CenterPoint Energy Stock Forecast - Naive Prediction
| CNP Stock | USD 32.66 0.13 0.40% |
The Naive Prediction forecasted value of CenterPoint Energy on the next trading day is expected to be 33.20 with a mean absolute deviation of 0.25 and the sum of the absolute errors of 15.55. CenterPoint Stock Forecast is based on your current time horizon. Although CenterPoint Energy's naive historical forecasting may sometimes provide an important future outlook for the firm, we recommend always cross-verifying it against solid analysis of CenterPoint Energy's systematic risk associated with finding meaningful patterns of CenterPoint Energy fundamentals over time.
CenterPoint |
CenterPoint Energy Cash Forecast
Forecasting financial indicators like cash flow involves analysts applying various statistical methods, techniques, and algorithms. These tools reveal hidden trends within the CenterPoint Energy's financial statements to estimate their effects on upcoming price movements.
Cash | First Reported 1994-03-31 | Previous Quarter 82 M | Current Value 112 M | Quarterly Volatility 410.8 M |
CenterPoint Energy Naive Prediction Price Forecast For the 29th of November
Given 90 days horizon, the Naive Prediction forecasted value of CenterPoint Energy on the next trading day is expected to be 33.20 with a mean absolute deviation of 0.25, mean absolute percentage error of 0.1, and the sum of the absolute errors of 15.55.Please note that although there have been many attempts to predict CenterPoint Stock prices using its time series forecasting, we generally do not recommend using it to place bets in the real market. The most commonly used models for forecasting predictions are the autoregressive models, which specify that CenterPoint Energy's next future price depends linearly on its previous prices and some stochastic term (i.e., imperfectly predictable multiplier).
CenterPoint Energy Stock Forecast Pattern
| Backtest CenterPoint Energy | CenterPoint Energy Price Prediction | Buy or Sell Advice |
CenterPoint Energy Forecasted Value
In the context of forecasting CenterPoint Energy's Stock value on the next trading day, we examine the predictive performance of the model to find good statistically significant boundaries of downside and upside scenarios. CenterPoint Energy's downside and upside margins for the forecasting period are 31.99 and 34.40, respectively. We have considered CenterPoint Energy's daily market price to evaluate the above model's predictive performance. Remember, however, there is no scientific proof or empirical evidence that traditional linear or nonlinear forecasting models outperform artificial intelligence and frequency domain models to provide accurate forecasts consistently.
Model Predictive Factors
The below table displays some essential indicators generated by the model showing the Naive Prediction forecasting method's relative quality and the estimations of the prediction error of CenterPoint Energy stock data series using in forecasting. Note that when a statistical model is used to represent CenterPoint Energy stock, the representation will rarely be exact; so some information will be lost using the model to explain the process. AIC estimates the relative amount of information lost by a given model: the less information a model loses, the higher its quality.| AIC | Akaike Information Criteria | 115.7907 |
| Bias | Arithmetic mean of the errors | None |
| MAD | Mean absolute deviation | 0.2549 |
| MAPE | Mean absolute percentage error | 0.0087 |
| SAE | Sum of the absolute errors | 15.5459 |
Predictive Modules for CenterPoint Energy
There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as CenterPoint Energy. Regardless of method or technology, however, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.Other Forecasting Options for CenterPoint Energy
For every potential investor in CenterPoint, whether a beginner or expert, CenterPoint Energy's price movement is the inherent factor that sparks whether it is viable to invest in it or hold it better. CenterPoint Stock price charts are filled with many 'noises.' These noises can hugely alter the decision one can make regarding investing in CenterPoint. Basic forecasting techniques help filter out the noise by identifying CenterPoint Energy's price trends.CenterPoint Energy Related Equities
One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with CenterPoint Energy stock to make a market-neutral strategy. Peer analysis of CenterPoint Energy could also be used in its relative valuation, which is a method of valuing CenterPoint Energy by comparing valuation metrics with similar companies.
| Risk & Return | Correlation |
CenterPoint Energy Technical and Predictive Analytics
The stock market is financially volatile. Despite the volatility, there exist limitless possibilities of gaining profits and building passive income portfolios. With the complexity of CenterPoint Energy's price movements, a comprehensive understanding of forecasting methods that an investor can rely on to make the right move is invaluable. These methods predict trends that assist an investor in predicting the movement of CenterPoint Energy's current price.| Cycle Indicators | ||
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CenterPoint Energy Market Strength Events
Market strength indicators help investors to evaluate how CenterPoint Energy stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading CenterPoint Energy shares will generate the highest return on investment. By undertsting and applying CenterPoint Energy stock market strength indicators, traders can identify CenterPoint Energy entry and exit signals to maximize returns.
CenterPoint Energy Risk Indicators
The analysis of CenterPoint Energy's basic risk indicators is one of the essential steps in accurately forecasting its future price. The process involves identifying the amount of risk involved in CenterPoint Energy's investment and either accepting that risk or mitigating it. Along with some essential techniques for forecasting centerpoint stock prices, we also provide a set of basic risk indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Mean Deviation | 0.8729 | |||
| Semi Deviation | 0.9533 | |||
| Standard Deviation | 1.18 | |||
| Variance | 1.4 | |||
| Downside Variance | 1.59 | |||
| Semi Variance | 0.9088 | |||
| Expected Short fall | (0.98) |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Pair Trading with CenterPoint Energy
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 CenterPoint Energy 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 CenterPoint Energy will appreciate offsetting losses from the drop in the long position's value.Moving against CenterPoint Stock
| 0.58 | GNE | Genie Energy | PairCorr |
| 0.55 | ES | Eversource Energy | PairCorr |
| 0.5 | FE | FirstEnergy | PairCorr |
| 0.42 | HE | Hawaiian Electric | PairCorr |
| 0.42 | AEP | American Electric Power | PairCorr |
The ability to find closely correlated positions to CenterPoint Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CenterPoint Energy 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 CenterPoint Energy - 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 CenterPoint Energy to buy it.
The correlation of CenterPoint Energy 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 CenterPoint Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CenterPoint Energy 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 CenterPoint Energy 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 CenterPoint Stock Analysis
When running CenterPoint Energy's price analysis, check to measure CenterPoint Energy'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 CenterPoint Energy is operating at the current time. Most of CenterPoint Energy's value examination focuses on studying past and present price action to predict the probability of CenterPoint Energy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CenterPoint Energy's price. Additionally, you may evaluate how the addition of CenterPoint Energy to your portfolios can decrease your overall portfolio volatility.