American Historical Valuation
| AWR Stock | USD 77.69 1.61 2.12% |
Some fundamental drivers such as market cap or American States enterprice value can be analyzed from historical perspective to project value of the company into the future. Some investors analyze American States Water valuation indicators such as Working Capital of 0.0 or Enterprise Value of 783.1 M to time the market or to short-sell their positions based on the trend in valuation ratios. It is a perfect tool to project the direction of American States's future value.
American |
About American Valuation Data Analysis
Valuation is the financial process of determining what American States is worth. American States valuation ratios put that insight into the context of a company's share price, where they serve as useful tools for evaluating and utilizing investment potential. American States valuation ratios help investors to determine whether American 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 American with respect to the benefits of owning American States security.
American States Valuation Data Chart
Enterprise Value
Enterprise Value (or EV) is usually referred to as American States theoretical takeover price. In the event of an acquisition, an acquirer would have to take on American States Water debt, but would also pocket its cash. Enterprise Value is more accurate representation of American States value than its market capitalization because it takes into account all of American States Water existing debt. A measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization that includes the market capitalization, plus total debt, minority interest and preferred shares, minus total cash and cash equivalents.Pair Trading with American States
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 American States 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 American States will appreciate offsetting losses from the drop in the long position's value.Moving together with American Stock
| 0.81 | WTRG | Essential Utilities | PairCorr |
| 0.7 | AWK | American Water Works | PairCorr |
| 0.8 | CWT | California Water Service | PairCorr |
Moving against American Stock
The ability to find closely correlated positions to American States could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American States 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 American States - 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 American States Water to buy it.
The correlation of American States 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 American States moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American States Water 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 American States 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 American Stock Analysis
When running American States' price analysis, check to measure American States' 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 American States is operating at the current time. Most of American States' value examination focuses on studying past and present price action to predict the probability of American States' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American States' price. Additionally, you may evaluate how the addition of American States to your portfolios can decrease your overall portfolio volatility.