Constellation Software's market value is the price at which a share of Constellation Software trades on a public exchange. It measures the collective expectations of Constellation Software investors about its performance. Constellation Software is trading at 3005.00 as of the 7th of January 2025, a 0.33% down since the beginning of the trading day. The stock's lowest day price was 3005.0. With this module, you can estimate the performance of a buy and hold strategy of Constellation Software and determine expected loss or profit from investing in Constellation Software over a given investment horizon. Check out Constellation Software Correlation, Constellation Software Volatility and Constellation Software Alpha and Beta module to complement your research on Constellation Software.
Please note, there is a significant difference between Constellation Software's value and its price as these two are different measures arrived at by different means. Investors typically determine if Constellation Software is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Constellation Software'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.
Constellation Software '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 Constellation Software'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 Constellation Software.
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Constellation Software'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 Constellation Software upside and downside potential and time the market with a certain degree of confidence.
Today, many novice investors tend to focus exclusively on investment returns with little concern for Constellation Software's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Constellation Software's standard deviation. In reality, there are many statistical measures that can use Constellation Software historical prices to predict the future Constellation Software's volatility.
At this point, Constellation Software is very steady. Constellation Software secures Sharpe Ratio (or Efficiency) of 0.0633, which signifies that the company had a 0.0633% return per unit of risk over the last 3 months. We have found twenty-seven technical indicators for Constellation Software, which you can use to evaluate the volatility of the firm. Please confirm Constellation Software's Mean Deviation of 1.17, risk adjusted performance of 0.0333, and Downside Deviation of 1.5 to double-check if the risk estimate we provide is consistent with the expected return of 0.0918%. Constellation Software has a performance score of 4 on a scale of 0 to 100. The firm shows a Beta (market volatility) of -0.17, which signifies not very significant fluctuations relative to the market. As returns on the market increase, returns on owning Constellation Software are expected to decrease at a much lower rate. During the bear market, Constellation Software is likely to outperform the market. Constellation Software right now shows a risk of 1.45%. Please confirm Constellation Software total risk alpha, treynor ratio, value at risk, as well as the relationship between the sortino ratio and maximum drawdown , to decide if Constellation Software will be following its price patterns.
Auto-correlation
-0.66
Very good reverse predictability
Constellation Software has very good reverse predictability. Overlapping area represents the amount of predictability between Constellation Software time series from 8th of November 2024 to 8th of December 2024 and 8th of December 2024 to 7th 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 Constellation Software price movement. The serial correlation of -0.66 indicates that around 66.0% of current Constellation Software price fluctuation can be explain by its past prices.
Correlation Coefficient
-0.66
Spearman Rank Test
-0.73
Residual Average
0.0
Price Variance
4252.79
Constellation Software lagged returns against current returns
Autocorrelation, which is Constellation Software 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 Constellation Software's stock expected returns. We can calculate the autocorrelation of Constellation Software returns to help us make a trade decision. For example, suppose you find that Constellation Software 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
Constellation Software 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 Constellation Software stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Constellation Software stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Constellation Software stock over time.
Current vs Lagged Prices
Timeline
Constellation Software Lagged Returns
When evaluating Constellation Software's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Constellation Software stock have on its future price. Constellation Software 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, Constellation Software autocorrelation shows the relationship between Constellation Software stock current value and its past values and can show if there is a momentum factor associated with investing in Constellation Software.
Regressed Prices
Timeline
Also Currently Popular
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
Other Information on Investing in Constellation Stock
Constellation Software financial ratios help investors to determine whether Constellation 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 Constellation with respect to the benefits of owning Constellation Software security.