Timken Stock Forecast is based on your current time horizon. Although Timken's naive historical forecasting may sometimes provide an important future outlook for the firm, we recommend always cross-verifying it against solid analysis of Timken's systematic risk associated with finding meaningful patterns of Timken fundamentals over time.
On December 24, 2024 Timken Company had Daily Balance Of Power of 0.6548. Balance of Power indicator (or BOP) measures the strength of Timken Company market sensitivity to bulls and bears. It estimates the ability of Timken buyers and sellers to push price to an extreme high or extreme low level. As a result, by monitoring Timken Balance of Power indicator one can determine a trend of the price direction.
On December 24 2024 Timken Company was traded for 71.83 at the closing time. Highest Timken's price during the trading hours was 72.00 and the lowest price during the day was 71.16 . The net volume was 110.9 K. The overall trading history on the 24th of December did not result in any price rise and fall. The trading price change to current price is 0.77% .
Balance of Power indicator was created by Igor Livshin to predict asset short term price movements or warning signals. If Balance of Power indicator is trended towards the high of its range it will signify that the bulls are in control. On the other hand when the BOP indicator is moving towards the lows of its range it signifies that the bears are in control. If the indicator move from a high positive range to a lower positive range it signifies that the buying pressure is decreasing. Conversely, if the indicator move from a low negative range to a higher negative range it signifies that the selling pressure is decreasing.
For every potential investor in Timken, whether a beginner or expert, Timken's price movement is the inherent factor that sparks whether it is viable to invest in it or hold it better. Timken Stock price charts are filled with many 'noises.' These noises can hugely alter the decision one can make regarding investing in Timken. Basic forecasting techniques help filter out the noise by identifying Timken's price trends.
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 Timken stock to make a market-neutral strategy. Peer analysis of Timken could also be used in its relative valuation, which is a method of valuing Timken by comparing valuation metrics with similar companies.
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 Timken'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 Timken's current price.
Market strength indicators help investors to evaluate how Timken stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Timken shares will generate the highest return on investment. By undertsting and applying Timken stock market strength indicators, traders can identify Timken Company entry and exit signals to maximize returns.
The analysis of Timken'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 Timken's investment and either accepting that risk or mitigating it. Along with some essential techniques for forecasting timken 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.
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 Timken
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 Timken 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 Timken will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Timken could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Timken 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 Timken - 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 Timken Company to buy it.
The correlation of Timken 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 Timken moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Timken Company 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 Timken 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.
When running Timken's price analysis, check to measure Timken'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 Timken is operating at the current time. Most of Timken's value examination focuses on studying past and present price action to predict the probability of Timken's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Timken's price. Additionally, you may evaluate how the addition of Timken to your portfolios can decrease your overall portfolio volatility.