Electronic Arts Stock Market Value
| EA Stock | USD 129.75 0.18 0.14% |
| Symbol | Electronic |
Electronic Arts Price To Book Ratio
Is Electronic Arts' 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 Electronic Arts. If investors know Electronic 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 Electronic Arts 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 0.466 | Dividend Share 0.76 | Earnings Share 3.96 | Revenue Per Share 28.177 | Quarterly Revenue Growth 0.034 |
The market value of Electronic Arts is measured differently than its book value, which is the value of Electronic that is recorded on the company's balance sheet. Investors also form their own opinion of Electronic Arts' value that differs from its market value or its book value, called intrinsic value, which is Electronic Arts' 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 Electronic Arts' market value can be influenced by many factors that don't directly affect Electronic Arts' 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 Electronic Arts' value and its price as these two are different measures arrived at by different means. Investors typically determine if Electronic Arts is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Electronic Arts' 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.
Electronic Arts '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 Electronic Arts' 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 Electronic Arts.
| 04/06/2024 |
| 05/06/2024 |
If you would invest 0.00 in Electronic Arts on April 6, 2024 and sell it all today you would earn a total of 0.00 from holding Electronic Arts or generate 0.0% return on investment in Electronic Arts over 30 days. Electronic Arts is related to or competes with Nintendo, Nintendo, UbiSoft Entertainment, SohuCom, Doubledown InteractiveCo, and Playstudios. Electronic Arts Inc. develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, ... More
Electronic Arts 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 Electronic Arts' 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 Electronic Arts upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.17) | |||
| Maximum Drawdown | 5.17 | |||
| Value At Risk | (1.82) | |||
| Potential Upside | 1.31 |
Electronic Arts Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Electronic Arts' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Electronic Arts' standard deviation. In reality, there are many statistical measures that can use Electronic Arts historical prices to predict the future Electronic Arts' volatility.| Risk Adjusted Performance | (0.05) | |||
| Jensen Alpha | (0.14) | |||
| Total Risk Alpha | (0.20) | |||
| Treynor Ratio | (0.15) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Electronic Arts' 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.
Electronic Arts Backtested Returns
Electronic Arts secures Sharpe Ratio (or Efficiency) of -0.0622, which denotes the company had a -0.0622% return per unit of risk over the last 3 months. Electronic Arts exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Electronic Arts' Mean Deviation of 0.7714, variance of 0.9587, and Standard Deviation of 0.9792 to check the risk estimate we provide. The firm shows a Beta (market volatility) of 0.65, which means possible diversification benefits within a given portfolio. As returns on the market increase, Electronic Arts' returns are expected to increase less than the market. However, during the bear market, the loss of holding Electronic Arts is expected to be smaller as well. Electronic Arts has an expected return of -0.0612%. Please make sure to confirm Electronic Arts standard deviation, maximum drawdown, kurtosis, as well as the relationship between the total risk alpha and potential upside , to decide if Electronic Arts performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.45 |
Modest reverse predictability
Electronic Arts has modest reverse predictability. Overlapping area represents the amount of predictability between Electronic Arts time series from 6th of April 2024 to 21st of April 2024 and 21st of April 2024 to 6th of May 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 Electronic Arts price movement. The serial correlation of -0.45 indicates that just about 45.0% of current Electronic Arts price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.45 | |
| Spearman Rank Test | -0.6 | |
| Residual Average | 0.0 | |
| Price Variance | 0.84 |
Electronic Arts lagged returns against current returns
Autocorrelation, which is Electronic Arts 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 Electronic Arts' stock expected returns. We can calculate the autocorrelation of Electronic Arts returns to help us make a trade decision. For example, suppose you find that Electronic Arts 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 |
Electronic Arts 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 Electronic Arts stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Electronic Arts stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Electronic Arts stock over time.
Current vs Lagged Prices |
| Timeline |
Electronic Arts Lagged Returns
When evaluating Electronic Arts' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Electronic Arts stock have on its future price. Electronic Arts 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, Electronic Arts autocorrelation shows the relationship between Electronic Arts stock current value and its past values and can show if there is a momentum factor associated with investing in Electronic Arts.
Regressed Prices |
| Timeline |
Electronic Arts Investors Sentiment
The influence of Electronic Arts' 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 Electronic. 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 Electronic Arts' public news can be used to forecast risks associated with an investment in Electronic. The trend in average sentiment can be used to explain how an investor holding Electronic can time the market purely based on public headlines and social activities around Electronic Arts. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Electronic Arts' 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 Electronic Arts' 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 Electronic Arts' news discussions. The higher the estimated score, the more favorable is the investor's outlook on Electronic Arts.
Electronic Arts Implied Volatility | 54.32 |
Electronic Arts' implied volatility exposes the market's sentiment of Electronic Arts stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Electronic Arts' 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 Electronic Arts stock will not fluctuate a lot when Electronic Arts' 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 Electronic Arts 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, Electronic Arts' short interest history, or implied volatility extrapolated from Electronic Arts options trading.
Pair Trading with Electronic Arts
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 Electronic Arts 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 Electronic Arts will appreciate offsetting losses from the drop in the long position's value.Moving together with Electronic Stock
| 0.81 | GDEVW | GDEV INC | PairCorr |
| 0.92 | GDC | GD Culture Group | PairCorr |
Moving against Electronic Stock
| 0.85 | SOHU | SohuCom Financial Report 20th of May 2024 | PairCorr |
| 0.77 | IQ | iQIYI Inc Sell-off Trend | PairCorr |
| 0.73 | CURIW | CuriosityStream | PairCorr |
| 0.61 | BILI | Bilibili Financial Report 6th of June 2024 | PairCorr |
| 0.51 | BRAG | Bragg Gaming Group Financial Report 8th of May 2024 | PairCorr |
The ability to find closely correlated positions to Electronic Arts could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Electronic Arts 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 Electronic Arts - 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 Electronic Arts to buy it.
The correlation of Electronic Arts 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 Electronic Arts moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Electronic Arts 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 Electronic Arts 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 Electronic Arts Correlation, Electronic Arts Volatility and Electronic Arts Alpha and Beta module to complement your research on Electronic Arts. For information on how to trade Electronic Stock refer to our How to Trade Electronic Stock guide.Note that the Electronic Arts information on this page should be used as a complementary analysis to other Electronic Arts' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Complementary Tools for Electronic Stock analysis
When running Electronic Arts' price analysis, check to measure Electronic Arts' 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 Electronic Arts is operating at the current time. Most of Electronic Arts' value examination focuses on studying past and present price action to predict the probability of Electronic Arts' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Electronic Arts' price. Additionally, you may evaluate how the addition of Electronic Arts to your portfolios can decrease your overall portfolio volatility.
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Electronic Arts 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.