , to analyze future returns on Root.
Auto-correlation | -0.54 |
Good reverse predictability
Root Inc has good reverse predictability. Overlapping area represents the amount of predictability between Root time series from 18th of February 2024 to 3rd of April 2024 and 3rd of April 2024 to 18th of May 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 Root Inc price movement. The serial correlation of -0.54 indicates that about 54.0% of current Root price fluctuation can be explain by its past prices.
Correlation Coefficient | -0.54 | |
Spearman Rank Test | -0.37 | |
Residual Average | 0.0 | |
Price Variance | 62.01 |
Root Inc lagged returns against current returns
Autocorrelation, which is Root 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 Root's stock expected returns. We can calculate the autocorrelation of Root returns to help us make a trade decision. For example, suppose you find that Root 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 |
Root 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 Root stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Root stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Root stock over time.
Current vs Lagged Prices |
Timeline |
Root Lagged Returns
When evaluating Root's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Root stock have on its future price. Root 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, Root autocorrelation shows the relationship between Root stock current value and its past values and can show if there is a momentum factor associated with investing in Root Inc.
Regressed Prices |
Timeline |
Pair Trading with Root
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 Root 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 Root will appreciate offsetting losses from the drop in the long position's value.Moving together with Root Stock
0.67 | AFG | American Financial | PairCorr |
Moving against Root Stock
0.7 | FACO | First Acceptance Corp | PairCorr |
The ability to find closely correlated positions to Root could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Root 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 Root - 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 Root Inc to buy it.
The correlation of Root 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 Root moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Root Inc 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 Root 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 Root Correlation, Root Volatility and Root Alpha and Beta module to complement your research on Root. You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Complementary Tools for Root Stock analysis
When running Root's price analysis, check to measure Root'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 Root is operating at the current time. Most of Root's value examination focuses on studying past and present price action to predict the probability of Root's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Root's price. Additionally, you may evaluate how the addition of Root to your portfolios can decrease your overall portfolio volatility.
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |
Root 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.