New Oriental Education Stock Market Value
| EDU Stock | USD 89.59 1.69 1.92% |
| Symbol | New |
New Oriental Education Price To Book Ratio
Is New Oriental'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 New Oriental. If investors know New 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 New Oriental 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 1.577 | Earnings Share 1.8 | Revenue Per Share 21.628 | Quarterly Revenue Growth 0.363 | Return On Assets 0.0324 |
The market value of New Oriental Education is measured differently than its book value, which is the value of New that is recorded on the company's balance sheet. Investors also form their own opinion of New Oriental's value that differs from its market value or its book value, called intrinsic value, which is New Oriental'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 New Oriental's market value can be influenced by many factors that don't directly affect New Oriental'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 New Oriental's value and its price as these two are different measures arrived at by different means. Investors typically determine if New Oriental is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, New Oriental'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.
New Oriental '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 New Oriental'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 New Oriental.
| 03/25/2024 |
| 04/24/2024 |
If you would invest 0.00 in New Oriental on March 25, 2024 and sell it all today you would earn a total of 0.00 from holding New Oriental Education or generate 0.0% return on investment in New Oriental over 30 days. New Oriental is related to or competes with Gaotu Techedu, 17 Education, Chegg, Elite Education, Youdao, TAL Education, and Strategic Education. New Oriental Education Technology Group Inc More
New Oriental 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 New Oriental'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 New Oriental Education upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 2.35 | |||
| Information Ratio | 0.0786 | |||
| Maximum Drawdown | 11.47 | |||
| Value At Risk | (3.09) | |||
| Potential Upside | 5.79 |
New Oriental Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for New Oriental's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as New Oriental's standard deviation. In reality, there are many statistical measures that can use New Oriental historical prices to predict the future New Oriental's volatility.| Risk Adjusted Performance | 0.0773 | |||
| Jensen Alpha | 0.2006 | |||
| Total Risk Alpha | (0.05) | |||
| Sortino Ratio | 0.0864 | |||
| Treynor Ratio | 0.2748 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of New Oriental'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.
New Oriental Education Backtested Returns
We consider New Oriental very steady. New Oriental Education has Sharpe Ratio of 0.0818, which conveys that the firm had a 0.0818% return per unit of risk over the last 3 months. We have found twenty-eight technical indicators for New Oriental, which you can use to evaluate the volatility of the firm. Please verify New Oriental's Risk Adjusted Performance of 0.0773, mean deviation of 2.0, and Downside Deviation of 2.35 to check out if the risk estimate we provide is consistent with the expected return of 0.19%. New Oriental has a performance score of 6 on a scale of 0 to 100. The company secures a Beta (Market Risk) of 1.03, which conveys a somewhat significant risk relative to the market. New Oriental returns are very sensitive to returns on the market. As the market goes up or down, New Oriental is expected to follow. New Oriental Education right now secures a risk of 2.29%. Please verify New Oriental Education potential upside, as well as the relationship between the kurtosis and day typical price , to decide if New Oriental Education will be following its current price movements.
Auto-correlation | -0.54 |
Good reverse predictability
New Oriental Education has good reverse predictability. Overlapping area represents the amount of predictability between New Oriental time series from 25th of March 2024 to 9th of April 2024 and 9th of April 2024 to 24th 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 New Oriental Education price movement. The serial correlation of -0.54 indicates that about 54.0% of current New Oriental price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.54 | |
| Spearman Rank Test | 0.0 | |
| Residual Average | 0.0 | |
| Price Variance | 2.69 |
New Oriental Education lagged returns against current returns
Autocorrelation, which is New Oriental 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 New Oriental's stock expected returns. We can calculate the autocorrelation of New Oriental returns to help us make a trade decision. For example, suppose you find that New Oriental 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 |
New Oriental 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 New Oriental stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if New Oriental stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in New Oriental stock over time.
Current vs Lagged Prices |
| Timeline |
New Oriental Lagged Returns
When evaluating New Oriental's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of New Oriental stock have on its future price. New Oriental 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, New Oriental autocorrelation shows the relationship between New Oriental stock current value and its past values and can show if there is a momentum factor associated with investing in New Oriental Education.
Regressed Prices |
| Timeline |
New Oriental Investors Sentiment
The influence of New Oriental'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 New. 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 New Oriental's public news can be used to forecast risks associated with an investment in New. The trend in average sentiment can be used to explain how an investor holding New can time the market purely based on public headlines and social activities around New Oriental Education. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
New Oriental'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 New Oriental'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 New Oriental's news discussions. The higher the estimated score, the more favorable is the investor's outlook on New Oriental.
New Oriental Implied Volatility | 130.48 |
New Oriental's implied volatility exposes the market's sentiment of New Oriental Education stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if New Oriental'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 New Oriental stock will not fluctuate a lot when New Oriental'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 New Oriental 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, New Oriental's short interest history, or implied volatility extrapolated from New Oriental options trading.
Pair Trading with New Oriental
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 New Oriental 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 New Oriental will appreciate offsetting losses from the drop in the long position's value.Moving against New Stock
| 0.72 | ZVOI | Zovio Inc | PairCorr |
| 0.7 | EEIQ | Elite Education Group | PairCorr |
| 0.69 | IH | IhumanInc | PairCorr |
| 0.67 | BTCTW | BTC Digital Symbol Change | PairCorr |
| 0.64 | COE | 51Talk Online Education Earnings Call Today | PairCorr |
The ability to find closely correlated positions to New Oriental could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace New Oriental 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 New Oriental - 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 New Oriental Education to buy it.
The correlation of New Oriental 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 New Oriental moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if New Oriental Education 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 New Oriental 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 New Oriental Correlation, New Oriental Volatility and New Oriental Alpha and Beta module to complement your research on New Oriental. Note that the New Oriental Education information on this page should be used as a complementary analysis to other New Oriental's 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Complementary Tools for New Stock analysis
When running New Oriental's price analysis, check to measure New Oriental'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 New Oriental is operating at the current time. Most of New Oriental's value examination focuses on studying past and present price action to predict the probability of New Oriental's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move New Oriental's price. Additionally, you may evaluate how the addition of New Oriental to your portfolios can decrease your overall portfolio volatility.
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| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
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| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |
New Oriental 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.