Algoma Historical Valuation
| ASTL Stock | 14.34 0.04 0.28% |
Some fundamental drivers such as market cap or Algoma Steel enterprice value can be analyzed from historical perspective to project value of the company into the future. Some investors analyze Algoma Steel Group valuation indicators such as Working Capital of 0.0 or Enterprise Value of 3.4 B to time the market or to short-sell their positions based on the trend in valuation ratios. It is a perfect tool to project the direction of Algoma Steel's future value.
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About Algoma Valuation Data Analysis
Valuation is the financial process of determining what Algoma Steel is worth. Algoma Steel valuation ratios put that insight into the context of a company's share price, where they serve as useful tools for evaluating and utilizing investment potential. Algoma Steel valuation ratios help investors to determine whether Algoma Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Algoma with respect to the benefits of owning Algoma Steel security.
Algoma Steel Valuation Data Chart
Working Capital
The difference between a company's current assets and current liabilities, indicating the liquidity and operational efficiency of the business.Enterprise Value
Enterprise Value (or EV) is usually referred to as Algoma Steel theoretical takeover price. In the event of an acquisition, an acquirer would have to take on Algoma Steel Group debt, but would also pocket its cash. Enterprise Value is more accurate representation of Algoma Steel value than its market capitalization because it takes into account all of Algoma Steel Group existing debt. A measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization that includes the market capitalization, plus total debt, minority interest and preferred shares, minus total cash and cash equivalents.Pair Trading with Algoma Steel
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 Algoma Steel 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 Algoma Steel will appreciate offsetting losses from the drop in the long position's value.Moving against Algoma Stock
The ability to find closely correlated positions to Algoma Steel could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Algoma Steel 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 Algoma Steel - 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 Algoma Steel Group to buy it.
The correlation of Algoma Steel 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 Algoma Steel moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Algoma Steel Group 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 Algoma Steel 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 Trending Equities to better understand how to build diversified portfolios, which includes a position in Algoma Steel Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.