Safety Insurance Group Stock Market Value
| SAFT Stock | USD 75.62 0.23 0.30% |
| Symbol | Safety |
Safety Insurance Price To Book Ratio
Is Property & Casualty Insurance 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 Safety Insurance. If investors know Safety 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 Safety Insurance 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 (0.50) | Dividend Share 3.6 | Earnings Share 3.48 | Revenue Per Share 67.22 | Quarterly Revenue Growth 0.255 |
The market value of Safety Insurance is measured differently than its book value, which is the value of Safety that is recorded on the company's balance sheet. Investors also form their own opinion of Safety Insurance's value that differs from its market value or its book value, called intrinsic value, which is Safety Insurance'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 Safety Insurance's market value can be influenced by many factors that don't directly affect Safety Insurance'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 Safety Insurance's value and its price as these two are different measures arrived at by different means. Investors typically determine if Safety Insurance is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Safety Insurance'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.
Safety Insurance '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 Safety Insurance'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 Safety Insurance.
| 04/21/2024 |
| 06/20/2024 |
If you would invest 0.00 in Safety Insurance on April 21, 2024 and sell it all today you would earn a total of 0.00 from holding Safety Insurance Group or generate 0.0% return on investment in Safety Insurance over 60 days. Safety Insurance is related to or competes with Cincinnati Financial, Xponential Fitness, FitLife Brands, Gfl Environmental, GE Vernova, LiCycle Holdings, and OReilly Automotive. Safety Insurance Group, Inc. provides private passenger and commercial automobile, and homeowner insurance in the United... More
Safety Insurance 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 Safety Insurance'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 Safety Insurance Group upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.09) | |||
| Maximum Drawdown | 7.18 | |||
| Value At Risk | (2.22) | |||
| Potential Upside | 1.7 |
Safety Insurance Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Safety Insurance's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Safety Insurance's standard deviation. In reality, there are many statistical measures that can use Safety Insurance historical prices to predict the future Safety Insurance's volatility.| Risk Adjusted Performance | (0.05) | |||
| Jensen Alpha | (0.12) | |||
| Total Risk Alpha | (0.12) | |||
| Treynor Ratio | (0.98) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Safety Insurance'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.
Safety Insurance Backtested Returns
Safety Insurance owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0605, which indicates the firm had a -0.0605% return per unit of risk over the last 3 months. Safety Insurance Group exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Safety Insurance's Coefficient Of Variation of (1,174), risk adjusted performance of (0.05), and Variance of 1.53 to confirm the risk estimate we provide. The entity has a beta of 0.12, which indicates not very significant fluctuations relative to the market. As returns on the market increase, Safety Insurance's returns are expected to increase less than the market. However, during the bear market, the loss of holding Safety Insurance is expected to be smaller as well. At this point, Safety Insurance has a negative expected return of -0.0746%. Please make sure to validate Safety Insurance's value at risk, as well as the relationship between the daily balance of power and price action indicator , to decide if Safety Insurance performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.46 |
Average predictability
Safety Insurance Group has average predictability. Overlapping area represents the amount of predictability between Safety Insurance time series from 21st of April 2024 to 21st of May 2024 and 21st of May 2024 to 20th of June 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 Safety Insurance price movement. The serial correlation of 0.46 indicates that about 46.0% of current Safety Insurance price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.46 | |
| Spearman Rank Test | -0.05 | |
| Residual Average | 0.0 | |
| Price Variance | 0.43 |
Safety Insurance lagged returns against current returns
Autocorrelation, which is Safety Insurance 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 Safety Insurance's stock expected returns. We can calculate the autocorrelation of Safety Insurance returns to help us make a trade decision. For example, suppose you find that Safety Insurance 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 |
Safety Insurance 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 Safety Insurance stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Safety Insurance stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Safety Insurance stock over time.
Current vs Lagged Prices |
| Timeline |
Safety Insurance Lagged Returns
When evaluating Safety Insurance's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Safety Insurance stock have on its future price. Safety Insurance 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, Safety Insurance autocorrelation shows the relationship between Safety Insurance stock current value and its past values and can show if there is a momentum factor associated with investing in Safety Insurance Group.
Regressed Prices |
| Timeline |
Pair Trading with Safety Insurance
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 Safety Insurance 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 Safety Insurance will appreciate offsetting losses from the drop in the long position's value.Moving together with Safety Stock
Moving against Safety Stock
The ability to find closely correlated positions to Safety Insurance could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Safety Insurance 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 Safety Insurance - 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 Safety Insurance Group to buy it.
The correlation of Safety Insurance 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 Safety Insurance moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Safety Insurance 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 Safety Insurance 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.Additional Tools for Safety Stock Analysis
When running Safety Insurance's price analysis, check to measure Safety Insurance'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 Safety Insurance is operating at the current time. Most of Safety Insurance's value examination focuses on studying past and present price action to predict the probability of Safety Insurance's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Safety Insurance's price. Additionally, you may evaluate how the addition of Safety Insurance to your portfolios can decrease your overall portfolio volatility.