Texas Capital Bancshares Preferred Stock Market Value
| TCBIO Preferred Stock | USD 21.52 0.52 2.48% |
| Symbol | Texas |
Texas Capital '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 Texas Capital'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 Texas Capital.
| 12/07/2023 |
| 12/01/2024 |
If you would invest 0.00 in Texas Capital on December 7, 2023 and sell it all today you would earn a total of 0.00 from holding Texas Capital Bancshares or generate 0.0% return on investment in Texas Capital over 360 days. Texas Capital is related to or competes with Washington Federal, First Citizens, Dime Community, and Pinnacle Financial. Texas Capital Bancshares, Inc. operates as the bank holding company for Texas Capital Bank, is a full-service financial ... More
Texas Capital 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 Texas Capital'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 Texas Capital Bancshares upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.04 | |||
| Information Ratio | (0.04) | |||
| Maximum Drawdown | 6.01 | |||
| Value At Risk | (1.77) | |||
| Potential Upside | 1.95 |
Texas Capital Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Texas Capital's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Texas Capital's standard deviation. In reality, there are many statistical measures that can use Texas Capital historical prices to predict the future Texas Capital's volatility.| Risk Adjusted Performance | 0.0589 | |||
| Jensen Alpha | 0.0464 | |||
| Total Risk Alpha | (0.12) | |||
| Sortino Ratio | (0.05) | |||
| Treynor Ratio | 0.3295 |
Texas Capital Bancshares Backtested Returns
As of now, Texas Preferred Stock is very steady. Texas Capital Bancshares owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0701, which indicates the firm had a 0.0701% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Texas Capital Bancshares, which you can use to evaluate the volatility of the company. Please validate Texas Capital's Coefficient Of Variation of 1382.07, risk adjusted performance of 0.0589, and Semi Deviation of 0.9403 to confirm if the risk estimate we provide is consistent with the expected return of 0.0836%. Texas Capital has a performance score of 5 on a scale of 0 to 100. The entity has a beta of 0.23, which indicates not very significant fluctuations relative to the market. As returns on the market increase, Texas Capital's returns are expected to increase less than the market. However, during the bear market, the loss of holding Texas Capital is expected to be smaller as well. Texas Capital Bancshares right now has a risk of 1.19%. Please validate Texas Capital expected short fall, as well as the relationship between the rate of daily change and period momentum indicator , to decide if Texas Capital will be following its existing price patterns.
Auto-correlation | 0.67 |
Good predictability
Texas Capital Bancshares has good predictability. Overlapping area represents the amount of predictability between Texas Capital 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 Texas Capital Bancshares price movement. The serial correlation of 0.67 indicates that around 67.0% of current Texas Capital price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.67 | |
| Spearman Rank Test | 0.59 | |
| Residual Average | 0.0 | |
| Price Variance | 1.09 |
Texas Capital Bancshares lagged returns against current returns
Autocorrelation, which is Texas Capital 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 Texas Capital's preferred stock expected returns. We can calculate the autocorrelation of Texas Capital returns to help us make a trade decision. For example, suppose you find that Texas Capital 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 |
Texas Capital 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 Texas Capital preferred stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Texas Capital preferred stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Texas Capital preferred stock over time.
Current vs Lagged Prices |
| Timeline |
Texas Capital Lagged Returns
When evaluating Texas Capital's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Texas Capital preferred stock have on its future price. Texas Capital 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, Texas Capital autocorrelation shows the relationship between Texas Capital preferred stock current value and its past values and can show if there is a momentum factor associated with investing in Texas Capital Bancshares.
Regressed Prices |
| Timeline |
Pair Trading with Texas Capital
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 Texas Capital 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 Texas Capital will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to Texas Capital could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Texas Capital 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 Texas Capital - 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 Texas Capital Bancshares to buy it.
The correlation of Texas Capital 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 Texas Capital moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Texas Capital Bancshares 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 Texas Capital 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 Texas Preferred Stock
Texas Capital financial ratios help investors to determine whether Texas Preferred 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 Texas with respect to the benefits of owning Texas Capital security.