Westpac Banking (Australia) Probability of Future Preferred Stock Price Finishing Under 100.85
| WBCPH Preferred Stock | 102.50 0.41 0.40% |
Westpac |
Westpac Banking Target Price Odds to finish below 100.85
The tendency of Westpac Preferred Stock price to converge on an average value over time is a known aspect in finance that investors have used since the beginning of the stock market for forecasting. However, many studies suggest that some traded equity instruments are consistently mispriced before traders' demand and supply correct the spread. One possible conclusion to this anomaly is that these stocks have additional risk, for which investors demand compensation in the form of extra returns.
| Current Price | Horizon | Target Price | Odds to drop to 100.85 or more in 90 days |
| 102.50 | 90 days | 100.85 | near 1 |
Based on a normal probability distribution, the odds of Westpac Banking to drop to 100.85 or more in 90 days from now is near 1 (This Westpac Banking Corp probability density function shows the probability of Westpac Preferred Stock to fall within a particular range of prices over 90 days) . Probability of Westpac Banking Corp price to stay between 100.85 and its current price of 102.5 at the end of the 90-day period is about 90.14 .
Assuming the 90 days trading horizon Westpac Banking has a beta of 0.0721. This entails as returns on the market go up, Westpac Banking average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Westpac Banking Corp will be expected to be much smaller as well. Additionally Westpac Banking Corp has an alpha of 0.013, implying that it can generate a 0.013 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Westpac Banking Price Density |
| Price |
Predictive Modules for Westpac Banking
There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Westpac Banking Corp. Regardless of method or technology, however, to accurately forecast the preferred stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the preferred stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Westpac Banking'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.
Westpac Banking Risk Indicators
For the most part, the last 10-20 years have been a very volatile time for the stock market. Westpac Banking is not an exception. The market had few large corrections towards the Westpac Banking's value, including both sudden drops in prices as well as massive rallies. These swings have made and broken many portfolios. An investor can limit the violent swings in their portfolio by implementing a hedging strategy designed to limit downside losses. If you hold Westpac Banking Corp, one way to have your portfolio be protected is to always look up for changing volatility and market elasticity of Westpac Banking within the framework of very fundamental risk indicators.α | Alpha over Dow Jones | 0.01 | |
β | Beta against Dow Jones | 0.07 | |
σ | Overall volatility | 0.43 | |
Ir | Information ratio | 0.09 |
Westpac Banking Price Density Drivers
Market volatility will typically increase when nervous long traders begin to feel the short-sellers pressure to drive the market lower. The future price of Westpac Preferred Stock often depends not only on the future outlook of the current and potential Westpac Banking's investors but also on the ongoing dynamics between investors with different trading styles. Because the market risk indicators may have small false signals, it is better to identify suitable times to hedge a portfolio using different long/short signals. Westpac Banking's indicators that are reflective of the short sentiment are summarized in the table below.
| Common Stock Shares Outstanding | 3.5 B |
Westpac Banking Technical Analysis
Westpac Banking's future price can be derived by breaking down and analyzing its technical indicators over time. Westpac Preferred Stock technical analysis helps investors analyze different prices and returns patterns as well as diagnose historical swings to determine the real value of Westpac Banking Corp. In general, you should focus on analyzing Westpac Preferred Stock price patterns and their correlations with different microeconomic environments and drivers.
Westpac Banking Predictive Forecast Models
Westpac Banking's time-series forecasting models is one of many Westpac Banking's preferred stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models are widely used for non-stationary data. Non-stationary data are called the data whose statistical properties, e.g., the mean and standard deviation, are not constant over time, but instead, these metrics vary over time. This non-stationary Westpac Banking's historical data is usually called time series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the preferred stock market movement and maximize returns from investment trading.
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 Westpac Banking 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, Westpac Banking's short interest history, or implied volatility extrapolated from Westpac Banking options trading.
Other Information on Investing in Westpac Preferred Stock
Westpac Banking financial ratios help investors to determine whether Westpac Preferred 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 Westpac with respect to the benefits of owning Westpac Banking security.