Cme Group Stock Market Value
| CME Stock | USD 208.42 1.94 0.94% |
| Symbol | CME |
CME Group Price To Book Ratio
Is CME's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of CME. If investors know CME will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about CME listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.276 | Dividend Share 4.4 | Earnings Share 8.88 | Revenue Per Share 15.512 | Quarterly Revenue Growth 0.192 |
The market value of CME Group is measured differently than its book value, which is the value of CME that is recorded on the company's balance sheet. Investors also form their own opinion of CME's value that differs from its market value or its book value, called intrinsic value, which is CME's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because CME's market value can be influenced by many factors that don't directly affect CME's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between CME's value and its price as these two are different measures arrived at by different means. Investors typically determine if CME is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CME'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.
CME '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 CME'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 CME.
| 03/19/2024 |
| 04/18/2024 |
If you would invest 0.00 in CME on March 19, 2024 and sell it all today you would earn a total of 0.00 from holding CME Group or generate 0.0% return on investment in CME over 30 days. CME is related to or competes with SP Global, Moodys, MSCI, and FactSet Research. CME Group Inc., together with its subsidiaries, operates contract markets for the trading of futures and options on futu... More
CME 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 CME'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 CME Group upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.03 | |||
| Information Ratio | 0.0371 | |||
| Maximum Drawdown | 6.03 | |||
| Value At Risk | (1.54) | |||
| Potential Upside | 1.78 |
CME Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for CME's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as CME's standard deviation. In reality, there are many statistical measures that can use CME historical prices to predict the future CME's volatility.| Risk Adjusted Performance | 0.0605 | |||
| Jensen Alpha | 0.0809 | |||
| Total Risk Alpha | 0.0084 | |||
| Sortino Ratio | 0.0379 | |||
| Treynor Ratio | 1.03 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of CME's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
CME Group Backtested Returns
We consider CME very steady. CME Group secures Sharpe Ratio (or Efficiency) of 0.0603, which signifies that the company had a 0.0603% return per unit of risk over the last 3 months. We have found thirty technical indicators for CME Group, which you can use to evaluate the volatility of the firm. Please confirm CME's Mean Deviation of 0.8121, risk adjusted performance of 0.0605, and Downside Deviation of 1.03 to double-check if the risk estimate we provide is consistent with the expected return of 0.063%. CME has a performance score of 4 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 0.0825, which signifies not very significant fluctuations relative to the market. As returns on the market increase, CME's returns are expected to increase less than the market. However, during the bear market, the loss of holding CME is expected to be smaller as well. CME Group at this time shows a risk of 1.04%. Please confirm CME Group treynor ratio, expected short fall, and the relationship between the jensen alpha and potential upside , to decide if CME Group will be following its price patterns.
Auto-correlation | 0.41 |
Average predictability
CME Group has average predictability. Overlapping area represents the amount of predictability between CME time series from 19th of March 2024 to 3rd of April 2024 and 3rd of April 2024 to 18th of April 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 CME Group price movement. The serial correlation of 0.41 indicates that just about 41.0% of current CME price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.41 | |
| Spearman Rank Test | -0.02 | |
| Residual Average | 0.0 | |
| Price Variance | 5.26 |
CME Group lagged returns against current returns
Autocorrelation, which is CME 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 CME's stock expected returns. We can calculate the autocorrelation of CME returns to help us make a trade decision. For example, suppose you find that CME 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 |
CME 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 CME stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if CME stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in CME stock over time.
Current vs Lagged Prices |
| Timeline |
CME Lagged Returns
When evaluating CME's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of CME stock have on its future price. CME 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, CME autocorrelation shows the relationship between CME stock current value and its past values and can show if there is a momentum factor associated with investing in CME Group.
Regressed Prices |
| Timeline |
CME Investors Sentiment
The influence of CME's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in CME. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to CME's public news can be used to forecast risks associated with an investment in CME. The trend in average sentiment can be used to explain how an investor holding CME can time the market purely based on public headlines and social activities around CME Group. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
CME's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for CME's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average CME's news discussions. The higher the estimated score, the more favorable is the investor's outlook on CME.
CME Implied Volatility | 43.97 |
CME's implied volatility exposes the market's sentiment of CME Group stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if CME's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that CME stock will not fluctuate a lot when CME's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards CME in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, CME's short interest history, or implied volatility extrapolated from CME options trading.
Pair Trading with CME
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 CME 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 CME will appreciate offsetting losses from the drop in the long position's value.Moving together with CME Stock
| 0.87 | ICE | Intercontinental Exchange Financial Report 2nd of May 2024 | PairCorr |
Moving against CME Stock
| 0.71 | DHIL | Diamond Hill Investment | PairCorr |
| 0.68 | FG | FG Annuities Life Financial Report 1st of May 2024 | PairCorr |
| 0.55 | SPGI | SP Global Earnings Call This Week | PairCorr |
| 0.52 | BY | Byline Bancorp Report 25th of April 2024 | PairCorr |
| 0.43 | VALU | Value Line | PairCorr |
The ability to find closely correlated positions to CME could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CME 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 CME - 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 CME Group to buy it.
The correlation of CME 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 CME moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CME Group 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 CME 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 CME Correlation, CME Volatility and CME Alpha and Beta module to complement your research on CME. You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Complementary Tools for CME Stock analysis
When running CME's price analysis, check to measure CME's 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 CME is operating at the current time. Most of CME's value examination focuses on studying past and present price action to predict the probability of CME's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CME's price. Additionally, you may evaluate how the addition of CME to your portfolios can decrease your overall portfolio volatility.
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CME technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.