Arcos Dorados Holdings Stock Market Value
| ARCO Stock | USD 8.29 0.12 1.47% |
| Symbol | Arcos |
Arcos Dorados Holdings Price To Book Ratio
Is Hotels, Restaurants & Leisure 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 Arcos Dorados. If investors know Arcos 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 Arcos Dorados 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 (0.08) | Earnings Share 0.69 | Revenue Per Share 21.328 | Quarterly Revenue Growth 0.068 | Return On Assets 0.0693 |
The market value of Arcos Dorados Holdings is measured differently than its book value, which is the value of Arcos that is recorded on the company's balance sheet. Investors also form their own opinion of Arcos Dorados' value that differs from its market value or its book value, called intrinsic value, which is Arcos Dorados' 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 Arcos Dorados' market value can be influenced by many factors that don't directly affect Arcos Dorados' 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 Arcos Dorados' value and its price as these two are different measures arrived at by different means. Investors typically determine if Arcos Dorados is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Arcos Dorados' 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.
Arcos Dorados '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 Arcos Dorados' 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 Arcos Dorados.
| 11/04/2024 |
| 12/04/2024 |
If you would invest 0.00 in Arcos Dorados on November 4, 2024 and sell it all today you would earn a total of 0.00 from holding Arcos Dorados Holdings or generate 0.0% return on investment in Arcos Dorados over 30 days. Arcos Dorados is related to or competes with BJs Restaurants, Dine Brands, Brinker International, Bloomin Brands, Dennys Corp, Cheesecake Factory, and Potbelly. Arcos Dorados Holdings Inc. operates as a franchisee of McDonalds restaurants More
Arcos Dorados 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 Arcos Dorados' 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 Arcos Dorados Holdings upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.06) | |||
| Maximum Drawdown | 18.98 | |||
| Value At Risk | (3.03) | |||
| Potential Upside | 2.67 |
Arcos Dorados Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Arcos Dorados' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Arcos Dorados' standard deviation. In reality, there are many statistical measures that can use Arcos Dorados historical prices to predict the future Arcos Dorados' volatility.| Risk Adjusted Performance | (0.01) | |||
| Jensen Alpha | (0.11) | |||
| Total Risk Alpha | (0.41) | |||
| Treynor Ratio | (0.11) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Arcos Dorados' 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.
Arcos Dorados Holdings Backtested Returns
Arcos Dorados Holdings secures Sharpe Ratio (or Efficiency) of -0.0154, which signifies that the company had a -0.0154% return per unit of standard deviation over the last 3 months. Arcos Dorados Holdings exposes twenty-four different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Arcos Dorados' mean deviation of 1.76, and Risk Adjusted Performance of (0.01) to double-check the risk estimate we provide. The firm shows a Beta (market volatility) of 0.51, which signifies possible diversification benefits within a given portfolio. As returns on the market increase, Arcos Dorados' returns are expected to increase less than the market. However, during the bear market, the loss of holding Arcos Dorados is expected to be smaller as well. At this point, Arcos Dorados Holdings has a negative expected return of -0.0406%. Please make sure to confirm Arcos Dorados' standard deviation, kurtosis, period momentum indicator, as well as the relationship between the maximum drawdown and day median price , to decide if Arcos Dorados Holdings performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.07 |
Very weak reverse predictability
Arcos Dorados Holdings has very weak reverse predictability. Overlapping area represents the amount of predictability between Arcos Dorados time series from 4th of November 2024 to 19th of November 2024 and 19th of November 2024 to 4th of December 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 Arcos Dorados Holdings price movement. The serial correlation of -0.07 indicates that barely 7.0% of current Arcos Dorados price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.07 | |
| Spearman Rank Test | -0.29 | |
| Residual Average | 0.0 | |
| Price Variance | 0.02 |
Arcos Dorados Holdings lagged returns against current returns
Autocorrelation, which is Arcos Dorados 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 Arcos Dorados' stock expected returns. We can calculate the autocorrelation of Arcos Dorados returns to help us make a trade decision. For example, suppose you find that Arcos Dorados 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 |
Arcos Dorados 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 Arcos Dorados stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Arcos Dorados stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Arcos Dorados stock over time.
Current vs Lagged Prices |
| Timeline |
Arcos Dorados Lagged Returns
When evaluating Arcos Dorados' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Arcos Dorados stock have on its future price. Arcos Dorados 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, Arcos Dorados autocorrelation shows the relationship between Arcos Dorados stock current value and its past values and can show if there is a momentum factor associated with investing in Arcos Dorados Holdings.
Regressed Prices |
| Timeline |
Pair Trading with Arcos Dorados
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 Arcos Dorados 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 Arcos Dorados will appreciate offsetting losses from the drop in the long position's value.Moving against Arcos Stock
| 0.52 | LNW | Light Wonder | PairCorr |
| 0.47 | LIND | Lindblad Expeditions | PairCorr |
| 0.44 | GAMB | Gambling Group | PairCorr |
| 0.4 | BH | Biglari Holdings | PairCorr |
| 0.34 | DRI | Darden Restaurants | PairCorr |
The ability to find closely correlated positions to Arcos Dorados could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Arcos Dorados 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 Arcos Dorados - 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 Arcos Dorados Holdings to buy it.
The correlation of Arcos Dorados 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 Arcos Dorados moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Arcos Dorados Holdings 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 Arcos Dorados 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 Arcos Dorados Correlation, Arcos Dorados Volatility and Arcos Dorados Alpha and Beta module to complement your research on Arcos Dorados. You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Arcos Dorados 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.