Hydro One Stock Market Value
| H Stock | CAD 45.79 0.01 0.02% |
| Symbol | Hydro |
Hydro One Price To Book Ratio
Hydro One '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 Hydro One'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 Hydro One.
| 12/07/2023 |
| 12/01/2024 |
If you would invest 0.00 in Hydro One on December 7, 2023 and sell it all today you would earn a total of 0.00 from holding Hydro One or generate 0.0% return on investment in Hydro One over 360 days. Hydro One is related to or competes with Canadian Utilities, Fortis, Emera, Algonquin Power, and Northland Power. Hydro One Limited, through its subsidiaries, operates as an electrical transmission and distribution company in Ontario More
Hydro One 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 Hydro One'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 Hydro One upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.01 | |||
| Information Ratio | (0.11) | |||
| Maximum Drawdown | 4.44 | |||
| Value At Risk | (1.35) | |||
| Potential Upside | 1.26 |
Hydro One Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Hydro One's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Hydro One's standard deviation. In reality, there are many statistical measures that can use Hydro One historical prices to predict the future Hydro One's volatility.| Risk Adjusted Performance | 0.0334 | |||
| Jensen Alpha | 0.0052 | |||
| Total Risk Alpha | (0.13) | |||
| Sortino Ratio | (0.1) | |||
| Treynor Ratio | 0.1561 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Hydro One's 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.
Hydro One Backtested Returns
As of now, Hydro Stock is very steady. Hydro One holds Efficiency (Sharpe) Ratio of 0.0097, which attests that the entity had a 0.0097% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Hydro One, which you can use to evaluate the volatility of the firm. Please check out Hydro One's Market Risk Adjusted Performance of 0.1661, risk adjusted performance of 0.0334, and Downside Deviation of 1.01 to validate if the risk estimate we provide is consistent with the expected return of 0.009%. The company retains a Market Volatility (i.e., Beta) of 0.18, which attests to not very significant fluctuations relative to the market. As returns on the market increase, Hydro One's returns are expected to increase less than the market. However, during the bear market, the loss of holding Hydro One is expected to be smaller as well. Hydro One right now retains a risk of 0.93%. Please check out Hydro One value at risk, and the relationship between the jensen alpha and skewness , to decide if Hydro One will be following its current trending patterns.
Auto-correlation | 0.38 |
Below average predictability
Hydro One has below average predictability. Overlapping area represents the amount of predictability between Hydro One time series from 7th of December 2023 to 4th of June 2024 and 4th of June 2024 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 Hydro One price movement. The serial correlation of 0.38 indicates that just about 38.0% of current Hydro One price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.38 | |
| Spearman Rank Test | 0.21 | |
| Residual Average | 0.0 | |
| Price Variance | 7.25 |
Hydro One lagged returns against current returns
Autocorrelation, which is Hydro One 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 Hydro One's stock expected returns. We can calculate the autocorrelation of Hydro One returns to help us make a trade decision. For example, suppose you find that Hydro One 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 |
Hydro One 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 Hydro One stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Hydro One stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Hydro One stock over time.
Current vs Lagged Prices |
| Timeline |
Hydro One Lagged Returns
When evaluating Hydro One's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Hydro One stock have on its future price. Hydro One 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, Hydro One autocorrelation shows the relationship between Hydro One stock current value and its past values and can show if there is a momentum factor associated with investing in Hydro One.
Regressed Prices |
| Timeline |
Pair Trading with Hydro One
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 Hydro One 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 Hydro One will appreciate offsetting losses from the drop in the long position's value.Moving against Hydro Stock
| 0.39 | ELF | E L Financial | PairCorr |
| 0.39 | FFH | Fairfax Financial | PairCorr |
| 0.33 | TPX-B | Molson Coors Canada | PairCorr |
| 0.33 | FFH-PM | Fairfax Financial | PairCorr |
The ability to find closely correlated positions to Hydro One could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Hydro One 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 Hydro One - 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 Hydro One to buy it.
The correlation of Hydro One 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 Hydro One moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Hydro One 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 Hydro One 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.Other Information on Investing in Hydro Stock
Hydro One financial ratios help investors to determine whether Hydro 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 Hydro with respect to the benefits of owning Hydro One security.