Transalta A Cum Preferred Stock Market Value
| TA-PD Preferred Stock | CAD 15.85 0.03 0.19% |
| Symbol | Transalta |
Transalta '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 Transalta's preferred 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 Transalta.
| 02/25/2024 |
| 01/20/2025 |
If you would invest 0.00 in Transalta on February 25, 2024 and sell it all today you would earn a total of 0.00 from holding Transalta A Cum or generate 0.0% return on investment in Transalta over 330 days. Transalta is related to or competes with Brookfield Renewable, TransAlta Corp, Capstone Infrastructure, Innergex Renewable, and Maxim Power. TransAlta Corporation operates as non-regulated electricity generation and energy marketing company in Canada, the Unite... More
Transalta 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 Transalta's preferred 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 Transalta A Cum upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 0.6761 | |||
| Information Ratio | 0.1424 | |||
| Maximum Drawdown | 3.17 | |||
| Value At Risk | (0.95) | |||
| Potential Upside | 0.9524 |
Transalta Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Transalta's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Transalta's standard deviation. In reality, there are many statistical measures that can use Transalta historical prices to predict the future Transalta's volatility.| Risk Adjusted Performance | 0.1592 | |||
| Jensen Alpha | 0.0965 | |||
| Total Risk Alpha | 0.0846 | |||
| Sortino Ratio | 0.115 | |||
| Treynor Ratio | 2.15 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Transalta'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.
Transalta A Cum Backtested Returns
Currently, Transalta A Cum is very steady. Transalta A Cum owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.27, which indicates the firm had a 0.27 % return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Transalta A Cum, which you can use to evaluate the volatility of the company. Please validate Transalta's Risk Adjusted Performance of 0.1592, coefficient of variation of 508.2, and Semi Deviation of 0.4084 to confirm if the risk estimate we provide is consistent with the expected return of 0.14%. Transalta has a performance score of 21 on a scale of 0 to 100. The entity has a beta of 0.0453, which indicates not very significant fluctuations relative to the market. As returns on the market increase, Transalta's returns are expected to increase less than the market. However, during the bear market, the loss of holding Transalta is expected to be smaller as well. Transalta A Cum right now has a risk of 0.5%. Please validate Transalta total risk alpha, value at risk, and the relationship between the standard deviation and treynor ratio , to decide if Transalta will be following its existing price patterns.
Auto-correlation | 0.48 |
Average predictability
Transalta A Cum has average predictability. Overlapping area represents the amount of predictability between Transalta time series from 25th of February 2024 to 8th of August 2024 and 8th of August 2024 to 20th of January 2025. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Transalta A Cum price movement. The serial correlation of 0.48 indicates that about 48.0% of current Transalta price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.48 | |
| Spearman Rank Test | 0.49 | |
| Residual Average | 0.0 | |
| Price Variance | 0.19 |
Transalta A Cum lagged returns against current returns
Autocorrelation, which is Transalta preferred 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 Transalta's preferred stock expected returns. We can calculate the autocorrelation of Transalta returns to help us make a trade decision. For example, suppose you find that Transalta has exhibited high autocorrelation historically, and you observe that the preferred 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 |
Transalta 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 Transalta preferred stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Transalta preferred stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Transalta preferred stock over time.
Current vs Lagged Prices |
| Timeline |
Transalta Lagged Returns
When evaluating Transalta's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Transalta preferred stock have on its future price. Transalta 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, Transalta autocorrelation shows the relationship between Transalta preferred stock current value and its past values and can show if there is a momentum factor associated with investing in Transalta A Cum.
Regressed Prices |
| Timeline |
Pair Trading with Transalta
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 Transalta 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 Transalta will appreciate offsetting losses from the drop in the long position's value.Moving together with Transalta Preferred Stock
| 0.95 | BEP-PM | Brookfield Renewable | PairCorr |
| 0.9 | TA | TransAlta Corp | PairCorr |
| 0.75 | CSE-PA | Capstone Infrastructure | PairCorr |
| 0.86 | INE-PA | Innergex Renewable Energy | PairCorr |
Moving against Transalta Preferred Stock
The ability to find closely correlated positions to Transalta could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Transalta 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 Transalta - 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 Transalta A Cum to buy it.
The correlation of Transalta 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 Transalta moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Transalta A Cum 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 Transalta 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 Transalta Preferred Stock Analysis
When running Transalta's price analysis, check to measure Transalta'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 Transalta is operating at the current time. Most of Transalta's value examination focuses on studying past and present price action to predict the probability of Transalta's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Transalta's price. Additionally, you may evaluate how the addition of Transalta to your portfolios can decrease your overall portfolio volatility.