Kar Auction Services Stock Market Value
| KAR Stock | USD 20.11 0.16 0.80% |
| Symbol | KAR |
KAR Auction Services Price To Book Ratio
Is Commercial Services & Supplies 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 KAR Auction. If investors know KAR 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 KAR Auction 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 11 | Earnings Share 0.18 | Revenue Per Share 15.567 | Quarterly Revenue Growth 0.077 | Return On Assets 0.0342 |
The market value of KAR Auction Services is measured differently than its book value, which is the value of KAR that is recorded on the company's balance sheet. Investors also form their own opinion of KAR Auction's value that differs from its market value or its book value, called intrinsic value, which is KAR Auction's 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 KAR Auction's market value can be influenced by many factors that don't directly affect KAR Auction's 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 KAR Auction's value and its price as these two are different measures arrived at by different means. Investors typically determine if KAR Auction is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, KAR Auction's 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.
KAR Auction '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 KAR Auction'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 KAR Auction.
| 10/29/2024 |
| 11/28/2024 |
If you would invest 0.00 in KAR Auction on October 29, 2024 and sell it all today you would earn a total of 0.00 from holding KAR Auction Services or generate 0.0% return on investment in KAR Auction over 30 days. KAR Auction is related to or competes with CarGurus, Kingsway Financial, Driven Brands, Group 1, Rush Enterprises, Sonic Automotive, and Asbury Automotive. KAR Auction Services, Inc., together with its subsidiaries, provides used vehicle auctions and related vehicle remarketi... More
KAR Auction 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 KAR Auction'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 KAR Auction Services upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.5 | |||
| Information Ratio | 0.0531 | |||
| Maximum Drawdown | 13.95 | |||
| Value At Risk | (2.01) | |||
| Potential Upside | 2.47 |
KAR Auction Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for KAR Auction's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as KAR Auction's standard deviation. In reality, there are many statistical measures that can use KAR Auction historical prices to predict the future KAR Auction's volatility.| Risk Adjusted Performance | 0.0911 | |||
| Jensen Alpha | 0.0793 | |||
| Total Risk Alpha | (0.1) | |||
| Sortino Ratio | 0.0771 | |||
| Treynor Ratio | 0.1755 |
KAR Auction Services Backtested Returns
KAR Auction appears to be not too volatile, given 3 months investment horizon. KAR Auction Services has Sharpe Ratio of 0.12, which conveys that the company had a 0.12% return per unit of volatility over the last 3 months. We have found twenty-nine technical indicators for KAR Auction, which you can use to evaluate the volatility of the entity. Please exercise KAR Auction's Mean Deviation of 1.48, market risk adjusted performance of 0.1855, and Downside Deviation of 1.5 to check out if our risk estimates are consistent with your expectations. On a scale of 0 to 100, KAR Auction holds a performance score of 9. The firm secures a Beta (Market Risk) of 1.32, which conveys a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, KAR Auction will likely underperform. Please check KAR Auction's value at risk, as well as the relationship between the skewness and day median price , to make a quick decision on whether KAR Auction's current price movements will revert.
Auto-correlation | 0.72 |
Good predictability
KAR Auction Services has good predictability. Overlapping area represents the amount of predictability between KAR Auction time series from 29th of October 2024 to 13th of November 2024 and 13th of November 2024 to 28th of November 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 KAR Auction Services price movement. The serial correlation of 0.72 indicates that around 72.0% of current KAR Auction price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.72 | |
| Spearman Rank Test | 0.66 | |
| Residual Average | 0.0 | |
| Price Variance | 0.04 |
KAR Auction Services lagged returns against current returns
Autocorrelation, which is KAR Auction 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 KAR Auction's stock expected returns. We can calculate the autocorrelation of KAR Auction returns to help us make a trade decision. For example, suppose you find that KAR Auction 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 |
KAR Auction 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 KAR Auction stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if KAR Auction stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in KAR Auction stock over time.
Current vs Lagged Prices |
| Timeline |
KAR Auction Lagged Returns
When evaluating KAR Auction's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of KAR Auction stock have on its future price. KAR Auction 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, KAR Auction autocorrelation shows the relationship between KAR Auction stock current value and its past values and can show if there is a momentum factor associated with investing in KAR Auction Services.
Regressed Prices |
| Timeline |
Pair Trading with KAR Auction
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 KAR Auction 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 KAR Auction will appreciate offsetting losses from the drop in the long position's value.Moving together with KAR Stock
| 0.93 | G | Genpact Limited | PairCorr |
| 0.74 | BR | Broadridge Financial | PairCorr |
| 0.76 | KC | Kingsoft Cloud Holdings Upward Rally | PairCorr |
Moving against KAR Stock
| 0.66 | VCIG | VCI Global Limited Trending | PairCorr |
| 0.65 | MG | Mistras Group | PairCorr |
| 0.63 | FC | Franklin Covey | PairCorr |
| 0.5 | EXPO | Exponent | PairCorr |
| 0.39 | FA | First Advantage Corp | PairCorr |
The ability to find closely correlated positions to KAR Auction could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace KAR Auction 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 KAR Auction - 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 KAR Auction Services to buy it.
The correlation of KAR Auction 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 KAR Auction moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if KAR Auction Services 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 KAR Auction 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 KAR Stock Analysis
When running KAR Auction's price analysis, check to measure KAR Auction'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 KAR Auction is operating at the current time. Most of KAR Auction's value examination focuses on studying past and present price action to predict the probability of KAR Auction's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move KAR Auction's price. Additionally, you may evaluate how the addition of KAR Auction to your portfolios can decrease your overall portfolio volatility.