Canadian Tire Stock Market Value
| CTC-A Stock | CAD 154.37 1.43 0.94% |
| Symbol | Canadian |
Canadian Tire Price To Book Ratio
Canadian Tire '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 Canadian Tire'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 Canadian Tire.
| 12/12/2022 |
| 12/01/2024 |
If you would invest 0.00 in Canadian Tire on December 12, 2022 and sell it all today you would earn a total of 0.00 from holding Canadian Tire or generate 0.0% return on investment in Canadian Tire over 720 days. Canadian Tire is related to or competes with Dollarama, Loblaw Companies, Restaurant Brands, Canadian National, and Metro. Canadian Tire Corporation, Limited provides a range of retail goods and services in Canada More
Canadian Tire 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 Canadian Tire'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 Canadian Tire upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 0.8777 | |||
| Information Ratio | (0.12) | |||
| Maximum Drawdown | 5.12 | |||
| Value At Risk | (1.30) | |||
| Potential Upside | 1.67 |
Canadian Tire Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Canadian Tire's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Canadian Tire's standard deviation. In reality, there are many statistical measures that can use Canadian Tire historical prices to predict the future Canadian Tire's volatility.| Risk Adjusted Performance | 0.024 | |||
| Jensen Alpha | (0.03) | |||
| Total Risk Alpha | (0.13) | |||
| Sortino Ratio | (0.13) | |||
| Treynor Ratio | 0.0507 |
Canadian Tire Backtested Returns
Currently, Canadian Tire is very steady. Canadian Tire secures Sharpe Ratio (or Efficiency) of 0.0406, which signifies that the company had a 0.0406% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Canadian Tire, which you can use to evaluate the volatility of the firm. Please confirm Canadian Tire's Mean Deviation of 0.6677, downside deviation of 0.8777, and Risk Adjusted Performance of 0.024 to double-check if the risk estimate we provide is consistent with the expected return of 0.0372%. Canadian Tire has a performance score of 3 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 0.33, which signifies possible diversification benefits within a given portfolio. As returns on the market increase, Canadian Tire's returns are expected to increase less than the market. However, during the bear market, the loss of holding Canadian Tire is expected to be smaller as well. Canadian Tire right now shows a risk of 0.92%. Please confirm Canadian Tire standard deviation, total risk alpha, treynor ratio, as well as the relationship between the jensen alpha and sortino ratio , to decide if Canadian Tire will be following its price patterns.
Auto-correlation | -0.68 |
Very good reverse predictability
Canadian Tire has very good reverse predictability. Overlapping area represents the amount of predictability between Canadian Tire time series from 12th of December 2022 to 7th of December 2023 and 7th of December 2023 to 1st 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 Canadian Tire price movement. The serial correlation of -0.68 indicates that around 68.0% of current Canadian Tire price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.68 | |
| Spearman Rank Test | -0.01 | |
| Residual Average | 0.0 | |
| Price Variance | 100.14 |
Canadian Tire lagged returns against current returns
Autocorrelation, which is Canadian Tire 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 Canadian Tire's stock expected returns. We can calculate the autocorrelation of Canadian Tire returns to help us make a trade decision. For example, suppose you find that Canadian Tire 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 |
Canadian Tire 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 Canadian Tire stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Canadian Tire stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Canadian Tire stock over time.
Current vs Lagged Prices |
| Timeline |
Canadian Tire Lagged Returns
When evaluating Canadian Tire's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Canadian Tire stock have on its future price. Canadian Tire 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, Canadian Tire autocorrelation shows the relationship between Canadian Tire stock current value and its past values and can show if there is a momentum factor associated with investing in Canadian Tire.
Regressed Prices |
| Timeline |
Pair Trading with Canadian Tire
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 Canadian Tire 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 Canadian Tire will appreciate offsetting losses from the drop in the long position's value.Moving against Canadian Stock
| 0.51 | ONEX | Onex Corp | PairCorr |
| 0.49 | SU | Suncor Energy | PairCorr |
| 0.47 | X | TMX Group Limited | PairCorr |
| 0.41 | ENB | Enbridge | PairCorr |
The ability to find closely correlated positions to Canadian Tire could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Canadian Tire 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 Canadian Tire - 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 Canadian Tire to buy it.
The correlation of Canadian Tire 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 Canadian Tire moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Canadian Tire 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 Canadian Tire 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 Canadian Stock Analysis
When running Canadian Tire's price analysis, check to measure Canadian Tire'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 Canadian Tire is operating at the current time. Most of Canadian Tire's value examination focuses on studying past and present price action to predict the probability of Canadian Tire's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Canadian Tire's price. Additionally, you may evaluate how the addition of Canadian Tire to your portfolios can decrease your overall portfolio volatility.