Canadian Historical Valuation
| CP Stock | CAD 107.83 0.70 0.65% |
Some fundamental drivers such as market cap or Canadian Pacific enterprice value can be analyzed from historical perspective to project value of the company into the future. Some investors analyze Canadian Pacific Railway valuation indicators such as Working Capital of 0.0 or Enterprise Value of 51.6 B 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 Canadian Pacific's future value.
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About Canadian Valuation Data Analysis
Valuation is the financial process of determining what Canadian Pacific is worth. Canadian Pacific 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. Canadian Pacific valuation ratios help investors to determine whether Canadian 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 Canadian with respect to the benefits of owning Canadian Pacific security.
Canadian Pacific Valuation Data Chart
Enterprise Value
Enterprise Value (or EV) is usually referred to as Canadian Pacific theoretical takeover price. In the event of an acquisition, an acquirer would have to take on Canadian Pacific Railway debt, but would also pocket its cash. Enterprise Value is more accurate representation of Canadian Pacific value than its market capitalization because it takes into account all of Canadian Pacific Railway 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 Canadian Pacific
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 Canadian Pacific 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 Canadian Pacific will appreciate offsetting losses from the drop in the long position's value.Moving against Canadian Stock
| 0.69 | GOOG | Alphabet CDR | PairCorr |
| 0.67 | WMT | Walmart Inc CDR | PairCorr |
| 0.6 | AMZN | Amazon CDR | PairCorr |
| 0.56 | BRK | Berkshire Hathaway CDR | PairCorr |
| 0.48 | COST | Costco Wholesale Corp Earnings Call Today | PairCorr |
The ability to find closely correlated positions to Canadian Pacific could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Canadian Pacific 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 Canadian Pacific - 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 Canadian Pacific Railway to buy it.
The correlation of Canadian Pacific 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 Canadian Pacific moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Canadian Pacific Railway 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 Canadian Pacific 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.Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Canadian Pacific Railway. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate. You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.