Community West Bancshares Stock Market Value
| CWBC Stock | USD 17.44 0.06 0.35% |
| Symbol | Community |
Community West Bancshares Price To Book Ratio
Is Community West'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 Community West. If investors know Community 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 Community West 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 (0.47) | Dividend Share 0.48 | Earnings Share 1.88 | Revenue Per Share 7.389 | Quarterly Revenue Growth (0.11) |
The market value of Community West Bancshares is measured differently than its book value, which is the value of Community that is recorded on the company's balance sheet. Investors also form their own opinion of Community West's value that differs from its market value or its book value, called intrinsic value, which is Community West'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 Community West's market value can be influenced by many factors that don't directly affect Community West'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 Community West's value and its price as these two are different measures arrived at by different means. Investors typically determine if Community West is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Community West'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.
Community West '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 Community West'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 Community West.
| 04/12/2024 |
| 05/12/2024 |
If you would invest 0.00 in Community West on April 12, 2024 and sell it all today you would earn a total of 0.00 from holding Community West Bancshares or generate 0.0% return on investment in Community West over 30 days. Community West is related to or competes with Home Federal, Cullman Bancorp, HMN Financial, Magyar Bancorp, First Northwest, First Financial, and First Capital. Community West Bancshares operates as the bank holding company for Community West Bank, N.A More
Community West 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 Community West'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 Community West Bancshares upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.75 | |||
| Information Ratio | 0.084 | |||
| Maximum Drawdown | 33.38 | |||
| Value At Risk | (2.09) | |||
| Potential Upside | 3.38 |
Community West Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Community West's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Community West's standard deviation. In reality, there are many statistical measures that can use Community West historical prices to predict the future Community West's volatility.| Risk Adjusted Performance | 0.0735 | |||
| Jensen Alpha | 0.3751 | |||
| Total Risk Alpha | (0.06) | |||
| Sortino Ratio | 0.1851 | |||
| Treynor Ratio | 1.33 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Community West'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.
Community West Bancshares Backtested Returns
Community West appears to be not too volatile, given 3 months investment horizon. Community West Bancshares secures Sharpe Ratio (or Efficiency) of 0.0964, which signifies that the company had a 0.0964% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Community West Bancshares, which you can use to evaluate the volatility of the firm. Please makes use of Community West's Mean Deviation of 1.56, downside deviation of 1.75, and Risk Adjusted Performance of 0.0735 to double-check if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Community West holds a performance score of 7. The firm shows a Beta (market volatility) of 0.3, which signifies not very significant fluctuations relative to the market. As returns on the market increase, Community West's returns are expected to increase less than the market. However, during the bear market, the loss of holding Community West is expected to be smaller as well. Please check Community West's jensen alpha, potential upside, accumulation distribution, as well as the relationship between the treynor ratio and expected short fall , to make a quick decision on whether Community West's price patterns will revert.
Auto-correlation | 0.23 |
Weak predictability
Community West Bancshares has weak predictability. Overlapping area represents the amount of predictability between Community West time series from 12th of April 2024 to 27th of April 2024 and 27th of April 2024 to 12th 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 Community West Bancshares price movement. The serial correlation of 0.23 indicates that over 23.0% of current Community West price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.23 | |
| Spearman Rank Test | 0.37 | |
| Residual Average | 0.0 | |
| Price Variance | 0.01 |
Community West Bancshares lagged returns against current returns
Autocorrelation, which is Community West 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 Community West's stock expected returns. We can calculate the autocorrelation of Community West returns to help us make a trade decision. For example, suppose you find that Community West 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 |
Community West 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 Community West stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Community West stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Community West stock over time.
Current vs Lagged Prices |
| Timeline |
Community West Lagged Returns
When evaluating Community West's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Community West stock have on its future price. Community West 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, Community West autocorrelation shows the relationship between Community West stock current value and its past values and can show if there is a momentum factor associated with investing in Community West Bancshares.
Regressed Prices |
| Timeline |
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 Community West 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, Community West's short interest history, or implied volatility extrapolated from Community West options trading.
Pair Trading with Community West
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 Community West 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 Community West will appreciate offsetting losses from the drop in the long position's value.Moving together with Community Stock
| 0.82 | DB | Deutsche Bank AG | PairCorr |
Moving against Community Stock
| 0.76 | EBTC | Enterprise Bancorp | PairCorr |
| 0.74 | VBNK | VersaBank Financial Report 5th of June 2024 | PairCorr |
| 0.62 | EGBN | Eagle Bancorp Financial Report 24th of July 2024 | PairCorr |
| 0.6 | EBMT | Eagle Bancorp Montana Financial Report 23rd of July 2024 | PairCorr |
| 0.59 | VABK | Virginia National | PairCorr |
The ability to find closely correlated positions to Community West could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Community West 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 Community West - 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 Community West Bancshares to buy it.
The correlation of Community West 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 Community West moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Community West Bancshares 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 Community West 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 Community West Correlation, Community West Volatility and Community West Alpha and Beta module to complement your research on Community West. Note that the Community West Bancshares information on this page should be used as a complementary analysis to other Community West'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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Complementary Tools for Community Stock analysis
When running Community West's price analysis, check to measure Community West'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 Community West is operating at the current time. Most of Community West's value examination focuses on studying past and present price action to predict the probability of Community West's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Community West's price. Additionally, you may evaluate how the addition of Community West to your portfolios can decrease your overall portfolio volatility.
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Community West 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.