Radian Group Stock Market Value
| RDN Stock | USD 35.54 0.35 0.99% |
| Symbol | Radian |
Radian Group Price To Book Ratio
Is Commercial & Residential Mortgage Finance space 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 Radian. If investors know Radian 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 Radian 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 0.01 | Dividend Share 0.96 | Earnings Share 3.86 | Revenue Per Share 8.473 | Quarterly Revenue Growth 0.068 |
The market value of Radian Group is measured differently than its book value, which is the value of Radian that is recorded on the company's balance sheet. Investors also form their own opinion of Radian's value that differs from its market value or its book value, called intrinsic value, which is Radian'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 Radian's market value can be influenced by many factors that don't directly affect Radian'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 Radian's value and its price as these two are different measures arrived at by different means. Investors typically determine if Radian is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Radian'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.
Radian '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 Radian'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 Radian.
| 10/30/2024 |
| 11/29/2024 |
If you would invest 0.00 in Radian on October 30, 2024 and sell it all today you would earn a total of 0.00 from holding Radian Group or generate 0.0% return on investment in Radian over 30 days. Radian is related to or competes with MBIA, NMI Holdings, Essent, Employers Holdings, James River, ICC Holdings, and Ambac Financial. Radian Group Inc., together with its subsidiaries, engages in the mortgage and real estate services business in the Unit... More
Radian 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 Radian'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 Radian Group upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 2.3 | |||
| Information Ratio | (0.05) | |||
| Maximum Drawdown | 11.88 | |||
| Value At Risk | (2.26) | |||
| Potential Upside | 2.35 |
Radian Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Radian's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Radian's standard deviation. In reality, there are many statistical measures that can use Radian historical prices to predict the future Radian's volatility.| Risk Adjusted Performance | 0.0152 | |||
| Jensen Alpha | (0.11) | |||
| Total Risk Alpha | (0.28) | |||
| Sortino Ratio | (0.04) | |||
| Treynor Ratio | 0.0124 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Radian'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.
Radian Group Backtested Returns
As of now, Radian Stock is very steady. Radian Group maintains Sharpe Ratio (i.e., Efficiency) of 0.0126, which implies the firm had a 0.0126% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Radian Group, which you can use to evaluate the volatility of the company. Please check Radian's Risk Adjusted Performance of 0.0152, coefficient of variation of 8392.17, and Semi Deviation of 2.25 to confirm if the risk estimate we provide is consistent with the expected return of 0.0249%. The company holds a Beta of 1.06, which implies a somewhat significant risk relative to the market. Radian returns are very sensitive to returns on the market. As the market goes up or down, Radian is expected to follow. Radian Group right now holds a risk of 1.98%. Please check Radian Group potential upside, and the relationship between the total risk alpha and kurtosis , to decide if Radian Group will be following its historical price patterns.
Auto-correlation | 0.49 |
Average predictability
Radian Group has average predictability. Overlapping area represents the amount of predictability between Radian time series from 30th of October 2024 to 14th of November 2024 and 14th of November 2024 to 29th of November 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 Radian Group price movement. The serial correlation of 0.49 indicates that about 49.0% of current Radian price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.49 | |
| Spearman Rank Test | -0.4 | |
| Residual Average | 0.0 | |
| Price Variance | 0.62 |
Radian Group lagged returns against current returns
Autocorrelation, which is Radian 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 Radian's stock expected returns. We can calculate the autocorrelation of Radian returns to help us make a trade decision. For example, suppose you find that Radian 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 |
Radian 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 Radian stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Radian stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Radian stock over time.
Current vs Lagged Prices |
| Timeline |
Radian Lagged Returns
When evaluating Radian's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Radian stock have on its future price. Radian 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, Radian autocorrelation shows the relationship between Radian stock current value and its past values and can show if there is a momentum factor associated with investing in Radian Group.
Regressed Prices |
| Timeline |
Pair Trading with Radian
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 Radian 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 Radian will appreciate offsetting losses from the drop in the long position's value.Moving together with Radian Stock
Moving against Radian Stock
The ability to find closely correlated positions to Radian could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Radian 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 Radian - 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 Radian Group to buy it.
The correlation of Radian 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 Radian moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Radian 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 Radian 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 Radian Correlation, Radian Volatility and Radian Alpha and Beta module to complement your research on Radian. You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Radian 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.