NovaGold Historical Valuation
| NG Stock | CAD 4.22 0.20 4.52% |
Some fundamental drivers such as market cap or NovaGold Resources enterprice value can be analyzed from historical perspective to project value of the company into the future. Some investors analyze NovaGold Resources valuation indicators such as 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 NovaGold Resources's future value.
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About NovaGold Valuation Data Analysis
Valuation is the financial process of determining what NovaGold Resources is worth. NovaGold Resources 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. NovaGold Resources valuation ratios help investors to determine whether NovaGold 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 NovaGold with respect to the benefits of owning NovaGold Resources security.
NovaGold Resources Valuation Data Chart
Enterprise Value
Enterprise Value (or EV) is usually referred to as NovaGold Resources theoretical takeover price. In the event of an acquisition, an acquirer would have to take on NovaGold Resources debt, but would also pocket its cash. Enterprise Value is more accurate representation of NovaGold Resources value than its market capitalization because it takes into account all of NovaGold Resources 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 NovaGold Resources
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 NovaGold Resources 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 NovaGold Resources will appreciate offsetting losses from the drop in the long position's value.Moving against NovaGold Stock
The ability to find closely correlated positions to NovaGold Resources could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace NovaGold Resources 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 NovaGold Resources - 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 NovaGold Resources to buy it.
The correlation of NovaGold Resources 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 NovaGold Resources moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if NovaGold Resources 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 NovaGold Resources 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 Correlation Analysis to better understand how to build diversified portfolios, which includes a position in NovaGold Resources. 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. To learn how to invest in NovaGold Stock, please use our How to Invest in NovaGold Resources guide.You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.